Industry News

The Western Australian Government is calling for nominations for the 2012 Australian Water Association WA Water Awards, which will aim to recognise significant contributions made by organisations and individuals to water management in the state.

“I encourage individuals, businesses, schools and other organisations to nominate themselves or others for achievement in areas such as water management, innovation, conservation and efficiency,” State Water Minister Bill Marmion said.

The awards are organised by the Australian Water Association and presented by the Department of Water and the Water Corporation. They recognise achievement in the following categories: 

• Infrastructure innovation
• Program innovation
• Research innovation
• Resource management
• Conservation and efficiency
• Recycling
• Waterwise business
• Waterwise council
• Waterwise school
• Water professional
• Young water professional

Nominations close on Friday September 7, 2012 and winners will be announced at a gala dinner on Friday November 23, 2012. To find out more about the WA Water Awards or to download a nomination kit, go to http://www.awa.asn.au/awards/wa.

Lend Lease Group Ltd and a Leighton Holdings Ltd subsidiary have been awarded work on Victoria's regional rail link.

Lend Lease's Abigroup business was awarded a contract worth about $750 million for work on the city to Maribyrnong River section of the rail line.

Leighton subsidiary John Holland was awarded a $570 million contract for work on the same stage of the rail project, which will separate regional trains from metropolitan trains on the Melbourne rail network.

Construction will being in the coming months, and is expected to be completed by 2016, John Holland said.

Australia has once again featured in the top 10 highest polluting countries after the WWF released its 2012 Living Planet Report, showing that Australia’s carbon emissions are the top contributors to securing the dubious honour.

The biennial report, which measures the impact of human demands on nature, found that humans are using 50 per cent more resources than the Earth can provide for, and that we will need two planets by 2030 if the current rate of consumption continues unabated.

The WWF has urged Australia to stay the course with its current legislative progress in implementing a tax before rolling out a full emissions trading scheme in 2015.

"Australia has some of the world's best renewable energy resources and know-how to be able to significantly reduce our carbon footprint. The Carbon Price and Renewable Energy Target are key mechanisms that together will drive the shift from coal to renewables,” said WWF Australia’s Climate Change Manager Kellie Caught.

“Just like the industrial revolution brought benefits to society, the carbon price will drive a new clean revolution that will have health and economic benefits but critically give our precious environment a fighting chance.”

Topping the list of the most polluting countries was Qatar, followed by Kuwait, the UAE and, surprisingly, Denmark.

The full report can be found here

The South Australian Government has released a draft roadmap aimed at maximizing the potential of the state’s unconventional gas resources in an environmentally sustainable way.

The roadmap, believed to be the first of its kind in Australia, will lay out crucial information for the sector’s stakeholders.

“It’s about starting a conversation about the benefits of unconventional gas to South Australia and we encourage all stakeholders including APPEA members to be engaged in that discussion,” State Minister for Mineral Resources and Energy Tom Koutsantonis said.

“Even in its infancy the unconventional gas sector has the potential to deliver hundreds of millions, if not billions of investment dollars to this State and provide a new lease of life to the Cooper Basin.”

“The aim of the road map is to not only inform South Australians but also set a course for the environmentally sustainable development of this State’s large endowment of unconventional gas.”

The draft establishes the factors that will be taken into account in considering the approval of unconventional gas projects in considering compatibility with existing natural, social and economic environments.

The draft Road Map is open for public comment until 5pm Friday 27th July 2012, so that people and enterprises can influence the final form of the document.

For downloads of the draft road map and online lodgement of submissions go to: www.petroleum.dmitre.sa.gov.au/environment/register/comment

Geoscience Australia has released its Australian Gas Resource Assessment 2012, detailing key findings of in the industry and what it anticipates for the industry.

The report finds that the gas sector is being transformed by changes in markets and technology that are bringing new gas resources into play.

The report tracks significant changes in the last two years within the gas resources sector and the gas market, finding that coal seam gas (CSG) reserves have doubled since 2010, and three major liquid natural gas (LNG)/CSG projects are now under construction.

The report found that Australia gas has become Australia’s third largest energy resource after coal and uranium, and that the country most likely contains substantial shale gas and tight gas resources that are yet to be quantified by exploration.

