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April 23, 2012

Transient Workers Only Answer For Mining

Filed under: Resources — Tags: , , — tom @ 3:21 am

plane flying in mining area

Mining communities have reached their boiling point, with the high cost of living in heavy mining regions coming to a head.

Iron-ore mining company the Forescue Metals Group (FMG) have addressed a federal parliamentary inquiry regarding the huge living costs being placed on certain mining-rich areas due to the alleged greed of the Western Australian government and their landlords, creating a need for fly-in, fly out (FIFO) workers.

FMG community relations manager Ford Murray stated that ‘vested interests’ were not releasing cheap land in the Pilbara region, unfairly pushing up the cost of living for those in the economically-strong mining industry as well as for local residents.

“At the moment, we see towns in the Pilbara constrained,” says Murray. ”Because for all those outside the town, who don’t live in the Pilbara, who – like me – speak about affordability, there’s a landlord vested interest in the price being high.”

Murray has slated the issues as a ‘blockage’ that must be ‘unlocked’, calling the $3,500 per week rent in the area of Newman a serious issue.

The cost of living in the mining towns is also putting economic pressure on mining companies, with government relations stating that the costs of FIFO workers were more than $100,000 less than their local counterparts.

“The cost is extraordinary and it is driven by the cost of housing, and that in turn increases the cost of living throughout the town,” says government relations manager Deidre Willmott.

However, the federal government is working toward securing more land in order to cut the increasing FIFO working conditions.

“This is not our preference, and we are working hard with the state government to secure more land,” says Willmott.

The government relations manager says a lack of land is slowing down profits, as well as the growth and productivity of the sector. Both FMG and the federal government will continue to push for a greater land supply in order to bring down the rising costs for all involved in the mining areas.

By Tim Moore

http://designbuildsource.com.au/transient-workers-only-answer-for-mining

February 29, 2012

Tenova acquires Bateman Engineering

Filed under: Resources — Tags: , , , — tom @ 5:02 am

Tenova has acquired Bateman Engineering as part its strategy to grow its mining division.

According to Tenova, its mining division now covers Tenova acquires Bateman Engineeringmost the mining industry chain following this acquisition.

Gianluigi Nova, CEO of Tenova, stated: “with this acquisition Tenova further broadens its portgolio of products in a market expected to grow constantly in the long term.

“The Bateman acqusiion will also strengthen Tenova’s global network.”

Tenova did not disclose the amount paid for Bateman, however it is understood that Bateman generates more than US$ 1.1 billion dollars in revenues annually.

The transaction is subject to the approval of anti-trust authorities.

By Cole Latimer on  14 December 2011

http://www.miningaustralia.com.au/news/tenova-acquires-bateman-engineering–2

December 6, 2011

Mining bonanza drives business investment

Filed under: Victorian Projects 2011 — Tags: , , — tom @ 10:23 pm

Business investment surged by the most in 16 years last quarter as the booming mining industry spent furiously on expanding output, a strength that sets the resource-rich country apart from most of its developed peers.

Wednesday’s data showed investment jumped 12.3 per cent in the third quarter to an inflation-adjusted record of $37.29 billion. That easily outstripped forecasts and came on top of an upwardly revised 6.2 percent gain in the second quarter.

The spending binge augured well for healthy economic growth in the third quarter and helped lift the local dollar a third of a cent to $US1.0060.

It also led investors to slightly trim bets the Reserve Bank of Australia (RBA) would cut interest rates at its policy meeting next week, though much depended on events in Europe.

“These are very, very solid numbers with growth across all sectors and not just mining,” said Brian Redican, a senior economist at Macquarie. “It truly confirms the RBA’s optimism on investment will drive growth.”

“But while this data shows there’s little domestic reason to cut rates, Europe is still the defining factor,” he added. “With no policy meeting in January, the RBA may feel it’s better to take out an insurance cut now. It’ll be a very close call.”

Some of the major miners this week did warn that expansion plans could be slowed if the European debt crisis morphed into a truly drastic downturn in the global economy.

