Author: yinghui

Downer’s contract at Fortescue Metals‘ Christmas Creek mine will not be renewed as the miner moves to a an owner-operator model.

The contractor made the announcement yesterday, stating it has been in discussions with FMG about the transition of the mine to Fortescue following the expiry of the current mining contract.

“Over the course of the next six months it is Downer’s intention to provide a safe and orderly handover of the Christmas Creek mine to Fortescue,” Downer said in a company statement.

Fortescue Metals added: “A comprehensive change management plan has been developed. Production from Christmas Creek is not expected to be impacted during the transition.”

FMG CEO Nev Power thanked Downer for its work at the site.

“The Downer team have been involved with mining at Christmas Creek since the outset and have played an important role in Fortescue’s development of our facilities in the Chichester Hub.

“Adoption of an owner operator model will further reduce Fortescue’s costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations.”

It is unknown how the move will affect the approximately 900 workers at the site.

Downer has been working at the mine since 2010, and was handed Macmahon’s former contract last year after FMG merged two service contracts into one, creating a contract worth $500 million for Downer.

Despite the move off Christmas Creek, Downer does not expect the transition to have an effect on its 2016 financial results.

A major international quarry plant supplier has opened a new global parts facility that could have flow-on benefits for Australian quarry customers.
Terex Materials Processing Systems recently invested more than $USD7.2 million ($AUD9.4 million) to establish a state of the art facility in Dungannon, Northern Ireland.

Terex Materials is a global division of the Terex Corporation that encompasses the Powerscreen, Terex Minerals Processing Systems, Terex Finlay, Terex Washing Systems and Terex Environmental Equipment brands.

The new Terex Materials facility includes a 957m2 office space, where a team of parts experts will field technical and sales inquiries.

The facility is expected to be able to house more than 86,000 live inventory parts. In addition to having a warehouse capacity of 5463m2, the facility has a 650m2 external canopy that can provide overhead storage for larger product.

The facility has also been fitted with “leading edge” technology to help the company “expedite all orders efficiently”. This includes three Hanel Lean-Lift automated storage and retrieval systems, which will operate with the facility’s 168 bays of high-bay racking; three dock levellers designed to improve ease of access for deliveries and container shipments of large-scale parts; and a range of Linde electric material handling equipment, including an order picker and aisle masters capable of working at a height of 9m.

Australian distribution
Within Australia, Terex quarry equipment is distributed through four dealers: OPS Screening and Crushing Equipment, Finlay Screening and Crushing, Terex Minerals Processing Systems (MPS) and Lincom Group.

Terex Finlay mobile plant and Terex Washing Systems products are available through OPS in Western Australia and the Northern Territory, and through Finlay on the east coast of Australia, including South Australia and Tasmania. OPS is also the local distributor for Terex Environmental Equipment.

Terex MPS is responsible for the provision of fixed and modular crushing and screening plant to the Australian market and Lincom is the local distributor for Powerscreen.

Terex parts for each of the brands are available through their respective local distributors, and a Terex Materials spokesperson confirmed this would continue to be the case with the introduction of the new global parts facility.

However, the spokesperson noted the new facility would increase the inventory available to Australia’s local dealers, and improve Terex Materials’ response time to those local distributors, which could result in benefits for quarry customers further down the supply chain.

Galaxy Resources has officially begun production at its Mt Cattlin mine.

“Production has commenced, with both mining and processing operations having started up,” Galaxy said in a company statement.

“An initial 5-week program will sequentially recover and stockpile spodumene and tantalum concentrates from the fines circuit ahead of crusher and HMS (coarse circuit) commissioning in the June quarter,” the miner stated.

“Given the quantities of ore already mined and available for processing, the immediate focus at restart through to May 2016, is on the processing circuit. This work shall including progressive commissioning of the primary and secondary feed preparation circuits, thickener, fine and coarse circuit screens, mica removal screens, the tantalum spirals and tables, as well as the fines reflux classifiers and filter belt.”

As part of this restart of production, mining of blasted ore in the Dowling Pit has also begun and will be stockpiled, with feed for the processing circuit sourced from existing stockpiles.

Galaxy is aiming to reach a throughput rate of 800,000 tonnes per annum by the end of June.

First delivery of concentrate is on target for July/August.

