Author: yinghui

Six government grants for businesses that you might not know about

For business owners and entrepreneurs, grants and investment from the Australian government can be a godsend, and popular local grants such as the Entrepreneurs’ Programme and CSIRO’s KickStart are likely already familiar to company founders.

But beyond the five most common startup grants exists a world of grant programs, with millions on offer for companies working in narrow fields or those working on building a better future for all Australians.

While not every SME and startup founder can apply for these grants, the federal government has a significant amount of capital ready to provide to those who fit the bill, with some grants even reaching into the multiple millions. If you’re looking to start a company, knowing these grants are potentially available to you could influence how you set yourself up.

Continuing on from our popular list of the top five government grants for Australian startups, here are six grants or programs you might not have heard of.

1. The Advancing Renewables Program

As the name suggests, this grant is open to any business or startup looking to help develop renewable energy technologies, be that reducing the cost of renewables, improving commercial viability of renewables, or increasing skills and knowledge in relation to renewables.

Australian incorporated companies can receive matched funding of between $100,000 and $50 million per project through the Australian Renewable Energy Agency (ARENA).

Companies can apply for the grant here.

2. Business Development and Assistance Program

The Business Development and Assistance Program is run by the government’s Indigenous Business Australia (IBA) program and is targeted at Australian SMEs or startups owned or operated by Australians of indigenous descent.

If you are over 18 and of Aboriginal and/or Torres Strait Islander descent and you own at least 50% of a solvent business, or you are not of indigenous descent but at least 50% of your business is owned by people of indigenous descent, you are eligible for the program.

Through the program, the IBA provides indigenous business owners with training, advice, workshops, and finance to help them grow their businesses.

Loans from $10,000 are available to eligible businesses, and the IBA also offers a specialised Start-Up Finance Package where 30% of the loan is awarded as a grant. To be eligible for that package, your business has to have been trading for less than one year and have less than $400,000 in annual revenue.

Apply for this program here.

3. Space Concession

While not strictly a grant, the Space Concession is a moderately new program for startups and small businesses focused on bolstering the competitiveness of Australia’s space industry.

Businesses with an authorised space project that have activities with international parties, and which also complete an Australian Industry Participation Plan, can be rewarded with a duty-free tariff concession to import eligible goods.

This means businesses operating in areas such as space exploration, remote sensing, satellite navigation systems, or space medicine and biology can access a significant tax write-off for importing eligible space-related goods.

Find more information about the concession here.

4. Automotive Transformation Scheme

A long-running program, the Automotive Transformation Scheme (ATS) was designed by the federal government to encourage further investment in the Australian automotive industry in the wake of numerous manufacturers moving their plants offshore.

Businesses that operate across the spectrum of all things automotive are eligible to apply for the scheme, which is available to motor vehicle producers, component producers, automotive tool producers, or automotive service providers.

What is available to businesses under one or more of those eligibility requirements varies, but businesses can receive payments to cover up to 15% of the cost of investing in plant and equipment, and up to 50% of R&D investment. Overall assistance is capped at $1 billion from 2016 to 2020.

The majority of assistance (55%) is directed at motor vehicle producers, but check out the various eligibility requirements here.

5. Industry Capability Network

The Industry Capability Network runs across all Australian states and territories and in New Zealand, acting as a way for businesses to connect with other suppliers, project managers and business opportunities across the two countries.

While the network doesn’t provide businesses with a direct line to funding, the eligibility requirements are simple: you just need to be a business in either Australia or New Zealand.

The ICN Gateway on the organisation’s website connects businesses to projects and says it has billions of dollars in projects listed. Over $30 billion worth of contracts have been completed since the program started 30 years ago.

6. Indigenous Advancement Strategy

Finally, registered Australian businesses with a capacity to enter a project agreement with the Commonwealth can find themselves eligible for the government’s Indigenous Advancement Strategy (IAS).

The funding, which was implemented in the 2015-16 budget and runs until next year, aims to encourage Australian businesses to commence projects that promote equal opportunities for indigenous Australians.

This revolves around improving the opportunities for indigenous Australians in the areas of jobs, schooling, safety, and culture.

The government has committed $4.8 billion to the IAS for the four years of its operation, which is being dished out in the form of grants to eligible businesses.

For more information, and to submit a proposal, go here.

Top five government grants for startups

The government support offered to startups across Australia is the envy of many entrepreneurs around the world, but these grants can be a tough nut to crack.

The lengthy applications, process times and chance of rejection are enough to put most off, but for those who win it can be a game changer for their venture.

Here are five grants for the startup sector that may be well worth your time.

1. Entrepreneurs’ Programme

The Entrepreneurs’ Programme, which replaced Commercialisation Australia and the Innovation and Investment Fund in 2014, aims to help businesses increase productivity and competitiveness with funding and access to a national network of private sector advisers and facilitators.

The programme offers entrepreneurs grants through the Accelerating Commercialisation fund and Business Growth Grants.

Accelerating Commercialisation Grants offer ventures up to 50% of expenditure on a project, which is capped at $250,000 for commercialisation offices and eligible partner entities, and $1 million for other applicants.

