Dear Industry Colleagues,
As always I would like to promote some positive news that you may not have heard of as yet. Have a safe and merry feastive season, I will see you on deck in 2011.
Caterpillar Bucyrus, BHP Rio Iron Ore JV, Xstrata $23B, FMCG $8B, BHP $635M – hold on people, the wave is starting to get big.
Mining related Activity
Australia’s export earnings from energy and mineral commodities in the September quarter 2010 were $44B, the third highest on record. Export prices for energy commodities increased by 5% while prices for metals and other minerals increased by 3%.
Rio’s Tinto’s A$3.5B offer talks with Riversdale Mining are likely to spark a bidding war.
BHP Billiton and Rio Tinto have agreed to make a $USD350M one off payment to the WA Govt after the approval of a state agreement allowing the miners to integrate their Pilbara iron ore activities.
Xstrata is on track to spend $23B up until 2016 for expansion, with a focus on coal, copper and nickel projects. Xstrata is spending on 20 large projects already approved that account for $14B and 14 projects that should be approved in the next 12 months that would cost $7.5B, while $1.3B is allocated for more than 25 scoping and feasibility projects.
Xstrata Coal has decided to develop the Ravensworth North open cut mine in NSW for $A1.38B. The project will produce 8Mtpa of export thermal and semi-soft coking coal at full production levels. Ravensworth North is expected to have a mine life of about 26 years and will be within the existing Cumnock Coal and Ravensworth complex. Construction is expected to commence in early 2011, subject to federal government environmental approvals and development consent by the NSW Department of Planning. First coal is expected to be delivered in July 2012.
Xstrata has formally approved the start of a feasibility study at the Frieda River copper-gold project in PNG with the commitment of $A124.4M to the study.
Xstrata Zinc Australia will spend another $274M to lift output at its George Fisher zinc mine by nearly 30% by 2013 after approving $122M for the nearby Black Star Deeps open-cut project.
Xstrata’s will reactivate its Sinclair nickel mine,
Hancock Prospecting 55Mtpa Roy Hill iron ore mine has moved a step closer to production with the granting of state and federal environmental approvals for the mine’s railway line. Australia’s fourth largest iron ore producer Hancock
Norilsk Nickel plans to restart production at its Black Swan and Cawse nickel operations in WA in the next few years, whilst planning to restart Black Swan (probably 2012) and Cawse (2013) after feasibility study.
Legend International is looking to sell its phosphate mines for between $500M and $1B to cash in on growing demand in Asia for fertilizer. It has appointed Tokyo-based Nomura Holdings Inc. to search for an investor. Companies that have already expressed interest include China’s formerly state-owned enterprise Wengfu Group.
Wandoan has been given environmental approval by the Qld State Govt, which is likely to spark the development of other major coal mines owned by Peabody and New Hope as well as the Wiggins Island port at Gladstone.
The NSW Govt controversial decision to develop the $A1.3 B Cobbara coal mine near Mudgee has been met with questions over its ability to operate a mine efficiently and the economic sense of owning one operation that will have to run at a cost basis.
Itochu Corp agreed to buy a A$345M stake in Aston Resources Maules Creel project in NSW state to secure supplies.“Aston now has a range of options to fully fund the development of the project,” CEO Todd Hannigan said in the statement.
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.
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- Performance manage their teams
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- Increase the win/loss ratio in favour of winning more often
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At the completion of the The SG Partners Sales Leadership Clinic, sales managers will know/have:
- A report discussing their strengths and weakness via a 38 page full assessment
- One on One coaching to Reduce the effect of weaknesses of the performance of sales management
- How to set up a dashboard performance management system
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- How to coach sales people
- How to mentor sales people
- How to hold sales people accountable
- How to recruit sales people
- How to set up a systemised quaifying process to enhance sales
- How to increase your win/loss ratio in favouring of winning – do not tie up resources and time on non winable RFQ/Tenders
- How to position value selling – do not sell on price
- How to present to groups and audiences
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Mining and Construction related Activity
Bauxite Resources approved the development of an alumina refinery in WA with JV partner Yankuang. Bauxite Resources signed an agreement with Yankuang to design and build a 1,1Mtpa refinery, which would require 3,5-million tons of bauxite. The construction of the refinery would start within the next five years.
