Category: News

Australia’s mining and engineering sector on show at QME 2018

Queensland Mining and Engineering Exhibition (QME) 2018 saw more than 4,000 attendees visiting the event to explore the latest strategies and technologies driving productivity, profitability and protection of the industry.

More than 230 exhibitors attended this year’s event, an impressive 41 per cent increase on QME 2016. Industry heavyweights included Downer Group, Flender, Flexco, FLSmidth, Puma Energy, SMW Group, thyssenkrupp and Valley Longwall International. 

Representation from key mining companies Adani, Anglo American, BHP, Glencore and Yancoal reaffirmed QME as a must-attend event for the Queensland mining industry. Collaboration was an underlying theme in the QME Seminar series sponsored by March IT. 

 With Australia’s mining equipment, technology and services (METS) sector contributing $86 billion to the Australian economy and supporting half-a-million jobs, QME 2018 also welcomed Australian Government representatives, Senator Michaelia Cash (Minister for Jobs and Innovation), Senator Matt Canavan (Minister for Resources and Northern Australia) and Mr George Christensen MP (member for Dawson).

Brandon Ward, director of QME 2018, said the success of this year’s exhibition reaffirmed the strength of the industry and its continued importance to the Queensland economy, with initial reports indicating a multi-million-dollar boost to the region during QME. 

“With the sector playing such a significant role in the nation’s prosperity, it’s important that leading companies, decision makers, and personnel in mining and engineering have a major calendar event to come together to network and source the latest products and services,” said Ward. 

“We would like to thank our supporters and all of the attendees, exhibitors, and speakers who chose QME 2018 to be that event, and Mackay to be that location.” 

Ian Macfarlane, chief executive of supporting partner Queensland Resources Council (QRC), said the popularity of QME 2018 represented tremendous opportunity for businesses in the region.

“QME has been a fixture in Mackay for the last 25 years and remains the most important trade show for the region’s mining industry. It is truly a festival of innovation – brimming with ideas, energy and pavilions of all the latest products,” said Macfarlane.

“The exhibition provided a great opportunity for industry to come face-to-face with the best innovators the country, and find new opportunities that will safeguard the industry for generations to come in Australia.”

QRC figures show that last financial year, minerals and energy companies injected almost $14 billion into Mackay and Fitzroy regional economies. A survey of QRC’s chief executive officers (CEOs) showed that more than half were looking to increase their spending with local businesses this year.

QME also played host to the 2018 Queensland Mining Awards, celebrating the spirit of innovation, excellence and collaboration that is fostered within the highly competitive industry. QME sponsored this year’s Best Product Launch Award, won by Control Systems Technology for its IntelliRoll an autonomous ‘plug-and-play’ conveyor belt weigher.   

QME will return to Mackay in July 2020 but the next major event for engineers, mining personnel, production managers and other professionals in mining and engineering will be the Asia-Pacific International Mining Exhibition (AIMEX) set to be held August 2019 in Sydney.

Restart of Century zinc mine ‘imminent’

New Century Resources is on the verge of restarting the Century zinc mine in Queensland after making strong progress in July.

The mine, 250km northwest of Mt Isa, was one of the largest zinc mines in the world during its original operational run from 1999 to 2016, when it was closed by previous owner MMG.

At the height of operations the mine was producing an average of 475,000t of zinc and 50,000t of lead a year. New Century has plans for the mine to become one of the world’s top 10 zinc mines when up and running.

New Century stated that mining, processing and port operations teams were now in place, with site activities moved from day shifts to a 24-hour schedule.

In July, the company completed mechanical installation, nearly finished dry commissioning and completed dredging at the mouth of the Norman River for shipping routes.

New Century will use the vessel MV Wunma, which was also confirmed to be ready for launch last month after testing of engines, generators, bridge equipment, ballast systems and several other necessary areas.

Notably, the company also fully commissioned its pipeline operation for the site, a 304km slurry concentrate pipeline connecting the mine in Lawn Hill to the project’s port facility at Karumba.

Rio Tinto takes key step towards first ‘intelligent’ mine

Rio Tinto has approved $US146 million ($197 million) in preliminary funding for the Koodaideri iron ore project in the Pilbara region, Western Australia.

The miner plans to develop Koodaideri into its first “intelligent” operation by including the latest in high-tech advances in the industry and by using an increased level of automation and robotics.

