SHIFT MINER SPEAKING UP ON SAFETY
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SHIFT MINER
The Queensland mining and gas community’s best source of local news Monday April 6, 2015 194th Edition
Locally Owned & Operated
www.shiftminer.com M A G A Z I N E
SPEAKING UP
ON SAFETY
How Chinese whispers
are putting lives at risk
» Full report page 5
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Shift Miner Magazine
CONTENTS
NEWS
Damien Berlin and Rhondda Tunstall
05 How Chinese
whispers are
5 putting lives at risk
7 08 The coal price
and your future
Lisa and Grace Madsen Brion and Merilyn Lloyd
10 & 15 Where should
(L-R) Edwind, Bernadetta, Nicola, William and
Roanne you be when a
.............................................................................................................................................................................................
cyclone hits?
ALL IN THE NAME OF 8CHARITY!
Blackwater residents lose hair for Cancer.
Regulars
14 Frank the Tank
15 Puzzles
16 -18 Miner’s Trader
11 19 Baitshop
Mason Sims losing his locks Max Christensen having his Meagan Ferris Lee-Anne Cracknell Lydia Dagan
head shaved
10
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(L-R) The heads shaved were, Max* Christens-
Tegan Collon en, Mason Sims and Lillian Conlan (front row),
and Eric Smyth and Kerry Anderson
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Jackson Broom Teacher Kathryn O’Sullivan (L-R) Kaitlin, Bella and Danica
From 2015, projection Series B, C and D foresee overall growth in the Bowen Basin’s non-resident population. Series B projects
an increase to 20,040 persons in 2018, followed by a gradual decline to 18,140 persons in 2020, then a small increase to
18,380 persons in 2021. This series takes account of several Bowen Basin mines that have been approved but are yet to reach
Shift Miner Magazine
FID, as well as the rail and port elements of Galilee Basin
Energy’s LNG pipeline projects.
projects that will influence Isaac (R) and Whitsunday (R), and Arrow
www.shiftminer.com News
Planning for a boom impossible
Series C, which includes further coal projects, the Nathan Dam and Pipelines Project and Santos GLNG Gas Field
Development, anticipates an increase to 20,520 persons in 2018, before tapering off to 19,220 persons in 2020, then increasing
to 19,750 persons in 2021. The Series D projection, which includes a number of coal projects in preliminary planning stages
plus the impacts of the Central Queensland Integrated Rail Project, would see the non-resident population reach 21,280
persons in 2018, then a slight dip followed by further growth to 21,560 persons in 2021.
Projected non–resident workers on-shift, Surat Basin
The non-resident populationFigure
of the Surat
3: PastBasin has grownnon–resident
and projected strongly in recent years
workers with theBowen
on-shift, establishment
Basin of the CSG industry. THE population of workers driving increase to 21,560 persons by 2021.”
At June 2014 there were an estimated 14,490 non–resident workers on-shift in the region—more than four times the number (DIDO) or flying (FIFO) to work across In the Surat Basin however there
estimated
Persons in June 2011 (3,270 persons)
Non-resident (Figure
workers 3). This steep
on-shift increase
Series A was largely
Series Bdue to the FIFO/DIDO
Series C construction
Series D
Queensland has plummeted according is no such variation with all possible
workforces of the APLNG, GLNG and QCLNG projects present in the region during this period.
30,000 to figures released by the Queensland outcomes pointing to significant
The Surat Basin’s non-resident population is projected to decline rapidly to 7,170Projected
Estimated persons in June 2015 according to all three Government Statistician’s Office. reductions in workforce numbers.
projection
25,000 series, then continue to fall to less than 6,000 persons in June 2016, as the large construction workforces of the three
However it could take off again, Even with the most optimistic
CSG projects taper off and are replaced by smaller operational workforces (Table 1). Under the Series A projection, the
non-resident
20,000 population of the Surat Basin will continue to decrease, from 5,400 persons in 2016 to 3,650 persons in 2021. This depending on what happens to development forecasts for CSG in the
series includes the ongoing workforces of existing operations, along with the APLNG, GLNG and QCLNG projects, Wallumbilla commodity prices and the projects that Surat Basin, the number of FIFO & DIDO
Gas15,000
Treatment Facility, and Kogan Creek Solar Boost Project. depend on it over the next five years. workers in the region will more than halve
Series B projects the non-resident population to fall to 5,830 persons in 2016, then increase to around 6,600 persons in 2017
10,000
In the Bowen Basin the QGSO says by the end of this year and fall to just a
and 2018. This variation largely reflects the impacts of Arrow Energy’s proposed Surat Gas Project and Surat to Gladstone FIFO and DIDO numbers have fallen by third of where it was a year ago by 2020.
Pipeline
5,000Project, as well as the Braemar 3 Power Station and New Acland Coal Mine Stage 3 Project. Under this scenario the a third, but encouragingly have flatlined More than three quarters of the people
non-resident population will resume its decline from 2018, reaching 4,460 persons in 2021. in the last 12 months. working in the CSG sector in the Surat
0
The Series C2006
projection
2007follows
2008 a similar
2009 trajectory
2010 2011 to Series
2012B, reaching
2013 2014around 6,7002016
2015 persons in 2017
2017 2018and2019
2018, 2020
before 2021 “The non-resident population of the Basin commute to work from somewhere
declining to 5,470 persons in 2021. In addition to Category B projects, this series reflects the influence of the Santos GLNG Gas Bowen Basin was 16,360 persons in else, which is almost the exact opposite
Source: QGSO estimates, 2006 to 2014; QGSO projections, 2015 to 2021
Field Development Project. June 2014, down from a peak of 25,040 of the Bowen Basin where most
in June 2012,” the QGSO said. employees are considered local.