The central bank holds its next monthly meeting on December 6 and then does not meet again until February 7. It cut its cash rate by 25 basis points to 4.5 per cent this month, the first easing since early 2009, citing lower inflation.

Investors are still inclined to believe it will ease next week, with interbank futures implying around an 85 per cent probability of a cut to 4.25 per cent.

An added complication for the RBA is that the jump in investment means data on gross domestic product (GDP) due the day after its meeting could show the economy grew by at least 1 percent in the third quarter, compared to the previous quarter.

The RBA has long expected investment to sustain the economy as the resource sector ramps up output to meet demand from the industrialisation and urbanisation of China and India.

The mining industry duly obliged last quarter lifting spending by a massive 22.1 per cent to $17.2 billion, a rise of no less than 80 percent on the third quarter of 2010.

There was also surprisingly good news outside mining, with investment by manufacturers up 9.8 per cent in the third quarter for a rise of 29 percent on the year.

Firms also upgraded their investment plans for the year to end June 2011, where a total of $158 billion is expected to be spent. That would equal 12 percent of Australia’s $1.3 trillion in annual GDP, by far the biggest share on record.

A large chunk of that spending will go on imports, everything from floating gas platforms to dock cranes and remote-guided trucks come from offshore.

But so large are the sums that there is bound to be a boost to domestic growth through profits, wages and tax receipts.

The government’s resource forecaster estimates the sector had committed to $232 billion of investment at the end of October, a rise of 34 per cent in just six months, while less advanced projects amounted to a further $224 billion.

These sorts of multi-year projects are less vulnerable to the ups and downs of financial markets.

“In a sea of external defensiveness and worry, this update of resource development projects has gotten even larger, now bursting at the seams,” said David de Garis, a senior economist at National Australia Bank.

“We have seen how large-scale engineering expenditure is boosting domestic demand as well as supporting the demand for labour when non-mining companies are more defensive.”

Read more: http://www.theage.com.au/business/mining-bonanza-drives-business-investment-20111130-1o5xj.html#ixzz1fnKSvVvo

Petroleum, iron ore and coal projects lead record growth in $231bn of major project activity

Filed under: Uncategorized — Tags: , , , — tom @ 12:03 am

Record growth in resources sector project activity is set to continue following the latest forecasts from the Federal Government’s Bureau of Resources and Energy Economics.

New figures from the Major Mining Industry Projects October 2011 report released by the Bureau confirm that investment in Australia’s resources sector continues to set new records with 102 minerals and energy projects at an advanced stage of development representing committed capital expenditure of $231.8 billion.

This is a surge in both the number (up 9 per cent) and total committed capital (up 34 per cent) of advanced projects in the six months since the April 2011 listing.

Minister for Resources and Energy, Martin Ferguson AM MP said the report clearly shows that the committed expenditure on advanced projects is dominated by three commodities, petroleum, iron ore and coal.

“The figures released today are further evidence that the Government’s resource taxation reforms are the right policy, at the right time, and are not posing an impediment to continued record investment in our resources sector,” Minister Ferguson said.

“Final investment decisions on a range of major projects including Wheatstone, APLNG and Prelude, have seen $58 billion added to the value of Australia’s major resources projects in the past six months alone.

“Both the number and value of completed projects has risen, and exploration expenditure – vital to the continued future growth of the sector – was the second highest on record in real terms.

“BREE’s report also highlights the sheer scale of the current resources boom. The value of advanced major resources projects today is 16 times what it was a decade ago when the total value of advanced minerals and energy projects in 2001 was just $14.3 billion.

“Our resources sector is creating jobs and the revenue from these projects will go on supporting economic growth for decades to come.”

There are 302 projects considered to be at a less advanced stage of development, with an estimated capital cost in excess of $224 billion.

Since the April 2011 list was published, 13 projects have been completed with a combined capital cost of $9.6 billion.  This compares with 10 projects completed in the six months prior to April 2011 with a combined cost of $2.8 billion.