Koodaideri is described as a large scale, low cost, high quality project that will produce replacement tonnes and form a new production hub for the company in the Pilbara for decades to come.

The initial investment will focus on detailed engineering work on key elements of the project, the development of a rail construction camp and the first stage of the Koodaideri accommodation camp.

Rio Tinto expects to make a final investment decision on the project by the end of the year and also requires government approvals.

If approved, Rio Tinto has scheduled construction to begin in 2019 and first production in 2021. Koodaideri would create over 2000 jobs during construction and 600 permanent roles.

Rio Tinto Iron Ore chief executive Chris Salisbury said the investment was an important step for the Koodaideri project, which would be a significant leap forward for the global mining industry and the company.

“We’ve been building mines in the Pilbara for over 50 years, and, subject to final approvals, Koodaideri will incorporate all of that knowledge to enable us to build the smartest, safest and most efficient mine we’ve ever constructed,” Salisbury said.

“The deployment of leading-edge technology will deliver a step-change in both safety and productivity for our business.”

Koodaideri is about 110km from Newman in the Pilbara.

Australian Government representatives to meet with industry at QME 2018

The Queensland Mining and Engineering Exhibition (QME) 2018 has today announced the attendance of Michaelia Cash, Minister for Jobs and Innovation, Matt Canavan, Minister for Resources and Northern Australia and George Christensen MP, member for Dawson, reaffirming the importance of the sector to the Australian economy.

The Australian Government representatives will join engineers and mining personnel, production managers, and some of the industry’s largest corporations in Mackay from July 24–26 for Queensland’s largest mining and engineering exhibition, which will explore the theme, ‘Productivity, Profitability and Protection’.

According to the Mining in Australia 2018–2032 Report, mining production is likely to grow 5.5 per cent in the current financial year, with maintenance spending also on the rise and the investment decline winding down. To foster the industry growth trajectory, QME 2018 will bring together key industry players to improve collaboration, accelerate innovation and address future barriers.

“Since the doors opened 25 years ago to the very first QME, the event has built a longstanding reputation for bringing the best in Australian mining together, to collaborate and consider the industry’s domestic and international outlook,” said Brandon Ward, director of QME 2018.

“The event will also provide the Mackay region with national and international exposure and bolster its reputation as a mining hub, whilst providing visitors an opportunity to enjoy its diverse and vibrant community.”

This year’s exhibition will host more than 230 companies (an impressive 41 per cent increase from QME 2016) including global industry heavyweights Downer Group, Flender, Flexco, FLSmidth, Puma Energy, SMW Group, thyssenkrupp and Valley Longwall International.

Running alongside the exhibition will be a seminar series featuring more than 30 speakers across three days, providing visitors with exclusive access to the latest industry technologies and insights via keynote presentations, panel discussions and case study presentations. The seminar series will focus on six key areas including maintenance, automation and Internet of Things (IoT), procurement and supply chain, renewable energy, transport, and operational health and safety (OH&S).

QME 2018 will feature a Business Matching Program which offers visitors a personalised itinerary of products and companies matched to their areas of interest, to maximise their time on-site.

Weir completes acquisition of ESCO Corp

The Weir Group has completed the acquisition of ESCO Corp, the world’s leading provider of ground engaging tools for surface mining and infrastructure markets, for an enterprise value of $1,285 million.  It follows regulatory clearance for the transaction, which was first announced on 19 April 2018.

Commenting, Weir Group Chief Executive Jon Stanton said:“We are delighted to formally welcome ESCO to Weir.  It is a great brand that is respected throughout the world for its quality, performance and reliability.  ESCO’s strength in extraction complements our leadership in the mill circuit, meaning that together we will have a comprehensive offering for mining companies around the world.”

Current ESCO President and Chief Operating Officer Jon Owens will continue to lead the business as it becomes a division of the Weir Group.  He will also join Weir’s Group Executive committee with immediate effect.

Owens said: “This is an exciting day for ESCO and all our people.  As part of Weir we can create something that is genuinely unique that will help more customers improve their productivity and safety.  No other mining equipment provider will be able to offer customers market-leading solutions from extraction to concentration supported by a service centre network that covers every major mining region in the world.”