Figure 3: Past and projected non–resident workers on-shift, Surat Basin “Factors contributing to this fall For the large industry that has
Table 1: Projected non–resident workers on-shift, Bowen Basin
include completion of construction for developed to service this mobile
Persons Non-resident workers on-shiftNumber of non–resident
Series A workers on-shift
Series B at 30 June
Series C
Estimated Projected
new mines, expansion projects and coal workforce, this week’s forecasts are
16,000
Projection series 2014 2015 2016 2017 2018 2019 2020 2021 seam gas (CSG) projects, as well as mine a sobering take on the workforce
Estimated Projected
Series A
14,000 16,360 14,230 14,310 14,090 13,650 13,680 13,720 13,670 closures and workforce restructuring.” boom that has occurred over the last
Series B
12,000
16,360 14,550 17,770 19,830 20,040 19,050 18,140 18,380 However, in the next five years the three years.
Series C 16,360 14,640 18,030 20,260 20,520 19,710 19,220 19,750 QGSO says the non local workforce “In June 2014 there were an
10,000
Series D 16,360 14,640 18,180 20,650 21,280 20,330 20,500 21,560
might rise by a third depending on estimated 14,490 non–resident workers
Figures in all tables have been rounded to the nearest 10; see notes for details.
8,000
Source: QGSO estimates, 2014; QGSO projections, 2015 to 2021
commodity prices, and the lifestyle on-shift in the region - more than four
6,000 choices of the local workforce. times the number estimated in June
Bowen
4,000and Galilee Basins non–resident population projections, 2015 to 2021 4 “The series A projection, which 2011,” the QGSO reports.
2,000 takes into account the non-resident “This steep increase was largely due to
workforces of existing resource the FIFO/DIDO construction workforces
0
2008 2009(a) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 operations and projects that have of the APLNG, GLNG and QCLNG projects
passed final investment decision (FID), present in the region during this period.
(a) Estimates for 2009 are extrapolated from 2008 data.
Source: QGSO estimates, 2008 to 2014; QGSO projections, 2015 to 2021
anticipates that the region’s non- “The Surat Basin’s non-resident
resident population will moderate to population is projected to decline
13,670 persons by 2021, a level similar rapidly to 7,170 persons in June 2015
Table 1: Projected non–resident workers on-shift, Surat Basin
to that recorded in 2008. then continue to fall to less than 6,000
“Series B, which takes into account persons in June 2016, as the large
Number of non–resident workers on-shift at 30 June
projects that have had an EIS approved construction workforces of the three
Estimated Projected
but have yet to reach FID, expects CSG projects taper off and are replaced
Projection series(a) 2014 2015 2016 2017 2018 2019 2020 2021
that the Bowen Basin’s non-resident by smaller operational workforces.”
Series A 14,490 7,170 5,400 5,270 4,980 4,930 4,310 3,650
Series B 14,490 7,170 5,830 6,660 6,620 5,750 5,340 4,460
population will increase substantially According to the figures, the Western
Series C 14,490 7,170 5,830 6,710 6,690 5,850 5,940 5,470 from 2016, peaking at 20,040 persons Downs Shire will continue to account for
(a) There is no Series D projection for the Surat Basin. in 2018 before falling to 18,380 the majority of resource industry activity
Figures in all tables have been rounded to the nearest 10; see notes for details. persons by 2021. and to have the largest non-resident
Source: QGSO estimates, 2014; QGSO projections, 2015 to 2021
“Series C, which considers projects population in the region.
that have yet to finalise an EIS process, Depending on which projects go
anticipates an increase to 20,520 persons ahead, its non-resident population
in 2018, before falling to 19,750 persons will be between 2500 and 3500 in five
Surat Basin non–resident population projections, 2015 to 2021 4 in 2021 while Series D, which includes years time. In the Maranoa there will be
projects in the early stages of planning, around 1500 non-resident workers and
projects the non-resident population to less than 200 in Toowoomba.
4 6th April 2015
Shift Miner Magazine www.shiftminer.com News
Speaking up on safety
Jon Flower, Jed Millen & Michael Lewis WH&S QLD Valerie Larochelle, Mick Baumgarten, Tom Dutton & Levi Percy HAIL CREEK RIO TINTO
IN a frank, productive and
open discussion, mining and
industrial bosses have voiced
alarm at how safety messages
are being distorted on mine
sites and putting lives at risk.
In the difficult cost
environment confronting
the entire resources sector at
the moment, management is
concerned that directives on
safety and maintenance are being
misinterpreted, and people are Duncan Nelson, Grant Paterson AUSENCO Gregg Jones & Adam Wendt SHARP TRAINING Rod Nicholls & Justin Kindis GOONYELLA MINE
not speaking out about safety
issues for fear of losing their jobs. ensure that people don’t go don’t want to rock the boat.
In one illuminating example, to jail for breaching statutory Employees - regardless of
BMA’s asset president Lucas Dow requirements, and whatever’s left where they sit on the jobs ladder
explained a crisis averted on a over for maintenance we will use - should feel safe to raise safety
mine site in the Bowen Basin, sustaining the place. issues, according to Abbot Point
when a young engineer named “It just reinforces how these Coal Terminal’s General Manager,
Tom told him he was no longer messages can often get distorted, Steve Rae.
working on structural integrity it might be an off the cuff “We can all as leaders in our
maintenance because there was comment that things are tough various businesses say to people,
no money for it in the budget. and we need to pull back and I want you to talk up, I want you
Mr Dow said the discussion then these things play out.” to talk about this, and I guess for
showed just how important it was Mr Lucas has urged workers to many years in my career I used to
that messages were clear. double check decisions regarding talk about all that stuff,” he said.
“I have got alarm bells going safety with upper management. “But you know I had a bit of
off in my head and thinking, “For God’s sake don’t make an epiphany a few years ago, and Andrew Gibbs, Ray Newton, Bill Woffal MACKAY RC
my God, what are we doing those safety decisions yourself, realised that although I used to
here?” he told the Resource put them back up the tree and put say that, for the people that I was
Industry Network safety them fairly and squarely on the saying it to, none of my actions
conference in Mackay. leaders of your organisation. reflected that I meant it.
