NORTH OF $US200/T - BURNT OUT Jobs lost. Nth Goonyella shelved - Shift Miner
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Shift Miner Magazine www.shiftminer.com News
NOVEMBER 2019 Edition 214
NORTH OF
$US200/T
FORECAST BOOM PRICES FOR NEXT 2YEARS
BURNT OUT
Jobs lost. Nth Goonyella shelved
BED DEMAND
BMA locked in rooms for 2 years
IN THE DARK
12 years on and still no proximity detection
November 2019 1
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Shift Miner Magazine www.shiftminer.com News
CONTENTS
NEWS
04 P EABODY ABANDONS
NTH GOONYELLA
07 C URRAGH PAYS FOR ITSELF
08 R ACE ON FOR OLIVE DOWNS
10 MINERS CARERS LEAVE IN COURT
REGULARS
20 F RANK THE TANK
20 MAD MUMZIE
25 M INERS TRADER
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November 2019 3
Shift Miner Magazine www.shiftminer.com News
North Goonyella shelved
of our people as possible to our other to the time, cost and required
Australian mines, and we commit regulatory approach to ventilate
to working closely with unions, and re-enter the rest of the mine,
industry groups and other mining the company will not pursue
companies to find jobs for our team attempts to access the 10 North
in what is, thankfully, a healthy jobs Panel through existing mine
market for mine workers.” workings,” they said.
Just two months ago Peabody “Instead, the company has
was optimistic about restarting identified a preferred path to create
North Goonyella after re- value from the substantial North
ventilation of part of the mine Goonyella reserve base by mining
allowed them to send people the southern panels, beginning
underground to make a physical with the 6 South panel.
evaluation. However, what they “Peabody’s preferred path
have seen would appear to have would include ventilation of
removed that optimism. Zone B in the current mine
It’s hard to know the final configuration, with an approach
cost of the mine fire given it’s of utilizing boreholes from the
stopped coal production at one of surface. Incremental spending
Peabody’s flagship mines, used for ventilation is contingent on
substantial internal resources, and obtaining pre-approval from the
cost at least $125 million in lost Queensland Mine Inspectorate, and
machinery and recovery costs (this that process is currently underway.
last part covered by insurance). “Following planned ventilation,
Peabody has abandoned its plans “I want to take this opportunity However, for Peabody, the biggest the company intends to re-enter
for 20 million tonnes of coal in to thank each and every one of cost is the inability to mine the vast Zone B and assess conditions with
2020 from North Goonyella mine. our North Goonyella team and and valuable coking coal resources a target of developing the southern
A little over 12 months after their families for their hard work, within the North Goonyella mining panels that contain approximately
a fire broke out underground, dedication and loyalty over the lease. 20 million tons of high-quality,
they have decided it’s too hard past year in helping us try to They are now developing a hard coking coal.”
and expensive to restart existing get this great mine back into new plan to access it from another Assuming successful
operations, meaning the end of production,” Peabody’s Australian direction. ventilation and re-entry of Zone B,
the road for those employees Operations President Marc “After a detailed review and Peabody estimates they will need
remaining of the once 250-strong Hathhorn said. assessment of North Goonyella, to spend $50 to $75 million with
workforce. “We will try to redeploy as many Peabody has determined that due work to begin soon.
Qcoal’s $90m Bounty Danger in the dark
The Chris Wallin controlled requirement that Bounty ends A report out recently on a collision In May, significant progress
QCoal has snatched victory from every quarter with at least $1 between a haul truck and bulldozer was made when BMA became
the jaws of defeat in the battle million in cash available, and on a NSW coal mine has led to the first Australian coal mine to
for Bounty mining and its assets generates $40 to $50 million in renewed calls for proximity detection trial proximity detection at its
around Blackwater. revenue each year. Qcoal will also devices to be made mandatory. Broadmeadow underground coal
Bounty mining confirmed take all of Bounty’s coal from Fortunately, no one was injured mine. Despite reporting impressive
that it had signed an agreement 2021 when the existing off-take in the NSW incident, but for decades early results, BMA has not responded
with Qcoal to refinance Bounty agreement with Bernie Thrasher’s there have been deaths and serious to repeated attempts by Shift Miner
to the tune of $A90 million. Xcoal finishes. injury caused by vehicle collisions in to find out any further findings or
Bounty will use the money to In announcing the decision, Australian mining. consequences of the trial.
pay off debts owed to companies Bounty chair Rob Stewart said In 2007, 33-year-old Jason In the BMA trial, there are two
controlled by US mining they can now concentrate on the Blee died when he was crushed parts to the system, a magnetic field
veteran Bernie Thrasher and core business of mining. underground between a wall and generator on the machine, and a pad
paying out Glencore who were “Shareholders made their a shuttle car at Anglo’s Moranbah which is added to cap lamps. Each
the former owners of Bounty’s wishes clear at the General North mine. That same year two element creates a magnetic bubble
only operating asset the Cook Meeting on 30 September, and the miners were seriously injured during around it that detects when another
Colliery. Money will also be made board has worked hard to bring a similar shuttle car accident at magnetic bubble is close.
available to provide working the proposal received from QCoal Peabody’s North Goonyella mine. The system works like reversing
capital for ongoing mining into a form that would meet the Following a coronial inquiry into camera’s on car’s, in that the alarm
operations there. company’s needs,” he said. Mr Blee’s death, the Coroner handed escalates as the danger increases.
In return for stumping up “We thank our advisers, down 18 recommendations, one of Underground, both the pedestrian
the cash, Qcoal will charge QCoal, and also Amaroo and which was that Proximity Detection and the operator of the vehicle first
interest of between 8 and 13% Glencore for their support and should be fast-tracked across get an alert and flashing warning
and has taken first ranking assistance as we have progressed Queensland mining. when they are detected. When the
security over everything of value to conclude this agreement. Twelve years on and there has system senses someone in a critically
within Bounty and has set some “Bounty is now able to move been very little progress on doing dangerous position, the warning
performance indicators that must forward with confidence and this, despite advances in technology escalates causing the machine to trip
be met for the line of credit to focus its energies on realising the and their widespread use in the USA and stop.
remain open. These include the potential of our coal deposits.” for over ten years.
