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FRIENDS IN NEED Mining & agriculture $9.95 (incl. GST) Issue 1 Spring 2015 TRAILBLAZERS Winning SA women INVENTORS & INNOVATORS THE ENVIRONMENTAL MINER resourcing SA The people, projects and happenings in SA minerals and energy

Resourcing SA - Spring 2015

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This is the launch issue of Resourcing SA, a magazine focused on the people, communities and stories surrounding South Australia's dynamic minerals and energy industry.

Text of Resourcing SA - Spring 2015

  • FRIENDS IN NEEDMining &

    agriculture

    $9.95 (incl. GST)Issue 1 Spring 2015

    TRAILBLAZERS Winning SA women

    INVENTORS & INNOVATORS

    THE ENVIRONMENTAL MINER

    resourcingSA

    The people, projects and happenings in SA minerals and energy

  • Iron Road Limited | ASX Code: IRD | GPO Box 1164, Adelaide 5001, South Australiawww.ironroadlimited.com.au | @IronRoadLimited | [email protected]

    Denitive feasibility study demonstratesa highly competitive project with potential for strong economic returns

    21.5 million tonnes per annum of high grade (67% iron), low impurity iron concentrate

    Current mine life of 25+ years, with growth expected to beyond 30 years

    Rail and port infrastructure able to accommodate Capesize vessels

    Project has the support of the Australian State and Federal Governments Mining and

    infrastructure project

    with low

    operating costs

    KEY PROJECT FACTS

    IRON ROAD IS BUILDING A FULLY INTEGRATED, LONG LIFE, MAGNETITE IRON PROJECT IN SOUTH AUSTRALIA

    Tumby Bay

    Cape Hardy

    Elliston Cowell

    Port Augusta

    Port Pirie

    Moonta

    Port Wakefield

    Ceduna

    Streaky Bay

    Adelaide

    Kimba

    Minnipa

    Wudinna

    Central EyreIron Project

    Central EyreIron Project

    Tenement Outline

    Main Road

    Railway

    Infrastructure Corridor

    Proposed Cape Hardy port

    Warramboo

    Lock

    Cummins

    Port Lincoln

    Infrastructure Corridor

    Whyalla

  • ISSUE 01 RESOURCING SA Spring 2015

    04 From the editor

    from the EditorWelcome to our first issue!

    This magazine was created for the South Australian community, to open up discussion and provide the news and stories surrounding one of the States more mysterious industries - mineral and energy resources.

    Its an industry thats out of sight and unknown to so many people. The mines, the exploration and the oil & gas acreage are often located deep in the outback, with offshore petroleum exploration hundreds of kilometres out from our coast.

    To some people, mining invokes images of environmental desecration or greedy men in suits.

    Resources, like all industries, has grown and evolved over the years. It shaped South Australias early economic development and it continues to build and maintain our standard of living today. Minerals remain the States largest export, millions of dollars of royalties each year support our public services, and thousands of jobs and business opportunities are facilitated through this enormous industry.

    Its an industry of diversity in every sense of the word, with so many stories to tell and so many inspiring people to meet.

    Ive been fortunate enough to hear first-hand some of their stories on environmental leadership, like Hillgroves pioneering rehabilitation on page 30 (who would have thought a mine at Callington is home to the largest grove of untouched native woodland in the Adelaide Hills?) on innovation, like our passionate inventors and researchers developing cutting edge technology (pages 36 - 38) on

    small business, like the enterprising individuals serving the industry on page 32 and 33.

    Our cover photographer for this issue is Chris Warrior, Community Relations Officer at OZ Minerals. Chris, a proud Kokatha man, has a five year history in the mining industry. Hes also a talented photographer with a gift for capturing the true essence of the land and people who surround him.

    Other people are shaping a new industry demographic. Or leading better outcomes for remote communities, trailblazing regional renewal, or overcoming obstacles to work with the rocks, minerals or land they love.

    We will share these stories with you and more. There will be career paths and changing science. Some of our younger readers may be surprised to learn how mined materials are used to make just about everything.

    While we aim to publish stories we think will interest our South Australian readers, we also want your opinions. Please send in your feedback, opinions, questions, criticisms well try to print them all [email protected]

    I hope you enjoy our launch issue of Resourcing SA.

    Megan Andrews Editor

    Diamond Gold

    SACOME Black Gold sponsors

    Platinum

    SACOME Silver sponsors

    Copper Zircon

    Your opinion and feedback is important and we always appreciate hearing form readers. Love or loathe something youve read, or simply want to get something off your chest then please feel free to drop us a line.

    [email protected]

    Editor Megan Andrews

    Deputy editor Stephen Batten

    Publisher South Australian Chamber of Mines and Energy (SACOME)

    Production editor Lindy McNamara

    Editorial committee John Roberts, Tino Guglielmo, Anya Hart, Dayne Eckermann, Sylvia Rapo, Yasmin Chrisohoou, Lachlan Wallace, Jacqui Dealtry

    Designer Raymond Capozzi

    Printing Lane Print

    Cover Sabrina McKenzie (page 12) Photo by Chris Warrior

    Advertising & SACOME Membership Stephen Batten (08) 8202 9999 [email protected]

    Online magazine www.sacome.org.au/sacome-media/magazine

    Frequency Quarterly

    Subscribe [email protected] $9.95 per issue; $20 for four issues

    www.sacome.org.au

    Tell Us What You Think..

    Follow SACOME onfacebook.com/southaustralianchamberminesandenergyLinkedin/South Australian Chamber of mines and energyTwitter @Mining_EnergySA

    Resourcing SA is published by the South Australian Chamber of Mines and Energy (SACOME), our partners include:

  • ISSUE 01 RESOURCING SA Spring 2015

    Contents 05

    12 | FEATURE

    14 | WORKFORCE

    18 | OPINIONSometimes the link isnt obvious, but communities across South Australia are benefiting in many ways from having mining in their backyard.

    The Eyre Peninsulas Tim Scholz, mining and agriculture, friends in need

    Celebrating South Australias trailblazing women in the male-dominated resources sector

    6 NEWS 10 OPINIONJason Kuchel; Minings not dead

    16 WORKFORCEA young Port Augusta fitter & turner celebrates the end of training winning Apprentice of the Year

    20 ENVIRONMENTSA Nature Foundation forging strong partnerships with another nature lover the resources sector

    22 PROFILEAndrew Cole, OZ Minerals

    24 SWINGS & ROUNDABOUTS Redundancies and falling commodity prices where is SAs resources industry heading?

    27 INNOVATION Update on OZ Minerals game changing hydromet studies

    28 EDUCATIONScience Alive! inspiring a new generation of scientists

    30 ENVIRONMENTAn Adelaide Hills mines environmental initiatives are reaping rewards

    32 SERVICESA film maker and ergonomic equipment specialist are among SAs diverse resource sector small businesses

    34 CAREERSBorn in the outback & distance educated, geology is a natural fit for a young nature lover

    36 INNOVATIONSA a centre of excellence and innovation hub

    38 INNOVATIONTonsley the dream is coming to fruition

    39 COMMUNITYA West Coast miners long term commitment is making roads safe

    40 WORKFORCESantos pioneering diversity initiatives are getting results

    41 WORKFORCENew management at OZ Minerals Adelaide head office

    42 COMMUNITYA lifesaving 24/7 helicopter service is proving its value in the States remote north

    43 BUSINESSMiners are fighting hard

    44 BUSINESSWorking capital on the decline

    45 OPINIONJamie Love, Aboriginal Business Industry Chamber of SA

    46 EVENTS48 SERVICES IN THE NEWS50 COMMUNITYMiner takes time out for charity & to see the outback

    51 OPINIONTerry Burgess perception is everything

  • ISSUE 01 RESOURCING SA Spring 2015

    06 News

    Three times lucky

    Support milling for Iron Road

    Santos CEO...

    Stop press

    After seven years in the role, Santos Managing Director and Chief Executive Officer David Knox has announced he will step down once a successor has been appointed.

    His resignation coincides with the Santos Boards decision to conduct a full strategic review to examine all options to restore and maximise shareholder value.

    Santos Chairman, Peter Coates, will assume the role of Executive Chairman.

    Beach Energys Managing Director and CEO has also stepped down. Citing family reasons, Rob Cole will remain with the company until 14 October. COO Neil Gibbins is Acting Chief Executive.

    Archer Exploration has confirmed the capability of a third deposit that will extend the life of its Campoona graphite project on the Eyre Peninsula.

    In August Archer released results that ultra-high grade graphite of 98.6 percent contained graphite from tests of the Lacroma project. This followed similar results from the Central Campoona and Campoona Shaft deposits.

    Archer said all three projects areas could use the same processing circuit planned on site at Sugarloaf near the proposed mining pits, without any need to amend the circuit set-up for individual deposits.