Finally, the report concluded that the gas is expected to significantly expand its share of the country’s energy production and exports over the coming decades as well as continuing to expand its contribution to domestic electricity generation.

The full report can be found here (PDF)

Federal Parliamentary Secretary to the Treasurer, Bernie Ripoll, has announced the appointment of Belinda Gibson and Ian Purchas as Members of the Financial Reporting Council (FRC).

Ms Gibson’s appointment will last until May next year, while Mr Purchas will be appointed for a three year term.

Ms Gibson was nominated by ASIC, of which she is the Deputy Chairman. Her responsibilities at ASIC include the supervision of corporations (and consequently their financial reporting practices), as well as the financial reporting and audit and insolvency practitioner teams within ASIC.

Mr Purchas was nominated by the Institute of Public Accountants. He is a Principal at RMG Partners Business Solutions, a Sydney-based insolvency and accounting practice, and is a Registered Liquidator and an Official Liquidator of the Supreme Court of NSW and Federal Court of Australia. He has practised in the insolvency profession for in excess of 26 years, including over 10 years' experience in a Principal/Senior Manager position in a specialist insolvency practice and 10 years' experience in a senior role at Coopers and Lybrand.

Mr Ripoll welcomed Ms Gibson and Mr Purchas to the FRC. "On behalf of the Government, I am very pleased to appoint them as Members. I am sure they will bring significant financial experience to the Council".

The Victorian Government has appointed three members to the Sustainability Victoria (SV) Board. The new members are Mr Ron Lovett and Mr Tony Hinton. An existing member, Ms Suzanne Evans, has been reappointed to the board.

"Now that the SV review has been considered and a new strategy developed that reshapes the organisation's focus, the new SV board will be working to deliver on this new vision for greater resource efficiency across Victoria," said board Chair, Dr Gillian Sparkes.

"With several board positions lapsing in April this year, it was important to ensure appointments to these positions could achieve a balance between board continuity and renewal."

The three appointed members replace outgoing members Ms Carolyn Lloyd, Dr Tony Marxsen, Ms Tanya Ha and Dr Nicholas Gruen.  Dr Sparkes, Mr Mike Hill, Mr Ross McCann and Ms Cheryl Batagol will continue as board members until July 2014.

The Sustainability Victoria Board is: Dr Gillian Sparkes, Chair (PhD, MBA, GAICD) ; Mike Hill, Deputy Chair; Cheryl Batagol, Chair of the Victorian Environment Protection Authority (EPA) and is a member of the Victorian Catchment Management Council; Suzanne Evans; Ross McCann, Executive Chairman of Qenos and President of the Plastics and Chemicals Industry Association; Ron Lovett, Executive Manager - Business Strategy and Management of Abigroup; and Tony Hinton, consultant in economic policy and public policy issues.

The Federal Government has announced future contracts for the Disability Employment Services-Employment Support Service, which will run for the next five years.

Minister for Employment Participation Kate Ellis said the spending will allow for an unprecedented level of support in helping people with disabilities find work.

“All Australians have a right to the dignity and self respect that employment brings and without access to paid employment, people with a disability risk life on the margins of our community,” Ms Ellis said.

The announcement comes after the Australian Government released the Disability Employment Services Star Ratings – which reveal the services that are performing well and those that need to improve.

These March quarter Star Ratings will be used as a basis to determine, which service providers will be required to re-bid for their existing business later this year.

Services performing at the 4 and 5 star level will not be required to re-tender but will be given the opportunity to expand and assist more job seekers in new areas.

The Australian Federation of Disability Organisations, the Australian Chamber of Commerce and the Industry and Disability Employment Australia welcomed the announcements.

“The additional two years will allow DES providers to develop and maintain supportive relationships with employers and most importantly with the over 75,000 people with enduring disability in the program,” Lynette May of Disability Employment Australia said.

View the performance ratings at www.jobsearch.gov.au/provider

A Productivity Commission report, Impact of COAG Reforms:  Business Regulation and VET, has found the COAG reforms of the Vocational and Education Training (VET) system, signed by the Prime Minister and state and territory leaders last month, will create more jobs, increase productivity, grow the economy and boost the wages of Australians.