4 November 2019
Shift Miner Magazine www.shiftminer.com News
North of $200/t intrinsically linked to the
emerging Asia urbanisation
sell in a decarbonising world,
particularly to an increasingly
growth thematic. What’s more, environmentally conscious and
the intrinsic nature of China’s proactive investor base,” Deloitte
coal industry is playing a role. said.
“High domestic coal prices in “The diversified global miners
China and the superior product recognise this, divesting coal
quality of seaborne coal products assets, imposing production
open the door to imports. limits and in some cases, exiting
“The consensus view is for coal altogether as a business.
premium coking coal prices to “While Asia still consumes
trade north of US$200/t in 2020 significant volumes of coal,
and 2021.” structural headwinds are facing
Longer-term Deloitte is thermal coal demand in the wake
less optimistic about coking of national clean air policies
coal saying that countries like and the transition to low carbon
China will require less steel and energy sources.
Accounting and research firm significant windfall. that current high prices have “Coal is still the largest
Deloitte says consensus forecasts According to Deloitte, the stimulated new investment in global fuel source, but it is
for coking coal prices over the predictions reflect both the coking coal mines, giving the unambiguously
next two years will be “north of superior quality of Queensland supply shortages argument for losing market share.
US$200/t” which is around 25% coal and continued urban growth coking coal less “currency”. “There is also less near-term
higher then they are now. in Asia. It’s a different story altogether price support from the market
The estimates are significantly “As a key ingredient in the for thermal coal, with spot prices ‘fundamentals’. Increased
higher than the 2019 Queensland manufacture of crude steel, having been in steep decline for seaborne supply volumes together
Government predictions of coking coal does not have the the past 12 months, weighed with indicators of weak demand
US$140/t in 2020 and US$130/t same structural headwinds facing down by excess supply and weak (especially China) suggest
in 2021, suggesting the state energy coal,” they said. demand. thermal coal prices will struggle
and industry could be in for a “This is a coal product “Thermal coal is a tough over the next 12 months.”
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November 2019 5
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No driverless at Dawson Dawson Mine at this time,” a introduce automation, there will
spokesperson for Anglo said. be fewer jobs,” District president
“In the future, this decision Stephen Smyth said.
will be revisited as we look to “We welcome the way Anglo
replace the fleet in a few years. went about this process, they
“While the study found that engaged the union early on,
autonomous haulage systems do did a feasibility study and then
present opportunities to improve discussed it with us.
truck fleet performance, we will “It’s really important [mining
be prioritising other measures companies] do economic impact
to achieve safer and more statements before they introduce
productive operations at Dawson autonomous haulage, and get
mine.” the views of the community and
Further north at BMA’s workers about it.”
Goonyella Riverside mine the first Anglo produced 21.8 million
driverless haul truck is expected tonnes of coking coal from its
to arrive shortly as part of BMA’s Australian mines in 2018, up
transformation program which from 19.6 million tonnes in 2017.
will see the gradual deployment When coal prices collapsed in
of autonomous trucks at the years before 2016, Anglo
Anglo American has deferred However, after considering Australian coal and iron ore sites. announced it was exiting the coal
the roll-out of autonomous haul their options, they have decided The use of driverless trucks business and was in discussions
trucks at its Dawson mining to overhaul the current fleet has significant implications for with several parties - including
complex near Moura, after a and will revisit the driverless truck drivers and mining union BMA - about selling their
three-month feasibility study. technology sometime in the the CFMMEU told local media Dawson, Moranbah North and
In June Anglo flagged the future. they hoped they would be part Grosvenor mines.
possibility of replacing the “The decision has been of the discussion about their However, they canned that
existing fleet of 23 human- taken to overhaul the existing implementation. idea after prices rallied in the
operated trucks to deliver fleet, rather than purchase new “You don’t have to be a rocket second half of 2016 and now plan
significant productivity gains. trucks and implement AHS at scientist to understand if you to reinvest in the business.
Mine pays for itself in a year
Despite forecasting a fall of demand modestly increases.
$US50 million in earnings this While Curragh mine at
financial year, the operators of Blackwater is just one of their My workmates have got my
the Curragh mine are pushing
ahead with a new mine plan
operations, it’s proved to be a
valuable one. Since buying it
back and I’ve got theirs.
and investigating a significant from Wesfarmers for $537 million Craig Burnett Apprentice Electrician
expansion north. in March last year, the mine has
Blaming a slowing world generated earnings (EBITDA) of Challenging
economy, Managing Director $586 million, off the back of high Safe
Gerry Spindler said while they coking coal prices, and a near
had prepared for fuel prices going 10% improvement in strip ratios Keep Together
up, there was nothing they could and dragline productivity.
do about the softer coal prices. Building on this, Coronado It Real
“We can control most things has now committed $100 On
in our business, but we cannot million to increase the Curragh
control global market pricing for wash plant capacity, reducing
metallurgical coal,” he said.
“The recent fall in spot prices,
bottlenecks on the rail load-out
facility, and developing two
Team players wanted.
if sustained, is likely to impact new box cut mining operations Mastermyne has vacancies at our Moranbah
EBITDA adversely. which they hope will increase underground coal operations, from experienced
“In the short term, we see the production to 15 mtpa.
possibility of prices remaining at Not content with that, miners to statutory supervisor roles.
lower levels, with the potential Coronado is also undertaking a Turn up for the team and we’ll turn up for you.
for further deterioration in light feasibility study into developing
of the uncertainties and weakness a mining lease immediately north
Our secure, well-paid careers come with a long
in the global macro-economic of their current operations. The list of lifestyle benefits and all the support you
environment.” plan would be to establish a new need to reach your full potential.
