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August 31, 2012

Melbourne’s Challenge: Remain Most Liveable City

Filed under: Buildings,Civil — Tags: , — tom @ 5:03 am

melbourne most livable city

Melbourne has once again beaten out 140 major cities worldwide to earn the distinction of being named the world’s most liveable city.

For the second year running, the city of just over four million people – roughly one million of whom live in the city centre – has beaten out major contenders including Vancouver, Vienna and Helsinki to take the title according to the Economist Intelligence Unit (EIU).

According to the EIU factors ranging from health care, education and infrastructure to culture and crime are judged in determining which city comes out on top.

Melbourne’s strong mix of stable economic status, rich modern culture and vital infrastructure has proven to be a winning formula, with only climate and petty crime cited as reasons the city is less-than-ideal. Melbourne’s overall score in the rankings was an amazing 97.5 per cent.

Lord Mayor Robert Doyle says it is an honour for the city to be named most liveable, and vows to do everything he can to ensure it retains that status moving forward.

“Overall it is a remarkable testament to our remarkable city,” he says. “That doesn’t mean there are things we can’t improve.”

Being named most liveable is a double-edged sword of sorts, as seen in the UK and various other iconic cities. Success as a city can, in fact, lead to issues in those urban hubs.

melbourne most livable city

“The ‘big city buzz’ they enjoy can overstretch infrastructure and cause higher crime rates,” says the EIU. “New York, London, Paris and Tokyo are all prestigious hubs with a wealth of recreational activity, but all suffer from higher levels of crime, congestion and public transport problems than would be deemed comfortable.”

While this is certainly a risk, it hardly comes as a surprise for both government and industry forces in Melbourne.

The continued success of Melbourne as a liveable city will depend on the delivery and ongoing maintenance of its growth plans, including the Growth Corridor plan and six-suburb addition. With a massive population influx expected in the near future, ‘future proofing’ Melbourne and Victoria at large will need to take priority.

The architecture industry is in a prime position to ensure long-term sustainable growth and built investment for Melbourne, maintaining its high livability and allowing it its full marketing potential.

The industry’s next moves will be vital in achieving goals to preserve this ongoing high standard. With a strong industry which is only expected to continue growing to back future planning efforts, the prognosis is positive.

August 30, 2012

QGC: top tips for a successful tender

Filed under: Resources — Tags: , , , — tom @ 12:59 am

Gas Today — August 2012

Britain’s BG Group has demonstrated its commitment to the Australian economy and workforce with the construction of the Queensland Curtis LNG Project through its subsidiary QGC. QGC speaks with Gas Today about upcoming tender opportunities for the project and how contractors can ensure they stand out from their competitors.

A priority project for QGC, the Queensland Curtis LNG (QCLNG) Project, involves developing CSG fields in the Surat Basin and transporting gas via a 540 km underground pipeline network to Curtis Island, near Gladstone, where it will be liquefied for export.

The project will create an average of 5,000 jobs during construction and up to 1,000 jobs across Queensland during the project operation phase.

The project is set to provide a $32 billion boost to the Queensland economy over the next 10 years, with QGC to pay approximately $1 billion a year in taxes and royalties to the Federal and Queensland governments.

Driving Queensland’s economy

Since 2010, QGC has invested approximately $8 billion on the QCLNG Project, channeling 74 per cent of these funds into Australia and 59 per cent to Queensland specifically.

The company’s latest six-monthly report to the Queensland Coordinator-General on Australian Industry Participation – from 1 October 2011 to 31 March 2012 – reveals that Queensland and Australian companies were engaged on contracts valued at $6.1 billion for a wide range of goods and services for QGC and the QCLNG Project.

QGC Managing Director Derek Fisher says $4.4 billion of this contracted work was being done by Queensland-owned and operated businesses.

“QGC is delivering significant benefits across the QCLNG Project area with more than $1 billion worth of contracts awarded in the Gladstone region and nearly $400 million in the Western Downs region between Toowoomba and Roma,” Mr Fisher says.

