The new chairman of battling mining services and engineering firm Bradken says the downturn in the mining sector is likely to last until 2018 and the company has done all of its strategic planning based on that bleak scenario.
Phil Arnall, who took over as chairman from Nick Greiner on Tuesday at the completion of Bradken’s annual meeting in Newcastle, says business is even softer than it was in June this year, when the company opted for a $70 million balance sheet injection from Chile’s Sigdo Koppers and private equity firm CHAMP, and embarked on merger talks that ultimately amounted to nothing.
Mr Greiner, a former NSW premier from 1988 to 1992, had served on the board since 2004 and his departure comes as Bradken shares hit a record low on Tuesday after the company revealed a continued poor outlook and said that subdued order intake from customers would mean sales revenue in 2015-16 would be below 2014-15.
Bradken shares tumbled to 89¢ in intra-day trading before closing at 91¢, down 4.2 per cent for the day. Bradken shares were at $3.85 this time a year ago.
Managing director Brian Hodges, who is preparing to depart at the end of calendar 2015 after 18 years running the company, told Fairfax Media after the meeting on Tuesday that orders were at low levels but had stabilised.
“Order intake’s been relatively lower but stable,” he says.
Mr Hodges also says that Bradken is progressively selling off about $30 million in surplus assets, mainly property holdings, to cut debt in a difficult market.
Two other Bradken directors, Eileen Doyle and Peter Richards, resigned from the board on November 6. New York hedge fund Litespeed Management holds 11.9 per cent of Bradken and has been increasingly influential.
Mr Arnall said in his speech to shareholders the “last few months have been very sobering” and “we have felt the discontent of our shareholders”.
“Partly as a result of this, there has now been significant change to our directors,” he said. The search for a replacement for Mr Hodges was continuing for a “suitable person” to replace him by the end of the year.
Sigdo Koppers and CHAMP had a 60-day exclusivity period to try and hammer out a merger deal with Bradken from June, 2015. But the merger talks were officially called off at the start of September with the Bradken board refusing to grant a request to extend the 60-day period.
Mr Greiner was in an uncomfortable position because he had dual roles at both CHAMP and Bradken. He is deputy chairman of CHAMP. He removed himself from discussions on the merger proposal by appointing a three-person independent committee from Bradken
Author: yinghui
斗齿使用寿命分析
Autonomous vehicles lead Rio Tinto and BHP Billiton into cruise control
Canberra tech company Seeing Machines is set to introduce hands-free cruise control for regular cars, after gaining global recognition for vastly improving operations for mining truck drivers.
Mining companies such as BHP Billiton and Rio Tinto began employing automated drills and driverless trucks to assist with production and preserve profit margins against a volatile market.
New technologies such these driverless trucks and drones have greatly assisted Rio Tinto in its mining efforts –monitoring stockpile inventories and inspecting geological formations within mines.
According to Seeing Machines CEO Ken Kroeger, the first mass-produced semi-autonomous vehicles will be available to the public next year.
“After using just 10 driverless trucks in 2012, Rio has now expanded to 66. These vehicles can run all day without a driver who needs to lunch or bathroom breaks.”
Kroeger believes the latest innovation from Seeing Machines will include live tracking of road conditions, traffic density and lane markings.
Autonomous drills in underground mines are even more profitable, as employees using normal equipment not only take significant time walking from the opening to the work site, but are operating in dangerous working conditions as well.
According to a survey by International Data Corp, about 69 per cent of 190 mining companies are considering remote-control equipment, while 29 per cent are considering an increased use of robotics.
Caterpillar recently reached a $23 million deal with Seeing Machines for the rights to the mining and rugged industry systems.
Space mining conference begins in Sydney
The outermost reaches of available mineral resources will be the topic of discussion at the 3rd International Future Mining Conference, which begins today in Sydney.
The conference will showcase innovations and technological developments in the minerals industry, such as autonomous mining, emerging exploration technologies, new commodities for high-tech equipment, and asteroid capture.
