Author: yinghui

Trans-Pacific Partnership deal done: Six things you need to know about the TPP

Members of the Australian business community have this morning cautiously welcomed the conclusion of negotiations for the Trans-Pacific Partnership (TPP) after more than five years of talks.

Hailed by Trade and Investment Minister Andrew Robb as “the biggest global trade deal in twenty years”, the TPP is an agreement that takes in the major economies of the Asia Pacific region.

While the exact wording of the TPP is yet to be released to the public, small business representatives this morning said moves toward greater trade opportunities for Australian businesses should be welcomed.

“Any agreement has winners and losers, but this reflects what’s going on,” says Peter Strong, executive director of the Council of Small Business of Australia.

“The world is globalised and we have to embrace that and it’s what the government is doing.”

However, Strong told SmartCompany the signing of the historic trade deal also highlights competition concerns within the Australian economy.

“It also highlights that we need to look internally at what is holding business back,” he says.

“The duopoly [in the grocery sector] is holding business back, there’s no doubt.

“In the TPP there’s two countries that don’t have an effects test. Nearly all of them do, if we’re going to compete fairly let’s be fair and put an effects test in.”

Alex Malley, chief executive of CPA Australia, told SmartCompany the TPP puts Australian businesses in prime position to “secure first mover advantage in a massive new global trade bloc”.

“When you combine the TPP with our existing trade treaties and the pending deal with China, export-oriented Australian businesses now have a global footprint of improved market access,” Malley says.

“Whether you’re an apple exporter from Tasmania or a tech company in Sydney, the TPP is an opportunity to create jobs.”

Malley says, subject to the TPP being ratified, “the world is now a different place for Australian businesses”.

“It’s up to them to take the steps necessary to take advantage of these market access deals for their products and services,” he says.

“The beginning and end of any trade deal is jobs. Navigating the complexities of the multi-nation TPP negotiations to provide opportunities for job creation is a significant achievement.”

The Export Council of Australia and the National Farmers’ Federation (NFF) have also welcomed the conclusion of the TPP talks this morning, with the NFF describing the event as a “huge milestone”.

“The agreement is a generally positive outcome for Australian farmers, which will reduce trade barriers and create new export opportunities for our high-quality food and fibre,” the federation said.

Here are six things you need to know about the TPP:

1. The deal includes 12 countries

Australia is one of 12 countries that form the TPP. These include the United States, New Zealand, Japan, Canada, Chile, Malaysia, Mexico, Peru, Singapore, Vietnam and Brunei.

2. The TPP covers 40% of the global GDP and a third of Australia’s exports

Combined, the TPP countries account for approximately 40% of global gross domestic product and 24% of global trade in services.

According to Minister Robb, one third of Australia’s total goods and services exports, or $109 billion of trade, went to TPP countries in 2014.

Close to 35% of Australia’s services exports went to TPP countries, worth a total of $20 billion.

3. It has taken years to get to this point

The conclusion of the TPP negotiations in Atlanta this week comes after five years of talks. The first round of negotiations for the trade deal took place in March 2010 in Melbourne.

The TPP also builds on an earlier trade agreement between Brunei, New Zealand, Chile and Singapore called the Trans-Pacific Strategic Economic Partnership Agreement, which came into effect in 2006.

4. Sugar, dairy among the winners but pharmaceuticals has been a sticking point

Australian sugar and diary producers are tipped to be among the winners under the TPP, with Robb saying today Australian sugar exports in the US will effectively double under the deal. Tariffs for particular types of sugar exports in Canada, Peru and Malaysia will be eliminated or liberalised and levies for high polarity sugar into Japan will also be reduced.

Australian cheese makers will see tariffs into Japan eliminated on $100 million of existing trade and be given preferential access for another $100 million of trade. Cheese producers will also gain preferential access into Mexico and Canada and increased access and tariff reductions for some forms of cheese in the US.

However, one of the more contentious aspects of the TPP concerns patent protections for pharmaceuticals.

Fairfax reports the negotiations were extended through Sunday evening as Australia and the US continued to grapple over a US proposal to keep data for advanced medicines made from living organisms, protected for 12 years. Australia had sought a protection period of five years. The parties have agreed to a protection period of between five and eight years.