“Our total workforce has now passed 7,300 people – with 1,594 staff and contractors working directly for QGC and 5,719 people engaged by our major contractors.

“The workforce includes 235 graduates, trainees and apprentices, more than double the number reported at 31 September 2011.

“We also have a strong commitment to local research and development with more than $77 million invested to date and 65 per cent of that in Queensland,” says Mr Fisher.

Remaining opportunities with QGC

According to QGC, over the next three years most of the opportunities to work with the QCLNG Project will be via main contractors and sub-contractors, as well as opportunities to supply QGC directly through its existing domestic gas operation, which provides approximately 20 per cent of Queensland’s domestic gas.

Major contractors for the QCLNG project include:

  • KBR, engineering and design of QCLNG pipeline
  • Bechtel, engineering, procurement and construction
  • Transfield Services, gas field work (capital works and maintenance)
  • McConnell Dowell and Consolidated Constructors Corporation (MCJV), for the QCLNG pipeline
  • Thiess, construction of processing facilities including six field compressors and one central processing facility
  • Kentz, for integrated commissioning services
  • GE Power and Water, water treatment plant at Curtis Island.

Each of these companies were required to submit a Local Content Plan to QGC, and through this have committed to providing opportunities for local businesses. QGC advises that smaller contractors who hope to benefit from these lucrative sub-contracting positions would be well advised to promote their involvement in the industry in this way.

How to get involved

More than 47,000 registrations of interest have been received from Australian businesses seeking to supply to the QCLNG Project.

This means that tenders submitted will undergo rigorous scrutiny and high levels of competition from competitors.

QGC has been working with the Industry Capability Network (ICN) for three years to identify Australian firms to bid for work. ICN is a not-for-profit organisation supported by the Queensland Government whose aim is to identify procurement opportunities to increase local industry access to major domestic and global projects.

By engaging with agencies such as this, contractors may lighten the burden of looking out for the next working opportunity and can instead focus on the task at hand.

The ICN Gateway website is QGC’s first port-of-call for updates including a range of useful information on upcoming tenders as well as the company and its contractors.

QGC advises Gas Today that it is important for businesses looking to work on the QCLNG Project to have a high-quality and effective ‘capability profile’. A capability profile informs QGC and proponents, ICN, other government agencies, industry associations and chambers of commerce of important information about your business, such as:

  • Company capabilities
  • Size of company
  • Company capacity
  • Company ability to ramp up operations quickly
  • Financial stability
  • Compliance with safety and environmental standards.

Setting the standard

Tyco Water and Murphy Pipe and Civil are two contractors who have secured work on the QCLNG Project, supplying carbon steel, concrete-lined trunklines and pipe fittings, and gas and water pipelines respectively.

Both companies demonstrated strong capability profiles throughout the tender process.

Tyco Water sourced all materials from Australian suppliers including BlueScope Steel, and used local transport companies. The company was able to quickly employ an extra 110 people to complete the pipe supply contract, creating significant employment opportunities. The company has also increased shifts at the Wacol facility in Queensland from one to two in order to produce more product.

Organisations considering submitting a tender to QGC need to consider how they will continue to resource a growing project.

Murphy Pipe and Civil was formed in 2006 and has grown rapidly to now employ 450 staff. A further 250 staff will be employed to fulfill the company’s QCLNG contract. Murphy Pipe and Civil anticipated the needs of the CSG industry early on, investing capital in Spiderplough technology, which sets it apart from its competitors. According to Murphy Pipe and Civil, the Spiderplough has the ability to lay high-density polyethylene (HDPE) pipelines five times faster than conventional methods, and without the need for open trenches. The pipeline ploughing technology has been quickly embraced by the industry, particularly the CSG sector within Queensland’s booming Surat Basin.

In order to continue to deliver on contracts and to diversify its capability profile, Murphy Pipe and Civil also merged in 2011 with J. Murphy and Sons, demonstrating its ability to be forward thinking.

Both companies were able to demonstrate to QGC that their aims were aligned and that all three organisations shared a philosophy of supporting local sub-contractors and labor.