Entrepreneurs can also apply to get free expert advice on their ventures to address knowledge gaps and accelerate growth via Innovation Connections.

Additionally, the Entrepreneurs’ Programme offers funding support for incubatorshelping startups enter global markets.

New and existing incubators can apply for grants equalling 50% of the project value capped at $500,000, and entrepreneur or expert-in-residence projects can gain up to $25,000.

Applications are ongoing. To apply now, click here.

2. CSIRO Kick-Start

Startups and SMEs keen to partner with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) in research activities can get up to $50,000 in matched funding to help them further develop and grow their business.

Kick-Start is a relatively new initiative, which started in early 2017. It aims to further drive Australia’s innovation output by supporting local startups “on their way to becoming Australian success stories”. Aimed at the research and testing stage of companies, the grant is for companies researching a new idea, or testing or developing a “novel” product or service.

To be eligible, companies have to be registered in Australia for GST, have an annual turnover of $1.5 million or less in the current and past two previous financial years, and have been registered as a company for less than three years.

If you meet those eligibility criteria, you could receive between $10,000 and $50,000 in matched funding. The funding can then be used to cover the costs of undertaking the project — such as salaries for researchers or travel and accommodation — but it may not be used for capital works, expenditure, or infrastructure costs.

3. Biomedical Translation Fund (BTF)

If you’re a startup operating in the space of health and wellbeing, there’s a chance you could go one better than a grant and instead receive a line of venture capital straight from the government.

The Biomedical Translation Fund (BTF) was established by the federal government as part of  the National Innovation and Science Agenda in December 2016, and was fuelled with $250 million of Commonwealth capital and an additional $250 million of private sector capital. Currently, the fund is managed by three fund managers, including one from startup VC fund OneVentures.

So far, 10 investments have been made through the BTF, including a $7.5 million investment in medtech startup Global Kinetics in April this year. The largest, and most recent, investment was $22 million in Certa Therapeutics on June 5.

To be eligible, your company must be “developing and commercialising biomedical discoveries” and have the majority of your employees and assets in Australia, along with a revenue of less than $25 million over the past two financial years.

‘Biomedical discoveries’ are classified as “therapeutic, medical or pharmaceutical products, processes, services (including digital health services), technologies or procedures that represent the application and commercialisation of the outcomes of research that serve to improve health and wellbeing”.

Alternative, traditional, or complementary medicine developments are not supported. Startups are also not guaranteed an investment just for meeting the criteria, with the investments made at the discretion of the fund managers.

4. Export Market Development Grant (EMDG)

The EMDG has been set up for aspiring and current exporters across a wide range of industries and products to help drive new outbound markets from Australia and encourage inbound tourism.

For businesses that have spent $15,000 or more on export promotion, they can be reimbursed up to 50% of costs exceeding $5000.

To be eligible, businesses must have promoted either the export of goods and services, inbound tourism, export of IP and “know-how” or Australian events and conferences.

Eligible businesses will have an income under $50 million in the grant year.

Applications lodged by approved consultants are open till midnight, 28 February 2017 and self-lodged applications close on 30 November 2016.

To apply now click here.

5. Research and Development Tax Incentive

The R&D tax incentive aims to help all businesses stay ahead of the curve through a tax offset that encourages innovation in even the smallest ventures.

From July 1 2016, companies with an annual turnover under $20 million can claim a 43.5% refundable tax offset against R&D expenditure that amounts to $100 million or less.

All other eligible companies can claim a 38.5% non-refundable tax offset.

Non-refundable offset amounts that go unused can be carried on to future income years.

For R&D expenditure under $20,000, companies can only make a claim if it was undertaken with a research service provider or co-operative research centre.

Applications are ongoing but companies must register for R&D activities within 10 months of their income year first.

To apply now click here.

Other programs to help your startup grow.

While not necessarily grants, there are a number of other programs ran by the government that can provide incentives, financial or otherwise, that can help young companies get off the ground.

We’ve listed a couple below.

Venture Capital Limited Partnerships (VCLP)

The VCLP programme aims to draw in foreign investors to Australia and boost the local VC market with tax benefits.

To be eligible, funds must register as a VCLP under the Venture Capital Act 2002 and make high risk investments that hold for at least 12 months.

The investments must be in ventures where total assets are valued under $250 million, 50% of assets are located in Australia and 50% of employees are also located here.

Tax benefits for VCLPs include flow-through taxation treatment, exemption from capital gains tax on their share of profits made by the partnership and the ability to claim carried interest on the capital account instead of revenue.

Fund managers are encouraged to get professional tax advice before registering.

To apply now click here.

Austrade Landing Pad

This initiative aims to give Australian startups a leg-up in the global market by immersing them in one of five world-class innovation hubs.

Startups accepted into Landing Pads in Singapore, Berlin, Shanghai, Tel Aviv or San Francisco benefit from on-the-ground presence in these markets plus access to their networks, talent, mentors and investors.

To be eligible, startups must demonstrate strong vision, scalability, traction and differentiation, and explain how 90 days in a Landing Pad could help their venture.

Austrade provides workspace in an accelerator and free services but participants must fund their own travel, accommodation, living costs, visas and insurance.