5. Service providers will benefit too

Agricultural exporters and manufacturers are not the only potential winners from the TPP; Robb said Australian service providers in sectors including finance, education, health and hospitality and tourism will also benefit from the deal.

In particular, Robb said Australian SMEs that provide professional services are set to win with restrictions in Malaysia “that have long been of concern to Australian SMEs” to be removed.

“Malaysia has locked in recent reforms to the legal, architectural, engineering and surveying sectors,” Robb said.

6. There are concerns about the secrecy of the agreement and negotiations

Despite the slated benefits of the TPP, the deal has not been without controversy, especially when it comes to the transparency of the negotiations.

Consumer group CHOICE said this morning it has collected more than 7400 signatures from Australians who called for the text of the TPP to released prior to the conclusion of the negotiations.

“At about midnight last night, trade ministers confirmed that the TPP negotiations were finished, however the text of the agreement still won’t be publicly available for a number of weeks,” said CHOICE campaigns manager Erin Turner.

“It’s absurd that our Trade Minister has committed Australia to a deal the Australian public has never seen.”

CHOICE is calling for the Productivity Commission to conduct a full cost-benefit analysis of the deal.

New technology boosts productivity and savings in mineral exploration

A CSIRO-led innovation that enables fast, automated analysis of rock materials directly from drill sites is to be commercialised, opening the way for millions of dollars worth of potential cost and time savings. The Lab-at-Rig technology that CSIRO has developed in partnership with Imdex and Olympus, under the Deep Exploration Technologies Cooperative Research Centre (DET CRC), enables chemistry and mineralogy of rocks found within a drill hole to be analysed within minutes of drilling.

“Lab-at-Rig is an important breakthrough for the industry because of the potentially massive cost savings in drilling, exploration and overall mining operations,” says CSIRO Lab-at-Rig Futures Project Leader, Dr Yulia Uvarova.

The new technology features automated analysis of mineralogy and geochemistry of drill-hole cuttings direct from the drill site, while still offering the relevant sampling methods and quality control current processes use.

“If mining or exploration companies have real time information about the mineralogy and chemistry in the drill-hole they can efficiently plan what to do next; whether that is to drill deeper, drill further holes, try elsewhere or to stop,” says Uvarova.

“Ultimately, Lab-at-Rig will provide improved decision making and productivity for mineral resource operations.”

The Lab-at-Rig system, fitted to a diamond drill rig and Imdex’s AMC Solids Removal Unit includes: a sample preparation unit that collects solids from drill cuttings and dries them; Olympus X-ray fluorescence and X-ray diffraction sensors to provide chemistry and mineralogy of the sample respectively; and the ability to upload data to REFLEX’s cloud-based platform where it can be analysed and provided back to the explorer.

This technology will provide a great advantage over the current process which can take three months and often millions of dollars to set up the drill sites, drill, extract, sample and log the drill cores, send to a lab for analysis, enter data into a database and finally provide information back to the company.

Lab-at-Rig offers a one-hour cycle for the whole process enabling rapid decision making and cost savings.

“Our ‘light bulb’ moment was in 2011 when a group of DET CRC researchers were watching a diamond drilling operation near Adelaide and observed the fluid carrying the drill cuttings to the surface,” Uvarova said. “They asked the question: ‘what if we could analyse the cuttings separated from that fluid in real time?”

Lab-at-Rig is the product of two years of research and development and a tribute to the successful collaboration of the research and industry partners through the DET CRC, according to CSIRO’s Discovering Australia’s Mineral Resources Program Director, Dr Rob Hough.

“The way that Imdex, Olympus and CSIRO have worked together on this through the Deep Exploration Technologies CRC has been crucial l to delivering this world-class technology in such a short timeframe,” Hough said.

REFLEX, a business in the ASX-listed Imdex Group of companies, is the commercialisation partner for the technology.

CSIRO, Imdex, Olympus, University of Adelaide and Curtin University are now working on the A$11 million collaborative DET CRC Lab-at-Rig Futures Project which will build the next generation system to cover: new sensor technologies, improved data analysis and processing for decision making, and development of the system for new applications and drilling platforms.