Within twelve months Murphy Pipe and Civil has contributed $8 million into the Western Downs economy.

August 29, 2012

Construction commences on $350m mixed-use development in Footscray

Filed under: Buildings,Civil — Tags: , , — tom @ 7:41 am

VICTORIAN Planning Minister Matthew Guy this week welcomed the start of construction of a $350 million redevelopment as a major step in Footscray’s renewal as a key activities area for western Melbourne.

The mixed-use development by Grocon, on a 1.3 hectare site at McNab Avenue, Footscray, will eventually feature three multi-storey buildings, containing approximately 500 apartments, office and retail space, gymnasium, child care centre, cafes and an arts centre.

Stage 1 of the development, which is adjacent to Footscray Railway Station, involves the construction of offices for State Trustees and City West Water, with construction expected to be completed in two years.

Grocon CEO Daniel Grollo said McNab Avenue was an exciting project for Grocon and for the Footscray precinct, which he said is a growing part of the city, with an expanding population.

Mr Grollo said Stage 2 of the project would provide residential apartments, retail and community facilities and said Grocon hoped to have this under way in 2013.

“The McNab Avenue development by Grocon will help transform the under-utilised site into a vibrant, innovative and cutting edge mixed-use development in the heart of Footscray,” Mr Guy said.

“Footscray, like all our Central Activities Areas, is essential to accommodating growth in jobs and demand for new homes in Melbourne’s established urban areas.

“This development is just the start of Footscray’s urban renewal with other projects being planned in the Joseph Road Precinct in central Footscray and other sites being developed by the private sector and Places Victoria,” the Minister said.

Victorian Government to allow tourism investment in national parks

Filed under: Civil — Tags: , , — tom @ 7:38 am

THE Victorian Government this week announced that it will reform current policy to allow appropriate environmentally sensitive, private sector tourism investment in national parks.

The changes were outlined in the government’s response to the Victorian Competition and Efficiency Commission’s (VCEC) final report into Victoria’s tourism industry.

Treasurer Kim Wells said the move would bring Victoria into line with every other state in Australia, as well as New Zealand, which already allowed development in national parks.

Mr Wells said any investment proposals would be subject to tight environmental controls and approval from the Environment Minister, with the government to also develop guidelines on the approval process and standard terms and conditions for a lease in a national park.

“The guidelines developed by the government will consider values of public land categories, planning requirements for bushfire risk, climate variability and any native title implications,” Mr Wells said.

The Minister will also be able to grant up to 99 year leases in national parks to provide greater certainty for investors, with lease conditions to ensure proposals are consistent with the principles of ecological sustainable development and manage any environmental risks.

No investment proposals will be considered in areas classified as ‘wilderness parks’, ‘wilderness zones’, ‘reference areas’ and ‘remote and natural areas’ under the National Parks Act 1975.

VCEC’s inquiry into Victoria’s tourism industry commenced in September 2010, with the former Victorian Treasurer tasking the commission to inquire into and report on matters including:

  • State and local regulatory barriers to the development of the tourism industry and the creation of new tourist infrastructure;
  • Opportunities to improve the management of state assets to better meet the needs of the tourism industry; and
  • The impact of international and domestic aviation policy on the Victorian tourism industry and broader economy.

Of the 17 recommendations made by VCEC, the government has supported 10 in full, four in principle, one in part, referred one to the Taxi Industry Inquiry and noted that one has been superseded.

In summary, the Commission’s 17 recommendations included the following:

Land-use planning regulation

  • The Victorian Government revise its objectives for tourism development and incorporate them in the State Planning Policy Framework (supported by government);
  • The Victorian Government implement a strategic approach to land-use planning for tourism (supported by government);
  • The Victorian Government provide more flexibility for tourism investment in the Farming Zone, the Rural Conservation Zone and the Green Wedge Zones (supported in part by government); and
  • The Department of Planning and Community Development, in giving effect to the above recommendation, encourage a consistent approach to administering the new zones, by providing guidance and other support for councils to effectively and consistently implement the modified zones (supported by government in the context of its partial support of above recommendation).