The report confirms that an individual who is awarded a Certificate III or IV as a result of these reforms will have improved earnings of more than $324,632 over their working life.

The Productivity Commission’s findings included:

* Vocational education and training reforms are aimed at improving the overall quality of the workforce and encouraging higher workforce participation, through increased VET provision and greater flexibility in courses offered.

– Attainment of the COAG 2020 targets has the potential to raise GDP by two per cent.

– It would also assist in achieving COAG’s broader social inclusion goals.

* Increased effort by governments will be required for the full potential of the COAG reform agenda to be realised. 

* A number of areas offer opportunities for even better outcomes. In particular:

– initiatives to increase VET completion rates;

– ensuring VET reforms are sequenced so that the building blocks are in place for the successful transition to more contestable markets including, L strengthening quality control through cost-effective independent validation and auditing of training organisations’ assessment practices; and L making information available to students on the costs of training, quality and labour market outcomes for individual training organizations;

– greater autonomy and capacity for TAFEs to compete with other providers; and

– tying payments to outcomes.

The Productivity Commission’s Report is at www.pc.gov.au.

Minister for Climate Change and Energy Efficiency, Greg Combet, has announced the appointment of Professor Veena Sahjwalla to the Climate Commission.

Professor Sahajwalla is Associate Dean Strategic Industry Relations, Faculty of Science and Director of the Centre of Sustainable Materials Research & Technology at the University of New South Wales.  She has research and development expertise in the fields of energy efficiency, sustainable materials and recycling and invented a process of recycling plastics and rubber tyres in steelmaking.

Professor Sahajwalla will replace Dr Susannah Elliot, who stepped down from her role to continue her work with the Australian Science Media Centre.

"Professor Sahajwalla has conducted world-leading research in collaboration with major resources companies in Australia. Professor Sahajwalla's understanding of Australian industries together with her expertise in science communication will be valuable additions to the Climate Commission,” Mr Combet said.

Curtin University researchers have used computational fluid dynamics and powerful supercomputers to create new models for understanding and predicting coral bleaching.

A phenomenon that has increased in magnitude over the past two decades, coral bleaching is attributed to an elevation of sea surface temperatures combined with the sun’s irradiation.

While bleaching is generally expected in response to a one to two degree temperature increase over a prolonged period, the new models consider phenomena such as coral porosity and permeability, morphology, mass and most importantly water flow and heat transfer.

Dr Ben Mullins of Curtin’s Fluid Dynamics Research Group said due to their shape and surface area, some corals are likely to be more susceptible to bleaching.

“One of the elements ignored until now is water flow, which can significantly influence the thermal microenvironment of the coral as water flows through and around it,” he said.

“Basically, we’ve taken an engineering approach to an issue that biologists have been looking at for years and come up with a completely new method to predict how much corals warm.”

He said outcomes from the computer models were shown to be consistent with outcomes from laboratory experiments, indicating validity of the new approach.

“The models have the advantage of providing three-dimensional temperature and flow information down to very precise resolution compared to previous methods reliant on microprobes,” he said.

“They are also sufficiently flexible to accommodate large-scale in-situ modelling.”

Dr Mullins said the next step was to apply the models more broadly to entire coral reefs.

“Given the scale of these structures, it’s very hard to get good data out in the field,” he said.

“Traditionally, researchers have measured temperature and flow at different points, which isn’t an accurate representation of the larger system.

“Our models are much more comprehensive.

“Given that the Great Barrier Reef is worth $6 billion from tourism alone to the Australian economy, there’s immense value in reef conservation.”

Coral consist of a calcite skeleton with a layer of living tissue. They live in a symbiotic relationship with zooxanthellae, single-celled plants/algae, with both providing nutrients for survival.

Coral bleaching occurs when zooxanthellae are expelled by coral or lose their pigmentation. Under some circumstances coral can recover, but in most cases they die.

Published in PLoS One, the research was spearheaded by Curtin’s Fluid Dynamics Research Group with the Australian Institute of Marine Science. The work was made possible through use of the iVEC@Murdoch supercomputer, Epic, via OpenFOAM software.