Anglo American plans to dispose of its Callide thermal coal mine adding to at least six other coal assets it’s selling.“The Callide mine does not align with our growth strategy,”. Anglo plans to grow its “metallurgical coal and high margin export thermal coal” business in Australasia.
Fortescue Metals Group has approved plans to expand its production from 55Mtpa to 155Mtpa.The approval sets the platform for a major $USD8.4B works and procurement expansion program to commence at Fortescue Chichester and Solomon Hubs. Fortescue Board approved the expansion plans after assessing the recently completed Solomon Stage 1 feasibility study and a full review of the detailed planning for the Chichester Hub expansion.
The project will be managed in three distinct work programs as shown below
1. Port & Rail
Fortescue intends to seek approval for a fifth berth to increase the efficiency of its operations. Some preliminary port works have already commenced and completion is scheduled for the December Quarter 2012.
The rail works program includes the duplication of some 120 kilometers of existing track, the construction of a new 130 kms spur line out to Solomon, the construction of four new bridges and the completion of two new rail loops at the port to deliver into a new dual train unloader for conveying to an expanded port stockpile area.
2. Chichester Hub
The Christmas Creek expansion will comprise the construction of a second Ore Processing Facility adjacent to the existing OPF, utilizing much of the current stockpile and train load-out infrastructure. A new primary crushing hub will be located to the east of the central OPF facilities with an overland conveyor system connecting the two facilities. Additional investment will be made in other infrastructure for utilities, accommodation and water management. Works are scheduled to commence in the March Quarter 2011 with targeted completion by end 2012.
3. Solomon Hub
The Greenfield development of the Solomon Stage 1 Hub is still subject to the delivery of a number of consents and approvals which are expected in early 2011. Construction is expected to commence in the June Quarter 2011. The development will be a two stage process with an initial OPF for the Firetail Brockman product and then a separate OPF for the Kings Channel Iron Deposit product.
The mining areas are 25 kilometers apart and the processing will be different for the two types of ore. Other planned infrastructure includes a central 2,500 person camp, an airstrip, power station and an overland conveyor system that takes product from both OPFs to a centralized train load-out facility.
Direct ship ore export is forecast for the September Quarter 2012 with first ore through the OPF exported in the September Quarter 2013.
These include dredging of the third berth and pouring of the concrete foundations for a second and third train unloader at Port Hedland. Assembly of long lead items such as stackers, reclaimers and shiploaders which had commenced prior to the GFC is now progressing strongly.
It is reported that an iron ore mine is set to start operation near Whyalla in South Australia.The SA Government has given OneSteel approval to start operations at its Iron Chieftain Mine about 40 kilometres west of Whyalla.The USD 350 million venture will become SA’s 13th operating mine when production starts before the end of the year.
BHP Billiton announced approval for a further $USD635M of capital expenditure that will underpin continued growth in Western Australia Iron Ore production profile. The investment highlights BHP Billiton commitment to the Rapid Growth Project sequence of expansion projects and is consistent with the company’s strategy to fully utilize its Port Hedland inner harbor capacity.The investment expands on BHP Billiton earlier pre-commitment of $USD1.73B announced in January 2010 and will facilitate the ongoing development of important port, rail and Jimblebar mine infrastructure.
SLN to boost output 20% to 65,000/t a year by 2013
Sherritt International will acquire a controlling stake in the Sulawesi nickel project in Indonesia from Rio Tinto. Sherritt will become the project’s operator. The company said it plans to use its expertise in nickel laterite mining to exploit Sulawesi, which is considered one of the largest undeveloped nickel projects in the world.
A proposed $111M Gold Coast quarry will undergo environmental assessment after today being declared a significant project by the independent Coordinator-General.The proposed quarry is located 500m from the Pacific Highway and directly opposite an existing quarry. Boral owns both sites and are expected to deplete resources at the existing quarry by 2020.
WA Govt has announced plans to build a seawater desalination plant to overcome an expected supply deficit of potable water in the West Pilbara region.