Senior executives speaking at the event include Rio Tinto chief growth and innovation officer Craig Stegman, Caterpillar Global Mining Division’s James D. Humphrey, Gold Fields CEO Nick Holland, and NASA Jet Propulsion Lab (Engineering & Science Directorate) deputy director René Fradet.
Topics to be discussed will include the types of new minerals that will bring wealth in the future; how global warming and climate change will affect the industry; renewable and alternative energies; mining in environmentally sensitive areas; advances in water treatment and reuse and a site of novel mining systems; and technologies that are revolutionising the industry.
The second Off-Earth Mining Forum will be held concurrently on Thursday 4 and Friday 5 November, which will hear speakers from space agencies NASA (US) and JAXA (Japan), as well as space mining companies Deep Space Industries and Shackleton Energy.
Engineers and scientists will join the forum in discussing the work being done to prepare for the coming age of asteroid mining in space; issues such as resources, technologies, robotics, automation, instrumentation and business risks.
The Off-Earth Mining Forum was organised by Professor Andrew Dempster, director of the Australian Centre for Space Engineering Research at UNSW, and professor in Space Systems Engineering
Conference chair and geotechnical engineer Serkan Saydam is an associate professor at UNSW, who is currently working on to develop financial and technical models to evaluate various off-Earth mining scenarios, including mining on Mars.
Experienced players prepare for mining upswing
Research from Business News found that five significant ‘greenfields’ mining projected, worth $760 million, have started development in the past year.
Looking ahead to 2017, there might be only one major new mining project although there have been no guarantees.
In Deloitte Access Economics’ latest investment monitor, the value of definite projects (under construction or committed) across Australia fell to its lowest level in four years. This resulted in engineering activity contracting in nine of the past 10 quarters.
Industry veterans who have lived through multiple cycles are not worried, however. Instead, they are laying the groundwork for the next wave of mining projects that will commence when commodity prices and financial markets improve.
The two mega projects still under construction include CITIC Pacific Mining’s Sino Iron project, and Hancock Prospecting’s Roy Hill development.
Roy Hill is on the brink of celebrating its first shipment, while Citic has reported good progress on commissioning and construction activity.
The next greenfields project in iron ore is likely to be Rio Tinto’s Silvergrass mine, expected to cost about $1 billion -resulting in the iron ore majors spending millions each year on sustaining capital expenditure.
《澳洲财经》2015年10月刊
QUARRY SUPPLIER TO LAUNCH NEW ENVIRO ARM AT OPEN DAY
A quarry equipment supplier will celebrate a new distribution partnership and its 25th anniversary at an open day event next month.
OPS Group will host the event at its new Jandakot headquarters in Perth, Western Australia from 5 to 6 November, opening the facility up to customers as well as the wider public.
“This is the perfect opportunity for OPS to celebrate both our strong and very proud history, as well as our bright future with the launch of some exciting new product lines and expansions to existing lines,” OPS director Shane Czerkasow commented.
“We expect the schedule to attract a broad cross-section of industry participants and look forward to welcoming a host of international, domestic and local suppliers, customers, industry stakeholders, dignitaries and media to our events.”
In addition to showcasing some of the latest quarrying equipment through presentations and demonstrations – such as the Terex Finlay C-1545 tracked cone crusher, Terex Washing Systems FM120C Fines Master and Tristar crusher and safety tooling – the event will also act as a launch pad for the business’s new division, OPS Environmental Equipment.
The perfect partner
OPS Environmental Equipment will supply products from Terex Environmental Equipment (TEE) and Kiverco Recycling Plant, including trommels and recycling screens equipped with Spaleck-branded technology. The new division will also supply machinery for the wood processing and biomass production sectors.
“The market is really embracing the recycling, wood processing and biomass production segments at present, and we believe the timing is perfect for OPS to enter this space,” OPS group sales manager Kieran Hawkes explained. “Great equipment requires great back-up and support, and we believe this is a well matched partnership that will deliver quality outcomes for customers of these industries.”