    The company said the three sources of graphite would provide production flexibility, by either increasing the greater project operational life or the opportunity to greatly increase production from the currently planned 10,000tpa Sugarloaf processing plant.

    Meanwhile, samples from the Campoona project have been sent to the CSIRO for a new round of testing to determine their suitability to meet the emerging global market for lithium-ion batteries.

    In May, Archer announced that testing of its ultra-pure graphite found it compared favourably against commercially available high purity synthetic graphite, which is currently used in 32 percent of all lithium-ion batteries.

    With that market tipped to increase, the CSIRO suggested further improvements in charge capacity could result if Campoona graphite was more finely and uniformly sized.

    A sample of Campoona concentrate was subsequently sent to Germany for micronising and classification, with the returned sample then purified and sent to CSIRO for further testing. The new results are expected in October.

    The development of Iron Roads Central Eyre Iron Project (CEIP) is gaining momentum following the signing of non-binding agreements with five Chinese steel companies in September.

    The Memorandum of Understandings (MoUs) will see Iron Road and the companies working together to evaluate both the commercial and technical benefits of using high quality CEIP product in Chinese steel mills.

    One of the MoU parties, Shandong Iron & Steel Group (ShanSteel), has signed a further agreement, progressing its intention to enter into a Letter of Intent to cover the supply

    of premium iron products from the CEIP. ShanSteel is the seventh largest producer of steel in China and under the agreement it is proposing to work with Iron Road to seek a project funding solution which would enable the start of construction during 2017.

    At the same time, an agreement to investigate infrastructure funding was signed with AIXI Investments. This would support construction of a deep sea port at Cape Hardy suited for capesize vessels, as well as an infrastructure corridor for rail, water and power.

    Iron Road also signed an Indigenous Land

    Use Agreement, the result of successful negotiations with the Barngarla Aboriginal Corporation, SA Native Title Services and the Attorney General of SA. The agreement sets out all commitments in relation to native title and Aboriginal heritage during construction, operation and closure of tenements.

    In a milestone week the company also signed MoUs with the Wudinna District Council, District Council of Cleve and four Eyre Peninsula peak bodies .

    Iron Roads share price has shown strong gains since the signing.

    Iron Roads Andrew Stocks signing the infrastructure funding MoU at a SACOME lunch on 11 September.

    Terry Burgess (SACOME), Paul Heithersay (DSD) and the Hon Tom Koutsantonis MP also present

  • ISSUE 01 RESOURCING SA Spring 2015

    News 07

    Eyes on Top 50

    Copper centre stage

    A strategic review of its operations will see Beach Energy selling off its international assets, to focus on oil and gas reserves closer to home.

    In June, Beach announced its exit from Romania and in August it said it had entered an agreement with Rockhopper Exploration for the sale of its Egyptian assets. The company is also in the early stages of farming down its Tanzanian permit.

    The strategic review includes a target of 15 percent corporate cost savings in the next

    financial year and outlines Beachs aim to become an ASX top 50 company.

    Chris Jamieson from Beach said it was unlikely there would be any job losses as a result of the review.

    While some consultants and contractors could go, most savings would be made through discretionary items. In the long term, the expansion would likely mean more jobs, he said.

    We want to become an ASX top 50 company, so in order to get there we have to grow and that growth is going to require more people and more jobs, so if anything I see the potential expansion of Beach in that regard.

    The company said it plans to focus on its oil gas reserves in South Australias Cooper Basin, along with expanding into complementary businesses on the east coast.

    South Australians are being asked for their input into a long-term strategy to unlock the vast potential of the States copper belt.

    South Australia hosts 68 percent of Australias copper resources, one of the key elements required for a more energy efficient world.

    Being developed by the State Government, the Copper Strategy aims to position Australia as the worlds third largest copper producer by 2030, with South Australia leading the way to achieve the ambitious target by tripling its own production.

    Minister for Mineral Resources and Energy Tom

    Koutsantonis launched a Directions Paper in September that will guide the development of a long-term strategy.

    There is widespread agreement that South Australias geology and geography does put us in the box seat to supply copper to the worlds fast growing economies, the Minister said.

    Having created significant historical benefit, SAs copper industry continues to generate value and offers vast, untapped potential with resource companies, service providers, skilled workers and the broader community all set to benefit.

    Prospective rocks in SA are generally buried deep and one of the challenges for industry and research partners is to locate these and find ways to economically develop both known and yet to be discovered deposits.

    Demand projections are predicting a future copper deficit combined with reductions in supply.

    The Directions Paper is available at the Department of State Developments website and through the Governments YourSAy website. Submissions are due 23 October.

    Happy birthday BHP

    BHP Billiton had much to celebrate on 13 August its 130-year anniversary of the incorporation of BHP and its contribution to Australia for more than a century.

    BHP was formed in 1885 after a rich silver and lead deposit was discovered by Charles Rasp

    on a rocky outcrop known as the Broken Hill in western New South Wales two years earlier.

    BHP Billiton CEO Andrew Mackenzie said the milestone was an opportunity to reflect on the companys long history and events that shaped its culture.

    Its not often that we get the opportunity to stop and take a look at where we have come from, but history has a lot to teach us, he said.

    From humble beginnings mining silver and lead at Broken Hill and tin at Billiton island, Indonesia, in the mid-1800s, it has been a long journey.

    We have been part of iconic events that have shaped the nation, such as providing steel for the Sydney Harbour Bridge and being part of

    the Commonwealth Aircraft Corporation which produced the first military aircraft in Australia.

    The anniversary was also an opportunity to highlight the contribution that the company continues to make in Australia.

    Last financial year BHP Billiton contributed around $27 billion to the Australian economy in payments to suppliers, wages and employee benefits, dividends, taxes and royalties.

    In addition, BHP Billiton contributed US$59.5 million through voluntary community investment to support social and environmental programs and the BHP Billiton Foundation committed $55 million to support science, technology, engineering and mathematics (STEM) education across Australia.

    Andrew Cole (OZ Minerals) with the copper strategy directions paper, thanking Minister Koutsantonis for his lunch speech (left), Jason Kuchel (SACOME), right

  • ISSUE 01 RESOURCING SA Spring 2015

    08 News

    Air clearing on nuclear

    Tunnelling 170kmBHP Billiton announced at the SACOME/GMUSG resources conference in August that it expects to spend hundreds of millions investigating an underground expansion of Olympic Dam over the coming years.

    Jacqui McGill, Asset President Olympic Dam, addressed the conference in what was her first public presentation since taking over in June as new head of the mine.

    In her update, which included details of the companys heap leaching trials currently underway at Wingfield, she said the company was hoping that through the trials a business case would be made to expand the underground mine into its unmined southern areas.

    Expanding into the southern section of the massive copper, gold and uranium deposit would involve building 170km of tunnels over five years.

    Thats equivalent to tunnelling from Adelaide to Clare, Jacqui said.

    The plan would also include an upgrade of the above-ground plant.

    Together with the heap leaching trials, Jacqui said the mine was currently focusing on reducing operational costs.

    Although this process has resulted in the loss of 520 jobs, its important to remember that Olympic Dam still employs 3500 people, she said.

    Its been a particularly challenging year and we have had to make some really difficult decisions.

    We recognise the importance that SA places on Olympic Dam and we remain committed to SA and will continue to support those communities who rely on us.

    The heap leach trials will take several years to complete.

    We must be patient and very thorough in testing this technology, which may prove to be the key in unlocking the Olympic Dam resource for the future, Jacqui said.

    She said it was important to understand Olympic Dams current contributions to SA.

    Over the past financial year these include $580 million spent with SA service providers, $70 million in taxes and royalties, $8 million on Aboriginal enterprises, $1.6 million on community initiatives such as the Royal Flying Doctor Service plus extensive support for university, health and cultural bodies.

    The Nuclear Fuel Cycle Royal Commission has entered a four-month public information-gathering phase with sessions being held to gain information around key topics that are critical to the inquiry and will help the commission answer its four terms of reference.

    The sessions, which are open to the public and will be streamed live on the commissions website, will continue until mid-December. They are designed to add to the commissions own analysis and research, including lessons learned from overseas visits and information received via written submissions.

    Witnesses are being called from within Australia and overseas and the commission will also invite authors of written submissions to provide additional evidence to clarify points raised in submissions.

    Topics to be covered during the public sessions include the National Electricity Market; the geology and hydrogeology in South Australia and; low carbon energy options, including nuclear power.

    The Commission has received almost 250 submissions from interested stakeholders, including individuals, community groups,

    businesses and government representatives.

    SACOME made a consolidated submission to the commission on the four issues papers. This submission responded to the first issues paper Exploration, Extraction and Milling, four questions in issues paper two Further processing and manufacture, and briefly on issues paper four Management, Storage and Disposal of Waste.

    Recommendations include targeting funding

    into initiatives to identify and develop uranium and exemption of uranium mining and milling from the Environment Protection and Diversity Conservation Act as measures to protect the environment and manage harm exist under State laws and regulations.