The Fed Govt has given the green light to Shell to build a floating LNG facility off WA’s NW coast. Measures to reduce light pollution, manage noise impacts, introduced marine pests and waste must all be outlined in Shell’s operations environment management plan. The project is set to be the first floating LNG project in the world.
Beach Energy and ITOCHU Corporation have identified potential SA sites for a proposed mid-scale LNG facility.They are looking at the potential of setting up a $1B LNG facility at Port Bonython.
AGL Energy is planning to spend $300M on a small-scale LNG and gas storage project in Newcastle. The project would include a refrigeration plant to cool natural gas into LNG, an LNG storage tank, and regasification units to convert LNG back into pipeline quality gas. The project also requires a new gas pipeline connecting it to the existing network at Hexham near Newcastle.AGL is aiming to complete the project in 2014. To meet the target, construction would need to start by mid-2011
INPEX and Total have opened up for tender a number of major onshore construction packages for their Ichthys LNG project. The $A20.7B project contains plans for what could be the world’s largest floating processing platform, capable of stripping out 100,000 barrels of condensate per day, and a subsea pipeline more than 850Km long to the onshore LNG plant at Blaydin Point. The packages for the gas processing facilities and associated infrastructure at Blaydin Point, Darwin, include: Fabrication and construction of the gas processing units , LNG, LPG and condensate storage tanks, Product loading jetty, Civil works and site preparation, Construction workforce accommodation village, Supply of construction material and construction services, Administration buildings on Blaydin Point.
SG Partners Sales Recruitment Services – yes we recruit sales and sales management professionals.
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Account Manager, Brisbane and Perth, Mobile OEM
Sales Co ordinators, Brisbane, Mobile OEM
Sales Person, Emerald, Technical products
Sales Co ordinators, Brisbane, Engineering
BDM, Brisbane, Project/Change Manager Automation systems
Sales Manager, Mackay, 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 email@example.com
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.
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- BDM with vast electrical knowledge selling into the mining, energy and water sector, Brisbane.
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Global steel output may climb to a record 1.43Mt this year and jump another 7% next year, ArcelorMittal, the world’s largest steelmaker, and rivals including POSCO are looking to acquire metallurgical coal reserves.
North China’s Shandong province will invest more than $15B in its coal industry by the end of 2015, according to China’s Coal Industry Administration Bureau.
Silver surged to 30 year high in the overseas market as a weaker dollar [^] increased the investment appeal of precious metals.
Silver prices for 2009 have risen like a phoenix from the financial ashes mainly on the winds of strong investment demand. Moreover, even in 2010, silver has yielded a decent 40% returns, propelled by confident resurfacing of industrial demand post the economic slack. On the other hand, gold has surged 21% during the 10 months period.
Bullion analysts are positive on silver indicating that the precious metal has barely made halfway back to its prior nominal high of $50 an ounce, achieved around early 1980s. However, despite industrial demand for silver, the real pressure going forward is from investment demand, which has been a fraction of that of gold.
Nickel prices have appreciated by 24%, driven by escalating demand from stainless steel industry amid tight supplies. Supported by firming trend in global markets and rising domestic demand from the alloy makers..
About 2/3rd of the total nickel output is used in the manufacturing of stainless steel. Further, followers of the stainless steel market expect prices of nickel to remain firm over the next three years.
Sales and Marketing
I am amazed at the win/loss ration being so low and accepted. I have heard less than 10%, that means companies are spending 90% of their time loosing deals. 90%.
Spending all the time and resources to quote/bid/tender and not get selected, and doing it time and time again seems to be pointless. It may make the sales pipeline look good for the moment however that is not why we are in business.
So when you loose do you follow up to find out why, do you care? do you have the courage to know why?
I suggest you have someone senior withuin nthe compay to contact the customer and ask the following questions:-
- Why we were not selected as your partner?
- What was the key deciding reason?
- What were the other factors influencing your decision?
- What did we miss out in our solution?
- How did our proposal align with your needs?
- How did our presentation compare to those of the winning firm?
- Was there an objection to our price?
- What did our competitor offer?
If there are patterns, surely you want to correct so you receive the ROI of your sales time, company resources and get better at closing deals that matter. Then, when you’re done, you make sure to send a thank-you note to the customer.