However, longer-term the pit in an area known as MDL 162
company is predicting good times and then integrate it into their Find out more at jobs.mastermyne.com.au
for anyone able to supply high- existing operations.
quality coking coal. According The development area is
to their research, 40 Mtpa of outside the area committed to the
new coal capacity is going to be Stanwell Power station so would
required in the next decade as not attract the Stanwell royalty.
existing coal supplies run out and
November 2019 7
Shift Miner Magazine www.shiftminer.com News
Bid collapses, MD steps down
Stanmore said. develop the nearby Isaac Downs
“Winfield Energy has now pit roughly 10 kilometres away
terminated the Process Deed from current operations.
entered into on 12 August 2019.” “Phase 1 exploration and coal
The stepping down of Mr quality drilling commenced in
Clifford comes after Golden 2019 and has been completed,”
Investments used its power to Stanmore said.
demand an extraordinary general
meeting of Stanmore’s board “Assessment of the final
during last month, during which coal quality laboratory analysis
they sought the removal of the
Chairman Stuart Butel and Mr has commenced increasing the
Clifford. knowledge of the coal resource
It was the third time
to enhance a bankable feasibility
Singaporean based Golden
Investments had tried to remove study.
the two executives in the period
since they launched a takeover “Infrastructure designs have
bid late last year which netted been undertaken on the three
them roughly 25% of the major components….and an
company they have today. expression of interest for the
Winfield Energy has abandoned months. However, it appears Current General manager of provision of construction services
its unsolicited $442 million Golden Investment will prevail Development at Stanmore Jon has been completed.
takeover of Stanmore Coal, and after Winfield telling Stanmore Romcke will now step into the “11 construction companies
Stanmore’s Managing Director on Thursday it was no longer role of acting CEO. That might have responded, and an
Dan Clifford has resigned ending interested. be a good background given assessment is underway.”
a tumultuous week for the “Winfield Energy advised it Stanmore’s major development Stanmore says it averaged
company. has not been able to engage with plans. US$122/t for its coal in the three
Winfield and Singaporean key shareholders of Stanmore Having made record sales months to September, while FOB
based Golden Investments to satisfy itself there would be of around 722 thousand tonnes costs excluding royalties were
have been battling for control a reasonable prospect that a bid in the last quarter, Stanmore is $101/t sold.
of Stanmore over the last two would be successful if made,” pushing ahead as fast as it can to
Race to meet deadlines
Pembroke Resources will year. jobs can commence,” he said. In September last year, the
now focus on getting Federal Pembroke was recently “The grant of the EA Olive Downs Draft Environmental
Government environmental granted an Environmental represents the most important Impact Statement (EIS) was
approvals and a Mining Lease as Authority (EA) by the State milestone for the project so far released for public opinion,
they race to meet the deadlines Government which CEO Barry and provides a clear pathway and in April the company spent
they set for themselves earlier Tudor says is a significant towards the commencement of millions of dollars acquiring
this year. milestone in the development of construction and first coal.” 41,000 ha of prime cattle country
Pembroke has said previously the mine. The Olive Downs mine is around Moranbah which covered
it wants the Olive Downs Coal “The company now looks expected to be an open-cut truck the mine.
Handling and Preparation Plant forward to receiving Federal and shovel operation generating In January Pembroke struck
(CHPP) built by early 2020, by Government approval under the around 600 construction, and a deal with CIMIC owned
which time it hopes to have Environment Protection and nearly a 1000 operational jobs. At companies CPB Contracting and
reached the stage one milestone Biodiversity Conservation Act full production, it would produce Sedgeman for the development
of mining around 6 million and to the granting of its Mining 15 million tonnes of coking coal of a $184 million Coal Handling
tonnes (ROM) of coking coal a Leases so that construction and (ROM) a year for 37 years. and Preparation Plant (CHHP).
8 November 2019
Shift Miner Magazine www.shiftminer.com News
Stepping up at Kestrel $200 million
over two years
and it’s probably where it will be
for a little while now. Downer EDI Limited (Downer)
“We will look again at has won a two-year extension
whether we can step it up again to its pre-strip overburden
in a couple of years.” removal contract at the BMA
Central to KCR’s ambitions owned Goonyella Riverside
are the coal market and its coal mine.
relationship with the nearby The agreement provides
Emerald community, from where for $200 million worth of
it draws 87% of its workforce. work for two years with the
Mr Smith has a realistic view of possibility of a three-year
both. extension after that.
“Like everyone else, Downer has been
sometimes we struggle to get the providing the same service
right people, but about 87% of at Goonyella since 2016, and
our workforce lives in Emerald,” Downer CEO Grant Fenn is
The new owners of the Kestrel “The business is delivering he said. pleased the relationship will
coal mine near Emerald say they what it was expected to deliver,” “We are very happy with that continue.
have successfully stepped up he said. relationship, and I think our “Downer has been
production a year after buying it “We are definitely the owners people like the opportunity to working closely with BMA
from Rio Tinto. and operators of the business, come to work every day and go at a number of mine sites
Kestrel Coal Resources’s (KCR) and the past is history, so yeah home at night, so it’s mutually for many years, and we look
parent syndicate EMR Capital and I think we are through the beneficial. forward to continuing to
PT Adaro Energy bought the mine transition now. “The metallurgical coal provide safe and productive
from Rio Tinto for $2.25 billion “We set about expanding market is soft at the moment. services at the Goonyella
in 2018, announcing at the time production from the moment we “But it always is this time of year Riverside coal mine,” he said.
that they intended to expand started, and we have established because the Indians get out of the In August Downer
operations significantly. a different level of production market due to the monsoon. announced it had hired
Current KCR CEO, Peter Smith, capacity. “It’s not until they come back Macquarie Capital to consider
was one of the original managers “We are running at around into the market that you actually options for selling its mining
of Kestrel when it was established 9 million tonnes ROM coal and see where the market sits. services business, having
in the early 1990s by ARCO and seven million tonnes sold, so “We really need to see where already received expressions
a year into the role he says the that’s a significant step up on it is around the end of the year of interest from parties keen
transition has been successful. where it was when we bought it, when everyone is in full swing.” to buy it.