Austrade does providing funding for global startups in Australia through the Export Market Development Grant.

To apply now click here.

Have you seen any other exciting government grants or support programs for our startup community? Tell us in the comments.

A REINVENTION OF SALES, PRODUCTION, INVENTORY FORECASTS

A REINVENTION OF SALES, PRODUCTION, INVENTORY FORECASTS

Posted May 11, 2018 |
Quarry operations are moving away from messy spreadsheets and rethinking communication, production planning and sales forecasting to save time and improve productivity. One such medium that quarries worldwide are utilising is PlantDemand, a business intelligence tool.

The importance of collaboration and real time information sharing in today’s business climate cannot be overstated. It is even more important for quarry operations that are constantly trying to plan and match production levels to sales volumes.

Plant managers are challenged to maintain optimal quarry cash flow and inventory while preventing plant overbooking and co-ordinating with multiple suppliers for raw materials − all to schedule on-time deliveries that meet customers’ changing orders.

This is especially difficult because sales teams don’t often have insight into what materials are available to be produced and sold, and how a new order will affect production. It’s also challenging managers to produce accurate forecasts and get up-to-date information about the plant capacity and actual sales versus forecast sales.

The PlantDemand app allows plant managers to create summaries and run default and custom reports against actual sales or forecasts.

The PlantDemand app allows plant managers to create summaries and run default and custom reports against actual sales or forecasts.

Modern business intelligence

The latest report by US Market research company Forrester Research predicts that 2018 will see enterprises refocus on leveraging advanced collaboration and communication tools across the enterprise.

It also predicts that in the coming years everyone within an organisation will become a data analyst, with the ability to leverage modern business intelligence (BI) tools to quickly sort, prioritise and visualise targeted information that is directly relevant to that individual’s line of responsibility. The hope is that better visual interfaces and real time reporting will actively support collaboration across operational teams and drive better decision-making at every level inside an organisation.

Not only that, the Millennial generation is expected to represent 50 per cent or more of the overall workforce by the year 2020.2 And collectively, not only are younger generations “digital natives”, meaning they grew up with technology, but they also value it greatly and see it as a differentiator and a “must have” for employers.

Each morning, it is easy to log into PlantDemand – from the office or remotely – to be appraised of the day’s deliveries.

Each morning, it is easy to log into PlantDemand – from the office or remotely – to be appraised of the day’s deliveries.

If companies want to hire and retain top talent, they will need to continue to shift towards easy to use cloud-based tools and applications that support productivity and a collaborative environment.

It is out of this BI-focused landscape that Daniel Mekis began to unravel the communication, production and scheduling problems facing many quarries today. As an assistant plant manager in California, he struggled first hand with planning and scheduling of materials at various quarries, and he felt a lack of collaboration was a major part of the problem.

His team tried Outlook, Excel and even Microsoft Access and SharePoint solutions to compile sales information and plan and co-ordinate production.

“Back when I worked as a plant engineer, it was our job to know if we were going to make enough material to meet the demands of our customers,” Mekis said. “Even if you know you’re producing 250,000 tonnes of material throughout the year, the sales quantities change daily, with many orders changing multiple times before they actually ship.

“Other problems we ran into were plant overbooking, the quarry running out of materials, sourcing materials from multiple suppliers, or using incorrect materials. I used to spend at least three hours for each plant per week compiling sales information to build a forecast report – which would show materials demand in different time intervals.”

Real time planning

PlantDemand can colour-code by material in the sales calendar for better organisation and simplified viewing.

PlantDemand can colour-code by material in the sales calendar for better organisation and simplified viewing.

Quarries are beginning to take advantage of new collaborative tools that enable teams to move away from solving a problem on an individual island and move towards initiating well informed discussions between the various branches of an operational team.

One new approach that stands out is PlantDemand, an online quarry scheduling tool3, not just for planning and forecasting orders and production, but also for identifying issues and solving them before they come up.

“PlantDemand is a new concept for aggregate operations because it uses collaboration and real time information sharing,” Dennis Schaaf, the director of PlantDemand, said. “It provides a single source of truth to plan sales, production, material needs and inventory forecasts.

PlantDemand’s online calendar is described as:

  • A scheduler that lets plant managers drill down into scheduling plans.
  • A “single source of truth” that provides plant foremen, superintendents, engineers, sales and the back office with data on aggregate production, inventory planning and forecasting.
  • A “live sales calendar” that allows teams to adjust the plant, hours, modes and sales. As changes are reflected immediately, users can see how current production and future orders will be affected and how plant operations teams can solve inventory issues before they occur.

PlantDemand allows plant managers to create summaries and quickly run default and custom pivot-style reports against actual sales or forecasts. Automatic reporting features make it easy for the sales team to quickly enter orders and see exactly how much can be sold on any given day. Plant operators receive reports from inside sales or generate their own reports to see exactly what they need to produce, and how much raw material they need to order from suppliers.

“Most importantly for quarries, they can now forecast exactly what their customers want today and down the line, and they now have a big picture view to help them balance production, inventory and cash flow,” Mekis said. “That just wasn’t possible before because everyone was bogged down with getting the day’s orders out the door and keeping up with changes.”