Public land regulation

  • The Victorian Government remove regulatory obstacles to private sector investment in tourism infrastructure in Victoria’s national parks (supported by government);
  • The Victorian Government: increase the maximum duration of leases on land managed under the National Parks Act, based on an appropriate incentive scheme; identify and address any provisions in public land leasing requirements and practice that undermine commercial interests without also delivering substantial offsetting benefits to land managers; identify and address any other regulatory barriers that exist in land use planning and public land regulation that may be inconsistent with private investment (supported by government);
  • The Victorian Government introduce a streamlined development approval process for public land (supported by government);
  • The Victorian Government clarify the roles and responsibilities of the Department of Sustainability and Environment in developing and administering public land regulation (supported by government); and
  • The Victorian Government clarify the roles and responsibilities of Parks Victoria for the administration of relevant public land regulation and private sector access to national parks (supported by government).

Aviation policy

  • That the Victorian Government seek agreement from the Commonwealth Government that, in the lead-up to future air service negotiations, the Commonwealth would develop estimates of the potential costs and benefits of potential outcomes and test these in discussions with stakeholders (including state governments) through existing consultation mechanisms (supported by government).

Other issues

  • The Department of Transport conduct a twelve-month trial to evaluate the impact of freeing up zoning restrictions that prevent Melbourne-based taxi drivers from accepting fares (that have not been pre-booked) from Avalon Airport (referred to Taxi Industry Inquiry by government);
  • The Department of Planning and Community Development, in consultation with the accommodation industry, evaluate the accessibility ratio standards (government said this has been superseded by recent Victorian legislative changes);
  • The Department of Planning and Community Development evaluate the operation of fire safety standards for sprinkler systems in shared accommodation buildings, ensuring that information gaps in the regulatory impact statement are addressed in the evaluation (supported in principle by government);
  • To better target non-compliant operators, that the Victorian Government require councils to adopt a risk-based inspection program, whilst maintaining the current system of registration (supported in principal by government);
  • The Department of Planning and Community Development review the Residential Tenancies (Caravan Parks and Movable Dwellings Registration and Standards) Regulations 2010 (Vic) to reassess the costs and benefits of fire safety standards required by regulations 20 and 21.
    The Country Fire Authority establish an internal review process for decisions about compliance with regulations 20 and 21 of Residential Tenancies (Caravan Parks and Movable Dwellings Registration and Standards) Regulations 2010 (Vic) and referenced Country Fire Authority Caravan Park Fire Safety Guidelines (supported in principle by government); and
  • WorkSafe, in consultation with the events industry, advocate for national guidelines for events that address the underlying occupational, health and safety issues in an effective and proportional way (supported in principle by government).

The Victorian Competition and Efficiency Commission’s final report, Unlocking Victorian Tourism: An Inquiry into Victoria’s Tourism Industry, and the Victorian Government’s response, are available from VCEC’s website at <http://www.vcec.vic.gov.au/>.

Race to develop Melbourne land

Filed under: Civil — Tags: , , — tom @ 7:34 am

Firms:  Norton Rose Australia (Melbourne Racing Club), Arnold Bloch Leibler (the winning consortium)

Deal: Development of Melbourne Racing Club’s privately-owned land surrounding the Caulfield Racecourse

Area: Real estate

Value: Confidential

Key players: NRA partner Arthur Chong (pictured) led the real estate team with senior associates Guy Albeck and Rebecca Hall, with assistance from tax partner Andrew Spalding and corporate partner Greg Hipwell

Deal significance: The development will create a new urban village, seven kilometres from the Melbourne CBD adjacent to a major university, and will create a thriving, integrated, mixed-use community with access to major transport routes, shopping and recreation designed to integrate with the character and facilities of the surrounding areas. The winning consortium, which includes Beck Property Group and Probuild Constructions, was announced by Melbourne Racing Club on 17 August.

