More Positive News for Mining, Energy and Construction Sectors October 2010

Dear Industry Colleagues,

As always I would like to promote some positive news that you may not have heard of as yet. There is indifference out there.

We heard in from our Advanced Sales and Sales Leadership Workshop participants that the months have been the busiest ever, while some are upbeat about December period.

Mining and Construction related Activity

There are 11 new mineral mines and 16 new coal mines expected to be in production within the next six years in the Gladstone region, according to the Qld Department of Employment Economic Development and Innovation.The mines have exploration licences to explore deposits of gold, copper, silver, zinc, coal, apetite, ilemite and magnesite.

Rusal has approached the Qld Govt with an expression of interest in taking over the long-delayed $3B Aurukun bauxite project.

Rio Tinto has given the thumbs up to a further $A3.2B investment to expand its Pilbara iron ore capacity.

Hancock Coal’s Alpha and Kevin’s Corner coal projects could be up for sale for up to $A2B

Peabody Energy Corp.’s third-quarter profit more than doubled as revenue rose and margins widened.The coal company has been increasing production and remained bullish about Asia, saying demand is “very strong” for the thermal coal burned by power plants and the metallurgical coal used .

Xstrata expects the first coal from its $1.1B Ulan West mine in 2014. Construction on the 18-year-life, 6,7Mtpa thermal coal mine is set to start before the end of the year. Ulan West will complement the Ulan number three underground mine and use some of the existing infrastructure at the Ulan complex.

Adani Enterprises, India’s biggest coal importer, said it’s committed to a $6.9B coal bought from Linc Energy Ltd., making it the largest acquisition by an Indian company in Australia. The company is targeting first coal output by the end of 2014 and production of 50 to 60Mt by 2022.

Rio Tinto says it produced record amounts of iron ore, alumina and coking coal in the September quarter.

Their share of iron ore production in the three months to September 30 was 47.608Mt, up from 43.61Mt in the June quarter.Its share of alumina production totalled 2.347Mt, up from 2.24Mt previously, while coking coal rose to 2.43Mt from 2.39Mt previously. “We continue to run our operations at close to, or above, capacity rates, taking advantage of strong prices for our products.”

Vista Gold has raised at least $57M in eight PIPEs, is raising $30M in a private placement of special warrants to repay debt and fund its Mt. Todd project..Vista is focused on the development of the Concordia gold project in Baja California Sur, Mexico, and Mt. Todd.

Norilsk Nickel aims to restart Lake Johnston mine early next year and is reviewing four other mothballed as prices rebound for the metal used to rustproof steel.

Xstrata Coal might approve the development of the Ravensworth North open cut mine in the Hunter Valley before year-end.

Rio Tinto is to spend about $100M on fixing a loading system that spews alumina hydrate into the sea. It was not known how much it would cost to install a new loader at the Alcan operation near Nhulunbuy. In the meantime, the company is spending $5.4M to improve loading and dust control.”It is lost on the conveyor belt and during loading,”. Alcan manager Julio Costa said the company was working with the Territory Government and an internal engineering team to find a “workable solution to a complex and challenging” problem.

Qld Govt has commenced its bidding process for the 99-year lease of Abbot Point’s Coal Terminal. The Government confirms it will retain ownership of the port land and associated strategic infrastructure such as the jetty and wharves. It also intends to retain control of future expansion sites for terminals T2-T7 including the Multi Cargo Facility. The new leaseholder will inherit all existing user and maintenance  agreements and a corresponding obligation for future maintenance and rehabilitation of the X50 coal loading facilities.BHP Billiton and Hancock Coal are said to have already negotiated preferred developer status with the terminal’s current owner North Queensland Bulk Ports (NQBP) they want to export 30Mtpa each of coal in a deal that may lock competitors out of any big expansion. Xstrata Coal, the existing major tenant is expected to put up a fight.

SG Partners Sales Training feedback – Advanced Sales & Sales Leadership
Interesting after assessing 15 sales managers last week as part of our Sales Leadership workshop we found the majority of the participants were extremely interested in their current sales  and sales management weakness that were holding them back from being a truly effective sales managers.

So we have decoded to run a 3 day Sales Management Clinic which wil ensure sales managers can effectively

• Performance manage their teams
• Coach and mentor their teams
• Increase the win/loss ratio in favour of winning more often
• Recruit sales teams
• Create a sales strategy and refine the VP

At the completion of the The SG Partners Sales Leadership Clinic, sales managers will know/have:

1. A report discussing their strengths and weakness via a 38 page full assessment
2. One on One coaching to Reduce the effect of weaknesses of the performance of sales management
3. How to set up a dashboard performance management system
4. How to identify motivational drives in sales people
5. How to coach sales people
6. How to mentor sales people
7. How to hold sales people accountable
8. How to recruit sales people
9. How to set up a systemised quaifying process to enhance sales
10. How to increase your win/loss ratio in favouring of winning – do not tie up resources and time on non winable RFQ/Tenders
11. How to position value selling – do not sell on price
12. How to present to groups and audiences

Sales Leadership Clinic – Register Your Interest Now!