Smarter scheduling

Ashlee Avila, the inside material sales representative for US aggregate company Granite Construction, was one of the first PlantDemand subscribers. Her department introduced strategic material purchasing by using the app to track how oil is billed for each product, allowing it to save time and vast amounts of money.

When out in the field or talking with customers, she can quickly log into PlantDemand and add notes to each order. This leaves a historical record of changes made, which might include noting last minute cancellations, indicating customers who left mix, changed the ordered tonnage or other variables. She also likes that she can see the sales calendar for the whole month in PlantDemand every morning, and it’s all colour-coded by material for better organisation and simplified viewing.

“Before PlantDemand we used spreadsheets, but they didn’t scale to the level we needed,” Avila said. “We didn’t have a good way to forecast for the month or week and tell our guys what orders were coming.

“Now, I can log in and within a few clicks I can see our sales calendar for the whole month, week or day. I also create a daily dispatch report every afternoon for our plant foreman, as well as a quality control report that tallies all our orders for the next day.

“We save it as a PDF and it’s in a very easy to use format, so we’re all working from the same schedule.”

Avila said PlantDemand’s mobile app is also extremely useful and she likes that she, the sales team and the plant manager can access it anywhere and at any time, with no software or hardware to install.

In fact, she can use her iPhone to make changes to order dates or tonnage needed while she’s in the field talking with customers. Sales also uses the mobile app when they’re with customers, to quickly see if the plant is running the next day and if so, what mix. This saves time calling the office each time a customer has a question.

A balanced cash flow

Using PlantDemand, plant personnel can also create a production schedule, production report and inventory forecast by tying in the live sales calendar with the plant’s production plan.

Users start by entering minimum and maximum desired inventories of each product, taking into account historical data, upcoming sales, volumes and demand.

April Scott, the material inside sales/materials dispatcher for Granite Construction’s Sacramento office, believes PlantDemand’s inventory planning and forecasting tools helps prevent stock run-out, keeps customers happy and maximises cash flow.

Scott said PlantDemand provides added visibility of the schedule and helps keep track of customers and orders. With more than 15 customer orders daily and thousands of tonnes of material in sales, her calendar is very fluid. Previously she had to manage changes manually by hand using an Excel report each day before sending out the daily schedule to the team.

Now she uses PlantDemand’s shared calendar to send out a daily schedule to the sales team, the construction department and billing department. PlantDemand also helps monitor materials inventories and identify issues before they happen.

“Before I’d find potential problems, but it was much harder because my schedule was on a clipboard or in a long-term schedule in Excel, not all in the same place,” Scott said.

“Now PlantDemand looks at how much oil and aggregates are needed for upcoming orders, which helps the plant and oil suppliers prepare. The app also highlights where we’re over our daily tonnages, and helps us prepare for potential overbooked days. That’s huge because we can fix these problems early before our customers even know there would have been an issue.”

Most successful quarries are taking steps to improve how they track and manage sales planning, production, material needs and inventory forecasts. At the crux of more efficient operations is a commitment to expanding visibility across the plant and empowering the entire team with online tools that support information sharing and collaboration.

When teams have the right technology and real time data at their fingertips, quarries can become more competitive and more responsive to customer needs.

Trimble is a software referral program approved member of PlantDemand.

Source: Trimble/PlantDemand

References & further reading

1. Press G. Ten predictions for AI, big data, and analytics in 2018. Forbes, 9 November 2017. forbes.com/sites/gilpress/2017/11/09/10-predictions-for-ai-big-data-and-analytics-in-2018/

2. PwC Global. Workforce of the future: The competing forces shaping 2030. pwc.com/gx/en/services/people-organisation/publications/workforce-of-the-future.html

3. PlantDemand. plantdemand.com/aggregate

This Steel Producer Is Building a $240m Plant

Nucor Corp. will build a $240 million galvanizing line at the company’s sheet mill in Arkansas. The new line will have an annual capacity of approximately 500,000 tons and is expected to be operational in the first half of 2021.

The project is in addition to a $230 million investment currently underway to build a specialty cold mill complex at Nucor Steel Arkansas. These projects are part of Nucor’s strategy to increase its automotive market share.

Galvanizing is the process of applying a protective zinc coating to steel or iron, to prevent rusting. The most common method is hot-dip galvanizing, in which parts are submerged in a bath of molten zinc.

Cold rolled steel is processed in cold reduction mills, where the material is cooled at room temperature followed by annealing or rolling. The process produces steel with closer dimensional tolerances and a wider range of surface finishes.

Nucor says it is also evaluating building additional galvanizing lines at its other sheet mills as part of efforts to further expand its sheet business.

Nucor and its affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada.

Biggest wind farm in the southern hemisphere proposed for Victoria

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In development since 2006, the proposed $1.7 billion Golden Plains Wind Farm would sprawl across 167 square kilometres of farmland near the small town of Rokewood in southwest Victoria, about 40km south of Ballarat.

The wind farm would consist of 228 turbines – each standing 230m tall at their highest point, and will have an energy generation capacity of between 800MW and 1000MW.

According to planning documents, the wind farm would produce up to 3500 gigawatt-hours of energy a year – equal to the average annual energy consumption of at least 450,000 homes.