    SACOME also recommends key infrastructure components to enable further development of the industry, the development of additional skills and an overhaul of land access matters.

    Jacqui McGill

    Ian Hore-Lacy, Dr Tim Stone and Ben Heard at a SACOME nuclear information seminar in March

  • ISSUE 01 RESOURCING SA Spring 2015

    News 09

    Rushing north for gold

    Havilah Resources will fast track feasibility studies into its North Portia copper-gold deposit in the hopes of bringing the project on line as soon as mining operations at the current Portia mine wind down at the end of 2016.

    The North Portia deposit lies about 500m from the Portia operation, which is located near Broken Hill. No mining study has been carried out on North Portia because Havilah had planned to develop the Kalkaroo copper-gold mine first and then utilise this processing plant for North Portia ore.

    However, given the new synergies provided by the adjacent Portia gold mining operation,

    a preliminary scoping mining plan has been completed for North Portia, based on an updated resource block model.

    This work has indicated that there was some 3.7 million tonnes of mainly oxidised material at an average grade of 0.68 percent copper and 0.49 g/t gold, containing some 25 000 t of copper and 58 000 oz of gold, which could be accessed by the removal of 25-million tonnes of overburden.

    With all mining infrastructure and plant and equipment now in place at Portia, it makes sense for us to look at the viability of mining North Portia as a sequential follow-on operation, said Havilah Managing Director Chris Giles.

    Meanwhile, Havilah reports that operations at the Portia gold mine are progressing according to plan.

    During August, 580,113 cubic metres of overburden material was moved, and in July a third operating crew employed. This means that 30% overburden has now been removed and both mining fleets are now operating 12 hours a day, seven days a week.

    First gold from Portia is expected in July 2016.

    Rex looks to 2016Rex Minerals has been granted a 12-month extension for the submission of two major reports relating to its Hillside copper-gold project on the Yorke Peninsula.

    After undertaking an extensive review of the project due to the downturn in global commodity prices of copper, gold and iron ore, Rex announced the results of its Extended Feasibility Study to the ASX on 25 May.

    Following this announcement, the company sought and was granted an extension from the Department of State Development (DSD) for the submission of its Program for Environment Protection and Rehabilitation (PEPR) and Social Management Plan (SMP). Rex will utilise this extension period to engage further with the DSD, regional community and other stakeholders on details relating to Hillside.

    As a result of the approval of the extension, Rex is now required to submit a PEPR to the DSD by 16 September 2016.

    Exclusive events

    South Australian Museum

    From 25 September 2015 the South Australian Museums blockbuster exhibition Opals comes to life. Opals is a story of discovery, human ingenuity, and translucent beauty, all against a backdrop of profoundly isolated geography. It features the finest opal ever unearthed, an underground mine recreation, exceptional opalised fossils of ancient marine reptiles and an exquisite jewellery-like display of beautifully cut gemstones gathered from around the world.

    Book an exclusive breakfast or evening visit to the Opals exhibition for your team or organisation by contacting [email protected]

  • ISSUE 01 RESOURCING SA Spring 2015

    10 Opinion

    The average follower of the news and even those who have not been in the mining or energy sector for long could be forgiven for thinking the industry is dead or dying; with commodity prices falling and the Chinese economy not growing at double digit figures.

    While it would be wrong of me to suggest that everything is rosy, some context is needed.

    The metals and petroleum commodity indexes (an indication of their value) are better today than they were in 2005 and certainly much better than they were for the preceding 30 years. Ten years ago, everybody in the industry was excited, many projects were moving forward and governments were talking up the possibilities and all with good reason.

    So whats different today? During the peak in the commodity price cycle companies chased higher production making hay while the sun shines which increased competition for skills, contractors and supplies, so costs were driven up.

    Now, with demand falling, efficiencies have needed to be found and cost cutting undertaken as the industry goes through the pain of having to re-adjust. However, once all companies get their houses in order and investors get used to commodity prices where they are today, investment will ramp up once again. Of course, every commodity is different and some will need to see an increase in price to drive growth.

    So where are we now?

    In SA, mining exports have risen from around 13 percent to more than 35 percent of the States exports making it the biggest contributor in terms of bringing dollars into our economy. The States two biggest companies alone continue to spend more than a billion dollars in South Australia each year.

    South Australias offshore oil & gas explorers are spending several billion over the next few years in exploration.

    Companies like Arrium and Nyrstar are the backbone of Whyalla and Port Pirie respectively

    and both have invested very heavily within their communities over recent years.

    As demand from China continues to grow, albeit a little slower than some economists might like, and as India and much of Asia continues to have a growing middle class, the industry will no doubt continue to grow. Of course the big question is will it grow fast enough to help with jobs growth in South Australia?

    The development of mining and energy projects always take years, not months, to come to fruition.

    We are always hopeful that the mining and energy sectors and governments can work together to accelerate investment. One way is to invest in some key pieces of infrastructure.

    Did you know that the Pilbara region in WA was opened up to iron ore mining only as a result of the WA Governments foresight in investing in a port? Of course, the WA Government has been repaid many times over and its economy has taken off in the past 15 to 20 years. The Brazilian Government did something similar which enabled Vale to become one of the worlds largest suppliers of iron ore.

    Of course, its easy to focus on the economic contribution and job creation, but the industry does and can do so much more. For example, as declining populations slowly destroy the social fabric of some rural communities, there are country towns looking forward to mining investment to shore up their communities.

    Farming communities have looked to the mining industry to provide income to survive during times of drought. Cheaper energy has helped to enable other industries (as occurred in the South East when gas was produced there for the better part of two decades).

    The mining and energy sector has provided young people with many and varied job opportunities so that they dont have to move away too far from their homes to get a job. The sector supports local sporting groups, assists indigenous businesses and individuals, particularly in remote locations and much more.

    So while you may not be reading about all the outcomes of the industry or seeing them on the evening news, rest assured the industry is not dead but adapting, producing, planning for the long term and paying its taxes and royalties as it continues to uphold the economy through another turn of the business cycle.

    Mining not deadSouth Australias resources industry is undergoing change as it continues to adapt to the global resources cycle.

    By Jason Kuchel

    Jason Kuchel is the Chief Executive of the South Australian Chamber of Mines & Energy, a role he has held since April 2007.

    Jason currently represents the resources sector on the Mining & Energy Advisory Council, the Mining Industry Participation Office and Local Governments Eyre Peninsula Mining and Oil & Gas Community Development Taskforce. He also holds or has previously held board level responsibilities in the fields of engineering, environment, health and education including a period as an Elected member with the District Council of Mount Barker.

    Born and raised in country South Australia, Jason is a passionate South Australian who understands the importance of growing the economy across the whole State for the benefit of families and future generations.

    Jason is regularly interviewed on television, radio and print media. He speaks often about industry matters and the opportunities in the South Australian resources sector, in Australia and as far away as China, Canada, Europe and South America.

    Jason Kuchel

  • If there is such a thing as utopia for mineral explorers, it must be South Australia.David Upton, 20 April 2015, Greenfieldexplorer.com

    The Mineral Systems Drilling Program a collaboration set to revolutionise exploration

    minerals.statedevelopment.sa.gov.au/msdp

    PACEFRONTIERS

  • ISSUE 01 RESOURCING SA Spring 2015

    12 Feature

    Sweet taste of mining

    Small and large communities across the State are benefiting from having mining in their backyard.

    By Lindy McNamara

    Next time you re heading down the South Eastern freeway, make time to call into the little cafe at Callington. Order the marinated chicken burger, sit back and enjoy!

    And if burgers arent your thing, try a slice of the New York baked cheesecake or one of the triple fudge brownies theyre delicious and made by a true New Yorker, owner Nancy Bradbury.

    From the outside, the Bremer River Cottage Cafe may seem just like any other eatery you might come across on a long distance journey. While its great food certainly sets it apart from many of its competitors, the small family-run business has another secret to its success the mining industry.

    Located a short distance from Hillgroves Kanmantoo copper mine, the cafe has leapt ahead in leaps and bounds over the past three years since it began servicing the catering requirements of staff at the site.

    Nancy and her daughter Amanda are on hand to prepare the morning tea and lunch orders emailed by the mine office each day, with two deliveries to the site at 10am and noon. They also cater for meetings and the two major contractors on site, Andys Earthmovers and Roc-Drill.

    Then there are the tradies, truck drivers and sub contractors who stop off at the cafe for something to eat before they make the five-minute drive to Kanmantoo, as well as the cake orders from mine workers who are celebrating an event at home.

    The mine has played a good role in growing the business, Nancy says.

    Orders can vary from one to 30 items, but Fridays are usually really busy because I offer pizzas then as well.

    With the mine operating 365 days a year, Nancy knows she is lucky to have a steady flow of income coming in from the venture and as a

    way of thanking Hillgrove, she has worked the past two Christmases to cater for the workers.