Rolleston gas wells through 360 metres of coal, at
Bush poetry tradition continues
a depth of 230 metres in the Division 8 Councillor Geoff
area and received an initial Bethel, who officially opened
independently certified reserve the event, said Nebo was a
statement for the Mahalo block. It breeding ground for poetic
included 22 Petajoules of proven talent.
and probable reserves (2P), 124 “This wonderful community
Petajoules of proven, probable event once again served up
and possible (3P) reserves and a great entertainment, good
further 468 petajoules in the less company and delicious food
dependable contingent reserves prepared by the Nebo-Sarina
category. Range Country Women’s
While the Mahalo referral Association,” Cr Bethel said.
Australian Pacific LNG (APLNG) submitted this week is only for “It was heart-warming to hear
has lodged paperwork with the area described above, they Dan share poems written by
the Federal Government for have requested it be considered Laughter, applause and music our own Nebo State School
the sinking of around 100 gas part of a broader split referral echoed across the Historic students. “The highlight for
wells, the development of gas application for more extensive Nebo Museum during the 18th me was the poem Tiny Nebo, a
processing infrastructure, and the gas exploration in the future. annual Bush Poet’s Smoko collaboration between grade 5
construction of other facilities However, they said it could be recently, with more than 50 and 6 students and Dan.”
including a mining camp 40 years or even decades before this locals and visitors paying Visiting Mackay-based poet
kilometres north of Rolleston. other work was done. tribute to the history and Graham Ware had the crowd
The application is for work The application is the latest humour in Australian bush in stitches with his rousing
in the Mahalo Development area sign that the Bowen Basin will poetry. rendition of Murray Hartin’s
which APLNG operates on behalf become the new frontier for Dan Lockyer kicked off the bush classic Turbulence, while
of a Joint venture comprising upstream CSG development in day with an original poem Bruce Johnston’s ode to Stan
explorer Comet Ridge Ltd, Santos the future. Both Arrow Energy honouring the late Tom Oliver Coster and Mary Stuart’s
and APLNG. and Santos are also working on and other local poets who recitation of Henry Kendall’s
In 2014, Comet Ridge and Bowen Basin gas projects which began the Isaac Regional classic The Women of the West
its joint venture partners have in the past thought could Council Nebo Bush Poet’s brought tears to the eyes of
successfully horizontally drilled generate hundreds of jobs. Smoko event. some.
November 2019 9
Shift Miner Magazine www.shiftminer.com News
Bluff on track for 1mtpa to get a mine up and running intersection, and we are awaiting
quickly. the final signoff from DTMR to
In 2018, Chinese owned begin using the new turning lane.
Wealth Mining - the final owner “In addition to our
of the Bluff PCI Coal Project - partnership with Bounty Mining,
signed a two-year agreement we are working with other local
which sees Bounty Mining mines to use recycled water at the
handle, wash and prepare up to project.
100,000 tonnes of coal from the “We get this water from
Bluff project at the Cook Colliery dewatering operations at
35 kilometres away. neighbouring mines and combine
Bluff PCI management (BCM) it with our existing site dams
CEO Stuart Clarke told Shift to mitigate dust on the site, and
Miner with six months under we’re exploring the option of
Six months after shipping their Like a suite of other low-cost their belts, and production in a a permanent pipeline for this
first coal, the operators of the start-up greenfield coal projects “steady state” they are looking water to minimise water carting
recently opened Bluff PCI coal in the Bowen Basin over the last at ways to reduce their local movements.”
project say they are on track to two years, the first phase of the footprint. At full operation, BPM says
export around one million tonnes mine development has involved “Our coal is currently being the mine’s haulage of coal will
of coal this year. the use of trucks to get coal to hauled via road from the Bluff increase traffic on the Capricorn
WA based contractor MACA nearby rail loading facilities. site to Bounty Mining’s Cook Highway by around 50-60 truck
Mining is running the day-to-day While using trucks is not Colliery CHPP for processing and round trips per day and increases
operations with a fully deployed generally considered to be a long export,” he said. existing traffic movements by
workforce of 140 people of which term solution for transporting “Roadworks were completed less than 2% per day through
roughly a quarter are existing coal from either efficiency or in August on a dedicated Bluff, and even less through
residents of the Blackwater/Bluff community perspectives, it does turning lane from the Capricorn Blackwater.
region. provide a pathway for companies Highway into the Bluff mine site
New Black Lung report
The Queensland Mines
Court battle over carers leave
Department has begun the non-working days (4 on / 4 off).
process of recruiting an “The longstanding accepted
independent third party to practice would be to provide
undertake a study into the this employee with 76 hours of
prevalence of coal miners personal/carers leave, calculated
pneumoconiosis or Black Lung. as 10 x 7.6 hour days. “This
In tender documents the would be the same entitlement
Department says it wants to provided to an employee working
know more about the disease. a standard 38-hour working week
“As of 31 July 2019, 116 cases (5 days on, 2 days off).
of mine dust lung disease have “Under the Federal Court’s
been reported to the Department interpretation, the employee
of Natural Resources, Mines and working the 4/4 roster would
Energy since 1984. be provided with 120 hours of
“This is a measure of personal / carers leave (10 x 12
incidence. hour days).