“The wake up call for me “For me not knowing about In the end someone would
was about the clarity of the it is not a defence, you need bring something to me, and
messages we were providing.” people to be able to push those the reaction they got was very
Mr Lucas said all things through, and if it were different to what I preached.”
employees understand not for that conversation with Mr Rae said the reaction of
companies were existing with Tom I would have been in a bosses to their workers when bad
smaller capital budgets but pretty closed space. news or safety concerns were
messages surrounding safety “It has been really important raised was critical.
were less clear. for me to understand how these “It is really important to have
“Through a process of things play through, because it a good think about how we are
Chinese whispers the message is often not our intent, but the impacting on others, and when
was that there was no money interpretation, combined with the electrician or truck driver
for these [safety] important a willingness to please that comes to you and talks about
things,” he said. changes the message.” something that is important to John Morgan, Stevie Tucker, David Sykes & Stephen Jones MASTERMYNE
“First and foremost our However, raising questions him, and you blow it off or you
priority is to spend money on about safety in the current talk about why that is not valid, hold back in those situations, expressions are, what we say,
those things that are going climate is not easy: opinions vary certainly next time that person is so that people feel safe to raise what we answer is absolutely
to kill someone or seriously on ‘safety risks’ and employees not going to talk to you. bad news, how we react in that essential to creating a culture
injure, secondly we need to worried about their job typically “What I have tried to do is split second, what our facial where people bring us bad news.”
6th April 2015 5
Shift Miner Magazine www.shiftminer.com News
Arrow says good fit, bad price BGP feels like a “go slow”
A COAL seam gas analyst has warned
flexibility in the way we operate. extract and transport far more product. Arrow Energy’s Bowen Gas Project
“There is more flexibility around timing, Adding to the challenge is the absence (BGP) is unlikely to happen anytime
more flexibility about placement, about of valuable bi-products in CSG extraction. soon with the current depressed
maintenance and about returning the land In conventional oil production, the bi- outlook for gas prices.
to its original purpose. products can often cover two-thirds of the Despite Arrow awarding the Front
“CSG is a world that is not black and cost of extracting it. End Engineering and Design (FEED)
white; it is a world of different shades of grey. So for CSG to survive, Mr Grieve says it contract and putting out tenders,
“In fact, I was thinking about titling this has to innovate and drive costs down. analyst James Bullen from Taylor
talk ‘Fifty Shades of Grey in CSG’, but I am “The margins are not there in coal seam Collison share brokers says the price
not sure I have the right audience.” gas and so, therefore, how we handle of gas at the moment is not a strong
However, despite his belief in the industry continuous improvement is what will incentive for large capital projects.
as a whole, Mr Grieve again confirmed that a differentiate us from the conventional oil “It looks to me like there is a
final investment decision on the Bowen Gas and gas companies,” he said. definite go slow on for the Arrow
Project had not been made, adding that at “We need to be better, we need to be quicker Project,” he told Shift Miner.
current oil prices the project was not viable; and we need to be more cost effective.” “The time frame for the FEED is
CEO of Arrow Energy, Mike Grieve, has used although, he says Arrow’s partners believe Looking to the future for local business, unusually long, and I think they are
last week’s Bowen Basin Mining Club event that will change in the future. Mr Grieve expects the first area to be going to use it to try and get a clearer
in Moranbah to again highlight what he sees More important from his perspective was developed will be north of Moranbah where picture of how low they can get the
as CSG’s comfortable fit in the region. whether the CSG sector could break away they will establish a hub surrounding their capital costs, and what the long-term
Speaking to more than 150 people, he from conventions in the traditional oil and existing processing facility. outlook is for price.
said Australia was blessed with enough gas sector where he said high margins had However, he could not say when he “Currently everyone is working off
CSG to power a city of a million people for made them cost “laggards” or “dinosaurs”. thought a final investment decision about the spot price of $9 and my view is that
more than 5000 years and argued that the While CSG itself is the same as any other the project would be made. the longer term price is going to be a
debate around its use was not accurately gas extracted, in a traditional oil and gas “I think there is a bit of a tussle going fair bit lower than that, which is not
reflecting the industry. operation vast amounts of gas and oil come on between the world’s oil producers at going to be a great incentive for major
“Traditionally in this area, land use has from a small number of highly productive the moment and it is a delicate dance, and new capital investment in CSG.”
been either coal or agriculture; it has been wells under often immense pressure. where it goes in the future is anyone’s By Arrow’s own admission, pitching
rather black or white. In CSG, the gas has to be extracted from guess,” he added. for work on the proposed BGP “won’t
“Well, today I am here to explain a third a vast number of wells often at a pressure “But what people are looking at are the make sense for everyone” because it
option,” he said. that would not inflate a bicycle tyre. long-term price projections of between requires a huge investment of time and
“And it is not just a black or white proposition. Also a cubic metre of coal has the same $80 and $100, and that’s where you need effort without any certainty that the
“CSG can co-exist with both coal energy value as a thousand tonnes of CSG, the prices to be for unconventionals in project will ever move forward.
and agriculture, and there is a degree of meaning to get the same result you need to Australia to commence.”
Hastings blocked on second vote Central Queensland’s biggest mining Deering’s Managing Director Dean Mehmet terms, provided a highly competitive
services company Hastings Deering said the result was disappointing. employment package.”
is considering going to the Fair Work “Employee representatives, the AMWU Speaking after the vote Brad Hanson
Commission after its Enterprise Agreement and the company have worked tirelessly from the Australian Manufacturing
(EA) was voted down for the second time. since the initial vote in November last year Workers’ Union told media the company
Hastings Deering employs more than to produce a revised agreement that would should focus its efforts on finding a
2000 people in Central Queensland, most have provided security for the company solution rather than heading to Fair
of whom are engaged in mining related and its employees,” he said. Work Australia.
activity. The company has laid off nearly “The agreement offered two years “The employees are obviously
800 people since the mining correction of certainty, giving us the ability to unhappy... they [Hastings] would be better
started two years ago. compete for business and deliver value off focusing their energy on exploring
After more than 12 months of what he to our customers. different avenues to resolve that and
called “genuine negotiations” Hastings “The wage rates, together with the finalise an agreement,” he said.