    I did platters to feed two shifts, 120 people on one day. I gave up my Christmas Day because I thought it would be nice for the people working there to have a decent meal on the holiday.

    I really appreciate the mine, not just for my business but what it does for the local area.

    It is this flow-on impact known as the multiplier effect that is often forgotten when people talk about the benefits of mining in South Australia. While the State receives the royalties, many businesses small and large are reaping the rewards of nearby mines.

    Putting an actual figure on the multiplier effect for mining is not an easy task and interpreting the numbers can be as difficult as calculating them, especially when the economy is experiencing rapid change.

    In February 2013 the Reserve Bank of Australia released a working paper that estimated the size of the Australian resource economy at around 18 percent of gross value added in 2011/12.

    Researchers at the Royal Melbourne Institute of Technology compiled data using Australian Bureau of Statistics figures and formulas a few years ago, to calculate multipliers across various sectors within the mining industry. (Costing of the Greens economic policies, 2011). They found that the mining sector generates significantly more jobs than Australias other major industries.

    For example, for each full time person employed in the oil & gas sector an additional 7.6 jobs were created across the broader economy. For mining, multipliers ranged from 5-7 jobs depending on the commodity mined. In comparison, the retail sector created an additional 1.9 jobs and the finance industry an additional 3.2.

    Together with the needs of minerals developers and producers, the discretionary spend

    of workers in the sector has an enormous cumulative impact, which is once again more pronounced in the mining industry, due to the higher paid nature of many roles. The study found that a $1 increase in the salaries of mining industry workers translated to an additional $3.60 to $5.70 (depending again on commodity mined) earned by workers in all other industries of the economy.

    A more recent report by consultancy firm Port Jackson Partners earlier this year focused on the impact of the iron ore industry. It found that by capitalising on the opportunities of the past decade, the industry had created a market position even stronger than before the commodities boom. As a result, they concluded subject to any detrimental policy decisions that the industry will contribute more than $600 billion to the national economy over the next decade. This is even higher than over the decade to 2014.

    Socio-economic assessments are often undertaken in the feasibility stage for new mines, to demonstrate the benefits they will bring to the local and wider communities.

    As outlined in a report undertaken by Gillespie Economics for the Cadia East gold mine in NSW, sectors that receive the flow-on impacts of mining include wholesale trade; electricity supply; retail trade; hotels, cafes and restaurants; scientific and technical services; law, accounting and marketing; banking; ownership of homes; health services; personal services and road transport.

    Ernst and Young compiled an Economic Contribution Study for Iluka Resources in 2013, looking at the economic impact of its operations in Australia and the United States.

    It found that its Jacinth-Ambrosia mineral sands project 290 km from Ceduna had a significant positive impact on not only the West Coast community, but SA in general.

  • ISSUE 01 RESOURCING SA Spring 2015

    Feature 13

    In 2013 the company directly provided 147 jobs and $48.6 million in value add in the Ceduna West Coast region. This economic activity caused flow-on impacts to the region of a further 145 jobs and $17.5 million in value add.

    Overall economic activity for South Australia also included 50 direct and 646 additional (indirect) jobs in Adelaide. These jobs, in conjunction with the Ceduna West Coast direct jobs, created an

    overall impact (including flow-on impacts) of 843 jobs and $153.9 million in value add.

    Iluka, like its mining counterparts in South Australia, has made a conscious effort to assist the local community.

    Iluka leases equipment from local Far West Coast Mining and Civil, assists local activities through direct sponsorship or in-kind

    donations and provides assistance that can make a huge difference to rural communities and local businesses.

    So, the next time you are in Callington and enjoying a chicken burger or slice of cheesecake, dont just think about Nancy Bradburys fantastic culinary skills. Spare a thought for the myriad of businesses that are also winners, thanks to the mining industry.

    I really appreciate the mine, not just for my business but what it does for the local area

    Nancy and Amanda preparing for the midday Kanmantoo delivery with some of their home baked goodsImage: Megan Andrews

  • ISSUE 01 RESOURCING SA Spring 2015

    14 Workforce

    Trailblazing women in South Australias male-dominated resources sector together with gender diversity advocates were celebrated at a landmark awards event in July.

    By Bridget Fardon

    FRONTIER WOMEN

    Sabrina McKenzie, a young plant operator employed by Thiess at OZ Minerals Prominent Hill mine, started her working life in hospitality before being attracted to mining. She came in as a trainee and progressed to a CAT D10 Operator, breaking new ground as an Aboriginal woman in a male dominated industry.

    Sabrinas achievements, and those of other women instrumental to the South Australian resources sector, were celebrated at the inaugural Women in Resources SA Awards, presented on 31 July this year.

    Sabrina received the Outstanding SA tradeswomen, operator or technician award.

    The awards aim to recognise the important role women play in the resources sector and celebrate their contributions and achievements, together with the achievements of those playing a leading role supporting women in the sector.

    Terry Burgess, SACOME President and member of the awards judging panel, commented that the judges were very impressed with the high quality of candidates.

    With close to 40 nominations in the first year of these awards, it is a credit to the calibre of women we have in the South Australian resource sector, Terry said.

    The awards are an initiative of the Women in Resources South Australia committee (WinRSA), which coordinates a number of project, including events and a newly established mentoring program in collaboration with WIMnet (the AusIMM committee focused on gender diversity).

    Jason Kuchel, Chief Executive of SACOME said the work of SACOMEs WinRSA committee is crucial to growing the numbers of women in the South Australian resource sector, in particular those in senior positions.

    In making a difficult decision from an impressive collection of nominations, the judges commented on Sabrinas community involvement. She chooses to remain within her Kalparrin community where she assists with various programs including a childrens care program, is a member of the Ngarrindi Womens Organisation and is also continuing her studies through TAFE.

    Sabrina is an excellent role model for the resources sector, Terry said.

    She has excelled in her roles as a plant operator, Indigenous mentor and active community contributor.

    Sabrina attended the awards with her grandparents, who are Elders in the Kalparrin community. On accepting her award Sabrina acknowledged her family and the Dingo Crew back at Prominent Hill for their patience and the skills they had passed onto her.

    Jo Barron-Perry, Senior Mining Engineer-Mine Growth at BHP Billiton, has built a successful career working in traditionally male-dominated roles at BHP Billiton, Rio Tinto and other mining companies over more than two decades.

    Jo won two of the five award categories Exceptional Woman in SA Resources Award and Gender Diversity Champion in recognition of her impressive career accomplishments while balancing family life (including through challenging periods of industry downturns and fly in/fly out work) and her support for other women, including serving on a variety of groups and helping to shape policy.

    Sabrina McKenzie on site at Prominent Hill (also cover)

    Image: Chris Warrior

  • ISSUE 01 RESOURCING SA Spring 2015

    Workforce 15

    Accepting her awards, Jo said women were still under-represented in the minerals industry particularly in management and on-site roles.

    It is proven that gender diversity and inclusivity makes good business sense as it improves a companys productivity performance, she added.

    Jo also commented that the gender pay gap in the minerals industry, at 27 percent, had a long way to go, particularly when compared to the national average of 18 percent.

    Erin Woolford, Principal Consultant at Ninti Kata, formerly Superintendent Indigenous Programs at BHP Billiton, joined Jo as joint winner for the Exceptional Woman in SA Resources Award.

    An Arrente/Kuyani woman, Erin was also recently with BHP Billiton as superintendent of Indigenous programs at Olympic Dam. In this role she implemented the Aboriginal Participation Program that resulted in the employment of more than 130 Aboriginal people across the mine.

    The judges commented that Erin is a great role model for Aboriginal women and had also greatly benefited the broader community.

    I have been extremely fortunate in my life to have strong female role models in my grandmother, nanna, mother and older sister who have been very inspirational to me and shaped who I am today, and a father who has always taught me that anything is possible, Erin said in her acceptance speech.

    The winner of the Exceptional Young Woman in SA Resources Award category was Helena Wu, Senior Reserve Engineer at Santos.

    Helena and her sister came to Australia from China at the age of four. Her parents made a difficult decision to move to a foreign country where they did not speak the language following the 1989 Tiananmen Square incident.

    This inspired Helena to work hard, being the first in the family to complete school and going on to win the Queensland University of Technology Medal upon graduating with a Bachelors degree and Masters in Mechanical Engineering.

    Helena joined Santos as a graduate and progressed into an engineer role, followed by planning analyst and senior engineer. In 2014, she was awarded the Society of Petroleum Engineers Outstanding Service Award and Young Energy Professional Award for Southern Asia Pacific.

    On accepting her award Helena said I truly have my parents to thank for my strong desire to make a difference.

    My strong belief is that everyone can make a difference regardless of their ethnic background, family income status, gender or

    industry they choose to contribute in.