“The supplier will deliver “Providing them with 158%
a study in the form of a of the entitlement afforded to the
written report, that determines employee working the 5/2 roster,
the prevalence of cases in despite the total hours worked
consideration of the mining Mining companies are backing taking “10 days” to mean 10 x 7.6 each year averaging out to be
workforce population size which an appeal to the High Court of hour working days, or 76 hours roughly the same.
will indicate the significance Australia to challenge a decision in total, which would apply to all “The decision wildly deviates
of the number of cases of the that they believe has given shift employees regardless of the shifts from current and widespread
disease diagnosed. workers an unfair boost to their or rosters worked. leave accrual practices, creating
“The supplier will determine annual carers leave allocation. “In effect, this decision would uncertainty, confusion and
an annual prevalence rate and In a contested court case provide employees working concern for employers and
describe trends based on the (Mondalez v AMWU), the Federal long shifts or industry-specific employees and the astonishing
available confirmed case and Court resolved that under rosters with far greater leave interpretation of two of the three
workforce population data. National Employment Standards entitlements than those who work Judges, in this case, would impact
“The rate won’t be based all employees are to have access a standard 38-hour week,” Chief many employers across almost
on positive screening results, to 10 days of personal carers Executive of AMMA Steve Knott every industry.”
and sufficient detail must be leave irrespective of how many said. AMMA is strongly urging
provided to identify disease hours they work each day “This would have far-reaching the Australian Government
types, mining operations and According to lobby group the implications for real-world Attorney-General and Minister
other factors to assist the Australian Resources & Energy employment practices. for Industrial Relations, who was
broader understanding of Group, the “astonishing” Federal “Consider an employee a party to the original decision,
meaningful trends.” court decision is unfair. They working a roster of 4 x 12 hour to intervene in the High Court
argue it overturns the practise of working days, followed by four appeal.
10 November 2019Shift Miner Magazine www.shiftminer.com News
Right outlook, wrong story lots of new work as the mining [Mackay based] contractor who and are doing a good job keeping
cycle turned over the two is potentially out in the market a lid on their costs.
years, and was one of the big looking for a new owner. “What we have seen and
winners out of Anglo’s recently “Actually on the roadshow we been quite impressed about
announced plan to develop just finished, one group we spoke is that operations have really
the Aquila underground mine to had been approached about maintained their cost discipline
at the Capcoal complex near buying this other mining services and are at the lowest quartile of
Middlemount. contractor. cost,” he said.
The equipment supply and road “What we suspect has “Which is obviously making it
development and outbye services happened is that there was some less difficult as prices come down
contracts they have are worth noise around, that a contractor a little bit, and industry has been
around $100 million in revenue based out of Mackay was on the anticipating $150 metallurgical
to Mastermyne over two years. market, and they put two and coal prices for a year and a half
In light of the significantly two together and come up with now, and if anything we have
improved outlook, no one in Mastermyne which is absolutely been surprised by the fact that it
the industry was overly shocked incorrect.” held up for as long as it did.
when rumours emerged that However, like many other “I think that is important for
Mastermyne might be on the mining support businesses, the people to understand.
Mastermyne says it has its biggest market. reality of the post-construction “The biggest lever any
order book on record and is in the That is except for the boom downturn is still fresh company can pull is increasing
process of training green-skins to Mastermyne management team in the minds of everyone at its production without increasing
manage the skills shortage. led by CEO Tony Caruso. Mastermyne. After all, it was only its fixed costs, and we see that
However, it say stories of its sale “We have got a big year coming a bit over two years ago when discipline applied.
aren’t true. up, pretty big order book now things got so tight at Mastermyne “I think it is the most
The turnaround for the with circa $300 million of work to that one of the founding directors disciplined we have ever seen the
regions biggest mining deliver, so I think that’s one of the of the business stood down from industry and providing that it’s
contractor continues to build, strongest order books we have ever their duties on the board to save maintained, it’s going to hold the
with management back from a had,” he told Shift Miner. money. cycle for a lot longer.”
recent investor roadshow where it “So could not be happier from Like everyone else, Mr Caruso Mastermyne currently
announced significant dividends that respect. has been watching the coal prices employs 1200 people across
and a full order book for the next “But to talk to the rumours fall over the last 12 months but Queensland and NSW and expects
twelve months. of the sale, I believe they have reminds those investing, that to hire hundreds more over the
Mastermyne has picked up got us mixed up with another industry has learnt their lesson, next six months.
November 2019 11Shift Miner Magazine www.shiftminer.com News
Sacked after a close call
A crane operator at Rio Tinto’s
QAL refinery in Gladstone has
Hail Creek expansion?
paid dearly for a momentary window there will be a step up in
concentration lapse that saw the exploration activity.
crane he was driving pass close to “Sumitomo is to fund $2.5
a cyclist three months ago. million of pre-defined exploration
This week Patrick Hugh expenditure, being the entire
Harrington was fined nearly $400 phase one exploration program
for coming within one metre of a for both Hillalong North and
cyclist while driving a crane near Hillalong South within 12 months
the refinery. However, the real of the farm-in agreement to
cost of the incident was the fact earn an initial 10% interest in
that he lost his job at age 53 after Hillalong,” they said.
more than 30 years as an operator “Sumitomo has the right to
in the district. then earn an additional 10% by
The incident happened just One of the owners of the Hail are three very similar named providing a further $5 million in
before 6 am and was captured Creek mine has taken a punt on projects in the area, Mt Hillalong, funding for further to-be-agree
by cameras mounted on the the future of coal by entering into Hillalong and Hillalong East - exploration.”
bicycle. In footage later shown an agreement which will see them all with different and changing Meanwhile, another player
to police by the rider, the crane fund exploration and possible ownership structures. altogether, Shandong Energy, has
was filmed leaving the traffic lane development work at the nearby This particular agreement said it wants to start developing
and veering toward the cyclist Hillalong coal tenement (HCT). relates to EPC 1824 and 2141 its nearby Hillalong coal deposit
(who was travelling in the same Explorer Bowen Coking Coal which is 16 kilometres North this year. The Chinese company
direction) before corrective action (BCC) announced a term sheet West of mining operations at Hail acquired the tenement for around
returned the crane to its lane. had been signed with Japanese Creek in an area that Rio Tinto $200 million during the last
Through his lawyer, Mr industrial business Sumitomo did extensive exploration in just mining boom, when it purchased
Harrington claimed not to have under which the latter would prior to the last major downturn. explorer, Rocklands Richfield.
