Selling to Mining and Energy Sectors Aug 2012
There is a lot of doom and gloom out there at yet if you get focussed there are opportunities. There are still mines that need to maintain, there are still EPCM working on projects, there are still studies being conducted, and there are still projects under way.
Mining News
Xstrata has approved a US$360M expansion for its McArthur River zinc mine in the NT and is constructing a 53MW gas fired power station contracted to Energy Developments with a starting date of January 2014.
Xstrata has its EIS for the proposed expansion of their Newlands Coal Mine available.
Rio Tinto looking towards further expansion of its Northparkes mine.
MMG has been given approval to begin mining Dugald River zinc mine near Cloncurry after receiving final environmental authority from the Qld Govt.
BHP Billiton approved eight major projects during the 2012 financial year for a total investment commitment of $7.5B (BHPB share). Pre commitment funding of $2.7B was also approved to further progress a series of development options. In response to the challenging external environment the Group has chosen to delay the 2.5Mtpa expansion of Peak Downs that is associated with the Caval Ridge mine development. The 5.5Mtpa Caval Ridge mine remains on schedule to deliver first production in the 2014 calendar year. With 20 major projects currently in execution with a combined budget of $22.8B, BHPB is largely committed for the 2013 financial year. No major project approvals are expected over this time frame.
Metal X announced that it had signed memorandum of understanding with Samsung Construction & Technology to complete an updated definitive feasibility study of Wingellina with a view to the Korean giant then using its global reach to arrange funding for the mine’s development.
Atlas Iron has welcomed the approval for the development of new berths at South West Creek, Port Hedland. The WA Govt and Port Hedland Port Authorities (PHPA) gave Atlas approval for the North West Infrastructure’s right to develop two new berths at South West Creek in Port Hedland.
GVK’s Alpha coal mine, will sell stakes in its rail and port subsidiaries to build the massive mine. Its associated rail infrastructure is given the greenlight by the Fed Govt. The conglomerate needs to invest approximately $10M into the project to build the 500km rail way to connect the Galilee Basin to Abbot Point port.
Lake Vermont coal mine near Dysart will double in size over the next six years.
Paladin Energy has signed a massive US$200M long term off take contract for its uranium.
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Energy News
Wind Prospect is awaiting planning and funding approvals for a $500M windfarm at Glen Innes.
TrustPower has awarded an EPC contract to Siemens to engineer, procure and construct the Snowtown II wind farm project proposed at Snowtown, SA. Siemens was awarded a full-fledged turnkey contract for the development of this 144-MW project, which includes the installations of transformers, switch gears and grid connections.
Bechtel said the initial modules have arrived in Australia for the first of three large LNG processing plants it is building on Curtis Island. The 6 prefabricated steel structures, which weigh a combined total of 7000t were built by STP&I in Thailand and transported by barge to Gladstone. A total of 260 modules for the three LNG projects will arrive by sea over the next two years. It marks the beginning of a new phase in construction said Kevin Berg, Bechtel’s operations manager in Gladstone.
GE Energy has announced plans to spin off its oil and gas unit into a separate company. Meanwhile GE Oil & Gas has been awarded a $600M service agreement to maintain the compressor trains and associated equipment at Chevron’s Gorgon gas project.
Origin Energy posted full-year net profit of $980M, up 427 % on last year, partly thanks to the sell-down of a chunk of its stake in the huge Australia Pacific LNG project, APLNG. Underlying profit rose 33% to $893M.
Verve Energy is seeking approval for a 250MW windfarm in the remote Mid West region, 270km nth of Perth. The proposed Warradarge windfarm consists of up to 100 wind turbine.
Sales Tips – Its not about your product
During our training workshops I ask what people within our customer base may be focussed on.
If you want to engage the Mine Manager – what does he want to talk about, what is he focussed on?
If you what to talk to the maintenance manager – what floats his boat?
We have a saying “Selling is not Telling”, sure you know your products F&B, do the people you are talking to want to know all of what you know or just the bit they are focussed on. Get to know what lights their fire.
Supplier News
Monadelphous Group has scooped up a contract worth $75M with BHP Billiton for construction at its Jimblebar iron ore mine. Monadelphous has delivered its eleventh consecutive year of earnings growth, recording a $137M net after-tax profit for 2011-1
Cimeco has won a $70M contract to design and construct fuel infrastructure for Rio Tinto’s West Angelas and Brockman iron ore mines.