    Santos won the Excellence in Diversity Programs and Performance Award category, for delivering significant benefits through its Gender Equality Program introduced in 2011. The program is part of the companys broader diversity strategy and covers aspects such as flexible working, leadership development, gender-balanced graduate intakes, pay equality and gender attraction strategies.

    The landmark awards event also featured an inspiring keynote speech from Dr Vanessa Guthrie, the highly accomplished Managing Director and CEO of Toro Energy.

    The inaugural South Australian Women in Resources Awards have highlighted the valuable contribution that members of the sector are making in this state. They have been a fantastic vehicle to promote gender diversity and increasing the participation of women in the industry, said Aimee Chadwick, Chair of WinRSA.

    The awards process ensures all category winners feed into the National Women in Resources Awards nominations, to be held in Perth in late September this year.

    Award Gender Diversity Champion in SA resources sponsored by Thiess Global Mining Winner Jo Barron-Perry (Senior Mining Engineer - Mine Growth, BHP Billiton) Highly commended Kate Hobbs (Senior Consultant First Principles Consulting)

    Award Excellence in Diversity Programs and Performance sponsored by OZ Minerals Winner Santos Limited

    Award Outstanding South Australian tradeswoman, operator or technician sponsored by Australian Training Alliance Winner Sabrina McKenzie (Plant Operator - Thiess at OZ Minerals Prominent Hill mine site)

    Award Exceptional young woman in South Australian resources sponsored by the Department of State Development Winner Helena Wu (Senior Reserve Engineer at Santos)

    Award: Exceptional woman in South Australian resources sponsored by Finlaysons Lawyers Joint winners Jo Barron-Perry (Senior Mining Engineer Mine Growth at BHP Billiton) and Erin Woolford (Principal Consultant at Ninti Kata, formerly Superintendent Indigenous Programs at BHP Billiton Olympic Dam)

    The winners

    Helena Wu accepts her award from Minister Gail Gago Image: Andy Steven

    The winners: Sabrina McKenzie, Helena Wu, Jo Barron-Perry, Erin Woolford, Kate Hobbs (highly commended) and Petrina Coventry representing Santos Image: Andy Steven

  • ISSUE 01 RESOURCING SA Spring 2015

    16 Workforce

    July was a big month for Kingsley Coulthard. The talented young man was recognised in the 2015 NAIDOC Awards, being named as Apprentice of the Year (Port Augusta region) and he also completed his four-year apprenticeship.

    Kingsleys graduation with a Certificate 3 in engineering and mechanical trade, marked the end of a four-year balance comprising trips to Regency TAFE in Adelaide and flights to Heathgates Beverley mine, located near the base of the Northern Flinders Ranges.

    With the Adelaide trips now behind him, Kingsleys week on/week off work at Beverley centres on welding, fixing pumps and day to day maintenance on the in situ recovery uranium mine and its satellite plants.

    Initially contracted through an agency, Kingsley is now employed directly by Heathgate, and is appreciative of the support he received from both companies throughout his apprenticeship.

    I was employed on a three month casual contract to start with, to see if I would enjoy the work and also fit in with the remote location and fly in/fly out lifestyle, he says.

    Luckily, he never found it a challenge, enjoying the remoteness and the occasional time to himself.

    Im a quieter type rather than a partyer, he laughs.

    The balance of work and personal time works well for me. When youre young and single it can be good to get away for a bit.

    Kingsley CoulthardImage: Ben Hunt

    fitWinning A 2015 NAIDOC award winner acknowledges family and employer support in his success.

    By Megan Andrews

  • Kingsley, an Adnyamathanha man, also appreciates the opportunity through his Beverley role to work out in his own country.

    That means a lot to me and also to my family.

    Family was instrumental in Kingsley completing his apprenticeship, initially suggesting he look into a trade while he was finishing Year 12. This led to a TAFE pre-vocational course in basic welding, fitting and diesel mechanics prior to the Certificate 3.

    Id never been to Adelaide by myself and my first week at trade school was a little daunting, he admits.

    My mother said to take it just one step at a time and that was good advice. It was a big change for me, but I quickly got used to it.

    The agency was also very supportive, mentoring him and organising boots or whatever equipment he needed.

    The people at the mine have been great too, Kingsley adds.

    At one point I was the youngest person working up here. Its a small close knit community and we all get along and help each other out.

    This is a good thing, as FIFO work can mean celebrating personal milestones with colleagues rather than friends or family as was the case on Kingsleys 21st.

    I had to work back that day too, but we did have cake!

    Craig Bartels, President of Heathgate Resources, says the company has a continual commitment to the local Adnyamathanha community.

    Our many programs and initiatives to support these communities have been recently recognised by the Government of South Australia, with Heathgate receiving the Premiers Award for Excellence in Social Inclusion.

    Mr Bartels says he is proud of Kingsley and of the companys other Aboriginal employees.

    Having supported Kingsley through his apprenticeship, we are very proud of his achievements and his dedication to become a fully qualified tradesman and look forward to being part of Kingsleys further career development, Mr Bartels says.

    Now looking to buy his first home, Kingsley says hes appreciative of the opportunity his career choice provides to continue living in Port Augusta.

    I was born in Port Augusta, most of my family and friends are here. Its where I feel comfortable, he says.

    The first male in his family to complete Year 12 and the first on both his mother and fathers side to obtain a trade, Kingsley is happy in his work at Heathgate, but can also look to future supervisory roles, or expand his options with additional certificates. Hes also keen to inspire others to consider a trade, including his younger cousin.

    Hes seen how good its been for me and Im encouraging him in that direction.

    Terry Kallis is Principal of Kallis & Co Pty Ltd, a privately owned consultancy company that provides expert advice on a wide range of power industry matters to clients in the mining, resources

    and energy industries that are developing power projects and/or seeking power supply solutions.

    Terrys private power development projects include equity interests in the 600 MW CERES Wind Farm on the Yorke Peninsula, an allied 20 MW biomass project and a large wind / compressed air energy storage project adjacent to the Galilee Basin in central Queensland.

    Services offered Strategic advice on power supply options, conventional

    and renewable sources including gas, wind, solar and biomass

    Strategic advice on NEM regulatory and market matters Strategic advice on mergers and acquisitions Project development management in areas covering:

    o Development approvals federal and stateo Connection agreementso Off-take agreementso Community consultationo Stakeholder management

    Key areas Transmission and distribution connection agreements Conventional energy gas fired power generation Renewable energy wind, solar and biomass Electricity network infrastructure and markets NEM institutions liaison (AEMO, AER, AEMC) Planning and environmental authorities liaison Government liaison federal, state and local

    Terrys clients have included national and international utilities with whom he has successfully concluded a number of major assignments, including SAs first wind farm, SAs first underground HVDC interconnector and acquisitions of electricity network and gas businesses.

    Kallis & Co Pty Ltd ABN 42 149 113 664 www.kallisco.com.au

    Terry Kallis is Principal of Kallis & Co Pty

    Ltd, a privately owned consultancy

    company that provides expert advice

    on a wide range of power industry

    matters to clients in the mining,

    resources and energy industries that

    are developing power projects and/or

    seeking power supply solutions.

    Terrys private power development

    projects include equity interests in the

    600 MW CERES Wind Farm on the

    Yorke Peninsula, an allied 20 MW

    biomass project and a large wind /

    compressed air energy storage project

    adjacent to the Galilee Basin in central

    Queensland.

    Contact:

    Terry Kallis (FAICD)

    Principal

    Kallis & Co

    Email: [email protected]

    Phone: 0419 810 153

    Address: C/- Clarke & Brownrigg

    8 Angas Street

    Kent Town SA 5067

    Services offered to clients include:

    Strategic advice on power supply options, conventional and renewable sources including gas,

    wind, solar and biomass

    Strategic advice on NEM regulatory and market matters

    Strategic advice on mergers and acquisitions

    Project development management in areas covering:

    o Development approvals federal and state o Connection agreements o Off-take agreements o Community consultation o Stakeholder management

    Key areas include:

    Transmission and distribution connection agreements

    Conventional energy gas fired power generation

    Renewable energy wind, solar and biomass

    Electricity network infrastructure and markets

    NEM institutions liaison (AEMO, AER, AEMC)

    Planning and environmental authorities liaison

    Government liaison federal, state and local

    Terrys clients have included, national and international

    utilities with whom he has successfully concluded a number

    of major assignments, including SAs first wind farm, SAs first

    underground HVDC interconnector and acquisitions of

    electricity network and gas businesses.

    Terry Kallis (FAICD) Principal Kallis & Co

    Email: [email protected]: 0419 810 153Address: 8 Angas Street, Kent Town SA 5067

    I was employed on a three month casual contract to start with, to see if I would enjoy the work and also fit in with the remote location and fly in/fly out lifestyle

  • ISSUE 01 RESOURCING SA Spring 2015

    18 Opinion

    October 1987 and I am standing in a thin, droughted wheat crop at Condobolin NSW, being interviewed by a reporter about my new job assisting farmers at risk. At risk of losing their farms because of drought and interest rates of more than 20 percent, farmers whose unserviced debt is doubling every 3.1 years.