The project’s proponents, the German-backed, Gisborne-based company West Wind Energy says it hopes to begin construction sometime next year, but the project still requires planning approval from the Andrews state government. A planning panel will consider the proposal at a hearing due to begin on July 30.

The planning documents state that if the project gets the green light, the wind farm would begin to operate by 2021 and be in full flight by 2025. It would then be decommissioned and pulled down sometime after 2050.

 

Federal budget 2018: $24B for new infrastructure projects

The federal government handed down its 2018-19 budget this week and $24 billion has been earmarked for infrastructure projects.
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The big spend on infrastructure is forecasted provide four-fold benefit to the economy, i.e.   every dollar the government invests will deliver a $4 return to the economy.

This $24 billion allocation puts total federal government investment in infrastructure projects over the next decade at $75 billion.

The 2018-19 package

Rail and road infrastructure is the major focus of this year’s budget and new national initiatives include $3.5 billion on roads of strategic importance – $1.5 billion for the Northern Australia Package, $400 million for the Tasmanian Roads Package, $100 million for the NSW and ACT Barton Highway Corridor Package and $1.5 billion for future national priorities – $1 billion Urban Congestion Fund, and $250 million for Major Project Business Case Fund.

Turning to the states and territories, the biggest winner this year is Victoria which was allocated $7.8 billion. This includes $5 billion for the Melbourne airport rail project, $175 billion for the North East Link, and $475 million for Monash Rail.

The $24 billion in new infrastructure investment also includes:

  • $5.2 billion for Queensland including $3.3 billion for the Bruce Highway extension, $1 billion for the M1 expansion, and $390 million for Brisbane Metro.
  • $2.8 billion for WA of which $1.05 billion will go towards Metronet Rail, $944 million to Perth’s congestion package, and $560 million for the Bunbury Outer Ring Road.
  • $1.8 billion for South Australia. $1.2 billion will be spent on the North-South Corridor and $220 million on the Gawler Rail Line electrification.
  • $1.25 billion for NSW including $971 million for the Pacific Highway Coffs Harbour Bypass and $400 million for the Port Botany Rail Duplication.
  • $921 million for Tasmania of which $461 million will go towards replacing the Bridgewater Bridge. $400 million will be allocated to a Tasmanian road package.
  • $259.6 million for the NT, including $180 million for the Central Arnhem Road upgrade and $100 million for the Buntine Highway upgrade.

2018-19 budget papers can be found here.

浅析中国钢铁供给侧改革对铁矿石和冶金煤市场的影响

得益于中国供给侧改革的持续深化推进，中国钢铁行业产能利用率和利润率大幅改善，必和必拓预计这些改善的三分之二将会长期持续。生产高品质冶金原料的具有竞争优势的供应商将会从中受益。

在过去两年里，中国钢铁行业供给侧结构性改革无疑是影响大宗商品市场最重要的政策之一。在实施供给侧改革之前的数年里，全球钢铁行业严重供大于求，企业大面积亏损。如今改革成效显著，行业整体的盈利状况大幅改善1。

钢铁行业供给侧改革是如何推进的呢？

  1. 2015年底
    习近平总书记要求着力加强供给侧结构性改革。其中，钢铁行业的目标是到2020年，用五年的时间减少粗钢产能1.5亿吨。在初始阶段，主要着眼于淘汰闲置电弧炉和老旧转炉炼钢的产能2。
  2. 2016年
    随后，中央公布第二轮举措：2016年内关停全国超过1.2亿吨中频炉产能。当终端需求仍较为强劲的情况下，这一举措使得钢铁市场的供需关系趋于紧张。
  3. 现阶段
    随着供给侧改革的推行，中国钢铁产能利用率从周期低谷上涨了约15个百分点（从低于70%提高至85%左右）。尽管由于煤炭行业也受到供给侧改革政策的积极影响，冶金煤价格大幅上涨3，但是钢铁行业的利润率仍随着产能利用率的上涨有着飞跃式的提升。

现在我们需要思考的问题是：整个钢铁产业链受供给侧改革红利影响取得的进步，将会多大程度上持续下去？

必和必拓预估，钢铁行业产能利用率增幅的三分之二左右将会长期持续。这意味着，从长期来看，产能利用率将保持在80%上下。这与工信部发布的《钢铁工业调整升级规划（2016-2020年）》中所订立的目标相吻合。

这一结果的实现将有助于促进行业健康的盈利模式以及产生可持续的自由现金流，也将会帮助钢厂加强其资产负债表。在政府出台政策之前，钢厂的资产负债表早已呈现出了恶化状态。实现财务的可持续发展是供给侧改革的最终核心目标之一，钢铁行业将力争实现平均资产负债率降至60%以下的目标。

我们认为，在整个周期内，如果能达到80%的产能利用率，以及钢厂平均3-4%左右的长期净利润率，钢铁生产商就能够实现可持续健康发展，并且不会给下游终端用户造成过大的成本上升压力。