Sandvik to divest materials handling division

Sandvik has announced its intention to divest its Mining Systems division.

This product area, which sits within Sandvik Mining, covers the supply, design, and engineering of materials handling systems for the resources industry.

“Divestment of Mining Systems will make Sandvik Mining more focused on its core operations, mining equipment and aftermarket offerings for both underground and surface mines, which Sandvik will continue to develop to ensure long term value creation,” Mats Backman, CFO and acting President and CEO for Sandvik, said.

The division employs around 1300 people, and had annual sales of $1.12 billion, accounting for 7 per cent of Sandvik’s invoicing.

According to a Sandvik spokesperson the only Australian operations to affected will be the Bayswater facility, in Perth, which produces conveyor pulleys, rollers, and frames for mining.

From the third quarter of this year the Mining Systems group will be reported as ‘discontinued operations’.

It is understood a buyer is yet to be found.

Arrium to slash jobs at Whyalla Steelworks‏

The owners of the Whyalla Steelworks in South Australia have announced that they will be cutting cost in the aim to save $100 million as they try and improve the viability of the steelworks.

The cuts will affect areas such as, souring and procurement, labour and overheads, site rationalisations, corporate cost and production conversion costs.

Arrium, the owner of the Whyalla Steelworks in South Australia, has announced it has started a two year of cost cutting aiming to save $100 million to improve the viability of steelworks.

Overcapacity of steel meant it needed to improve its cost base to maintain the competitiveness of the Whyalla Steelworks.

Arrium is yet to comment on the number of jobs that will be lost as a result of the cost cutting, saying that they will consult employees, unions, suppliers and the Government.

OZ Minerals sees successful processing trials

As base metals prices stagnate, many miners are looking to innovative methods to increase production.

One area that many operators are looking to for cost savings and efficiency increases is that of minerals processing.

OZ Minerals began trials to slash costs and boost productivity by implementing more efficient minerals processing at its Carrapatenna operation.

The miner developed a hydromet demonstration processing plant to verify scalability for its site late last year, and has now seen positive results from the trials.

“The first trial results from the hydromet demonstration plant indicate that the process is scalable and is already returning copper-in-concentrate levels of more than 55 per cent,” OZ Minerals stated.

“This compares favourably to globally produced concentrates with copper-in-concentrate grades that typically average less than 30 per cent,” OZ Minerals said.

It added that impurity elements were below penalisable levels.

“This is a great set of first results for OZ Minerals and the copper industry in South Australia,” OZ managing director Andrew Cole said.

He went on to state that “the successful completion of this demonstration trial will allow up sot produce some of the best and cleanest copper concentrate in the world, with virtually no impurities”.

The new pilot plant builds upon laboratory scale test work, where a final product exceeding 55 per cent copper-in-concentrate from a starting concentrate grade of 30 to 35 per cent.

According to OZ Minerals, the system involves processing copper concentrate containing chalcopyrite and bornite. It then converts these two minerals into chalcocite by leaching out the iron and other impurities.

“On the back of these promising results,” Cole said, ”we will continue to feed samples of concentrate through the plant over the next few months to build on our technical understanding and confidence in the process.”map_carapateenaThe trials come as South Australia throws its support behind the copper industry in the state, launching a new strategy to ramp up production.

Speaking before members of the South Australian Chamber of Mines and Energy (SACOME), state treasurer and resources minister Tom Koutsantonis announced the next phase of consultation was underway.

“There is widespread agreement that South Australia’s geology and geography does put us in the box seat to supply copper to the world’s fast growing economies,” Koutsantonis said.

“The Directions Paper on the Copper Strategy seeks the views of industry, regional and Aboriginal communities, and other stakeholders on how we tackle some of the issues that could prevent South Australia from reaching its full potential as a copper producer.

“In the weeks ahead, we will be looking to the community, landowners, producers, explorers, researchers, innovators and suppliers to provide their guidance on the final design of this long-term strategy.”