Clough has chalked up a net profit of $50.7M with $1.1B already booked in revenue for the 2013 financial year.
Thiess has been awarded the contract to construct a 4.3km tunnel under The Narrows to connect the mainland to the Santos GLNG LNG Plant on Curtis Island.
Downer EDI has won a $70M contract on the 131MW Mercer wind farm project in Victoria.
NRW have won a construction contract with Rio Tinto at its Cape Lambert port. The contract will see it construct the CLB353 stockyard, conveyor link earthworks, and relocate existing water pipelines and rail formation earthworks.
WDS has been awarded a $12M contract for BHP Billiton’s Dendrobium coal mine. The one year contract is for the provision of underground mining services.
Thiess has won a $2.3B contract to extend operations at Jellinbah Group’s Lake Vermont coal mine.
SDV Australia has won a $97M integrated freight forwarding contract for the construction of downstream LNG plant facilities on the Ichthys LNG project.
Forge has won a $280M contract to deliver power for Rio Tinto in the Pilbara. It has won an EPC contract to deliver a combined cycle gas turbine power station at Cape Lambert.
GE Oil and Gas has been awarded a $600M service contract to maintain the compressor trains and associated equipment at Chevron’s Gorgon LNG project.
East Coast Pipeline has been awarded a $150M contract to install polyethylene pipe for 145 wells at Spring Gully, north-east of Roma as part of phase 1 construction of the Australia Pacific LNG Project.
Ampcontrol, has acquired automation and process control firm Primatec QDA.
Calibre Global will undertake $150M contract for EPCM work for the implementation phase of Rio Tinto Iron Ore’s $1.6B Yandicoogina sustaining project.
KBR has been awarded a project management services contract for construction of the Diamantina 242MW gas-fired power station.
Macmahon Holdings has announced a record after-tax profit of $56.1M for the 2011-12 financial year.
WorelyParson has won $2M in work from the Arrow Energy JV for the preliminary design of about 1150km of pipelines for the Arrow LNG project.
UGL has won a $99.45M contract for work at BHP Billiton’s Jimblebar iron ore mine. Under this contract UGL will provide the fabrication and installation of equipment associated with stockpiles, secondary crushing, scalping and screening and conveyors.
Delta SBD has begun longwall surface builds at BMA’s Broadmeadow mine and Rio Tinto’s Kestral mine expansion. The work at Rio is being undertaken for Caterpillar (longwall).
Construction News
Port of Melbourne Corporation’s $1.6B redevelopment of Webb Dock is one step closer to reality following the awarding of civil and maritime design contracts to Aurecon Australia. The scope of civil works includes detailed design of internal roads, interface buffers site preparation works and services infrastructure. PoMC also advised the appointment of Arup to provide engineering consulting services for the project’s extensive maritime works.
The Maldon to Dombarton Rail Link project in Illawarra will soon be “shovel ready” as the Fed Govt has released $25.5M to complete its planning and detailed design work.
The North West Rail Link in NSW has generated strong national and international interest. 6 consortiums, more than 60 companies, have signalled their intention to bid for the contract to build the twin 15.5km tunnels between Bella Vista and Epping, following calls for expressions of interest. The companies involved are from across Australia and around the world. The next step will be the official calling for tenders in October this year to build the twin tunnels, which will be the longest and deepest rail tunnels in Australia.
Hutchinson Port Holdings has awarded Laing O’Rourke the civil works contract for the Terminal 3 development at Port Botany. Laing O’Rourke has been contracted to deliver civil works for the Terminal 3 development. The contract marks the start of the on-ground works of HPH’s $500M investment for the development of a new container terminal. Laing O’Rourke will construct a $150M civil and rail infrastructure package, representing the first phase of the newly reclaimed Botany Bay expansion.Work for the Port Botany project includes the provision of rigid pavement using onsite concrete batching, high voltage substations and structural support for the heavy duty quay and stacking crane systems. The contract also includes rail sidings, drainage and ground improvements.
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- 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.
Selling to the Australian Mining and Energy Sector 