If you are like me and want to keep focussed on the opportunities that bring in the greatest return on your investment, check out the latest positive news about the Mining and Energy sector.
Mining News
Anglo American Metallurgical Coal is expected to announce the sale of one of its two thermal coal mines in Australia – the Callide mine whilst it is considering adding a second l/wall to its proposed $US1.7B Grosvenor project
Rio Tinto Coal plans to extend open cut mining at its Warkworth mine at a cost of $629Mhas been given the go ahead from the NSW Dept of Planning.
AGL’s seeks to increase ownership at the Loy Yang power station to 35%, it will need to raise $1.5B.
Kagara is believed to have sold its Lounge Lizard nickel mine to Western Areas for $80M.
Centennial Coal wants to extend its Newstan Colliery’s increaseing to 4.5Mtpa through l/wall and continuos mining. Part of the project will include installing and operate additional surface infrastructure for gas drainage, greenhouse gas capture and abatement, ventilation, support buildings,electrical reticulation, water reticulation, water management, communications and other services.
Cape Alumina has doubled the inferred resource at its Bauxite Hills project on Cape York to 60Mt of bauxite and will proceed with a pre-feasibility study.The company is working to start production from late 2014.
Cuesta Coal has received $5M in funding, marking the first stage of Beijing Guoli Energy’s $20M injection into the company.
Yancoal’s plans to increase the production rate of its Moolarben coal mine which will see it mine 16Mtpa of coal over 20 years. Meanwhile its take over Gloucester Coal has been given the thumbs up by the Fed Govt.
Cockatoo Coal’s Collingwood and Taroom mine projects have been granted significant project status by the state government.
AngloGold Ashanti says it will be spending over $US800M on Australian projects in the next two to three years.
Sales Tips
How often do you come across this reply from a potential sale – “I need to think it over”
Consider these responses.
“What exactly is it you need to think over?” It’s another way of asking a prospect what their real objection is. Then clarify their objection with them, address it and confirm with them that their ‘concern’ has been addressed
“I can understand that you feel a need to make sure you’re making the right decision (softening statement). Will you share with me what thoughts you have right now (yes/no)? (Pause to see if he or she says more than just yes or no. If not, dig for more…) What pros and cons do you see right now..?”
Energy News
Carbon Energy is hailing an Australian first, exporting power generated by its underground coal gasification project at Bloodwood Creek onto the local grid.
PNG LNG is one of the largest and most complex energy projects under construction in the world. An expansion to three liquefied natural gas, or LNG, production units from the two currently planned could give a major boost to Oil Search.
Australia Pacific LNG completed a $2.5B, 16-year project finance loan with nine banks. The company is owned 37.5% by Origin Energy Ltd. (ORG), 37.5% by ConocoPhillips and 25% by China Petrochemical Corp., or Sinopec, as the group is more commonly known.
Supplier News
Emeco Holdings has tipped robust growth for the remainder of the financial year after it reported profits of $29.2M for the first six months, up 10.1% on the previous corresponding period.
NRW Holdings has exceeded its expectations for the first half of the 2012 financial year, posting profits of $45.3M, up nearly 120% from the same period last year.
Delta SBD increased its interim net profit by 94.5% to $3.3M and its revenues by 40.3% year-on-year to $55.6M thanks to a development contract with Whitehaven’s Narrabri project and a longwall build contract on behalf of Caterpillar Global Products at Narrabri.
LogiCamms announced that it has been awarded a contract with Chevron Australia to provide maintenance engineering services on the Chevron-operated Gorgon Project.The contract has an estimated value of approximately $8m.
Orica has signed a deal to take a 45% stake in an ammonium nitrate plant it will build in WA with Norway’s Yaraand Apache Corp The JV aims to start construction on the 330K tpa ammonium nitrate plant by mid-2012
Hatch and Anglo American have launched a program to standardise longwall and CHPP designs, to facilitate the miner’s strategy for its major growth projects. Anglo’s strategy is to triple coal production by 2020, mostly from four longwall mines in the Bowen Basin.Hatch is currently working on several projects in the portfolio, which vary from conceptual study work and staged feasibility studies to full EPCM services. The two companies celebrated the new arrangement by signing the contract for the Grosvenor coal longwall mine. The project is valued at $1.6bn and is designed to produce 5mtpa.
Thiess has won a $500M contract to build storage tanks at the Wheatstone LNG project. Thiess and tank design firm EV LNG Australia will build LNG storage and condensate tanks near Onslow, in the state’s north
Monadelphous record net profit after tax of $57.5M for the first half of the 2012 financial year on the back of sales revenue of $879.5M
Downer has been awarded by Gindalbie Metals a $64M electrical and instrumentation (E&I) contract for its iron ore processing plant at the Karara project.