    Fast forward 28 years and I am again having conversations with farmers. This time with families facing intrusion from an industry they havent experienced and for the most part, dont understand mining.

    The late 1980s saw an exodus from agriculture that has continued to this day. As time moved on and better times returned, those family farm businesses whose children sought a wider world than rural life were able to take the opportunity and sell. Small communities downsized and are still shrinking today, along with local services, sporting teams, churches and other social networks that characterise rural Australia.

    It is no wonder communities Australia wide, already reeling from population loss and facing a future of increasing technology (such as driverless tractors) that will continue this pattern, fear change.

    When that change is in the form of new industries particularly mining, that seems to attack the remaining fabric of rural community distrust, unease and uncertainty become powerful drivers of community response.

    There is something innately basic and fundamental to the soul around the production of the food that keeps us all alive. Certainly, there are plenty of people who feel mining is pure exploitation while food production is somehow sacred. The philosophically opposed groups in our society

    know the emotional hook of farmers being pressured by all powerful conglomerates makes for powerful and potentially policy changing headlines.

    At the same time, it is very convenient to forget that everything we do and have outside of the food and fibres we grow, comes from the unfashionable process of mining parts of our planet and converting them into the heat, power, plastics, steels and liquids that make our lives comfortable and enjoyable.

    Can mining industries ever really understand the psyche of agricultural communities and vice versa?

    Can trust replace distrust or at least reach an uneasy but workable equilibrium?

    It is part of being human to forget what we choose to and turn a blind eye to what we do not want to see. So when unavoidable issues confront us and closing our eyes does not remove the problem, we react.

    Not in my backyard is the basic human condition that if we are honest, we all subscribe to. When it becomes our patch, trust, certainty, loyalty and credibility give way to the opposites very quickly.

    History, both past and present, is littered with examples of mining companies so often using the same tools to both dig a hole and engage a community bulldozers and blasting. Companies that promise much, but leave without a second glance. Companies that talk up the opportunity, but shy away from the downtimes. Companies that dont communicate their own long term and sometimes short term strategies, leaving in many cases individual and family dreams shattered by commitments made to a false or flawed promise.

    The lessons of my past hold true today. Information, openness and transparency were the tools people needed to provide the balance that led to better choices and renewed hope for the future. When people become empowered, they can stop feeling and acting like victims.

    Today the mining/agriculture space is fertile ground for distortion and misinformation. Any mining company that wants to become an integral part of the community it operates in must do what it says and say what it does!

    That means not over promising. That means explaining the inherent risks of commodity cycles and unforeseen stock market and financial crisis that change priority and process. That means being open about the vagaries of company ownership, management changes and the sometimes brutal nature of an industry that survives only by the profit and promise it produces.

    After all, it is not so different to agriculture.

    Sure, agricultural communities may be lulled by the generally slower pace of change, but history reveals the true nature of its industry. Withering drought, disastrous floods, commodity slumps and disease are just some of the challenges, while the onslaught of technology and changes in world trade flow through to regional job and population losses.

    Both agriculture and mining produce the food, fibre and tools we all use. Both need to provide a living to the people and companies that do the work. Both provide significant benefits to the wider community. And in some cases, both occupy the same space and need to complement each other where they can.

    Friends in needLand shared by mining and agriculture interests is fertile for distortion and misinformation, yet the two industries can complement each other to a large extent if the trust and transparency is there.

    By Tim Scholz

  • ISSUE 01 RESOURCING SA Spring 2015

    Opinion 19

    Tim Scholz is a third generation Wudinna farmer and Principal Advisor Stakeholder Engagement with Iron Road Limited. He has a string of accomplishments as a trail blazer for his community, including 13 years on the Wudinna District Council (10 of these as Chairman). Tim has a passion for rural Australia and seeing regional communities thrive. He has been involved with the leadership of a number of organisations important to regional development including President of the South Australian Farmers Federation, board member of Ports Corporation SA and Chairman of the Spencer Region Economic Development Authority.

    A man with a passion

    Tim in an experimental oil seed crop on the family property at Wudinna Eyre Peninsula

  • ISSUE 01 RESOURCING SA Spring 2015

    20 Environment

    Some may consider a partnership between resources companies and a nature charity an unlikely alliance, but it is one that is proving successful for nature conservation in the State.

    As Bob Lott, President of the Nature Foundation SA (NFSA) explains, We are both land owners and managers, so we have some clear synergies and shared goals including a concern for nature conservation in South Australia.

    We both want good relationships with our neighbours and the local community, and to have meaningful relationships with traditional owners, he says. There are so many opportunities for information sharing and collaboration.

    NFSA began working with mining and petroleum companies in 2009 as a third party provider of Significant Environmental Benefit offsets, a legislative requirement under South Australias Native Vegetation Act 1991. The Act requires that if native vegetation is cleared, then the environment must be compensated by an offset, that is an action that results in a Significant Environmental Benefit (SEB). The aim of an SEB is to produce an overall environmental gain.

    These early partnerships with companies such as Santos and Beach Energy ultimately led to the purchase of Witchelina Nature Reserve (which covers 420,000 Km2), our flagship property near Lyndhurst, says Mr Lott.

    Tim Flowers from Beach Energy adds, as a third party provider of SEB offsets NFSA provides an alternative to paying our SEB obligation into the Native Vegetation Fund, or undertaking an offset project ourselves.

    Its a constant challenge for NFSA to fund its ambitious conservation objectives and money secured through the SEB offsets program is helping to achieve landscape scale conservation outcomes at Witchelina and demonstrable environmental gains. It has also facilitated additional funding, which has been directed to further conservation research opportunities and involvement of the wider community in conservation activities at NFSA properties.

    In April 2012, the Nature Foundation SA purchased Hiltaba Station, a pastoral lease in the Gawler Ranges on the Eyre Peninsula. Hiltaba Nature Reserve, as it is now known, comprises 77,000 hectares of rolling Rhyolite hills with plains of mallee, western myall, and chenopods. It has high conservation value due

    to the number of threatened species and six species endemic to the Gawler Ranges.

    We have been working hard to set Hiltaba up for SEB offsets, explains Alex Nankivell, NFSA Conservation Programs Manager.

    A Management Plan has been adopted by the foundation to direct on-ground conservation work that includes a monitoring program that can be used to evaluate environmental gains against a baseline of previous land use. Demonstrable environmental benefits have

    Natural partnershipSouth Australian nature charity, Nature Foundation SA, has found that combining forces with the resources sector is having a positive impact on nature conservation in South Australia.

    By Caroline Nefiodovas

    NFSA Conservation Programs Manager Alex Nankivell with volunteers inspecting the rare and endemic Toondulya Wattle at Hiltaba Nature Reserve

  • ISSUE 01 RESOURCING SA Spring 2015

    Environment 21

    been accruing since purchase.

    Much of the on-ground work completed to date has been achieved by partnering with the Gawler Ranges First Peoples to deliver seed collection, direct seeding and rockhole restoration projects. The Department of Environment, Water and Natural Resources are assisting with feral animal control under the Bounceback Program.

    We want to strengthen our partnerships with the resources industry and begin to attract SEB offsets to Hiltaba Nature Reserve, to

    consolidate the excellent environmental gains already made.

    In order to introduce this exciting new property and showcase the work it has been doing with the resources industry, NFS is holding its annual SEB Restoration Ecology Forum at Hiltaba in October this year.

    NFSA CEO Ian Atkinson says the forum is a fantastic opportunity for the resources sector to get together and learn more about Hiltaba, the foundations SEB program and share ideas.

    Last year the forum was held at Witchelina Nature Reserve and was a great success. We are extremely excited about showing our existing and new partners this beautiful property he says.

    The value of partnerships is intrinsic to the success of the NFSA. It relies heavily on key stakeholders to broaden its conservation gains and looks forward to continuing its work with the resources sector and creating a positive environmental legacy in South Australia.

    We have some clear synergies and shared goals

    for nature conservation

  • ISSUE 01 RESOURCING SA Spring 2015

    22 Profile

    Andrew Cole, OZ Minerals Image: Nat Rogers

  • ISSUE 01 RESOURCING SA Spring 2015

    Profile 23

    ROLLING OUT CHANGEAndrew Coles first job out of university was flying heli-borne magnetic surveys over Arkaroola. Now 23 years later hes back in South Australia, taking the lead at OZ Minerals and not wasting any time applying the knowledge gained along the way.

    By Megan Andrews

    Change and unpredictability is a constant for any modern business and nothing new to the mining industry, but in recent years the uncertainty has upped a notch amidst volatile economics, shifting markets and changing customer and regulatory demands.

    Traditional business models are increasingly being put to pasture, with agile enterprises interrogating their structures and processes and broadening their approaches to risk.