Brisbane  3 & 4^th February 2011

We can only accommodate 20 people.

Better than any course I have attended previously. Fantastic, knowledgeable speaker. This was not your typical rar-rar over the top sales seminar. Was more about the psychology of selling. SG Partners has really helped me to understand the customer and their needs including how to get the most of out them.

Sales Tips What can you do for me on the price?

Heave you heard this before – How would you and your team respond at this moment?

Many people will respond to the question by immediately giving or implying the possibility of a discounted price. (Managers: How much more revenue could you add each year by helping your team avoid the immediate jump to a discount?)

Here are the hard-dollar points to better negotiating…

1.         Remember that negotiation success depends more on the work you do early in the sales process than on the negotiation moment itself. It’s all about the perceived value of your offering and the buying urgency you create with your prospect. The stronger the perceived value and urgency by your prospect, the better. Great front work will stop objections, nullify pricing concerns and further strengthen your negotiating position.

2.         Be prepared for the inevitable discount inquiry. Preparation feeds confidence. Always respond by letting your prospect know that a discount, if it’s possible at all, will mean they’ll need to make a larger buying commitment or give up an added feature before you can “do something on the price.  Never give something unless your receive something in return.

Think value. Think urgency. Be confident.

Energy

Federal Environmental Minister Tony Burke announced the long-awaited environmental approvals yesterday of two liquefied natural gas plants on Curtis Island.The approvals signal a new era for Australian energy and a new era for Gladstone.Mr Burke said both Santos (GLNG) and Queensland Gas Company (QCLNG) will have to meet tough standards with more than 300 conditions applying to coal seam extraction and a further 51% relating to the Gladstone harbour.

Woodside advises that it has entered into a Sale and Purchase Agreement to acquire a 50% participating interest in exploration permit WA-404-P, offshore Carnarvon Basin, from Hess Exploration (Carnarvon). On completion Woodside’s participating interest in WA-404-P will become 100%. The WA-404-P permit contains the Martell, Noblige, Larsen and Larsen Deep gas discoveries, as well as several undrilled prospects which are subject to an ongoing exploration program. The acquisition is consistent with Woodside’s drive to obtain sufficient gas volumes to support potential expansions of the Pluto LNG Park.

Eastern Star Gas has signed an agreement with Japan’s Marubeni Corp to advance its LNG prospects out of Newcastle. Under the deal, Eastern Star will consider selling an equity interest in its Narrabri coal seam gas project to Marubeni and others, which would then take a lead role in off-taking and marketing the converted LNG. APA Group will take responsibility for construction and operation of a gas pipeline to deliver the gas from Narrabri to Newcastle.

China National Offshore Oil Corporation, China’s largest offshore oil and gas producer, plans to build nine LNG receiving terminals along the Chinese coast.

Metgasco has commenced feasibility studies into the delivery of gas to LNG export markets. Metgasco has entered into a MOU with FLEX LNG to evaluate the feasibility of an export LNG project located offshore.Over the next few months Metgasco and FLEX LNG will assess whether a Floating LNG project is a viable proposition to monetise gas from Metgasco’s onshore acreage in the Clarence Moreton Basin in NSW.

InterOil signed an agreement with the Energy World Corporation to complete the FEED, a prerequisite for the project getting off the ground. This brings a step closer to getting a second LNG project to compete with the $US16 billion dollar LNG project already underway.

Santos has raised another $420M in funding for its Gladstone LNG project.French company Total recently bought a 15% stake in the GLNG project for $650M.The coal seam gas project had also secured more than $100B of contracts, making it one of the largest export deals in Australia’s history.Santos has yet to publish an estimate of the cost of building GLNG but analysts forecast it will cost about $16B.It now has a 45% share, meaning its funding commitment would be about $1B more than it has already secured.Santos is awaiting federal assessment of GLNG. It aims to make a final investment decision by the end of the year if federal approvals are forthcoming.

BG Group and its subsidiary QGC has committed $15B to their Curtis Is LNG two-train project. The project will be operated by QGC Pty Limited. To feed the LNG plant, more than 3000 gas wells will be sunk near the Surat Basin towns of Chinchilla, Tara, Miles and Wandoan.They will be linked to Gladstone via a 380km underground pipeline.The company will start exporting to Chile, China, Japan and Singapore by 2014.

QGC said it had also awarded contracts to Bechtel Oil and Gas for the engineering, procurement and construction of the liquefaction plant. Joint venture MCJV won the contract for the transmission pipeline network.

SG Partners Sales Recruitment Services – yes we recruit sales and sales management professionals.