The Board of Coalworks has urged the company’s shareholders to reject Whitehaven Coal’s takeover offer, describing the move as ‘inadequate and opportunistic and that it significantly undervalues’ the company.

The board outlined the main reasons in rejecting the offer:

• The offer does not reflect the inherent value of Coalworks’ portfolio of assets nor their growth potential at a time when Coalworks is moving closer to delivering on its strategy of building an independent Australian coal producer.
• The offer is opportunistic and has been timed to coincide with a separate attempt to destabilise Coalworks by calling a General Meeting to alter composition of the Board by removing Coalworks’ Independent Chairman and Chief Executive Officer.
• The offer does not reflect the significant synergistic benefits that Whitehaven could achieve by gaining control of Coalworks.

A new research cluster called the Methane Research Cluster has been formed to focus on reduction of livestock methane emissions in Australia, which accounts for  10 per cent of the country’s overall greenhouse gas emissions.

A team of Australian and international scientists have teamed up with CSIRO’s Sustainable Agriculture Flagship to help address one of the key contributors of methane emissions – burping livestock.

The collaboration, led by researchers from the University of Melbourne, aims to improve measurement and management of methane emissions for the grazing lands of northern Australia thought to be responsible for five per cent of the country’s overall greenhouse gas emissions.

Professor Deli Chen, Project Leader from the University of Melbourne, said the Cluster will be able to draw on the skills of world-leading research institutes to accurately measure methane emissions from livestock under real grazing conditions.

“This is a critical step if we are to help agriculture reduce its emissions because if you can’t measure, you can’t mitigate,” Professor Chen said.

CSIRO’s Research Project Leader, Dr Ed Charmley, said, “The Australian Government’s Clean Energy Act sets a long-term goal of reducing greenhouse gas emissions by 80 per cent of 2000 levels by the year 2050. This research will help identify field-based measurement techniques and protocols that can support management actions and technologies that can help Australia meet such ambitious targets.”

“The Cluster will also develop science that supports methodology development for the Carbon Farming Initiative, an Australian Government program that enables farmers to earn ‘carbon credits’ for undertaking abatement activities on their properties,” Dr Charmley said.

CSIRO’s Flagship Collaboration Fund will fund the Cluster for over three years, with support from several other Australian universities including Macquarie University, RMIT Victoria, University of New England, University of Western Australia, and University of Wollongong as well as researchers at Agriculture and AgriFood Canada and the University of Alberta.

The Federal Government has launched the National Infrastructure Construction Schedule (NICS) which will provide details on every economic and social project valued at $50 million or more being planned or delivered by governments around the country—Federal, state and local.

Developed by the Federal Department of Infrastructure and Transport, the website, www.nics.gov.au, currently lists 56 projects worth over $50 billion.

Previously, those interested in financing or building infrastructure had to rely on ‘word of mouth’ or websites and newspapers to find what was available, a process which advantaged larger investors and the big construction companies.

Announcing the NICS service, the Minister for Infrastructure and Transport, Anthony Albanese said that irrespective of their location, investors and infrastructure providers now have equal access to the same information about both the immediate and longer term opportunities which exist in Australia.

Energy management specialist Schneider Electric has made a senior appointment which will aim to further increase its business focus and integrated solution offering to the Australian water and wastewater sector.

Simon Zander has been appointed as the company's General Manager, Water and Wastewater, Schneider Electric Industry Business. In this role, he will help Australian water and wastewater organisations tackle the operational and energy-efficiency challenges they face.

Zander has over 20 years’ experience in the water industry. As General Manager of Serck Controls, he led the company in its integration into the Schneider Electric business at the beginning of 2012.

“In 2012, the water industry will be focused on increasing operational productivity and efficiencies. To achieve these efficiencies, we expect to see greater demand for real-time information access so operational decisions can be made more quickly,” said Zander.

Construction of Tasmania’s largest ever irrigation project is ready to start in the state’s Midlands region after the Federal and State governments gave final approvals for the $104 million Midlands Water Scheme.

Major design and construction contracts have been awarded and work will begin next month, creating 130 direct jobs during the two years it will take to build the scheme.

Federal Minister for Water Tony Burke said the project will significantly boost food production and employment throughout the region.