6th April 2015 7
Shift Miner Magazine www.shiftminer.com News
Coal price a Delay could be deadly for Adani
glass half full? “My fear is that’s true, and with this
new delay, dredging won’t start this year
The world’s biggest exporter of and that makes it very difficult for that
seaborne thermal coal, Glencore, timetable to be met.
has settled on a contract price with “All I think the new government in
Japanese customers of $70 a tonne. Queensland has done this week is move the
The contract, which technically project slightly to the left, and delayed the
took effect last Wednesday, sets the project for another year.”
price Australia’s biggest thermal coal According to Mr Christensen, the
producers receive from Japanese great irony about the whole debate over
customers for the next twelve months. where to put dredge spoil at Abbot Point
Depending on how you look at it, the is that the Newman LNP proposal and
new price is either a good sign or a bad one. the current Labor governments proposal
For the optimists, it signals a near 15 are 97 per cent the same.
per cent increase on the current price of The only difference was that the
coal in the spot market, suggesting that LNP proposal included reclaiming 3
after a long dive to the bottom, the price per cent of an area known as the Caley
is heading back in the right direction. Valley Wetlands.
However for the pessimists, it “The thing that people who don’t
represents a 15 per cent fall in the new live near here don’t realise is, that the
contracted thermal coal price - the wetland in question is a man made
worst result in years. wetland,” he said.
In 2011, the price settled at more than ONGOING delay could be the death of the area known as T2. However in the same “Back in the 1950’s, a couple of local
$US129 a tonne, then in 2013 fell to Galilee Basin according to the member for breath, they also say the approvals process gun clubs saw an opportunity to flood
$US95 a tonne before diving to $US81 a Dawson George Christensen. will need to be restarted, meaning final that area for the purposes of going duck
tonne for the year we are in now. The Galilee is contingent on an approval is at least a year away. hunting, and that is what they did.
More than half of the thermal coal expansion of the Abbot Point coal terminal However Mr Christensen says further “I have spoken to Burdekin Mayor Bill
shipped out of Australia is sold to and recently the state government delays will significantly impact the Lowis and he said he was instrumental in
Japanese power companies under the announced it had negotiated a new plan viability of the project. undertaking the water diversions back then.”
annual contract price, so it gives a good for dumping dredge spoil at the site. “Adani has previously been on the “And now the Green anti-coal lobby
medium term outlook on coal supply The state government says Adani record saying that if they didn’t get first would have you believe a man made
and demand. and GVK Hancock have agreed to dump coal by 2017 they would walk away from wetland for duck hunting is a centuries old
spoil from future port expansions in an it,” he told Shift Miner environmental site with global significance.”
Last miner standing
BEING a coal miner is starting to feel a bit “Based on current economics, there are
like a game of chicken as producers around a significant number of mines unable to
the world stare each other down as profits cover their operating costs plus sustaining
plummet and the oversupply continues. capital,” he said.
However, in good news for Australian “Despite this, mine closures - while not
miners, it’s looking like a game we might rare - certainly aren’t happening frequently,
win with analysts Wood Mackenzie and part of the reason for this is the amount of
(WoodMac) saying nearly a quarter of US thermal coal sold on the open market is very
coal production is at risk of closure. small compared to that sold under contract.
Unlike Australian coal miners, the “Contracts can cover multiple years,
strengthening US dollar is bad news for and prices may have been agreed well
their bottom line. before the current market’s lows.
In some of the oldest mining areas “And a producer may also be able to
like the Central Appalachia, as much as beat the market prices as they have a
72 per cent of coal production is now valuable niche-quality coal such as stoker
unprofitable according to WoodMac. coal, or the location of the mine is near
Years of declining productivity, an end-user providing a transportation
thinning seams, increasing strip ratios, advantage over competitors.”
more stringent government regulations, “It is also possible the [mining]
and a high-paid workforce have taken company is actively shopping their assets
their toll and made Central Appalachia the and having them currently in operation is
highest cost region within the US. more attractive to buyers.”
Other US regions also have substantial However, Woodmac says the situation
amounts of coal at risk, ranging from 47 per can only prevail for so long, noting that
cent of production in Southern Appalachia additional cost cutting measures are starting
to a low of eight per cent in both the western to reach their limits as producers globally
bituminous and Powder River Basin. have already cut costs significantly.
In aggregate, this equates to Therefore, the only practical way for
approximately 14 per cent of US thermal the market to get back into balance is for
coal production and 58 per cent of producers to cut production.
metallurgical coal production being at risk. “This needs to happen sooner rather than
Senior research analyst at WoodMac, Dale later, either voluntarily or involuntarily
Hazelton, says there are reasons why companies through bankruptcy, as the losses these mines
appear to be defying economic gravity. are generating cannot be sustained,” they said.
8 6th April 2015
Shift Miner Magazine www.shiftminer.com News
Liberate your inner GenY
ENGINEERS working in the resources sector “If you overlay the capital cost index on his phone and sent the data back to head
ATO rules on mining
accommodation
are generally not known for their softer side on top of the price of commodities, there office for updating the asset inventory. RIO Tinto is considering its options after
or their love for the sometimes excessive is a pretty consistent lag time of 12 to 18 Previously, this job would have been losing a test case against the Australian
demands of the younger generations. months,” he told Shift Miner. done using a Pipe & Instrumentation Tax Office (ATO) that has implications
However National Director, oil and gas “When commodity prices are high, diagram on paper and required the for accommodation providers and
for Deloitte Geoffrey Cann, says that if suppliers get really busy; they test the validation by a senior engineer, who would miners across Queensland.