Sandvik has unveiled a new business division, Sandvik Mining and Rock Technology.

The division was formed through the merging of the Sandvik Mining and Sandvik Construction divisions.

According to Sandvik, the new division “will be organised in a de-centralised business model with separate product areas based on the product offering”.

“Each product area will have full responsibility and accountability for its respective businesses.”

Bjorn Rosengren, Sandvik’s CEO, explained the reasoning behind the merger.

“Products developed for the customer segments mining and construction are based on common technologies with a similar aftermarket offering,” Rosengren said.

“In addition, manufacturing units are already largely shared with to some extent shared front line resources. By joining the operations into one business area we achieve a leaner and more efficient structure. The decentralised business model enables an even clearer focus and faster response to our customers.”

The new structure will begin operation in July.

Current head of Sandvik Mining, Lars Engstrom, has been appointed president of the new division, while current president of Sandvik Construction, Dinggui Gao, will leave the company on 1 July.

Businesses that operate in the Australian construction industry are at most risk of defaulting in the next 12 months, according to a report prepared by advisory firm SV Partners.

The SV Partners Commercial Risk Outlook March 2016 report places firms that offer professional, scientific and technical services as the next most likely to experience financial distress, while retail is the third most likely industry in which businesses are at risk of default.

Manufacturers and transport, postal and warehousing providers are also in the top five industries most at risk of default.

According to the report, which analysed retrospective commercial data, the next 12 months will be trying for Australian retailers.

The report predicts as many as 14 large and medium size retailers are at serious risk of financial distress, following in the high-profile cases of Dick Smith and Laura Ashley.

Three of these unnamed retailers have turnover of at least $1 billion in turnover, which SV Partners said “implies further adverse impacts within the retail industry with key retail players in financial distress”.

A further 11 unnamed retailers with annual turnover between $100 and $500 million are in the “highest risk category of financial failure”, according to the report.

Overall, SV Partners predicts close to 50,000 or 2.1% of Australia’s 2.34 million operating businesses will face “adverse financial events” within the next year.

Approximately 10,000 businesses are placed under external management in Australia each year, with the rate of external administrations appearing to be on the rise.

Appointments of external administrators increased by 8.3% in the September quarter of 2015, compared to the previous quarter, with retail appointments increasing by 9.8% in the same period.

Of the appointments in the September quarter, the construction industry accounted for 16.7% of administrations and the business and personal services category accounted for 41.2% of appointments.

The regions at most risk of default

According to the SV Partners report, businesses in the Northern Territory and Queensland are under financial pressure, with the two regions indicating the highest levels of potential defaults relative to the number of businesses operating there at 2.8% and 2.4% respectively.

However, specific locations along the east coast of Australia top the list of the locations where businesses are most at risk of default.

Melbourne’s inner suburbs lead the way, where 2% of the 2,552 businesses operating are at risk of financial distress.

Next in line is Queensland’s Gold Coast, where 3% of the 2,027 businesses are at risk, followed by Sydney’s city and inner south, where 2% of the 1,938 businesses are at risk.

Businesses operating in Sydney’s inner south west also make the top five (2.8% of 1,792 businesses, as well as businesses in Melbourne’s south east (2.6% of 1,730 businesses).

Why now is crunch time for many SMEs

Colin Porter, managing director of CreditorWatch, told SmartCompany March and April are often critical months in terms of cashflow for many SMEs.

One reason for this is tax returns to the Australian Tax Office are often due in March.

“Tax returns are critical large payments that some businesses hope to finance through miracles,” Porter says.

“The Tax Office is generally a good creditor and will provide funding, however at certain times they won’t and don’t.”

Porter says the first quarter of the year can also present cashflow problems for some businesses if invoices have not been issued and paid following the Christmas slow-down.

One a more personal level, Porter says the new year is often a time when business owners will also re-evaluate their business.

“There can be a realisation that this is how my business is and with starting the year, they will consider what needs to be done,” he says.