seen the cyclist until the last have 60 days to decide whether Despite some encouraging Shandong proposes to
minute and claimed he was it wanted to fund a maximum of exploration results - Rio walked develop two open-cut pits and
limited in his actions by the $7.5 million worth of exploration away from an agreement they had two underground longwall mines
existence of a traffic island. and development work, in return with former owners Australian producing approximately 4.2
Magistrate Dennis Kinsella said taking a 20% ownership in the Pacific Coal when the boom came million tonnes a year of run-
it was “unfortunate” Harrington Hillalong Coal project (HCP). to an end precipitating their exit of-mine coal. It would employ
lost his job saying it was clear the The area in question is close from coal mining altogether. roughly 450 people through both
offending was not deliberate, but to an exploration zone defined According to BCC if Sumitomo the construction and operational
a “misjudgement”. by the Hillalong anticline. It’s decides to formalise the farm-in phases, and be known as the
a confusing area because there agreement within the 60-day Hillalong Coal Project.
Market shift for earthmoving $35 million deal
Greys Online’s Chris Corbin Plains East operations, although
told Shift Miner the market the latter of those is due for
was more confident than it was renewal.
twelve months ago. Western Australian mining
“We got slightly over what we contractor NRW Holdings
expected,” he said. purchased Golding Contractors
“So, from our expectation of for $85 million in late 2017.
the market, and what we were Goldings is one of Central
going to achieve on our platform, Queensland’s most well-known
it was pretty much bang-on or business success stories having
slightly better. been started in 1942 by Cyril
“Which is good, that is what Golding when he bought a half
The combined influences of we pay our valuers for.” Golding has won a two-year $35 share in a logging truck.
high commodity prices and a According to Mr Corbin, million contract for the supply of The business expanded
large pipeline of infrastructure roughly half the machines were earthmoving related services at significantly during the
projects have led to surprisingly sold locally, while others sold BMA’s Blackwater mine. construction of QAL in the
strong demand for earthmoving interstate, which is in line with Under the deal Golding will 1960’s, and in 2012 the 87-year-
machinery according to a historical trends. provide a range of civil works old founder sold the business
spokesperson for Greys Online. “Most of the equipment went including building a new heavy to Champ Private Equity for an
Last month the company into the city or road making vehicle road, shifting existing estimated $350 million.
wrapped up a Queensland or mine development sort of underground infrastructure, The purchase was a turning
sale of a selection of mostly industry rather than into the building levees and drains point for NRW, who struggled
late-model earthmoving and ongoing mining sector,” he said. and providing the earthworks in the period after the mining
construction equipment. The “As usual, it was the smaller necessary for around 20km of construction boom roughly a
auction included Caterpillar and D6 dozers that were highly fibre optic and overhead cabling. decade ago. Their share price fell
Komatsu dozers, excavators, sought after, and water trucks are The work adds to another $34 from more than $3.00 in 2012
compactors, backhoes and a always quite strong. million work contract at BMA’s to just $0.05 in 2016, before
range of accessories including “But the gear was really good Goonyella operations, and a recovering to around $0.66 by
Trimble GPS units and various quality, and that always has a big $100 million contract as tier one late November when they bought
buckets and attachments. influence.” contractor at Stanmore’s Isaac Goldings.
12 November 2019Shift Miner Magazine www.shiftminer.com News
November 2019 13Shift Miner Magazine www.shiftminer.com News
Industrial Property investment
2018 showed a reduction of “The owner had recently
nearly 60 per cent from the rental negotiated an extension for
that was established in 2014. the tenant with about 4.8 years
“This rental demonstrates remaining on the initial lease
the continued volatility in the term.
market and the weak demand for “These larger transactions
large industrial workshops and demonstrated renewed investor
indicates the very limited ability confidence in the Rockhampton
for businesses in Gladstone to industrial market.”
afford rental commitments above According to HTW, owner-
$200,000 per annum gross.” operators continue to be active at
Further North in Rockhampton the smaller end of the industrial
it was better news, with HTW property market up to around
saying buyers are in the market $1.5 million.
for the right property and tenants. In Mackay a 6.6-hectare
“The Stramit workshop industrial development site at
transacted in November 2018 for 235 Connors Road, Paget is
a purchase price of $5 million presently under contract after
The only way is up for Industrial market sentiment and limited showing an analysed market yield being offered for sale by auction
real estate across Central quality properties listed for of about 8.9 per cent,” they said. on 14 August. If this sale proceeds
Queensland in all communities sale, there have been no major “The improvements were to settlement, it will be the first
except Gladstone according to sale transactions of industrial purpose-built for Stramit, and transaction of this type since 2014
valuers Herron Todd White. properties in 2019,” HTW said. about four years were remaining and signals that a steady post-
Unlike Mackay, Rockhampton “While rental rates generally on the current lease. mining downturn recovery is now
and Emerald there may be further appear to have stabilised, “The Siemens shed transacted underway in Mackay.
to fall in Gladstone industrial one recent rental transaction in October 2018 for a purchase HTW believes the price offered
property, despite the renaissance of a large engineering shed price of $3.3 million, showing an for the property indicates a value
of the coal and gas sector. (approximately 2,209 square analysed market yield of about level marginally below peak levels
“As a result of weak metres) negotiated in November eight per cent. earlier in the decade.
New mine safety body
Commissioner for Mine Safety
and Health.
“The Work Health and
Safety (WHS) prosecutor will
have sole responsibility for
prosecuting serious offences
under Queensland’s resources
Acts1 while other offences may
be prosecuted by either the WHS
prosecutor or the appointed chief
executive officer of RSHQ.”