We are currently searching for:-

Account Manager, Brisbane and Perth, Mobile OEM

Sales Co ordinators, Brisbane, Mobile OEM

Sales Person, Emerald, Technical products

Commercial/BDM, Syd, Underground Equipment

Sales Co ordinators, Brisbane, Engineering

BDM, Brisbane, Project/Change Manager Automation systems

Sales Manager, Perth, Mobile OEM

If you know anyone that may be looking for a change – refer them onto to us or give us a call 07 3852 5454 or michael@sgpartners.com.au

Look, its quite simple – you keep recruiting the way you have always done, and get the results you have always had. If your sales team is performing the way you want them too – great. If not – well change things. Our ability to understand where they resonate within sales and sales management is unsurpassed – I can give you references.

Check out Our Talent Pool.

• BDM with vast electrical knowledge selling into the mining, energy and water sector, Brisbane.
• BDM with experience selling into mining (mechanical). Brisbane and Newcastle.
• Sales Manager who can turn around a sales team and grow revenue quickly. Brisbane.
• Sales Manager who with proven solution selling experience would be an asset to any large sales team. Brisbane.
• BDM with long experience selling mineral processing solutions, Melbourne.
• Sales people selling mining equipment Brisbane and Perth.
• Sales people selling equipment and services into mining and mineral processes and ports, Mackay and Gladstone.

We have some great sales professionals available; they have been screened and interviewed ready for the right position and company – give us a call if you want certainty in recruiting a great sales person/sales manager. 07 3852 5454 or michael@sgpartners.com.au

Other News

China recently discovered new iron ore reserves exceeding 15BT. Approximately 10B newly found iron ore reserves are located in Yanzhou, Anshan and Jidong. Several new large sized iron ore mines are currently in the planning stages throughout these regions.

Vale has signed an agreement with two Chinese lenders to borrow USD$1.23B to finance the construction of 12 shipping vessels.

Phillippines mining sector will receive up to $12.92B in fresh investment from 19 projects starting next year.Three medium-scale nickel mining projects and one processing plant would be on stream by next year: Eramen Mining, Sta. Cruz Nickel, Marcventurs, and the HPAL Line 2 nickel processing plant of Nickel Asia and Sumitomo Mining of Japan. The Philippines’ production of metallic minerals rose 51% to P49.83B in the year to June 2010, up from P32.92B in the same period last year

The U.S. Energy Secretary signed off on final agreements that formally commit $1B in federal funding for the controversial FutureGen project. The project, which would transform an old power plant west of Jacksonville into a clean-burning facility and ship carbon pollutants to a disposal site via a first-ever pipeline.The project has a target completion date of 2015.

Sales and Marketing

You know those people in your group who are punctual? The ones that always show up early?

ALWAYS?

Who get really upset at themselves when they’re late?

See how they’re doing in life. Chances are, more likely than not, they’re doing pretty darn well.

There’s so much to be said for punctuality. A great, solid habit to have that incorporates so much:

Discipline,

respect for time,

respect for others,

planning,

foresight,

commitment,

confidence,

pride, etc.

All that wrapped up in the beautiful gift of punctuality.

What signal would they send to your customers if your people were punctual – would it provide certianty and make it easier for them to decide on buying from you.

Mining Equipment and Services News

John Holland won a four-year, $348M mining services contract for Jellinbah Resources.

Industrea will buy mining equipment manufacturer Valley Longwall International after Industrea successfully raised $A50M to assist with its growth and acquisition strategy

John Holland Group has been awarded by The Newcastle Coal Infrastructure Group the contract to supply and build Stage 2AA of the structural and mechanical works at Kooragang Island.

Wagners, has won a multi-million dollar contract to operate two concrete plants for ExxonMobil’s US$18B LNG project in PNG.Through the help of the Australian Government’s Export Finance and Insurance Corporation (EFIC), Wagners will supply, install and operate the plants for the Southern Highlands project. Wagners will work in collaboration with Japanese engineering and construction firms Chiyoda Corp and JGC Corporation, whose joint venture CJJV is building the LNG plant for Esso Highlands, a consortium led by ExxonMobil.

Worley Parsons has been awarded a $580M contract for BG Group’s $US15B Queensland LNG project. It had been appointed the detailed engineering and procurement services contractor for the upstream gas field facilities and related infrastructure at the Curtis LNG project.

Weir Group raised its forecast for full-year profits after oil company appetite for pumps spiked in the third quarter.The maker of pumps and valves said order input from customers operating in the upstream oil and gas space rose 232% in the 39 weeks to the beginning of October, compared to a rise of 166% in the first half of the year.

SG Partners offers:-

• sales and customer focus training – refresh and focus people on being customer focused;
• sales team recruitment – ensure people can sell and can manage sales teams;
• sales team analysis – we can identify the hunters, farmers, strengths and weaknesses of qualifying and closing within your sales team and define the exact training and support requirements;
• sales process and engagement consulting – crm, remuneration programs, tender/rfq processes.

Please do not hesitate to contact us if you want to grow your revenue NOW.

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