这种转变对钢铁冶金原材料市场造成了深远的影响。根据我们的经验，钢厂采购经理们在不同盈利情况下所考虑的因素与最终的选择也会各有侧重。

自2016年底以来，钢厂利润率的回升是导致优质原料溢价增加，以及低品质原料折扣扩大的关键因素。

去年冬季，京津冀及周边地区“2＋26”城市实施了错峰生产的环境保护措施，使钢厂利润率创下新高。受此影响，限产区域以外的钢厂则以接近满负荷扩大生产。在此期间，我们注意到62%品位铁矿石与较低品位铁矿石（包括58%品位及更低品位）之间的价差创下历史新高。

优质低挥发份炼焦煤（普氏PLV指数）和中等挥发份炼焦煤（PMV指数）与弱焦煤之间的价差也显著扩大。与此同时，块矿和球团矿溢价也大幅拉涨，其中块矿溢价在2017年9月当季创下纪录。目前一些极端的价差已经消退，但价差扩大是合理的市场趋势，而且与我们的中期展望完全一致。

中国钢铁行业未来：更大型化的设备，更靠近沿海地区，更加绿色环保。

我们相信中国将持续推进供给侧改革政策，接下来的战略重点将由去产能转向产业结构优化升级，通过更大容积，更高效的炼铁高炉和焦炉来生产出更高质量钢铁制品。

与此同时，中国越来越重视环境保护和生态文明建设。这迫使钢铁行业必须要探寻更绿色环保的生产模式，以满足日益严格的环境污染物排放标准要求4，特别是中国已颁布了超低硫氧化物（SOx）和氮氧化物（NOx）的大气排放标准。

种种趋势表明，未来对高品质海运资源产品的需求将持续强劲。从而继续支撑不同品质原料价差维持在接近于2017年的较大幅度，而不是早前环境限产措施出台以前低利润率时的较低价差。

我们一直认为中国钢铁行业在未来10年的发展蓝图是“更大型化的高炉”，“靠近沿海地区”，“更加绿色环保”。然而，中国积极实施的供给侧改革政策已将实现这一目标大大提前了。

我们也把这种飞跃式的发展模式融入到我们的战略思考中。通过了解我们主要客户未来需求的战略方向，为我们未来矿山的开发做正确的决策。

必和必拓一直在积极促进钢铁原材料市场健康、有序、稳定的发展，致力于采用更加透明, 更加合理且准确反应市场基本面的价格体系。

我们支持以铁矿石指数为结算基础的定价方式，支持完善更具公信力的铁矿石指数定价体系。一个价格得以充分发现的公平且透明的大宗商品市场，有助于买卖双方以科学的方法来衡量不同产品的使用价值，实时观察到市场变化。否则，我们现在根本无法有效观察到品种间的价差，而关于价差是否可以持续的讨论更是无从谈起。

通过科学的方法衡量使用价值（VIU）

必和必拓多元化的资产组合中拥有寿命长、可扩展、低成本的优质低挥发份（PLV）炼焦煤资产。

优质低挥发份焦煤用于生产高强度冶金焦炭（以“反应后焦炭强度”指标测量），能够在较低的外部能量要求下实现较高的高炉生产效率，这满足了先进大型高炉的生产需求。在日益严格的SOx污染物排放控制的要求下，低硫含量是另外一个优势。我们有大约3/5的冶金煤产量与PLV指数挂钩。

我们还拥有多种高品质的粉矿和块矿产品，可以让客户在不断变化的环境中，根据所需调节配比。

除了含铁量以外，铁矿石的使用价值（VIU）也与其含有的二氧化硅，氧化铝和磷元素（统称脉石）及其它微量杂质元素有关5；而这些成分会对炼钢成本和产品质量产生影响。我们意识到不同钢厂对这些杂质的敏感度不同，原因也不尽相同，比如有高炉容积和限制的原因，产品质量，或是当地矿石质量的影响等。

这些差异化的客户需求正是体现市场营销部门价值的机会，通过科学的方法衡量使用价值，从而将我们的产品销售给适合的客户。

必和必拓铁矿石的硫含量以及其它微量元素如钒，锌和砷都很低，这有助于我们的客户即钢厂在生产过程中减少污染物的排放量，降低生产成本，以及提高产品质量。

特别是我们产自西澳皮尔巴拉的纽曼块矿，含铁量非常高，且脉石含量低，能够提高高炉的铁水产量并降低能耗。块矿可直接加入高炉，和烧结和造球过程相比节约了成本，避免了污染物排放。烧结烟气是大气污染的一个重要成因，所以中国北方地区主要城市会时常发布烧结设备限停产的措施。2017财年，必和必拓块矿产量占总产量的24%

依托超过半个世纪的炼铁前工序的丰富经验，必和必拓将继续支持澳大利亚及海外高校和科研机构在钢铁冶炼方面的前沿研究。我们将继续努力，与客户更加紧密合作，最大限度地帮助其减少在生产过程中对环境所造成的不利的影响，并且实现成本效益以及生产效率的提升。

注释：

[1] 美国近期出台贸易保护主义措施，令人费解的是：目前钢铁行业发展环境利好。一般来讲，只有当行业面临压力时，贸易保护主义才会有所抬头。但是这一次，全球钢铁行业已走出低迷，行业目前正处于上升阶段，而关税举措却在这个时间点出台了。