Mining Equipment and Services News
Thiess Sedgman TSJV has been awarded an $85M contract to design, procure, construct and commission an upgrade of the CHPP at the Bengalla mine. Planned works will increase the CHPP’s capacity from 1,200tphr to 1,700tphr and are due for completion in the first quarter of 2012.
ABB to buy Baldor
OneSteel announced Anglo American had agreed to sell its Moly-Cop and AltaSteel, grinding media and steel products businesses , to the Australian firm for $A945.38M
Sinclair Knight Merz celebrated the opening of its Shanghai office on 28 September. The office, now SKM’s primary operating centre in China, was opened as part of the company’s focus on enhancing the services offered to international clients operating in the region.
Caterpillar reported third-quarter fiscal profits of $404M, up a whopping 96% from the company’s earnings in the same period last year. Caterpillar has continued strong investments and capital projects in the face of the economic downturn. Including plans to acquire mining equipment maker Bucyrus International for about $7.7B. Bucyrus provides Caterpillar with a broad and well-respected product portfolio of electric-powered mining shovels, drag lines, drills and underground coal mining equipment that compliments mining machinery.The proposed deal is scheduled to close in the middle of 2011.
Caterpillar has unveiled a five-year agreement with mining heavyweight Rio Tinto for the support and supply of a broad range of Cat equipment to its sites worldwide.
The BAM Clough JV has secured another letter of intent for the PNG LNG jetty project, taking the JV’s total value of contracts awarded for project to $A321M
Abigroup Contractors has been awarded a $618M D&C for two bridges totalling 2.2Km in length over the Macleay River and floodplain as part of the Pacific Highway Kempsey Bypass.
Incat has secured a contract to build the world’s first high-speed passenger ship powered by LNG.The 99 m high-speed ferry, which has capacity for over 1,000 passengers and 153 cars, is being built at the Incat Tasmania shipyard in Hobart for delivery in 2012 to an undisclosed customer.
Thiess has won a 20-year, $5.5B contract to mine coal at NTPC Ltd.’s Pakri Barwadhi field. The contract to mine a total of 300MT of coal at the field in India’s resource-rich Jarkhand state is one of the largest ever awarded by NTPC, one of India’s largest state-owned power companies. Pakri Barwadhi will produce 15Mtpa after a three-year ramp up period at the site, during which Thiess will build infrastructure and a coal preparation plant.
Leighton Contractors has been confirmed as principal contractor to design and construct a $550M upgrade of the Hills M2 motorway in northwest Sydney.
Allight has added to its stable of mining and construction equipment brands after its parent company, National Hire Group, purchased pump manufacturer Sykes Group in a $50M
Komatsu has forked out $50M to build a new super-site at Wacol as part of a nationwide expansion program.It will assemble up to 70 ‘ultraclass’ dump trucks per year on-site, beginning January 2011, and act as a one-stop shop for Komatsu’s Queensland customers – with sales, service, and assembly of mining and utility equipment taking place on-site.The facility will house Komatsu’s national Mining Division head office, and will service a national customer base through a state-of-the-art remanufacturing centre.
UGL has rail freight orders$250m thanks to the iron ore boom.
WorleyParsons and Ausenco have won a joint contract to manage delivery of a $7.5B coal project in Queensland. WorleyParsons and Ausenco will provide program management services to Hancock Coal’s Alpha thermal coal project.Total JV revenue under the contract was expected to be about $285M over four years and would employ up to 250 staff. A final bankable feasibility study for the project is due for completion in the first quarter of 2011. The award would allow his company to work with Ausenco to develop a world scale pit-to-port project.
Ostwald Bros has been awarded a contract by QGC valued at up to $60M. CEO Brendan Ostwald says the family-owned business’s ranks will swell to over 500 within the next six months and is confident the company will continue to win more work over the next year. Ostwald Bros has the largest privately-owned scraper fleet in Australia.The company now intends to inject an additional $7M in plant and equipment to meet new project requirements.The fleet expansion has resulted in an increase in the ranks at their Dalby servicing centre.
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. http://www.sgpartners.com.au