CGW says their understanding
is that RSHQ will be funded by
a levy on resources companies.
However, they say it is unclear
from the Bill whether a new levy
The State Government is functions currently performed “The Resources Safety and Health will be created for this specific
proposing significant changes by the Department of Natural Queensland Bill 2019 provides purpose or if funds are to be
to mine health and safety with Resources, Mines and Energy. that RSHQ will be responsible for redirected through the existing
Mines Minister Dr Anthony RSHQ’s proposed regulating safety and health in mining safety levy imposed on
Lynham introducing legislation establishment stems from the State’s resources industries the State’s resources companies.
to Parliament to establish a new 68 recommendations made and will comprise the coal mines, The introduction of the
safety and health regulatory body by the Parliamentary Select mineral mines and quarries, Bill follows a suite of changes
funded by Queensland resources Committee into coal workers’ explosives and petroleum and gas to mining safety and health
companies. pneumoconiosis and follows the inspectorates,” they said. legislation in the past five years.
Known as Resources deaths of six mine and quarry “ The Bill further establishes The Minister has said that this
Safety and Health Queensland workers in the past 12 months. the role of the Commissioner for will separate the job of protecting
(RSHQ), the new body will According to Lawyers Cooper RSHQ, who will be an adviser Queensland’s 70,000 plus
not be influenced by existing Grace Ward (CGW) the new to the Minister and engage resources workers from the job
government departments and body will change the role of the with representatives of the of growing and facilitating the
will take on the safety and health existing Safety commissioner. industries, replacing the current resources sector.
14 November 2019Shift Miner Magazine www.shiftminer.com Around Town
November 2019 15Shift Miner Magazine www.shiftminer.com Around Town 16 November 2019
Shift Miner Magazine www.shiftminer.com News
Uptick for bed provider in Australia, strong turnaround BHP see the coal market going
activity in the Canadian oil sands over the next two years,
and the contribution from our Civeo has been awarded two
newly-expanded Sitka Lodge contract extensions for rooms
supporting LNG activity in British and hospitality services at
Columbia.” Civeo’s Dysart and Coppabella
However, unlike the big accommodation facilities worth
Australian miners who make a combined A$37 million in
more money when the Australian revenue.
dollar is low compared to the US, “A contract extension from
Civeo gets the reverse effect. So BMA at Civeo’s existing Dysart
despite a significant improvement accommodation facility will
in business in Australia, their generate approximately A$27
actual earnings in US dollars million in contracted revenues
were more modest. from 2019 to 2021,” Civeo said.
“During the third quarter of “Civeo will continue to
2019, the Australian segment provide rooms and hospitality
generated revenues of $47.7 services at Dysart to BMA for
million, operating income of $4.7 an additional two years through
million and adjusted EBITDA of to September 2021, and as part
$17.2 million,” he said. of the extension agreement, the
A 15% increase in room like coking coal. “This compares to revenues of “take-or-pay” committed rooms
occupancy in the Bowen Basin - Civeo’s Chief Executive $31.1 million, operating income will increase from 280 to 480
has helped Central Queensland’s Officer Bradley Dodson said of $0.5 million and adjusted rooms.
biggest mining-accommodation demand for mining beds was EBITDA of $12.4 million in the “A contract extension from
provider increase revenue by 61% bouncing back in the Bowen third quarter of 2018.” another major coal producer
in the three months to September. Basin. However, the biggest news is at Civeo’s existing Coppabella
This week US-based Civeo “We generated improved year- that Central Queensland’s most accommodation facility will
announced a big turnaround over-year revenue and Adjusted significant employer BMA has generate approximately A$10
in demand for mining EBITDA, up 23% and 62%, taken the bold step of nearly million in contracted revenues
accommodation around the respectively,” he said. doubling the number of rooms it providing rooms and hospitality
world, as mining companies “The significant year-over-year will pay CIVEO to use, whether or services at Coppabella for an
continue to enjoy high prices and improvement is primarily due to not someone is in them. additional 30 months through to
a robust outlook for commodities increased Bowen Basin activity In a strong signal about where August 2022.”
November 2019 17Shift Miner Magazine www.shiftminer.com Around Town 18 November 2019
Shift Miner Magazine www.shiftminer.com Around Town
8 years left for Callide B spokeswoman said.
“CS Energy recently informed
the Australian Energy Market
Operator (AEMO) that its forecast
closure date for Callide B Power
Station is 2028, in accordance
with new reporting requirements
for large generators to provide
advance notice of plant closures.
“Callide B Power Station was
commissioned in 1988, with an
expected technical life of 40
years. It is important to note that
2028 is a forecast closure date due
to the technical life of Callide B.
The future of the Callide B coal- fate of the station beyond 2028 dates for power generators. “CS Energy is committed to
fired power station and the 100 when it is currently scheduled for In a statement, CS Energy said working with its employees and
or so jobs it supports near Biloela closure. while the plant is scheduled to other key stakeholders to ensure a
will be decided by politicians The future of the power station close within a decade, they can smooth transition when Callide B
according to its owners. has become part of a political change that date according to is closed.”
The power station is operated battle over whether electricity other priorities. The future of Callide B also
by the Government-owned in the future can be reliably “No decision has been made has significant implications for
corporation CS Energy which generated by renewable energy to close any of our plant, and the nearby Callide Mine owned
means the States Mines Minister alone. In Southern states, a shift the final decision regarding by Batchfire Resources. The
Anthony Lynham and Treasurer away from coal-fired baseload the actual closure of Callide B, mine produces around 10 million
Jackie Trad hold the majority of power has led to increased and in fact, any of CS Energy’s tonnes of thermal coal a year of
shares in the company on behalf electricity supply fragility power stations, will be made by which most is sold directly to CS
of the people of Queensland. This prompting the Australian Energy our shareholder the Queensland Energy to power the Callide B and
also means they will decide the Market Operator to update closure Government,” a CS Energy C stations.