As part of the strategy the South Australian Government has pledged $10 million to found a joint study of the hydromet process between OZ Minerals and Orway Mineral Consultants, with work carried out by Adelaide University.

OZ Minerals will contribute $8 million to the research.

Speaking on the this plan and the trial results, Cole added that “this is crucial research that could help maximise the value of South Australia’s copper resources for generations to come”.

“When considered in the context of the South Australian Copper Strategy, it is a very exciting time for the industry.”

With current cooper production around 300,000 tonnes per annum, the SA government wants to triple production by 2030 to become a major contributor to Australia positioning itself as the third largest copper producer in the world.

At present South Australia has three active copper mines; Olympic Dam (BHP), Prominent Hill (OZ Minerals) and Kanmantoo (Hillgrove Resources).

BUYER SOUGHT FOR QUARRY AHEAD OF REDEVELOPMENT

Lilydale-quarry-pitA quarry operator is seeking a buyer for its limestone operation ahead of the site’s proposed redevelopment into a residential hub.
Sibelco Australia has launched a public tender sale campaign for its Lilydale quarry, located in Melbourne, Victoria.

The supplier announced earlier this month that operations would cease before the end of the year due to “flat” economic and market conditions, with Sibelco spokesperson Helen Stanley confirming to Quarry more recently that the site was expected to close in October.

The quarry, which has been producing quicklime, hydrated lime and other associated products for more than 140 years, had originally been scheduled to close in 2016 once its resource had been exhausted.

“The Lilydale site has been a significant part of Sibelco Australia’s business success and we are proud of the strong legacy it leaves behind,” Stanley commented. “The Lilydale site has provided long-term employment to the Lilydale community for more than a century, [and has been] pivotal to the growth of Lilydale and the broader Yarra Ranges region of Victoria.”

Plans for the future
For more than two years, Sibelco has been planning the quarry site’s future with the support of the Victorian Government’s property development agency, Places Victoria, and the Yarra Ranges Council.

The draft master plan it first released in June 2013 – which is known as Plan Cave Hill – envisaged the establishment of up to 2500 new residences, retail outlets and community facilities focused around a large, central parkland by way of a 15 to 20 year redevelopment program.

Sibelco CEO Tom Cutbush explained that the sale of the quarry would help progress these plans.

“Sibelco Australia recognises that we are not experienced property developers, and therefore … we are launching a public tender sales campaign to attract a property developer with the skills and resources necessary to turn this exciting vision into a reality,” he said.

In July this year, Sibelco lodged a planning scheme amendment request with the Yarra Ranges Council to rezone the site in preparation for its redevelopment.

Commenting on the milestone, Cutbush said, “Sibelco is excited to see the site take a step closer to a positive legacy for the Lilydale community including celebration of the site’s long history and its close connection with the growth and prosperity of Lilydale and the broader Yarra Ranges region.”

The final master plan will be exhibited for public consultation later this year following the council’s initial review.

Originally established as a family-operated business in 1872, the 163ha Lilydale quarry site was acquired by Sibelco in 2002.

Sedgman win BHP iron ore contract

jimblebar-2Sedgman has been awarded a contract for crushing and conveyor works at BHP’s Jimblebar iron ore mine.

The $145 million contract will see the Sedgman Civmec joint venture (SCJV) provide the engineering procurement construction and commissioning work for Jimblebar’s new primary crusher.

The joint venture is specifically focused on target minerals processing and materials handling projects in WA.

“The award of this contract followed a competitive tender process and is testament to the design and safe delivery capability that SCJV was able to demonstrate to BHPBIO (BHP Billiton Iron Ore),” Sedgman CEO Peter Watson said.

“We look forward to delivering a successful outcome for the project and further strengthening our relationship with BHPBIO.”

ThyssenKrupp to deliver new IPCC system to Cuajone including gearless drives

IPCCThyssenKrupp Industrial Solutions, the engineering and construction specialist within the ThyssenKrupp Group, has won a contract from Southern Peru Copper Corporation to supply a primary crushing and overland conveying system. The new system will be installed at the Cuajone copper mine in Peru, which has been in operation since 1976, to transport ore from the open pit mine to the concentrator. It will replace the existing long railway haulage system and is expected to start operating in 2016.