they want to make meaningful cuts to their market’s willingness to pay and costs have driven many, sometimes hundreds, of In essence, Rio was seeking to
costs, they need to embrace their newly rise, and it definitely happened in the kilometres to do the job. claim tax deductions for building
graduated digital nomads. construction phase of the CSG industry. The whole idea has been taken and maintaining remote mining
“There are much more savings to come, “But now with CSG prices falling to further, with the same company now accommodation, in much the same
if my experience in the field is any guide, the tune of 65 per cent, there is going looking at how it can do all its P&ID way it would for other pieces of mining
at least a 40 per cent reduction in well to be enormous pressure on costs in validation digitally, using things like equipment and infrastructure.
delivery cycle time,” he told Shift Miner. the very near future. photos attached to PDFs of the diagrams, Specifically, the case related to about
“Many of the field companies have yet “Most companies can take costs down five and QR codes to cheaply, effectively and $600,000 in tax credits for its Hamersley
to grasp the significance of manufacturing to 10 per cent relatively easily, but a 30 per quickly do a job that previously gobbled Iron operations in Western Australia.
thinking in gas field work, lack even basic cent reduction requires a complete rethink of up hundreds of man hours. The arm operates nine mines, and the
systems like ERP, do not use any mobile how things are done; you need to view your So how does a company free up its people claim was for the GST on the upkeep of
technologies in the field, and contract only business model through a different lens.” to join the dots between technology and task? about 2300 one-bedroom apartments to
on a cost plus basis.” The type of changes Mr Cann is Mr Cann says companies need to big six-bedroom homes with swimming
There has been a wave of cost advocating are not necessarily expensive open up their processes to the critical pools that Hamersley purchased in 2010.
cutting, that has swept through every nor are they particularly new. gaze of its youngest employees. However, in a federal court
part of Australia’s resources sector as Instead, it is about taking existing “One idea for some of the more decision, Justice Jennifer Davies said
commodity prices have fallen. mobile digital technology and putting it to creative companies is for them to peel the mining giant will not be eligible
Mr Cann says industry is pretty well better use in the resources sector. off six or seven younger engineers, to claim the $600,000 in tax credits,
drilled at cutting the first five or 10 per In one example, he said thousands of give them a supervisor who is not protecting possibly hundreds of
cent of its cost base by doing things like dollars had been saved by an engineering allowed to say no and time to watch millions of dollars in tax revenue.
cancelling capital expenditure, slowing company contracted to a gas company, what engineers are doing,” he advised. Given the growing popularity of
down on projects, putting wage freezes on, when a young engineer used simple, “Give them a chance to reinvent the FIFO and the consequent rise in remote
selling assets and pressuring suppliers. widely accessible mobile phone technology way you do business.” accommodation complexes, the case
But he says that will not be enough to cut to revolutionise the way they took stock of “Some of the younger engineering has been closely followed by a string of
their costs by 30 per cent, which is the size of wellhead inventory. firms are definitely going to be doing this other mining businesses keen to follow
the job confronting Queensland’s CSG sector Using a $10 application downloaded from and they are going to lead the charge on Rio’s lead if successful.
as prices fall by as much as 65 per cent. iTunes, the graduate recorded the inventory cutting costs.”
CSG water not wasted beneficial use by irrigation and industrial
customers from both the pipeline and the
Dawson River,” Mr Donaghy said.
“Water is extracted as part of the coal
seam gas production process.
“It is treated to a high standard
at QGC’s Wolleebee Creek water
treatment plant using ultrafiltration
and reverse osmosis and is monitored
by both QGC and SunWater to ensure
it meets strict compliance requirements
before it is released.
“The treated water, which is
STARTING last month, the water included as part of the scheme
equivalent of roughly Sydney Harbour supply and announced allocations
will be added to the Dawson River for the upper Dawson sub-scheme,
every decade as the vast quantity of will be extracted by customers
CSG extracted waste water is treated through their existing pumps and
and piped into the river. infrastructure and measured through
SunWater has commissioned the existing flow meters.”
Wolleebee Creek to Glebe Weir Pipeline, The BG Group (owner of QGC)
which takes treated water from QGC’s exported its first LNG from Gladstone
treatment plant at Wandoan and in January this year and is one of
transports it 120 kilometres to Glebe three LNG projects being developed in
Weir on the upper Dawson River. Gladstone - from scratch - at a cost of
The major beneficiaries of the new AU$60 billion.
water are irrigators who can now extract The other major byproduct of CSG
the water for agricultural uses, subject extraction is salt.
to the conditions of their water licences. The CSG industry is expected to
SunWater Industrial Pipelines General generate 52 million tonnes of salt a
Manager, Tim Donaghy, said the milestone year and enough salt to fill Suncorp
was great news for local customers. Stadium four hundred times over its
“This marks the beginning of life in the Surat basin.
6th April 2015 9
Shift Miner Magazine www.shiftminer.com News
Three towns to be Brisbane at a quarter of the cost
CSG work hubs. surprising that we look for competition in
the national market from our suppliers,”
CHINCHILLA, Roma and to a lesser he told the audience of more than 100
extent Miles are likely to remain the business people.
key regional centres for the next phase “Obviously local supplies have a very
of the Queensland CSG industry. significant advantage for us because the
Gasfields Commissioner John fly in fly out costs that are related to things
Cotter met with each of the three are quite high.
major onshore gas proponents this “But what we have found is that there
month to get an update on what are considerable - and I mean considerable
they expect the future to hold for - advantages to not buying local, and that
local business. is probably not the story you want to hear
Despite the current price outlook, in this room.
he says there is still a massive body “But I can give one example, without
of work to be done. using specifics, where if I use 20 as the
“What we are wanting is some lowest base quoted locally, I was able to
solid, factual information about get the same job done for five, including
what is going to be required in the materials from Brisbane.
future,” he told Shift Miner. “That is the challenge that you as
“There is an enormous amount of local suppliers face.
upstream work ahead of us and we Heavy industry in Gladstone will have to in Gladstone took off as the major CSG “So the message here is we will
really want to make sure that the right confront its inflated labour and operating proponents raced to get their projects always look local, but we need you guys
people have the right information to costs if it wants to get more local business. completed on time - even if not on budget. to play, because we are playing in a
plan for the next 30 years. That was the clear message from some But now with that work ending, local tough market as well.”