ESCO has surface mining’s most extensive installed base of lip systems that house short-cycle consumables, such as teeth, shrouds, adaptors, blades and locking systems, with aftermarket sales representing about 90% of ESCO revenues.  ESCO’s extraction products sit upstream from Weir’s traditional strength in slurry handling equipment with market leading brands including both Warman® and GEHO® pumps, Cavex® hydrocyclones and Linatex® rubber products.

ESCO was founded in Portland, Oregon, in 1913 and currently employs around 2,600 people with operations in 19 countries.  In 2017 it generated revenues of $632 million.

Ricardo Garib, Division President of Weir Minerals, said the combination would be beneficial to customers around the world: “It is great to welcome ESCO to Weir.  They are a business we have admired for some time.  By working together we’ll be able to give customers easier access to more market-leading products and services.  With our global network of over 100 service centres, that means customers will have more of the superior solutions they require, where and when they need them.”

Joe Weber, Vice President of Global Sales for Weir’s ESCO division agreed: “As mining markets grow customers are looking for partners they can trust to help them increase productivity and safety while also lowering their total cost of ownership.  That requires a relentless focus on innovation, quality and close customer proximity, which are the hallmarks of the ESCO® brand.

“As part of Weir we’ll benefit from combining some of the world’s leading materials scientists, applications engineers and developing digital technology to deliver increased innovation in the future, ensuring ESCO remains surface mining’s preferred provider of ground engaging solutions.”

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

image

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.
image

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.

FLSmidth realignment to focus on mining and cement

fls-facility
fls-facility

FLSmidth will realign the global group from July, with focus on the mining and cement industries.

The organisation announced last week it would focus on the two industries, supported by a regional setup that would aim to strengthen customer focus and lifecycle solutions, combined with a new central digital organisation.

FLSmidth’s plan will realign the organisation from four divisions into the two aforementioned industries. From a country perspective, it will deliver an agile regional structure, according to FLSmidth.

With end markets recovering, group chief executive Thomas Schulz said FLSmidth’s customers were accelerating to invest in productivity enhancing and digital solutions.

“To support our customers’ growth, the two industries, cement and mining, will deliver integrated productivity offerings through the regions,” Schulz said.

“Our decentralised organisation will give us a strong point of entry to offer our customers key products, shorter delivery times and a strong service setup.”

The two industries will be supported by seven regions: Australia, North America, South America, Europe, Russia and North Africa, Sub-Saharan Africa and Middle East, Asia, and Subcontinental India.

According to FLSmidth, the regions will drive customer relations, sales and service for both industries. A central digital organisation will drive an enhanced, unified approach to digitalisation.

Schulz said this new way of working was a natural step forward for FLSmidth.

“We already have one of the strongest brands in the cement and mining industries. By enhancing our service level, investing in digitalisation and bringing stronger life-cycle offerings to the market, we will expand and grow our wallet share with targeted customers,” Schulz said.

Weir to acquire ESCO for $US1.28bn

Weir has entered into an agreement to purchase US ground engaging tools (GET) specialist ESCO for $US1.28 billion ($1.67 billion).

The transaction has been approved by Weir’s board of directors and is not subject to shareholder approval.

As part of the acquisition, Weir will gain access to ESCO’s 10 manufacturing facilities, six foundries and 22 service and supply centres, in 19 countries.

Weir hopes it can leverage ESCO strong position in the GET sector to prioritise upstream growth opportunities in the minerals and oil and gas sectors; around 40 per cent of large primary mover machines across the globe utilise ESCO product.

ESCO chairman and chief executive officer Cal Collins called the merger exciting, stating: “[It] combined two premium brands and positions us to better serve our customers around the world. The merger of ESCO into Weir is also a great fit, both culturally and strategically.”

GET parts include the likes of teeth (usually for shovels and drag lines), blades, shrouds, locking systems and other edge wear parts. ESCO brands include the Nemisys lip system and Ultralok mining tooth system, which Weir intends to bring to new territories via its extensive global network.

Weir Group chief executive officer Jon Stanton called ESCO a “leading global brand” that would allow Weir to pursue new revenue opportunities.

“Together, Weir Minerals and ESCO will create a unique customer proposition as the premium provider of mission critical surface mining solutions from extraction to concentration, built on proprietary technology superior wear life and supported by an unrivalled service network.”