Following the announcement in late 2015 that Sydney-based AWD Group will distribute LiuGong Machinery Corporation plant and equipment along the eastern seaboard and in the Northern Territory, the first of the new machines under AWD Group’s leadership is now available in Australia.
The 18-tonne 856H wheel loader increases productivity and serviceability to the Australian market. It is powered by a 162kW, 9.3-litre Cummins diesel engine, with net power of 160kW at 2200 rpm, offering improved torque and efficiency over previous models. It features a 3m3 bucket and 12.5-tonne straight tipping load, coupled with a standard breakout force of 180kN and a standard dump clearance of nearly 3000mm.

Other features include closed circuit pumps for hydraulics and steering, larger cab with improved visibility, a forward hinged hood for improved access, a stack cooling pack for better cooling, and ground level access for easy maintenance.

Modern ZF technology is applied in the driveline system, and the axle housing and main transmission system are reinforced to improve strength and load capacity, with carrying capacity increased by 40 per cent.

The 856H has a long service life, with the average life cycle increased by 250 per cent compared with the previous model. The transmission works efficiently with the machine to achieve an optimal power output, and an automatic shift transmission with kick down function and electric proportional forward-neutral-reverse lever make operating more convenient and reduce operator fatigue. This feature, along with high quality genuine parts, ensures the 856H maximises productivity for the customer.

The cab design improves all-round visibility for safety. Frequently used controls are placed within easy reach of the operator and curved glass in the cab decreases sound levels. A constant temperature function can adjust the temperature automatically. The cab features ROPS and FOPS in compliance with ISO International Standards.

Maintenance of the 856H is simple and convenient. It adopts a ground maintenance approach, which means technicians can replace and check various filters and fuels by standing on the ground, without climbing up and down. The forward tilting engine hood is equipped with an electric lifting device, which alleviates the need to manually open the engine hood, and will ultimately prevent any occupational health and safety issues occurring. It also allows for ground level access to service points, to increase accessibility to components, thereby reducing daily and scheduled service times while increasing the machine’s availability to work. The hydraulic driving fan motor can be reversed for cleaning, and the water and oil drains are placed together to realise easier, faster maintenance and service.

Quarry-spec offerings
The LiuGong 856H wheel loader can be purchased from the AWD Group. The dealer has previously informed Quarry that a range of other quarry-spec earthmoving machines will be gradually introduced to the market, including the 20-tonne CLG862G, the 24-tonne CLG877G and the 30-tonne CLG890H. The loaders are also equipped with Cummins diesel engines, have net power of 165kW to 248kW and feature bucket sizes between 3.5m3 and 5.4m3, with breakout forces from 198kN to 251kN. “LiuGong’s 890H wheel loader gives its operator maximum control over the equipment,” an AWD Group spokesman told Quarry. “The machine’s engine matches its multiple working and gear shifting modes, providing maximum traction and speed.

“The electronic fuel injection system offers a wide range of combustion options and helps to reduce cost in use. It features a Cummins engine and the latest ZF automatic electro-hydraulic transmission, making the loader’s shift a smooth process.

“With a bucket capacity of 7m3, this machine suits duties in quarrying applications and can be used for loading blasted material at the face into haul trucks.”

The largest of AWD Group’s excavators will be the 45-tonne CLG945E, the 48-tonne CLG950E and the 70-tonne CLG970E. They are equipped with Cummins diesel engines, have net power of 280kW to 338kW and dig depths from 6.5m to 7.8m.

“LiuGong’s products include some big machines which are ideally suited to large scale quarrying and mining operations, such as the 50-tonne and 70-tonne excavators,” the spokesman said. “Built with the latest component technologies and many advanced processes, and developed with LiuGong’s product development process and product life cycle management tools, the 970E delivers a customer focused, high quality 70-tonne excavator, which is ideally suited to large scale quarrying operations.”

Source: AWD Group

Thyssenkrupp Industrial has won two contracts to replace materials handling equipment at the Port Kembla Coal Terminal.

The $100 million contract involves the design, supply, construction and commissioning of the replacement materials handling equipment, consisting of around 560 tonnes worth of primary structures.

It has awarded the subcontract to Civmec.

“Our colleagues from thyssenkrupp Marine Systems recommended Civmec as they are highly experienced in the delivery of complex heavy engineering projects and have state of the art facilities based in Henderson with a highly skilled workforce,” thyssenkrupp Industrial Solutions Australia CEO Greg Breakell said.

“They clearly demonstrate how capable Australian manufacturing is when it comes to heavy and industrial engineering.”