“The work is likely to be around of the region’s major non CSG industrial businesses will need to readjust their costs “As much as I would like to be parochial,
their existing acreages, so Chinchilla, businesses at the Gladstone Engineering structures to the “new reality” if they want we just don’t have the opportunity to do that.”
Roma and Miles will remain key Alliance (GEA) Industry Update last week. to win work. Mr Abbott gave one of four
centres, although there is likely to Gladstone business is facing major In one notable example, general manager presentations at the lunchtime event.
be flow on benefits to other major structural change as they move into a at NRG Power Station John Abbott, said Other speakers included Peter Odgers CFO
centres like Toowoomba, Dalby and consolidation period in the wake of the local quotes for a job were four times higher for Queensland Alumina, Jim Grayson CEO
Rockhampton and Mackay, depending CSG construction boom. than the same service from Brisbane. at Gladstone Area Water Board, Ian Coad
on what happens in the Bowen Basin.” Like the coal boom, prices from “In effect we compete as a supplier in from Boyne Smelters and Craig Doyle from
everything from labour to a pair of gloves a national market, and therefore it is not Gladstone Ports Corporation.
Data the next big
thing in Bowen Basin Debate rages over FIFO in a blow
Rio Tinto continues to push ahead with its
The rights of miners working a long way and another contractor was sacked significant weather events, which were
investment in technology and automation
from home while bad weather bears down after getting the OK to go home from followed in the lead up to and during
at its mines, announcing today a major
on their families and homes has come a supervisor, without approval by his Tropical Cyclone Marcia.
change in the way they operate machinery.
under scrutiny after recent cyclones. superintendent. “Our first and foremost consideration
The company has officially opened a
Locally in the wake of cyclone Marcia, “Other contractors from south east is the health and safety of employees
world-first Analytics Excellence Centre
miners have been calling for a more unified Queensland had to drive home in the and during this time, BMA took a
(AEC) in India which will interpret vast
quantities of operational data captured at approach to how the issue is managed. pouring rain and high wind, and others compassionate and flexible approach
the coal face by sensors on its machinery. In an email received by Shift Miner, were grounded with flights cancelled.” with our workforce.
The centre will then assess the data a Bowen Basin miner said he wanted In an extended discussion on the Shift “Any decision relating to BMA’s
and use it to predict and prevent engine to highlight some of his observations Miner Facebook page, other employees contractor workforce is a matter for the
breakdowns and other downtime events, during Cyclone Marcia. said they had better experiences. individual contractor.”
significantly boosting productivity and safety. “On Thursday it was the last day of “I’m a contractor at BMA Blackwater BMA has also donated $250,000
Using predictive mathematics, machine shift and the day before the cyclone hit,” and live in Mackay, and they let anyone to the Salvation Army’s “Fill a fridge”
learning and advanced modelling, data he wrote. who would be affected by the cyclone campaign, which is helping to supply
scientists in India will be working to identify “About 11am BMA maintenance to leave the day before, and when the food and other needs to people affected
a range of problems before they occur. staff from Yeppoon to Bundaberg were cyclone was around Sarina they let me go by Cyclone Marcia.
It’s hoped this analysis will reduce given the OK to go home to prepare for no questions asked, so I guess I’m saying It has also donated seven power
maintenance costs and production the cyclone. BMA looked after me and my family when generators to communities without
losses from unplanned breakdowns. “Contractors on site requested the I needed them, I’ve worked for companies power in the Yeppoon area.
Rio Tinto executive for technology opportunity to do the same. where they don’t give a shit” one miner said Meanwhile the CFMEU has accused
and innovation Greg Lilleyman, says it “The superintendents of one of “As a contractor, we saw none of US energy giant Chevron of failing to
is about maximising productivity. these contractors left early himself to that where we work and every employee evacuate workers from the Gorgon gas
“The AEC will allow us to extract secure his boat at Rosslyn Bay, even living in the areas involved in cyclone project on Barrow Island off Western
maximum value from the data we are though contractors had been refused the Marcia were given every opportunity Australia’s north-west coast, despite a
capturing around the performance of our opportunity to leave. and plenty of time, to be with their category three cyclone bearing down on
equipment, making our operations more “All the contractors from Yeppoon family and their property” said another. the region.
predictable, efficient and safer,” he said. and Rockhampton would not have In response to the discussion, BMA The West Australian branch of the
“This is a world-first for the mining arrived home until 9 -10 pm that night - the regions largest mining employer - union said up to 1,600 workers were forced
industry and is all part of Rio Tinto’s leaving no time to prepare. said they have a clear plan for managing to sleep on blow-up mattresses in common
relentless pursuit of productivity gains “I know of one worker who lives by these situations. areas of the project’s accommodation
across our businesses”. himself had no food due to shops being “BMA has well established guidelines camps because there were not enough
closed once returning to Rockhampton, for preparing and responding to rooms to house them.
10 6th April 2015Shift Miner Magazine www.shiftminer.com Around Town
SNAPPED!
AT THE BLACKWATER CENT SALE
Toni Woodrow and Di Clemesha (L-R) Sierra, Gary and Kelli Jo Breuer and Errol Bateman
Damien Berlin and Rhondda Tunstall (L-R) Emma, Matthew and Vanessa Ash
Lisa and Grace Madsen Brion and Merilyn Lloyd (L-R) Edwind, Bernadetta, Nicola, William and (L-R) Colleen and Ryleigh Jones and Chrissie
Roanne Boag
.............................................................................................................................................................................................................................................................
ALL IN THE NAME OF CHARITY!
Blackwater residents lose hair for Cancer.
Mason Sims losing his locks Max Christensen having his Meagan Ferris Lee-Anne Cracknell Lydia Dagan Joy Beath
head shaved
(L-R) The heads shaved were, Max Christens-
Tegan Collon en, Mason Sims and Lillian Conlan (front row), Camden Hopes and Charlie Swaffield
and Eric Smyth and Kerry Anderson
Jackson Broom Teacher Kathryn O’Sullivan (L-R) Kaitlin, Bella and Danica
Holding a social event you want photographed? Call the Shift Miner office on 4921 4333 to let us know. You can also give our office a bell if you’d like a copy of any of the photos in this edition.