BREE’s Major Mining Industry Projects October 2011 is available at www.bree.gov.au

By Jamie Wade on November 30, 2011 in Resources Projects

https://secure.projectory.com.au/category/resources-projects

November 23, 2011

Mining sector fuels surge in construction

Filed under: Uncategorized — Tags: , , , — tom @ 10:08 pm

SPENDING on construction is expanding as its fastest pace on record, as a torrent of investment flows into the country’s mining hot spots.

The value of construction work completed in the September quarter soared by 12.5 per cent to $47.5 billion, the biggest jump in the 25-year history of the figures, the Bureau of Statistics said yesterday.

The resource industry drove the surge, with the value of major engineering projects up by 22.6 per cent in the quarter and almost 50 per cent in the last year.

Despite Europe’s financial woes casting a cloud over Australia’s economic outlook, the increase suggests economic growth was robust in the latest September quarter.

Engineering construction – such as infrastructure and mining projects – makes up about 7 per cent of gross domestic product, and the sector is set to play a growing role as the resource boom takes off.

Economists said the rise – concentrated in Western Australia – underlined the resilience of the mining boom in the face of growing market unease about Europe.

Ben Jarman, an economist at JPMorgan, said the figures were further confirmation that mining investment was not being deterred short-term financial market fears.

But he said consumer spending and confidence would be vulnerable to Europe’s debt crisis in the months ahead.

”We’ve got a lot of bad news still to come through the pipeline,” Mr Jarman said.

The mining powerhouse of Western Australia drove much of the growth, as the value of major infrastructure projects completed in the state has almost doubled in the past year alone.

Western Australia is by far Australia’s fastest-growing state, according to separately released official figures showing its gross state product grew 3.5 per cent in 2010-11 compared with the national average of 2.1 per cent.

The ACT was in second place at 2.8 per cent followed by Victoria at 2.5 per cent and New South Wales at 2.2 per cent. Queensland’s economy shrank 0.2 per cent as a result of lost mine production due to the floods and cyclone.

October 11, 2011

BHP wins environmental approval for Olympic Dam expansion

Filed under: Uncategorized — Tags: , , , — tom @ 3:46 am

BHP Billiton’s management will move swiftly to finalise plans for its $30 billion Olympic Dam expansion after the project moved closer to board approval yesterday by winning support from the federal government.

The South Australian and Northern Territory governments also have approved what is set to be one of the world’s biggest open-cut mines, after assessing BHP’s environmental impact statement.

“The first phase of the Olympic Dam project is currently in feasibility and its progression into execution remains dependent on these approvals, the completion of all required studies and on BHP Billiton board approval,” BHP uranium president Dean Dalla Valle said.

“The (approval) announcement is the culmination of one of the most comprehensive and rigorous environmental assessment processes undertaken in Australia and is another important milestone as we seek to develop this world-class ore body.”

BHP said the expansion project, which will develop an open-pit copper, uranium and gold mine, had the potential to boost copper production from about 180,000 tonnes a year to 750,000 tonnes a year for decades.

Mine Life head of mining and resources research Gavin Wendt said the expansion would have a significant impact on the global copper market, which was supply constrained because of dwindling production and declining grades.

“The key to the Olympic Dam mine expansion is it will have a big impact in the copper space as a stopgap measure that will help address the demand and supply imbalance,” Mr Wendt said.

“I don’t anticipate it will have a negative impact on pricing because that additional copper supply will satisfy that expected increase in demand as supply elsewhere is lowered.”

BHP plans to run an open-pit mine alongside its existing underground operation at Olympic Dam, which is the world’s fourth-largest copper and gold deposit and the largest known uranium deposit.

The expansion would involve building an airport, a gas-fired power station, a 105km rail line and a coastal desalination plant.

The government approval requires BHP to commit to more than 150 conditions and obtain more than 600 licences and approvals.

Mr Dalla Valle said the global major recognised the approval conditions and the requirement to meet all of them across the life of the project.

“We will undertake a range of monitoring measures, including real-time monitoring of salinity, to ensure we have no adverse impact on the marine environment of Spencer Gulf,” he said.

“We will now take these conditions into account and incorporate them into our final assessment and recommendation to the board next year.”

BHP still needs to gain a new operating licence from South Australia for the expansion.