    Taking the helm at OZ Minerals in December last year, Andrew Cole could well be the epitome of the new mining philosophy. His modern views on workforce may sit more typically on a Gen Y, but over 20 years working in exploration and mine management around the globe with Rio Tinto have resourced him with a robust working knowledge - and the practical experience to understand with confidence where mining companies need to adapt.

    This year has seen some big changes roll out for OZ Minerals a new strategy with an emphasis on customer and lean business, moving the head office to Adelaide, an organisational restructure and completing the overhaul of processes at Prominent Hill, not to mention the current review of the Carrapateena Pre-Feasibility Study.

    So will 2015 define an era of transformation in the history of this modern mining company?

    Andrew doesnt see it that way at all.

    When is steady state? he asks.

    There is no such thing. You have to keep changing.

    Perhaps in the past you could review, adapt and settle. But not today. You need to constantly review and change to keep your business fundamentals sound.

    Central to this is a firm view that running a mining company, or any business, is about

    resourcing for today, then scaling as required.

    The optimisation of practices and processes that were working on at Prominent Hill are about ensuring the business fundamentals are right for now, he says.

    Its about getting clear accountabilities, clearer and simpler organisational structures, fit-for-purpose maintenance practices, and fit-for-purpose operating practices.

    In addition to driving continuous improvement, Andrew is passionate about improving safety outcomes and developing people; leadership skills he says you need to learn on the job.

    Ive been to London Business School, Duke University, and they teach you the theory. But theory needs to be enacted for it to be effective, and it takes practice.

    He says its difficult to overstate the importance of organisational culture, particularly in todays rapidly changing environments where innovation is key.

    Ideally a company needs a culture where people are confident to experiment, but thats hard to get because you need to allow mistakes. If you jump on people when something doesnt work out then you kill the desire to try.

    Reflection goes hand in hand with innovation and Andrew wants to prioritise this in OZ Minerals. He says businesses must be reflective about how they operate and can easily get stale if they dont do that and it gets harder the longer leaders stay in a role.

    A healthy level of change can be good, it brings ideas, energy new ways of thinking and working.

    OZ Minerals focus on people, including workforce diversity, Indigenous opportunities and local communities, was one of the attractions for him and is something he is keen to progress.

    OZ Minerals has built a strong reputation in South Australia and we want this to stay. Being able to give something back is an important part of the job.

    Moving forward, Andrew is excited about the prospects for Carrapateena, with the current review including an analysis of rail to Prominent Hill, investigating alternative mining methods and progressing innovative hydromet studies.

    Hydromet uses existing technology in a re-worked flow sheet to upgrade the copper content, he explains.

    Our concentrate would be the highest copper content concentrate in the world with the lowest deleterious elements. It halves the amount of concentrate you end up shipping and the environmental impact is also halved. (See page 27 for more on hydromet.)

    With several countries including parts of China only taking super clean concentrate, the technology opens up a whole new market.

    Andrews understanding of Chinese investors and customers derived from senior management roles, including two years living in Beijing establishing a Chinalco/Rio Tinto Joint Venture, will no doubt be an asset to OZ as the company moves ahead.

    The Cole family, which includes three sons aged 12, 17 and 21, has enjoyed a variety of cultures, with several years in Canada and exploring Alaska among the favourite experiences.

    For now, the outdoors oriented bunch are more than happy to immerse themselves in South Australia, getting out and about most weekends.

    Weve been to Innes National Park, the Coorong, crabbing at Pt Wakefield. We go camping a lot, catching food, making fires, hiking, mountain biking the boys love it!

  • ISSUE 01 RESOURCING SA Spring 2015

    SWINGS AND ROUNDABOUTS

    24 Feature

    Its been an unpredictable couple of years in the resources sector as falling commodity prices and the slowdown in China have taken hold. But despite the downturn, there are many positives for an industry that continues to make a strong contribution to the South Australian economy.

    By Lindy McNamara

  • ISSUE 01 RESOURCING SA Spring 2015

    Feature 25

    Ask any seasoned mining professional who has been involved in the resources sector for several decades and they will be more than happy to share their personal experiences about the ups and downs of the industry.

    Geologists, for example, readily recall the story of when they used to drive a taxi back in the early 1990s because there just wasnt any work around, or when they lost their job in the early 2000s and filled in their time in doing some landscaping for a mate. Others will talk about the boom times, when they were raking in the big dollars and it really didnt matter what skills you had, because you knew there was a job for you in mining.

    Whatever their tale, one thing is for sure, the resources sector has always been and always will be a cyclical industry. When things are tough just as they are now for many companies it is only a matter of time before things turn around.

    A downturn in commodity prices over the past 24-36 months particularly for oil, iron ore, coal and copper together with a slowdown in growth in China have contributed to the latest industry slump.

    Companies have reacted quickly and are tightening their belts by cutting capital expenditure wherever possible, increasing productivity, restructuring activities and ultimately, in what hurts most, shedding jobs.

    While the latter has been making the headlines, the resources sector is by no means completely in the doldrums. Figures from the Department of State Development (DSD) confirm that the sector has held its own clocking a respectable production value of $7.1.billion for the 2014 calendar year. This key metric comprises $5.2 billion added from the mineral sector and $1.9 billion from petroleum, collectively making a significant contribution to the South Australian economy. While below the record of $7.5 billion attained in 2013/2014, it still ranks among the best yearly production results in the States history.

    Meanwhile the State continued to benefit from a significant stream of royalties from the resources industry, totalling $237.5 million through 2014-15. While below the $291.3 million peak of 2013-14, the result easily surpasses royalties received in years prior.

    Exploration metrics have been more sobering and mixed through the year the combined tally for mineral and petroleum exploration expenditure in the most recent ABS exploration release for 2014-2015 was $468 million. This was propped up mainly by petroleum expenditure of $400.1m, which dwarfed the

    $86.m minerals exploration expenditure which was in fact the lowest annual mineral expenditure recorded in a decade (2004-05).

    On review, petroleum exploration rose to a record high of $595.1 million in the 12 months to March 2015.

    Meanwhile ABS figures show mineral and petroleum exports for 2014-15 reached $3.7 billion, representing 32 percent of the

    States total exports a fall from 39 percent which reflected the current subdued commodity prices.

    Dr Paul Heithersay has been involved with the resources sector for more than three decades in the private and public sector. As DSDs Deputy Chief Executive he is well aware of how some companies are hurting at the moment, but knows from experience things will eventually turn around.

    Mines by their nature are there for the long haul. Investment is made up front to get the mine going, so everybody is incentivised to keep the project going which is in complete contrast to other industries where if its cheaper to do it in China, you can pack up and go to China.

    Were lucky in SA that the resources we have are relatively long life. For example, if you were mining Olympic Dam at the current rate it would take you 900 years to mine it out. Thats

    an extraordinary asset in our own state; it will be a flywheel that will keep on chugging away, generating jobs and cash for a long time and we have a number of projects like that, he says.

    While the current downturn is similar to that of the early 2000s, he says there are still some exciting projects putting SA on the map.

    Look whats happening in graphite. Out of nowhere we have one mine selling graphite to the world and another two that are down that path. And it turns out we have some of the best graphite deposits in the world who knew?

    High-grade flake graphite is currently being exported by Valence Industries from its Uley mine on the Eyre Peninsula, with the mineral being sold to diversified markets in the Asia Pacific, Europe and North America. Graphite has a variety of high technology applications, including in the aerospace, defence, nuclear and medical industries.

    Even though Chinas growth has slowed to 7 percent, the DSD remains confident there are still many opportunities to service that market. It is currently working with iron ore companies to develop SAs magnetite reserves in order to fulfil the future needs of Chinas smelters. In addition, there is great potential to export to India, which is looking to build 100 super cities and has huge infrastructure needs.

    While the petroleum sector is also weathering the storm of lower commodity prices, Executive Director of the DSDs Energy Division, Barry Goldstein, says lifting costs for oil in the western flank of the Cooper Basin still have those projects in the money, even at the current oil prices and foreign exchange rates.

    And large companies are still committed to finding new reserves.

    We had our biggest year ever in 2014 we had more rigs and more wells drilled in the Cooper Eromanga Basin than ever before and things only began to slow in the fourth quarter. So were coming off record drilling, record enthusiasm and record investment.

    When youve gone through cycles of commodity prices being up and down, companies still have to plan for staying in business. That means three things cost control, increased productivity and picking the right places to invest. These are the same three things companies have to consider in good times and bad.

    Most pundits are saying it will be 2017 before we see a recovery, but some services companies might not make it to then.

    Meanwhile the State continued to benefit from a significant stream of royalties from the resources industry, totalling $237.5 million through 2014-15

  • 26 Feature

    Corporate Sponsor

    South Australian Museum scientist Ben McHenry admires the Virgin Rainbow, considered to be the finest crystal opal specimen ever unearthed.