The contract awarded to ThyssenKrupp includes engineering, procurement and construction supervision as well as commissioning support of the complete in-pit crushing and conveying (IPCC) system to process run of mine copper ore. Christof Brewka, Head of Operating Unit Mining, ThyssenKrupp Industrial Solutions: “The new crushing and conveying system will significantly reduce operating costs and energy consumption as well as emissions. This makes it a good example for our leading customised solutions for the mining industry which provide added value for our customers while at the same time helping to conserve natural resources.”

Zlatan Azinovic, CEO of ThyssenKrupp Industrial Solutions (Peru) said: “As part of our global growth strategy, we are further strengthening our footprint in South America. Our service center in Peru enables us to provide better and faster services to our customers in the local mining, minerals and cement industries. Only recently we have also invested into new service centres in Brazil and Chile.” As part of the new order, ThyssenKrupp is supplying a semi-mobile crushing plant with discharge, transfer and two overland conveyors with a capacity of 120,000 t/d of crushed ore transported to the existing coarse ore stockpile. The copper ore will be fed directly into a semi-mobile crushing plant located in the mine. Truck ramps made of sectional steel modules provide access for mine trucks with payload up to 360 t. The crushing plant’s main service and operating areas, including electrical infrastructure, will be physically separated and independent from the truck dumping level, which will significantly reduce vibration, dust and noise levels. The semi-mobile design is especially suitable for mine sites affected by frequent seismic activities.

The 63–114 heavy duty ThyssenKrupp gyratory crusher with its 1,200 kW direct drive takes the feed material from the feed hopper and reduces the run-of-mine copper ore to the required product size. The crushed ore is extracted from the surge bin underneath the crusher by means of a heavy duty low speed belt feeder. The 2,800 mm wide ST 1800 conveyor will run at a nominal speed of 1.5 m/sec and is powered by one 800 kW conventional drive and a variable-frequency drive (VFD). A 400 m long sacrificial conveyor carries the crushed ore from the semi-mobile crushing plant and crusher discharge conveyor to two overland conveyors spanning the 7.5 km distance to the coarse ore stockpile. The first of the two overland conveyors will be 1830 mm wide with ST 6800 belting and will run at 6.2 m/sec. It is powered by two 6,000 kW Siemens gearless drives. The largest of their kind in the world, these conveyor drives utilise Siemens Integrated Drive System technology to provide a high level of availability (exceeding 99%) by eliminating many of the traditional conveyor drive components such as reducers, couplings, and motor bearings and their associated maintenance times and costs.

Iron Road signs agreements for SA iron ore project

iron-road-project-SA-jobsSouth Australia is edging ever closer to the start of a major iron ore mine, with a number of agreements signed to enable further development of the Central Eyre Iron Project (CEIP).

Despite the severe commodity price downturn over the past 12 months, Iron Road Limited has continued negotiations leading to several Memorandums of Understanding and an indigenous land use agreement being signed this afternoon.

A deal for infrastructure funding was signed this afternoon with AIXI Investments managing director Christopher Camarsh, which will 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 managing director also signed an Indigenous Land Use Agreement with Barngarla Aboriginal Corporation chair Elliot McNamara, SA Native Title Services and the Attorney General of SA, setting out all commitments in relation to native title and Aboriginal heritage during construction, operation, and closure of tenements.

“Iroin Road’s commitment to establishing and maintaining relationships with key stakeholder groups on the Eyre Peninsula has taken a further step with the signing of the various documents today,” Stocks said.

MoUs were also signed with the Wudinna District Council, District Council of Cleve, and four Eyre Peninsula peak bodies for community and environmental outcomes.

Stocks said there was potential for funding from international pension funds that would enable construction of the CEIP.

“Pension funds are seeking long term stable sources of return, and we believe the CEIP infrastructure more than fits the bill,” Stocks said.

“Funding by international pension funds will also support us in our commitment to allow third party access to the CEIP infrastructure, including local grain exports.”

Last year Stocks said the costing for the project was based on $112 per tonne spot price.