[2] “电弧炉”与“转炉”是全球两个主要的炼钢技术。电弧炉的全球份额约占四分之一，转炉的份额约为四分之三。在中国，氧气顶吹转炉技术占比高达90%，其余10%是中频炉和电弧炉，这种情况直到中频炉被突然关停才有所改变。

[3] 海运贸易的供应波动也是促使价格抬升的原因之一。

[4] 在工业领域，尤其是钢铁行业中，最为有效的低碳技术是碳捕集、利用与封存技术（CCUS）。欲了解必和必拓资助北京大学和爱丁堡大学共同开展CCUS项目，以及更多相关信息，请访问必和必拓的官方微信。

[5] 杂质元素包括：钒，铜，砷，铬，铅，锌，硫，镉，汞，氟和氯。

备注：

[1] 预测不等于实际业绩或收益，本文不构成公司对未来业绩或收益的保证。

(https://www.bhp.com/media-and-insights/prospects/2018/05/iron-ore-met-coal-and-chinas-steel-reforms-chinese)

Energy and Mines Australia Summit: Australia becoming the global centre for renewables for mines

As recent project announcements show, the number of Australian mining operators seriously assessing and investing in renewables is growing rapidly. Driven by favourable economics and additional benefits including carbon reductions and social license, major and mid-tier Australian mines are adopting renewables.

South32 recently announced its 3MW solar farm for its Cannington mine in Queensland for which SunSHIFT is providing its re-deployable solar solution. Once complete, this will be the second largest solar project for a remote, off-grid Australian mine.

Similarly, Image Resources is investing in a 3–4MW solar farm adjacent to its Boonanarring mine and processing plant, which are currently under construction. This ‘behind the meter’ solution will deliver around 25 per cent of the facilities electricity needs. GMA Garnet, a leading supplier of garnet used in blasting and water jet cutting, has locked in energy prices for the next 13 years for its Western Australia operations through a long-term power purchase agreement for wind and solar.

OZ Minerals also recently announced plans to build a solar and battery storage facility at its Prominent Hill mine in South Australia, and is looking at further investments in renewables to support other projects in the region. The mine also became the first resource company to sign a transmission cost partnership with a renewables developer through its recent deal with SolarReserve.

Finally, New Century Resources is investing in SunSHIFT’s portable and scalable solar system to supply power for the refurbishment of its Century mine at $120/MWh which is a fraction of the $400/MWh it had been paying to run diesel during care and maintenance. And Copper Mines of Tasmania (CMT) has an ambitious plan to make Mt Lyell on Tasmania’s west coast Australia’s first zero emissions mine through investments in electrification and renewables.

In addition to these projects, there is quite simply a wealth of major mines and mid-tier leaders at various stages if assessing and approving renewable energy investments for remote and grid-tied sites. While these projects are not yet public, many will be showcased at this year’s Energy and Mines Australia Summit on June 27–28 in Perth.

This heightened activity has positioned Australia as the fastest growing market for renewables for mines. The main driver, of course, is economics. Depending on locally available wind and solar conditions, fuel savings from hybridisation can amount to up to 75 per cent, according to juwi Renewable Energies.

The cost of solar modules is also falling by 3–8 percent annually. Battery storage is also becoming more economical with Bloomberg New Energy Finance predicting lithium-ion batteries will be priced at $73USD/kWh in 2040 as compared to around $250USD/kWh in 2017.

Senior mining representatives will meet with global renewable energy experts in Perth this June 27–28 to discuss renewables integration. This 2nd annual Energy and Mines Australia Summit, features presenters from BHP, Sandfire Resources, Fortescue Metals Group, Rio Tinto, South32, Nyrstar, Oz Minerals, Australian Vanadium, Panoramic Resources, Montezuma Mining Company, Resolute Mining and Gold Fields.

Meanwhile, the business case for renewables integration is being underlined by successful landmark projects including Sandfire Resources’ DeGrussa Solar Project and Rio Tinto’s Weipa Solar Farm. Currently, the DeGrussa project is offsetting more than 450,000 litres of diesel per month, which adds up to more than 25 million litres of diesel saved over five and half years or around 20 per cent of the mine’s total fuel consumption.

For more details on these projects and the upcoming Summit visit Energy and Mines Australia Summit website and enter australianmining20 on the registration page for a 20 per cent discount off attendance.

TAKING 3D TO THE NEXT LEVEL

BILBY 3D prides itself as being the biggest and one of the oldest 3D printer retailers in Australia. “We are the old boys on the block, working in the industry for close to a decade now,” Lee Bilby told Manufacturers’ Monthly.

Over these years, Bilby 3D has seen advancements in material invention transform 3D technology and has adapted to the new technologies.

“What excites me the most is the material development; because this has dramatically expanded the possibilities for 3D printing. Material development and 3D printing innovation go hand in hand because the materials get developed that allow machines to do more things and machines develop more capabilities that allow them to deal with more materials,” said Bilby.

Bilby 3D has been manufacturing filaments for the past six years and has partnered with companies like Proto-Pasta in the US for manufacturing metal materials with filaments.