Tony Devlin, TEE’s global business line director, also expressed his excitement for the strengthened partnership between Terex and OPS. “OPS’s demonstrated ability to offer innovative, quality products and services makes them the perfect partner to support customers with applications, support and service,” he said.
TEE’s Ecotec range and Kiverco’s recycling plant will be amongst the machinery on show.
Since its establishment in 1989, OPS has expanded to become one of the largest distributors of OEM equipment to the quarrying, mining, construction, earthmoving, recycling, materials handling and materials processing industries.
Through its facilities in Perth, Darwin and Adelaide, OPS distributes equipment to quarries nationwide from manufacturers including Terex Corporation, Telestack, Kiverco, Tristar and Banlaw.
McLanahan offering M3H rubber lined slurry pump globally
In 2001, McLanahan Corporation acquired the equipment division of Linatex North America. Since then, McLanahan has been assembling pumps and supplying spare parts for the original Linapump IIIr centrifugal slurry pump in the North American market. With a growing international presence, McLanahan says it is now offering the newly developed McLanahan M3H rubber lined slurry pump for the global market.
Re-engineered from the Linapump IIIr design and manufactured by McLanahan for improved quality, the McLanahan M3H pump is dimensionally identical and displays comparable hydraulic performance to its predecessor. Four gland options – hydrostatic, packed, mechanical and dry – combine with an extensive range of high quality, abrasion resistant wear parts, which are available in a variety of materials and hardness, to offer “unprecedented levels of flexibility” to suit the application.
The McLanahan M3H has been designed so that components are interchangeable with existing Linapump IIIr pumps in all current plants and systems. Parts are readily available for all existing users of the Linapump IIIr design and are “backed by McLanahan’s renowned customer service and support.”
China set to plan its next economic heading
Market watchers are set to focus on Beijing this week as China’s communist party elite convene for their fifth plenary session, a four day policy-setting meeting that is widely expected to chart the course for the country’s economic growth from 2016 through to 2020.
The plenum takes place against the backdrop of slowing economic growth and rising internal debt as well as stock market volatility. “China has challenges but the leadership seems to be well aware of the challenges. The recent financial volatility must not deter what needs to happen to build a sustainable China,” Liang Du, director and co-head of Asset Allocation at Prescient Investment Management, said via email.
At the same time, Matthew Birtch, a Strategic Management Lecturer at the University of Pretoria’s Gordon Institute of Business Science, said the meeting is very important as it is “Another stop on the path to greater economic growth for the economy”. But Martyn Davies, managing director of Emerging Markets and Africa at Deloitte Frontier Advisory, cautioned against reading too much into the discussions, “There’s an over-emphasis, outside China, on the importance of the plans… The world is looking to China for guidance and they need to set a positive tone,” he said.
Still, investors will pay particular attention to the country’s economic growth rate targets for the next five years. As part of its last five-year plan, China set out to deliver GDP growth of about 7% through to 2015. And even in the face of trying global economic conditions, the country’s official growth statistics have consistently come in around the 7% mark, which has raised some eyebrows. Speaking to Mineweb from Cape Town, Davies implied it is an open secret that the growth figures that China publishes are different to its actual growth figures. In terms of economics, Birtch said there are many issues with the way in which GDP is measured and that it is likely China reports a ‘ballpark figure’.
Should the country lower its growth target to below 7%, it will do so for the first time since the late 1970s. According to JP Morgan, China’s commitment to doubling GDP from 2010 to 2020 requires an annual growth rate of 6.5% over the next five years.
Commodity markets have already been riled over concerns of slowing growth in China, the world’s second largest economy and largest consumer of raw materials, so actual lower growth targets set by the country’s government are likely to further impact commodity prices.
“We expect commodity demand to remain challenged by China’s moves to rebalance away from construction/investment-driven growth and toward consumption growth. This has exposed serious overcapacity in the sector, particularly in early-cycle commodities – steel, cement and coal,” JP Morgan said in a note.