Sharks $300 million land development approved

Filed under: Civil — Tags: , — tom @ 7:30 am

The Cronulla Sharks were hailing the Planning Assessment Commission (PAC) approval of their $300 million land development application as having the potential to make the club an NRL powerhouse.

In a major boost to the Sharks the development is set to deliver a windfall that ensures the financial health of the club well into the future.

Sharks Chairman Damian Irvine, who with development partners Bluestone Capital Ventures No 1 Pty Ltd has worked tirelessly to finally see the project pass through all the government planning and assessment stages to arrive at this PAC approval, was understandably thrilled with the final result.

“This announcement means so much on so many levels but importantly allows the Sharks to get back to what we do best,” Mr Irvine said. “We will be able to focus on elite sporting and sponsorship programs that could benefit all sporting codes within the Shire.

“The financial security this project provides the club with is something we have been striving to achieve for over four decades. The Cronulla Sharks can finally operate on a platform of diverse and secure income and with a confidence in our future viability that has always been a struggle to obtain in the past,” Mr Irvine added.

Sharks coach Shane Flanagan, who has his team heading into the NRL finals in 2012, couldn’t help but to also be optimistic and enthusiastic about the future prospects from a football and sporting perspective.

“I’ve often said our players don’t go without here at the Sharks but this new development and everything that goes along with it will let us do what we do even better in the future,” Flanagan said. “While the financial benefits will obviously help, it is the potential for us to become the sporting hub of the Sutherland Shire that has me most excited, not only in terms of rugby league but also for the many different sporting groups in the local area.”

Similarly, Sharks and NSW Captain Paul Gallen, a passionate speaker at the PAC forum in support of the project just a few weeks ago, was equally positive about what this announcement and subsequent development will do for the club and also for local area residents and their families.

“As a local resident I see the retail development providing an excellent facility for myself, my wife and kids, but as a loyal one-club player I am excited about what this might mean to not just the current team here at the Sharks but to future generations of footballers and sports people of the Sutherland Shire,” Gallen said.

While the decision may initially be seen as saving the Sharks NRL club from financial difficulties and at the same time ensuring their future viability, the development has the potential to benefit the local region in so many other areas.

From affordable housing, to a new retail precinct, employment opportunities, increased medical facilities, a refurbished Sharkies Leagues Club and increased tourism to the region, the land development is certain to deliver a positive outcome in a whole range of areas aside from guaranteeing the financial sustainability of the NRL team.

$700m Perth Stadium Master Plan Revealed

Filed under: Buildings,Civil — Tags: , , — tom @ 7:25 am

perth stadium masterplan

The long-awaited master plans for the new Perth Stadium and the surrounding sport and recreation precinct on the Burswood Peninsula have been unveiled.

Under the plan, key elements of which were outlined by Premier Colin Barnett on August 24, the new stadium will have the third-largest capacity in Australia and will be the second-largest home stadium for AFL football.

The stadium will initially have capacity for 60,000 seats, with the potential of increasing this to 70,000.

The plan also includes a new pedestrian bridge to give fans from East Perth a direct link to the stadium.

Sports and recreation minister Terry Waldron says the master plan was designed to integrate land use and transport planning, allow for flexibility to accommodate future major events, allow for multi-purpose events and further develop Perth as a ‘river city.’

“With careful planning, the State Government is ensuring the delivery of a world-class stadium in a sports precinct, which will provide sport and recreational opportunities for the whole year, not just on major event days at the venue,” Waldron says.

According to the plan, geotechnical investigations have confirmed that the Burswood Peninsula, where the stadium is to be constructed, presents challenging ground conditions.

Artists impression field club eagles

Despite this, planners remain confident that construction of the stadium on the northern portion of the site, which has previously been used in the Burswood Resort and in the Peninsula Residential development, can be achieved without significant problems.

The Peninsula was chosen for the site because planners because of its size, its status as an ‘iconic’ site, lack of constraints in the area relating to residential development and its proximity to other significant redevelopments.