“We started manufacturing filaments in the very early days when the only material available for 3D printing was Acrylonitrile, Butadiene, and Styrene polymers (ABS). Being the traditional material used for injection moulding, ABS is not a great material for 3D printing because it can cause uneven shrinkage in the printed parts, so that you don’t get the desired precision.

“So, polylactic acid (PLA) was invented and has really become the backbone of 3D printing in many ways. PLA material actually does a full state change from a solid to a liquid when you print with it. PLA is actually a great material for a few reasons. From a global perspective, it is a great material because it is biodegradable, unlike ABS which is a petroleum bi-product.

“Today, we are no longer restricted to ABS or PLA plastics and we can manufacture in metals, rubber-like flexible, heat-resistant materials, through to new innovative materials like matte fibre,” said Bilby.

Raise3D’s Australian distributor

Bilby 3D is the Australian distributor for Raise3D, a global 3D printer brand whose latest printer series has won the title of “Best 3D Printer for 2018” by Make Magazine. Bilby said Raise3D’s Pro 2 would officially launch in Australia at the National Manufacturing Week expo, held in Sydney from 9-11 May.

Raise3D Pro 2 is an industrial grade components printer that combines unprecedented resolution capabilities with large build areas, onsite servicing and support, and minimal maintenance requirements.

Some key benefits and design innovations that distinguish Raise 3D Pro 2 include an electronic driven lifting dual extrusion system that is accurate to five microns (<0.005mm) and switches within less than one second between materials, wide filament compatibility (300°C), built- in air filtration, filament run-out detection and the ability to resume printing after power outage.

“Raise 3D Pro 2 model can print to a resolution of 10 microns per layer, that is previously unheard of within the industry, as the standard resolution for 3D printers is generally about 100 microns per layer,” said Bilby.

Sharing knowledge with the industry

3D printing being an emerging industry, consulting is an important part of Bilby 3D’s business. Bilbo 3D supports customers with sales, support and consulting through its wide network of resellers and offices in Sydney, Brisbane and Melbourne.

“From very early on, we at Bilby 3D saw our role as investigators. We researched and talked to industry to determine what they needed and how they could use 3D Printing. Our team draws on a diverse range of industry backgrounds, so that our clients can benefit from specialised experience both within their industry and with 3D printing.

“It is through these strong ties to industry that we have learned, developed and shared back that knowledge, to see Australian companies grow through their adoption of 3D printing,” said Bilby.

She also said that she enjoys seeing how 3D printing can make the impossible possible. “To watch an idea that never would have been viable through traditional manufacturing, become a reality because of the small scale production capabilities of 3D printing is great,” said Bilby.

“One example is DreamFarm, who utilised 3D printing from the beginning to iterate and test products on the path to traditional manufacturing. From their small beginnings 3D printing has helped them become a large international company.”

3D printing could in fact be economically feasible, particularly for small quantity productions. She said 3D printing only uses what it needs because it’s an additive manufacturing versus a subtractive manufacturing. Comparing it to CNC-ing a part where the part is cut out of a larger block of material, 3D printing only uses the exact material as needed so it becomes cheaper eventually.

“Many companies need to have parts in order to supply warranty. 3D printing allows them to only manufacture the required quantity rather than having to stock a large quantity, as is common practice through traditional manufacturing,” said Bilby.

Read more at http://www.ferret.com.au/articles/news/taking-3d-to-the-next-level-n2530018#7AvXUt8GdQswVsQq.99

AES 2018: Microgrids ensuring reliable remote power supply

Given many remote communities and Australian mine sites are moving to more renewable energy sources to reduce costs and provide environmental benefits, microgrids are becoming one of the most suitable solutions to ensure the reliable supply of power.

Microgrids can help increase the penetration of renewable energy without compromising the quality and reliability of power supply.

Having a localised source of energy, that could combine solar, battery storage and diesel, means there is less chance that supply will be interrupted, which is a key factor for remote applications such as isolated mine sites.

Mining companies are now considering how energy storage and microgrids fit into their long-term planning, in an effort to displace diesel.

Greg Allen, executive general manager at Carnegie Clean Energy directs all project operations and commercialisation activities for the company, and is currently working on The Aurora Project — a 150MW solar thermal energy project with storage — in Port Augusta, South Australia.

Allen will join a huge lineup of energy experts at the Australian Energy Storage Conference and Exhibition (AES 2018), running from May 23–24 at the Adelaide Convention Centre.

At AES 2018, Allen will explore Australian microgrid case studies that use battery energy storage technology in both network-connected and off-grid applications.

Energy systems in remote communities and pacific islands will also be explored at AES 2018 by speakers including Jiamao Wu, General Manager of Sungrow-Samsung SDI Energy Storage Power Supply, who leads the research and development, production and operation of the company.

Wu has participated in multiple “863 programs”, municipal technology innovation projects, and instructed the construction of multiple PV projects including Olympic nest, world expo and Hongqiao, as well as giving guidance to the third “Zhangjiang Hi-Tech Talents” program as a coach.

Hear from Jiamao Wu and Greg Allen, among other microgrid and energy storage experts, at the Australian Energy Storage Conference and Exhibition. To register for the conference or the free exhibition, visit www.australianenergystorage.com.au/register.