November 2019 19Shift Miner Magazine www.shiftminer.com
FRANK THE TANK’S Streaking good love advice
Dear Frank, and nature has been raging for race is important for other
centuries, and there’s an ebb reasons too, Sally. SENSIBLE SUSAN
My husband is turning 40 next year and flow that makes it virtually As men get older it’s only Sally,
and I think he is going through impossible to determine a winner. natural they start to worry about
mid-life crisis. He has organised An explorer climbs a their virility. Be thankful it’s just an
an ‘adventure race’ for his friends mountain, notch one up for I can still recall my dear old adventure race and he doesn’t
where they run through scrub, bike man. Two hunters are tricked grandfather leaping out of his want to buy a Lamborghini
up mountains and paddle through into shooting one another by a chair at his 70th birthday party or something like that!
croc-infested water. Keeping in particularly smart moose, that’s and karate chopping a heavy-set Perhaps you could insist the
mind they are all a bunch of one for nature. waitress in the neck. ‘adventure race’ be vetted
40-year-old men with dodgy knees, When I was a slightly younger Everyone assumed he’d by the wives to ensure there
paunch bellies and tennis elbows, man, I frequently entered snapped and fallen prey to are no truly life-threatening
their wives are slightly concerned. interspecies boxing tournaments senility, but I knew the truth. He conditions involved. The race
Should I gently tell my husband I to prove my superiority as man. was simply proving he still had itself doesn’t seem like a bad
think the idea is crazy, or do I let I knocked out an unbelievable 14 ‘the right stuff’. idea. At least it involves some
him go ahead with his plans and kangaroos in a row, a record that That’s exactly what your fitness so it might actually
risk being made a young widow? came back to haunt me when the husband is trying to do, Sally. reduce those paunch bellies
RSPCA eventually shut down our Just think of the adventure you referred to. To be honest,
Sally, Rockhampton fight club. race as a money-saving exercise. I think you should be more
You may argue that having If your husband competes and worried about the liberal
You should be ashamed of to perform 500 hours community wins you’ll never need to fork consumption of alcohol that’s
yourself, Sally. Trying to deprive service scooping up kangaroo out money for costly ‘marital sure to follow the conclusion
a man his God-given right to droppings at a wildlife park was aids’ like viagra, or my personal of the race.
teach mother nature a lesson by a victory for nature, but those favourite - Xiang Li Ho - a highly
riding bikes all over her face. marsupials knew who was boss. illegal topical sex cream from Susan
The battle between man Your husband’s adventure North Korea.
Frank
MadMumzie.com
WHAT’S CAUSING THE AUSSIE DROUGHT?
WHY DO DENMARK TV CARE? red as. I can see more wrinkles
reef, anti-Adani” perspective. I getting a drone out. “Ummmm….. already! At least I could continue
don’t need that target on my back I don’t reckon it’s allowed, guys”. drinking my beer! After all, it is
and they would not be open to We asked at security, and yes it is the Aussie way they agreed.
absorb my thoughts. A chat on protected air space. But how cool I learnt so much from Director
the phone to meet the Director would that have been? Jakob and videographer Mess. I
and find out their why and why I did manage to get them close am inspired to do more videos
me, helped me decide. enough for some great footage at and share my thoughts on our
They didn’t want just people the public lookout near the jetty. industry in a more public way.
in suits. Were looking for down The videographer was excited, I Lookout, they may have created a
to earth Aussies, and somehow said: “I’ve converted you to love monster!
they came across me. After coal!” He laughed. They headed to a farmer in
30 hours of travel and plane We headed back to Mackay Broken Hill and then will be
A random Facebook message delays, they arrived in Mackay. Marina Hotel where they were hanging with the Royal Flying
changed everything, was it They followed me with a video staying. I had never heard of it? Doctors. I reckon the draught will
legit? Research and a chat with camera for 2 days. Starting with Turns out it was the Clarion, it hit them head on out there. Lucky
a TV Director in Denmark was me interviewing the Mackay changed hands about a month I messaged them about daylight
the beginning of an epic 2 day Mayor for my Beers With a earlier. Did you know? Pass it on. saving starting the night before
adventure. The programme is Miner podcast in his office. No They headed up for a rest after they flew. They would have had
similar to our ABC’s Foreign pressure! Greg was so passionate their epic journey. I went to Sails another flight delay for sure as
Correspondent. I was to speak about our area and was open and and watched the sunset with a they didn’t know. Like they call
about how mining affects our welcoming to our foreign guests. schooner of XXXX Gold….ah… soccer football and think Ford
country and our town as they Strange going to Mackay only one day to go. own Holden. I nearly kicked me
share a story about the drought Council Headquarters with a Saturday we had a family out of the SS right there!
here in Oz. What might be camera crew and saying “I’m and friends BBQ at the harbour.
causing it? here to see the Mayor.” Listen They filmed my special Peeps Cheers MM
In Denmark, they have no to this episode at madmumzie. as we spoke on climate change, Note from the editor
mining, so they can’t relate com/beers62 on your favourite protesters, the drought and how Enjoy this? You will love her
to why we keep doing it. podcast app. We then drove we were all connected to mining award winning podcast “Beers
Jakob, the Director did one through Paget with the video in one way or another. with A Miner”
year in Townsville and three dude in the passenger seat. Woah, After they all left they had
years in Brisvegas doing his way too close bud, and that is my me out in the full sun, no hat or Search for “Beers With a Miner”
Journo degree years ago, so he bad side! sunnies and questioned me in your favourite Podcast app, or
understands our culture. Onto Hay Point so they could more about climate change and head to
I wouldn’t have agreed if it see some coal. The lookout was mining. After half an hour I said MadMumzie.com/beers
was another “your killing the perfect and they had plans of you aged me 10 years, I was and push play.
20 November 2019You can also read