6th April 2015 11Shift Miner Magazine www.shiftminer.com Around Town
CSG A GOOD FIT
More than 160 people at the Bowen Basin Mining Club’s Moranbah networking event.
Carsten Thomsen CMC, Shain Davidge Erika Fredericksen WESTFUND, Meike (L-R) Sarah Chergwin, Matt Neindorf, Kayle Nigel Dobier & Phil Murdoch VERMEER
CARDNO Hamilton C-RES Strudwick, Zoe Formby WORKPAC
(L-R) Andrew Peachey CNW, Cassandra Steen
(L-R) Manus Basson ISAAC RC, Donna Mor- Justin Trott CELL ENGINEERING, Brent Gee (L-R) Kate Nissen CARMICHAEL BUILDERS,
RTHEALTH, Graham Harmsworth SCHNEIDER
rissy ARROW, Scott Riley ISAAC RC AUSENCO Glenn Smith ISS, John Tehan MORRIS CORP
ELECTRIC
(L-R) David lavender KEY SOLUTIONS, (L-R) Luke Deayton, Hana Tow & Marcia (L-R) Brett Weston CQ RESCUE, Claire Palliser (L-R) Jon Flower, Jed Millen & Michael Lewis
James Vasquez EPOCA, Barry Landa MRC Mackenzie GREYHOUND HORNERY GROUP, Alan Finch LIFEAID, Leonie WH&S QLD
.............................................................................................................................................................................................................................................................
Hansen CQ RESCUE
GEA INDUSTRY UPDATE IN GLADSTONE
Gladstone business keen to hear from industry about further opportunities.
(L-R) Geoff Claybourn QMC GROUP, Bruce Rudd NORTH SURVEYS, Renate Edwards & James Robertson BILL Louis Jordaan PROJECTS UNLIMITED, Ian
Craig Doyle GPC ROBERTSON TOYOTA Treveton SIKA
Hellan Ryan SOLUTIONS FOR HR, Karne Holland DOWNING TEALE Blair Thompson & Lorna McGinnis QGC Ian Coad BOYNE SMELTERS,, Nicholas Coad SIKA
Holding a social event you want photographed? Call the Shift Miner office on 4921 4333 to let us know. You can also give our office a bell if you’d like a copy of any of the photos in this edition.
12 6th April 2015Shift Miner Magazine www.shiftminer.com Around Town
SHOW TIME!
The Blackwater PCYC held a carnival in town recently [photo credit: Jeannette Fletcher]
Cody Alexander and Stacey Johnston Charlee-Kae and her Grandmother Laureen (L-R) Brooke, Nathan and Brady Bozier Lisa and Jace Moore
Fenner
(L-R) Layla, Summer and Tahlia Golden Kaitlyn and Taylor Tobane Cavelle Morgan and Reece Henderson Troy Egan and Sam Vowles
Catherine and Dakota Pidgeon (L-R) Matthew, Jacob and Don Livara (L-R) Brooke Kirkby, Maddison Titmarsh and
Savanna Simpson
Liam and Levi Law
(L-R) Malachi, Levi, Michael and Alwyn
(L-R) Alwyn, Daniell and Logan Vipen The Hill family (L-R) Ryleigh, Erin, Ella and Grahame Godfrey
Buy this and many other images at
www.shiftminer.com
Shift Miner magazine – bringing the mining community closer together
6th April 2015 13Shift Miner Magazine www.shiftminer.com Off Shift
Frank the Tank’s “Streakin” good love advice
Dear Frank, Gidday Gary,
I was deeply saddened to read your story.
only indicative results - since the
experiments have yet to be medically
salt shaker - that is your opportunity
to pull out your 5lb club hammer and
I have recently been through Sad because you have behaved so or scientifically “peer reviewed”. solve the problem.
poorly - and now you will probably lose That process can’t move forward until I Once she sees these types of tools piling
Cyclone Marcia. your girlfriend over it. finalise the court action taken against me up in the back shed, and you using them
I have always considered Unless of course I can salvage the by an animal rights group that say locking for seemingly inconsequential tasks - she
situation for you. a male monkey in a shed full of ready-to- will be putty in your hands.
myself a “manly” man, although I The thing is Gary, there is just no go power tools is “inhumane”.
have to admit I am not that good excuse for not having your shed clogged But anyway - lets take it as fact that the
Happy tool collecting! Frank
to the rafters with a wide variety of tools relationship between strong, testosterone
with tools and mechanical stuff.
“that might come in useful” one day. charged, alpha males and tool collection is high.
However having said that, I think After all, we men are responsible Lets also confirm that strong, SENSIBLE SUSAN
for the welfare of our tribe - and sadly testosterone charged, alpha males are
I am pretty self sufficient. Hello Gary,
the cyclone has left you exposed to the highly attractive to females.
I think we need to go right back
However my long term Alpha male next door. Ipso facto lots of tool collecting is
to the beginning on this one. Are
He is is probably sending your girlfriend highly attractive to females.
girlfriend (who I had hoped to you certain she has lost interest in
texts as we speak, something along the See where this is heading?
marry) seems to have lost some lines of: “Why don’t you come over here Here is your simple solution to win back you, or is it all in your own head?
for dinner and a movie, and later I will your girlfriend before the bloke next door Women like lots of different
respect for me because I didn’t qualities in their men, and the
show you this other useful tool I have”. has given her the tooling that won’t keep
have all the right skills to get us Actually I have just completed some the refrigerator running. chances are your girlfriend is going
medical experiments that I am certain You need to start hitting up mates and out with you because she saw other
through the storm’s aftermath.
prove a direct link between testosterone acquaintances for any of their old tools qualities she liked.