Pre-construction works are slated to start in the middle of next year and construction is due to start in 2014. The government hopes to have the stadium ready prior to the 2018 football season.

The most recent cost estimate for the project, based on the work of the original Stadium Taskforce in 2007 and updated to 2011 dollars, is $700 million.

Mining to End, Building to Lift

Filed under: Buildings — Tags: , , , — tom @ 3:49 am

mining and construction boom

The mining boom is set to end earlier than anticipated but activity in building and construction in Australia is expected to pick up, industry research firm BIS Shrapnel says in its latest report on the Australian economy.

In its Long Term Forecast Update, BIS says it expects the overall Australian economy to grow by around three per cent over the next few years.

For now, however, growth will remain uneven throughout the economy as mining accounts for a disproportionate share of growth while firms in many sectors outside of resources continue to pare back on investment and focus on cost reduction.

Beginning in 2014, however, that balance will change as investment in mining projects peaks and non-mining investment stabilises. Beyond that, non-mining investment is expected to start to pick up and take over as an engine of growth.

While BIS has always maintained that resource sector investment will peak around the middle of the decade, its latest forecast comes amid growing pessimism over how long the mining boom will run. Such sentiments were reinforced in recent days by moves on the part of BHP Billiton to mothball its Olympic Dam expansion plans and abandon its controversial Yeelirrie uranium project in Western Australia.

On the positive side, however, BIS has singled out property, building and construction as a key area in which a recovery is expected.

The forecasting firm says the property industry will benefit from a strengthening in the broader economy, which should boost service industries.

Building and construction, which BIS names as one of a number of ‘domestically-focused industries that have been held back by low confidence and weak demand, rather than the weak dollar,’ should now join stronger-performing sectors such as wholesale trade and the parts of the business and financial services industry which have benefited from strong mining activity in generating growth.

BIS Shrapnel chief economist Dr. Frank Gelber says home building activity should benefit from a combination of lower interest rates, population growth and shortages of stock, while an increase in private sector investment should help pick up the slack left from the end of public sector stimulus measures.

“BIS Shrapnel expects the building industry to gradually improve, supported by a recovery in dwellings building from late this year,” Gelber says. “Next year, non-dwelling building should also pick up as supply tightens after many years in the doldrums. This increase in private sector building will help offset the decline in public sector building that is occurring now that the Building the Education Revolution program is nearly complete.”

Gelber adds that mining investment is still currently on the rise, which demonstrates that “overall investment in the construction industry should grow strongly over the next year, but employment will remain subdued.”

In terms of other sectors, BIS expects continued strong activity in wholesale trade, strong growth in telecommunications, a recovery in retail and a stabilisation in education.

BIS adds, however, that the strong dollar will continue to weigh on manufacturing, while subdued conditions are expected to persist going forward in public administration and safety, utilities, and administration and support services.

August 28, 2012

SP AusNet turns up the pressure on Victoria’s gas distribution network

Filed under: Resources — Tags: , — tom @ 3:07 am

Residents in Victoria, have set to receive a more reliable gas supply after SP AusNet completes its $A1 million gas mains replacement project in the area.

SP AusNet, the owner of the Victorian gas distribution network across central and western Victoria, is replacing and upgrading 5.6 km of lowpressure gas mains within and surrounding Urwin Street. The replacement program will minimise possible supply issues and improve reliability and safety to more than 520 properties in the area.

SP AusNet Manager Gas Services Dean Comrie said that the project to replace the existing gas network with highpressure modern polyethylene forms part of the company’s annual Gas Mains Replacement Strategy to replace lowpressure gas mains.

“Once completed, we will see the designated low-pressure mains upgraded to high-pressure standard that will increase reliability and efficiency for our customers in this area,” he says.

In 2011–12, SP AusNet will spend in excess of $A10 million replacing aged low-pressure gas pipes. The low-pressure distribution system accounts for 14 per cent – or 1,354 km – of the total distribution network.

Under SP AusNet’s current mains renewal program, 45 km of mains in the Melbourne metropolitan area and 40 km in the Geelong and regional areas are scheduled to be replaced by 30 March 2012.