    Exhibition at the South Australian Museum25 September 2015 14 February 2016

    www.samuseum.sa.gov.au

    Fascinating finds

    A lot of service companies are hurting because they basically cant go much lower before letting people go and then having to resurrect themselves.

    Adelaide-based Santos is one exploration and production company that has responded swiftly to the current climate, taking steps to encourage innovation and reduce costs and efficiencies across its business. The company says that tightly managing costs will continue to be a key focus as the business works through the changing landscape.

    Already capital expenditure is down 55 percent and production costs have reduced by 11 percent per barrel.

    The commodities business is a cyclical one and the recent downturn in the oil price has posed a great challenge to exploration and production companies worldwide. However, companies are rising to the challenge and will come out the other side fitter and leaner, the company says.

    Looking ahead, we remain bullish about the medium to long-term fundamentals of the energy sector. Commodity conditions will stabilise and ultimately improve and Australia has a critical part to play in the global energy mix.

    Similarly, BHP Billiton is also looking to the future. At the recent GMUSG/SACOME annual conference held in Port Augusta, head of BHPs operations in SA, Jacqui McGill said the company could look to spend hundreds of millions of dollars expanding its Olympic Dam underground mine in the next few years, should its current studies stack up. BHP is continuing its heap-leach trials that could lead to a more cost-effective processing method at the mine.

    An underground expansion could potentially involve building 170km of tunnels into the southern section of the mine, combined with above-ground plant upgrades.

    New technology is the way of the future, according to OZ Minerals CEO and Managing Director, Andrew Cole.

    Recently, OZ Minerals signed an innovative partnership with the University of Adelaide to look at research opportunities to address challenges facing the mining industry.

    Working in partnership and working in collaboration with as many groups as you can is definitely the way of the future, Andrew says.

    Gone are the days where you try to have all the expertise and people in-house. You

    just cant do that anymore, the world moves too quickly.

    Despite the current climate, OZ is pushing ahead with the development of its copper-gold deposit at Carrapateena and hopes to make a decision on the future model of the project by the end of the first quarter next year.

    It is also investigating the addition of a second access point to its Prominent Hill mine and drilling some of the resource around the open pit ultimately increasing the amount of ore mined each year and extending the mine life.

    So while belt tightening continues, there are still many reasons for the industry to remain positive.

    As industry analyst Andrew Forman from PwC suggests, good news may be just over the horizon.

    At times like these companies do slim down and get fit and they prepare themselves well, so when there is an uptake in commodity prices they can take advantage quite quickly.

    Now, its just a matter of waiting to see when the bounce will begin and of course, how seasoned miners and explorers will recall the events of 2015.

  • ISSUE 01 RESOURCING SA Spring 2015

    Innovation 27

    RAISING THE BAR In an ongoing quest to add value and open up new markets, invention may not always be the best solution. Building on existing technology may be the way forward, and OZ Minerals Hydromet studies are hoping to do just that.

    By Megan Andrews

    Earlier this year, the South Australian government provided $10 million to fund a joint Adelaide University / OZ Minerals study focusing on adding further value to copper concentrates produced in South Australias Gawler Craton.

    Copper concentrates produced here are already of very high quality, with product from OZ Minerals Prominent Hill mine containing one of the highest concentrations of copper currently on the world market at around 50% copper.

    But OZ Minerals, as part of its whole of operations review and a renewed focus on its customers, wanted to aim higher.

    The company set its sights on a significantly purer product containing up to 65% copper, achieved through the use of existing technology combined with some newly developed chemistry.

    The process, called Hydromet, has potential implications not only for all of the companys deposits in South Australia, but across the entire Gawler Craton. This is a massive and highly prospective region in South Australia which encompasses the Olympic Dam mine and numerous other mines and known copper resources.

    The study will cost a total of $18 million, with OZ contributing the additional $8 million.

    Brett Triffett, Head of Project Services at OZ Minerals, explains; What were looking to do is take concentrate containing chalcopyrite and bornite and convert these two minerals into chalcocite by leaching out the iron. In the process, other impurities are also removed. The final product is a concentrate with significantly lower mass and a much higher copper content.

    The outcome will be a concentrate containing the highest copper content of any traded

    throughout the world.

    Brett says the impact on export costs will be significant.

    It virtually halves the amount of concentrate you end up shipping for the same copper metal production.

    The environmental impact is substantially reduced, both through the shipping impact and the dramatically cleaner processing required at the customers end.

    Several countries will now only take super clean concentrate, including Korea and Japan, so this new technology will open up a whole new market for concentrates produced in South Australia, says Brett.

    OZ Minerals needed to find an established plant to quickly and efficiently start demonstration scale testing, and found the answer in a mothballed plant in Canada.

    A Canadian company developed some new technology 10 years ago similar to what we are doing, Brett explains.

    The facility had the right equipment but we had to tailor the flow sheet so that it matched our process.

    This process took around six months, including refurbishing the equipment and making sure the plant was operationally ready and able to run at capacity.

    We had already successfully completed pilot testing, and the demonstration plant now scales up the capacity by a factor of thirty, Brett says.

    Weve started putting a sample of our Prominent Hill concentrate through the plant and the results are looking promising.

    Brett says the Hydromet study is on schedule and on budget, but remains several years away from commercial application. Both the financial and technical viability of the process still needs to be proven and the next steps will likely involve additional engineering, costing and testing to establish a business case.

    The process is equally applicable to concentrates produced from Carrapateena and Prominent Hill and theres potential for other copper projects of a similar IOCG (iron, copper, gold) mineralogy to benefit also.

    Australia is rich in copper, hosting 13% of global resources, and South Australia dominates with 60% of the nations known copper resources. Most of these are IOCG deposits and many in the industry expect there are many more yet to be discovered here.

    OZ Minerals is a founding member of the ARC Australian Copper-Uranium Transformation Hub, an initiative being led by the Institute of Minerals and Energy Resources at the University of Adelaide (IMER). Within this project, OZ Minerals is seeking to answer a number of fundamental questions related to the Hydromet process and develop supporting technologies.

    Were looking to understand how impurities report to the concentrate in the first place, how they are removed in our new process and also developing sensors that can be used for process control, Brett says.

    The project is providing opportunities for students, with several PhDs being established around the research and is expected to increase South Australias knowledge of its copper resources and help the State maximise the value of these in years to come.

    OZ Minerals Prominent Hill mineImage: Peter McFarlane

  • ISSUE 01 RESOURCING SA Spring 2015

    28 Education

    APPETITE FOR SCIENCE Adelaides annual Science Alive event just keeps getting better, with even more enthralling, eye-opening and amazing exhibits and activities.

    By Yelena Koerner-Heinjus

    A highlight of many youngsters year, Science Alive 2015 attracted the largest attendance in its 10-year history, with more than 20,000 people exploring the myriad of exhibits in the quest of all things scientific.

    The biggest science expo in the southern hemisphere, Science Alive is coordinated as a part of National Science Week, an Australian Government initiative aimed at increasing engagement and interest in the sciences.

    Held at the Adelaide showgrounds from 7-9 August, the expo boasts a hands on focus, with more than 50 science related organisations, peak bodies and special interest groups organising more than 100 interactive experiences for children and adults alike.

    outlined the various jobs available in the industry and how to attain the relevant qualifications required to work in particular roles, either at a university level or through registered training organisations.

    Organised chaos was the theme for Saturday and Sunday, as the SACOME booth was filled with children who were fascinated by the uses of commodities mined in South Australia, such as mineral sands, copper, petroleum, iron and graphite.

    SACOMEs display showed how mineral sands are used in everyday items such as make-up, shoes, sunscreen, candles, cleaning products, computers and even foods and many children were surprised to learn that Minties contain titanium dioxide, which gives the lollies their white appearance.

    An array of rock and mineral samples were on show, an interactive sandstone porosity display to demonstrate how oil & gas is trapped subsurface, as well as an interactive mineral exploration gravity and electromagnetic survey, allowing children to discover underground mineral deposits using a metal detector and a stud finder.

    Members of the South Australian resources community chipped in, with sponsorship from BHP Billiton, OZ Minerals, Santos, Valence Industries and Iluka funding SACOMEs booth and Atlas Copco providing an exploration drill bit, Iron Road a magnetite (iron ore) activity and Iluka a spiral vortex separation machine.

    The spiral vortex was a hit with the young audience as it demonstrated how heavy mineral concentrate is separated from the lighter sand.

    The expo was also a fantastic opportunity for SACOME to promote its high school student competition, Dirt TV, where students submit a short film depicting what the resources sector means to them.

    The annual Science Alive expo provides the resources sector with an excellent opportunity to create awareness amongst children, in particular of the extensive use of mined materials. Many attendees seemed surprised to learn that everything not organic is sourced from mining.

    Rose, 9, said she found the SACOME booth a great learning experience.

    There were lots of things that I could relate back to my science classes at school, she said.

    I really liked the v