So we ended up borrowing a and the acquisition of tools. that they don’t need, and maybe go out As always, my advice is to have a
lot of gear from the tradie next What my experiments have shown is and buy some for yourself at full market good sit down face to face talk about
that the testosterone readings for men (or in value (just keep it to yourself). it, and I think you will find she likes
door - and to be honest I suspect the case of my experiment: male monkeys) Then at any given opportunity you need you as much as she ever did.
my girlfriend felt I have come up who have acquired large volumes of tools at to prove your manliness, by using one or Even if you don’t have every tool
largely discounted prices through channels many of your tools for certain tasks. in the shed.
a bit short in the “man” stakes. such as mates at the mines, clearing sales, What you are looking for here is high
How can I change her mind? Gary, or from friendly blokes they have met at the impact examples, that leave her in no doubt Susan
pub - is off the scale. about whose tools she should be touching.
Rockhampton Although I should say these are An example might be a clogged
MadMumzie.com
HOW MY V8 HELPED ME CELEBRATE
INTERNATIONAL WOMENS DAY
yep she’s good to go, and it didn’t cost are, and they are real peeps, like me. It your crew and mining life. Who knows,
me anything, bloody lovely! is great to see the new vision of 20% perhaps you are trying to get your
It was however too late for a 3 hour by 2020 of women in the workforce in daughter/granddaughter/wife/sister/
drive for my first night shift. With no non-traditional roles. The interviews and niece/friends out here too? Would you
sleep, kangaroos, cows and pigs, I better key note speakers inspired me to put pen want them to be treated with respect and
have the night off. Cheap fix for car, but to paper, fingers to digital, and share helped and supported on their journey,
contracting means I lose a day’s pay, not my thoughts, and I am only half way especially by the experienced old fellas
helpful right now. through the video. who can teach them a thing or two?
Then the ol hippy in me kicks in. More women in the resources sector I speak from an operator’s point of
“There’s a reason why the angels didn’t is a fact of life now. Do you embrace view, but there are plenty of women
want you to go today.” Stay home, watch them, (not literally!) or think their place in the resources sector kicking ass in
MKR, it could be the highest score ever is barefoot in the kitchen and pushing a the engineering, trades, supervising,
tonight, Revenge is on.... I have lists to pram? This statement sounds so wrong management and many more roles now.
sort, and mmm a red wine is looking nowadays, but it was only a few years I love hearing a surveyor, or blast
mighty fine, and perhaps I averted worse ago a lovely old fella (yes you) said that crew chick calling up to come on our
by not being on that highway. After all to me, and four other women sitting in circuit. OMG how happy will I be
“Click. Click.” The V8 won’t fire up. I’m all about going with the flow, safety the crib hut. Lucky he could duck. Yes he when the fitter who comes to fix my
I have had this issue before, the and fatigue management. was stirring us and it was said tongue in truck is a chick?!
alarm overrides something or other. I checked my emails, and as I recently cheek, but was he only verbalising what Happy 106th International
l lock and unlock...grrrrrr no go, so I signed up for the WIMARQ (Women others think? What you perhaps think? Women’s Day, and you can thank my
ring the RACQ. In Mining and Resources Qld) list they I am sure, especially if you have been v8 for this article...bloody Fords!! Now
The battery has only 5% charge but emailed me a link to footage of the in mining for a long time, you are seeing back to the video...
that ain’t the issue. Long story short, it International Women’s Day Breakfast the changes? Hopefully for the most
was a starter motor wire from the key and Resources Awards for Women. Wow! part you are now accepting us as part of Cheers,
end……I blurred out a bit by then, but What an inspiration these chicks the furniture, and valuable members of Mad Mumzie.
14 6th April 2015Shift Miner Magazine www.shiftminer.com Off Shift
PUZZLES 1 2 3 4 5 6 7 8
ACROSS
1. Climbs with difficulty
5. On train
DOWN
1. Spider’s network
2. Aviator
LAST EDITION’S SOLUTIONS
6 8 9 10 9. Noblewoman 3. Hackneyed
P L A T ON I
O W R
ME A T B A L
L
C
L
I M
EM
E
P A
N
B A
L E
N
R K
10. Large showy flower 4. Award ribbon
3 8 5 2
P K I B S O L I
11 O V E R T H R EW R A Y ON
12. Shoulder decoration 6. Rio de Janeiro native M S E A I S D
12 13 H A R D B E S T I A L
13. Stupid 7. Pact
9 8 3
S I P E S E
T OMC A T S M A D E
14. Factual 8. Local languages I P T O E D J
16. Barber’s trim 11. College F A I T H F R A N C H I S E
7 1 2 3 8 17 18
14 15 16
19. Stored secretly 15. Nabbed in the act, caught ... (3-6)
F N E
E I GH T H
N E I
T S R
P L E A
E T
V
S A
N
T
N T
E
21. Weather feature, El ... 17. Fellow crew member S E D U C E A S S E S S E D
6 8 19 20 21 24. Shopping mall 18. Geisha’s nationality # 73 3 1 2 8 5 7 6 4 9
25. Pretended (4-5) 20. Plunges 5 7 4 9 1 6 3 8 2
8 4 7 9 5
22 23
27. List of topics 21. Tidiest 9 6 8 2 4 3 7 5 1
24 25 26
28. Make legitimate 22. Garb 7 8 1 3 6 9 4 2 5
7 1 6 29. Rectifies (text) 23. Least busy 2 3
6 4
5
9
4
5
8
7
1
2
9
8
7
1
6
3
30. Sheerest 26. Conscious (of)
4 9 6 7
27 28
SHIFT MINER
Handy Cross 1860 - (15A grid)
4 9 6 7 2 5 1 3 8
ShiftMinerHandy099s. pdf
1 2
© Lovatts Publications 22/09/2010 7 6 3 8 5 9 4
2 1 29 30 8 5 3 1 9 4 2 6 7
MEDIUM # 74
Shift Miner
Handy Cross blank grid.pdf
©Lovatts Publications 5/03/09
artist – mb
6th April 2015 15NOW ABSOLUTELY FREE FOR SUBSCRIBERS at www.shiftminer.com
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