SP AusNet Lead Engineer – Asset Development Mark Cooper says “Renewing our aged low-pressure network to high pressure is consistent with our current approach in laying new mains and services to greenfield estates and business.”

High-pressure assets are constructed from the latest materials that have a high joint integrity, minimising network faults which may result in outages.

“The current strategy aims to replace the entire low-pressure network by 2025,” Mr Cooper said.

Upgrade challenges

Mr Comrie says that a lot of planning is invested into SP AusNet’s upgrade projects to ensure minimal disruption to customers and residents.

“Safety is always our main priority and biggest consideration. Those property owners who may experience gas supply issues during these planned works have all been notified in advance and we are working hard to reduce any inconvenience to the public and our customers,” he says.

Prior to any construction taking place, SP AusNet always ensures that it has mailed residents to inform them that the works in their area will be carried out and what – if any – disruption to supply will take place.

“Construction techniques such as insertion of the existing mains are also employed to minimise local streetscape disruption during the renewal phase,” adds Mr Cooper.

According to Mr Cooper, one of the biggest technical challenges of upgrading the gas mains is the identification of theareas to be renewed, which involves analysis and weighting of historical maintenance records along with consideration for risk, age, size, material type and location of the main itself. The company must also consider future growth within the area, and how to facilitate connection to the existing high pressure network.

Once the renewal areas are identified, three types of construction techniques will be employed to replace the mains: open-cut, boring, and insertion of the existing mains.

Mr Cooper says “While large crossings such as rail, river and multi-lane highways may require specialised equipment, it is SP AusNet’s policy to maximise the use of mains insertion where permissible.”

The SP AusNet gas distribution network contains approximately 9,497 km of distribution gas mains and transports gas to approximately 590,000 businesses and households across a geographically diverse region spanning 60,000 sq km in outer western metropolitan Melbourne and Victoria’s west. SP AusNet’s gas distribution area contains some of Melbourne’s fastest-developing urban growth corridors, and services the major townships of Geelong, Ballarat, Bendigo and Warrnambool.

BHP sale sparks new hope for uranium mine

Filed under: Resources — Tags: , , , — tom @ 2:49 am

WESTERN Australia’s largest undeveloped uranium deposit, the Yeelirrie Project, finally could be mined following a planned BHP Billiton sale to big global uranium company Cameco Corporation.

After last week deferring the $38 billion expansion of the Olympic Dam copper-uranium mine in South Australia, BHP Billiton yesterday confirmed a $US430 million deal had been reached with Canada’s Cameco Corporation for the sale of the Yeelirrie deposit in the northern goldfields of WA.

A BHP Billiton spokesperson yesterday said Cameco had made an offer that was, ”acceptable on valuation and timeliness”, and ”provided certainty of execution”.

The sale still needs the approval of the Foreign Investment Review Board and the federal and WA governments.

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But WA Premier Colin Barnett and Mines Minister Norman Moore say they are hopeful of the project moving ahead.

Yeelirrie, discovered four decades ago and believed to be the second-largest deposit in Australia, is 750 kilometres south of the Cameco-controlled advanced Kintyre uranium project.

Mr Moore said BHP Billiton had hinted at its reluctance to go ahead with smaller Australian uranium projects when it released its full year results last week.

”It was pretty clear that they’re not in the business of uranium at this present time so the fact that they’ve sold it on to Cameco is a good news story because in my view it’s more likely to be developed under Cameco than BHP,” he said.

Mr Moore said he also believed the sale of Yeelirrie was tied to BHP’s plans to eventually expand at Olympic Dam.

Uranium analyst Warwick Grigor said although demand for uranium on the spot market had remained slow, with the Olympic Dam expansion on the shelf and significant changes in supply on the horizon, he forecast there would still be a shortage in 2014 to drive price back up.

Uranium oxide was trading at about $US49 a pound on the spot market in recent days and $60 a pound on long-term contracts, which make up roughly 80 per cent of the market.

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