“Once complete, this scheme will provide a strong foundation for Tasmania’s growing food processing sector. Based on experiences elsewhere around Tasmania it is expected to create up to 300 on farm jobs over time,” Mr Burke said.

The Midlands Water Scheme takes water from Arthurs Lake before distributing it to farms within an irrigable area of 55,680 hectares.

Water from Arthurs Lake will be taken by 34km of mostly buried high pressure pipeline down the Western Tiers to a new mini-hydroelectric plant and small holding dam west of Tunbridge. From there a network of 103km of mostly buried pipelines and sections of waterways will get the water to farmers for productive agricultural use.

The Federal Government will contribute $55 million to the project, while the private sector has contributed $37 million and $12 million from the State Government.

Major contracts were awarded to Tasmanian companies Hazell Bros Group and Zest Pty Ltd with Australian-based contractor, Fulton Hogan Construction Pty Ltd the other successful tenderer.

Westgold has announced it has accepted the $92 million merger deal floated by substantial shareholder Metals X. The deal will see Westgold shareholders receive 11 Metals X shares for every 10 Westgold shares held, based on the closing price of Metals X shares on 9 May.

The final merged company will include a portfolio including:

• growth assets including the producing Renison Tin Project (Metals X share 50%) and the Rentails Tin Project in Tasmania, the massive Wingellina Nickel Project and Central Murchison Project in WA and the Rover 1 Copper-gold Project in NT
• An experienced evaluation and development team comprising members of both companies capable of rapidly progressing the combined assets of the two groups
• Cash and listed investments in excess of $100 million
• A market capitalisation in excess of $330 million with the potential for a marketing re-rating

Westgold’s Chairman, Michael Atkins, said that the merger will give the company’s a stronger market valuation, which will reflect the company’s strong asset base.

Metals X is currently the largest shareholder of Westgold with a shareholding interest of 26.98% and has been Westgold’s largest shareholder since 2007. Metals X currently holds two nominee director positions on the board of Westgold, being Mr Peter Cook and Mr Warren Hallam.

Treasurer Mike Baird today announced the NSW Government has successfully refinanced the Sydney Desalination Plant for $2.3 billion, a result which is well above the book value.

The proceeds will be used to repay the debt held against the asset, with net proceeds of more than $300 million to be invested in the NSW Government’s infrastructure fund – Restart NSW.

Mr Baird said the NSW Government has accepted a binding offer to refinance the desalination plant from a consortium including the Ontario Teachers’ Pension Plan Board, Hastings managed infrastructure funds Utilities Trust of Australia and The Infrastructure Fund.

“The selection of the consortium for the long term lease of the Sydney Desalination Plant is a great outcome for the people of NSW,” said Mr Baird.

As part of the transaction, Sydney Water has entered into a 50 year water supply agreement with SDP. Prices in this agreement are regulated by IPART.

BHP Billiton has announced the appointment of Pat Davies as the company’s new independent Non-Executive Director, effective June.

Mr Davies was previously the Chief Executive of Sasol Limited until his retirement in June last year, having worked in the position since 2005 where he oversaw substantial international growth.

“Pat’s appointment is a welcome addition to an already strong Board, providing additional experience in the oil and gas industry in particular. His corporate experience in the natural resources sector across a number of geographies, commodities and markets, will ensure a significant contribution to the Board,”  BHP Billiton Chairman Jac Nasser said.

Leighton Contractors has been awarded a $93 million Engineer, Procure and Construct (EPC) contract for the temporary site facilities works at Blaydin Point, Darwin as part of the Ichthys project being developed by JKC Australia LNG.

The works will see Leighton construct temporary buildings, temporary utilities and temporary civil works.

“The successful award of this project sees Leighton Contractors’ work-in-hand for oil and gas projects reach more than $3billion. We service the gas and hydrocarbons processing sectors in Australia, New Zealand and Papua New Guinea, with a focused effort in the areas of liquid natural gas, synthetic fuels, natural gas compression and transmission, and coal seam gas production,” Leighton Contractor’s National General Manager Oil and Gas Graem Dunn said.

The Temporary Site Facilities Works project is due for completion in March 2014.