“Most people knew that this was a super-cycle and that it would end,” Birtch said by telephone. According to him, some commodity-based companies made huge judgement errors by putting all their emphasis and focus on China instead of hedging themselves outside the country. But he said commodity prices will pick up as China has merely hit a plateau in terms of infrastructure growth, “There’s still a huge amount of infrastructure that is needed and there are still huge rural populations that they want to urbanise”. He expects this infrastructure plateau to last for a minimum of 10 to 15 years.
Meanwhile Liang Du said the rebalancing of the economy will lead to the normalisation of the Chinese market and be more market driven. “Although growth may be temporarily slower, it will result in a far more sustainable future for China as a whole,” he said. Davies added that the size of China’s economy is far more important than the rate at which the country grows, saying we shouldn’t “sweat the decimal points.”
Get set for a borderless future
With Asia proving a booming market for Australian products, local businesses have the chance to expand with a great online strategy
As SMEs get savvy with online retail, they need to think without borders. No longer are customers, staff or suppliers around the corner – they could be all over the world.
South East Asia is proving a developing market for Australian small businesses, as Frank Granziera, of Olive Oil Skin Care Co has experienced. The Olive Oil Skin Care Co launched in 2012, with its online store offering a range of soaps, body washes, candles and balms.
“We find that [international customers] buy our products at local stores [when visiting Australia] and when they go back overseas, they keep in contact through our website,” Granziera says.
“When we started, we were getting enquiries once a month. But now it’s two or three a day, asking us to send our products overseas.”
Sell with strategy
Selling products to international visitors is one thing – but making major inroads into a new market is another. If you’re looking at expanding into the South East Asian market, you need to have the right connections and platform to sell your products on, says Granziera.
“The most important thing with South East Asia is that it’s not what you know, it’s who you know,” Granziera says.
“There are some great trade seminars about selling in South East Asia,” he says. “Go to them and make connections.”
He says it helps to understand all the touch points in the selling process.
“It’s important to network with people across all facets of the process – from suppliers, to distributors to agents – you have to do the whole lot.”
Opportunity abounds
China in particular represents an amazing opportunity for Australian companies to expand, explains Granziera. But with such a huge population, you need to identify your target audience.
“When you segment the market by age categories and requirements it’s staggering,” says Granziera.
“For example, we’re launching a baby range shortly and our figures show that in China there are [approximately] 16 million babies born every year. Our product is designed for children under the age of five, so at any one time we have a potential audience in China of 80 million people.”
Delivery to count on
Granziera says Australia’s reputation for quality and reliability is a boon to small businesses seeking to sell their products internationally.
“There is a tendency overseas to view Australia as a reliable country in every aspect – politically stable, with reliable products and pollution free – and you need a website that helps to project that image.”
Having a delivery partner to support this process is of paramount importance.
“You could spend millions of dollars trying to find the right segmentation, but you need to find the right partner to get it there,” he says.
This means an efficient website for selling, and prompt, transparent delivery operations.
“It’s the interface between you and the client, and you need to have reliable and informative system in place.”
Tracking door to door
Granziera is impressed with the sophistication of logistics now available to online retailers.
“We sent a product to Taiwan yesterday and we know through our tracking system exactly where it is in the process. That information is transmitted to the customer, and they can track it from the moment it leaves the warehouse, to when it’s on board an aeroplane, to when it’s on the way to their door.”
Granziera says his company have taken advantage of their partnership with Australia Post to gain exposure in South East Asian markets, while the reliability of the delivery service has helped foster repeat customers.
“We’ve been very fortunate with our partnerships in South East Asia and, in particular, with (Chinese online marketplace) Tmall and Australia Post,” he says.
“People have already moved the waters to help Australian businesses crack foreign markets – so take advantage of that.”
Australia Post can help you go global by reaching international markets and even setting up an online shop front in China. Find out more on Australia Post’s Small Business site.
Written by: Jacob Robinson