Selling to the Australian Mining and Energy Sector

Australian Mining and Energy updates

Selling to Mining & Energy Sectors May 2012

There is now $260B  of Australian resource investment, WOW.

Mining News

GVK Power & Infrastructure have received environmental approval for their plan to build a $6.4B coal project in Queensland. Check a presentation on the project at

Rio Tinto has unveiled its latest iron ore mine development plans to start the construction next year of its Turee Syncline project in WA. Rio Tinto is seeking govt approvals to develop Turee Syncline, approx 15 km NE of Paraburdoo which is expected to produce up to 10Mtpa over 16 years. Provided all relevant approvals are obtained, production may begin in 2014. The mine initial stage will involve transport of ore by road for processing at Paraburdoo with a view to potentially developing an on-site processing plant and rail loop if required.

Alcoa is poised to buy more residential properties in WA’s SW region to make way for its Wagerup alumina refinery expansion.

Toro Energy has received WA Govt approval to construct the uranium Wiluna mine in WA’s midwest. Toro’s plans uranium oxide will be transported from Wiluna through the outskirts of Kalgoorlie and over the border into SA. Toro has not yet indicated which port it will use to export the uranium. Toro said it was aiming to start construction on Wiluna through 2013 with first sales commencing in 2014.

Sedgman has signed a contract with BMA to upgrade the coal preparation plant at its Saraji coal mine $27.7M. This is an EPC contract to upgrade the plant scheduled to be completed in the second quarter of 2013.

Yanzhou Coal is in talks to buy Vale’s stake in an Australian coal mine for more than $500M.

Cape York Peninsula public submissions have opened for its proposed $500M coking coal project.

China Coal Imports Rise 90% in April.

Want to meet the CEO of BMA, Peabody, QRC etc – well join the CEO sleepout in June in Brisbane.

The Qld Govt has declared the Yarwun Coal Terminal project significant as it announces a scaling back of the Abbot point super expansion plans.The Yarwun coal terminal has been seen as a significant development for coal miners in the Surat Basin and offers more direct port access to export markets. According to MetroCoal, which is aiming to export through the port, this announcement is an important milestone. Abbot PointsT2 and T3 coal terminals will go ahead as they have already been approved.

The Indonesian govt is ready to invest $367M seed capital for the construction of geothermal power projects that will form a model for others that will be rolled out across the country.

Energy News

GLNG 435km gas pipeline has moved a step closer, after the Queensland Coordinator-General approved a key 44-kilometre section of pipeline within the Callide Infrastructure Corridor State Development Area (CICSDA).

AGL has been given state government approval to build a $310M gas storage facility at Tomago. AGL still needs federal approval for the project from Environment Minister Tony Burke, who is expected to reveal his decision in about two months’ time.

Origin Energy is in advanced negotiations for a $2.93B loan from the US Govt Export-Import Bank that could provide cheap funding for a $US6bn expansion of the Australia Pacific LNG plant at Gladstone

Sales Tips– dislodging a competitor

Every customer is already using someone else, so how do you get the customer to chose you.

Try this – “I know you utilise ABC. I bet they’re very good. What do they provide you that is great…. Is there anything else you may want from a supplier?…. OK if we could do that and this and even more would you consider choosing us over ABC”

Supplier News

Cat 777 has long been the workhorse of the mining industry. Since the 1970’s one incarnation or another could be found on site, they were almost ubiquitous. And now Caterpillar has released the latest generation of this truck – the 777G, replaces the 777F.

Orica has announced that it will now form a JV with Apache and Yara to build an ammonium nitrate plant in WA. Yara will be the operator of the plant while Orica will manage sales and distribution. The parties are aiming to begin construction by the middle of the year.

Decmil Group has won a contract with FMG, as well as variations of two of its existing contracts with the miner.According to Decmil, this work is valued at approximately $137M. These contracts will see Decmil construct facilities for Fortescue’s T155 Rail Support infrastructure project in the Pilbara, allowing Fortescue to increase its iron ore export capacity. The work includes the construction of new rail car workshops, amenities buildings and administration centres, carrying out modifications to existing workshops, co-ordinating the fit out of the new rail car workshops, and the design and construction of a locomotive provisioning
building.This single contract is worth around $50M.

GE has announced it will acquire Industrea on the back of acquiring Fairchild International a company who produces a full line of underground mining equipment. GE stated in a press release that the two companies will become part of GE transportation’s global mining business.

Boart Longyear expects demand to remain strong as large mining companies proceed with projects.

Leighton Contractors to build the first phase of APLNG $800M coal seam gas project building 1200km of pipeline, water treatment plants and well heads across the Condabri gas field developments, south of Miles, and the Talinga development near Chinchilla.Construction of the pipelines would begin immediately and finish by mid-2015.Work on the water treatment plants would begin in mid-2012 for completion by 2013.

Hydratight was honoured recently among 47 vendors for its performance during the 2011 year, as a result of nomination by Bechtel’s project management teams in the field. Bechtel annually works with an estimated 13,000 vendors on its projects globally, which puts Hydratight in the top one percent of suppliers to the global EPC giant, which has annual revenues exceeding $32B. Bechtel is building Gladstone’s three LNG plants, and has undertaken major projects such as expansions at PWCS and Rio Tinto’s Comalco Alumina Refinery. Bechtel said each business was measured under four criteria: safety, execution, schedule and the ability to adapt to circumstances.

SG Partners offers:-

  • sales and customer focus training – refresh and train people on being even more customer and revenue focused;
  • sales team recruitment – ensure people can sell and can manage sales teams;
  • sales team training 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.

All information contained in this blog derives from information available within the public domain. SG Partners/Michael Lang take no responsibility for information that may be incorrect at time of collation. Where statements/editorials are made it is on the bases of pure speculation and no malice is intended.



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One thought on “Selling to Mining & Energy Sectors May 2012

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