Downer EDI has been named preferred contractor by Riot Tinto Iron Ore for electrical and instrumentation work on the 333 expansion of its Pilbara operations.
KBR announced that its JV with JGC Corporation and Chiyoda Corporation, the JKC JV, has signed the formal contract for US$15B EPC activities on the Ichthys LNG Project.
Clough has won a $140M contract for work on Inpex’s Ichthys LNG project. The JV with BAM International had received a letter of intent for the design and construction of a module offloading facility near Darwin where the gas will be processed.
Forge Group is acquiring CTEC, a private WA-based company providing EPC, operations and maintenance solutions to the energy and utilities sectors.
Gindalbie Metals has selected Downer EDI for Karara’s inaugural 6 year, $570M mining contract. It includes drill and blast as well as load and haul services.
John Holland has been awarded a $220M contract for the construction of stage 1 stockyard works for the Wiggins Island Coal Export Terminal project.
AusGroup subsidiary AGC Industries has formalised its construction contract with Gindalbie Metals for its Karara iron ore project. The contract, worth more than $160M. It consists of structural, mechanical, and piping installation works at the magnetite mine. To date, AGC have completed the early works contract, as the mine begins peak construction in the lead up to first production in early September.
Thiess has been awarded a $180M contract with the BMA for civil earthworks for the development of the $4B Caval Ridge mine project
Qube Bulk has been awarded by Sandfire Resources a haulage and port services contract for its DeGrussa copper gold project. The contract is estimated to be worth $120m over a five-year period.
OTOC has won a $14M contract for accommodation at Rio Tinto’s West Angelas mine. The contract will see OTOC install transportable accommodation buildings and provide infrastructure upgrades to the mine’s village.
Toll Energy Logistics has been awarded a $45M transport and storage contract by QGC. Toll Energy Logistics will transport materials and equipment from suppliers to worksites and manage storage facilities to support construction activity in QGC’s gas fields in the Surat Basin.
Leighton Holdings remains on track to deliver a profit after tax of $600-650M for 2011-12 after reporting a 57% jump in first-half profit.
Asciano announced it had won another coal job Bandanna Resources.
Industrea’s mining division has received a purchase order from Vale for four 70t roof support carriers, a 50t mine dozer and a 130t shearer carrier for a combined value of $12.6M
Price Objections
Price is relative to business problems. If you are selling in the triangle of Service, Quality and Price, then you are not selling value that solves business problems. You are selling into a comparative matrix that boxes you into a same-same measurement with your competitors. When you solve business problems — time, money and risk — then you are in a very different dialogue.
Price is a reflection of confidence in outcome. If there were a 100% guarantee that there would be a resolution to a buyer’s business issue, then their willingness to pay the asking price increases. When I get price resistance on my proposals, I ask this question: “If we could get you a $20 million increase in sales in one year, would it be worth a million dollar investment?” Their answer is almost always yes.
Price is a reflection of measurement context.There is no such thing as a true “apples-to-apples” comparison. Complex solutions are almost never exactly the same between two competing companies. That means that there is no valid comparison between you and your competitor in the area of price. A lower quality provider in your market is held up as “just as good as your solution” by your prospect, so therefore the only point of comparison must be price, right? Only if you allow it to be.
Never haggle. The difference between negotiating and haggling is simple. Negotiating is when you are making adjustments in terms, conditions and scope of work between two parties. Haggling is when you are asked to do the same work you have already proposed, but for less money. I don’t believe in haggling. If your work is priced correctly, then any adjustment in price will require an appropriate adjustment in scope, terms or conditions.
Negotiating is hard. Its a drain on resources, time and energy. You just want to get it done so you can move on. The client seems to want everything for nothing, if its not price, then its terms, delivery, installation, warranty, risk etc etc.
Want to know how to do this even better, better results, easier time negotiating, more enjoyable?
SG Partners Negotiating Workshop
23/24th May Brisbane
Every deal is different, but what if you could…
- apply a simple 3-step process to identify the real value in your deal?
- learn how to anticipate, diagnose & respond rationally to 97% of buyer negotiation tactics?
- better align your sales approach to improve consistency in client relationships and drive improved satisfaction as an output from each and every negotiation.
We will in the workshop:-
- Improve the outcomes of your live deal (in the workshop)
- Assist dealing appropriately with irrational competitors
- Learn a simple, memorable, negotiation framework that you can apply yourself to each and every deal you ever negotiate.
This workshop is a must if you
Want to reduce risk
Want to have successful business outcomes
Want clients to value you
Want the focus off price
Want clients to refer you to others
Want more revenue and profit
Want to sell more!!
Want to know more www.sgpartners.com.au
SG Partners Provide
- Sales team training analysis.
- Sales training and coaching.
- Sales team recruitment.
- Go to market consulting.



