Director General e-News - Department of Mines and Petroleum

From the Director General

As we rapidly approach the end of what has been a productive 2013, it is time again to welcome readers to the latest edition of the DG's eNews.

In this edition we take a look at some of the latest figures compiled by my department from the 2012-2013 financial year.

The value of Western Australia’s mineral and petroleum industry has exceeded $100 billion for the third consecutive year, and in 2012–13 the value of mineral and energy resources was $102 billion, the second highest on record.

Last month I presented in the Australia minerals session of the Federation of Indian Mineral Industries Mining Mazma 2013 in Bangalore, India.

I was fortunate to be able to promote Western Australia as a desirable investment and exploration destination at one of India’s key conferences, and highlight recent discoveries in gold, uranium, rare earth elements, nickel and base metals.

Earlier in the year, I, along with a team of six Federal and seven State Government representatives spent three days visiting the Pilbara to look at sites first hand.

This was additional to visits by senior DMP executives to discuss the latest developments in Mineral Titles and the environmental reform program. These trips are crucial to maintain government and industry relations and discuss emerging issues.

There are also a series of articles looking at ways DMP is streamlining approval processes and improving efficiency, including efforts that have seen the Mineral Titles backlog cut by more than 75 per cent, changes to the Programme of Work (PoW) approvals system, and the introduction of a new Royalties Management System.

If exploration for shale and tight gas proves successful in Western Australia my department is committed to ensuring the responsible and safe development of this emerging industry.

This edition features how DMP is continuing to work with WA communities to address any concerns on the sector, with departmental officers travelling to the Northwest and Midwest to share information and answer questions. More regional visits are planned.

WA’s emerging oil, shale and tight gas sector was also put under the spotlight at DMP’s annual Petroleum and Geothermal Open Day.

My department continues to reaffirm its commitment to safety with the appointment of additional inspectors, the launch of awareness programs aimed at the Southwest region’s 60 medium and large scale mines, and a ramp up of audits of the State’s 19 major hazard facilities.

These, along with a departmental study into 13 years of WA mining fatalities, are also featured.

There is also an update on our Reconciliation Action Plan (RAP), cultural awareness training for staff, and NAIDOC and Reconciliation Week celebrations, and other DMP activities.

The DG’s eNews is a valuable tool for anyone interested in the future of the Western Australian mining and petroleum industry and provides updates on the latest activities of the department, so please recommend it to your industry colleagues.

 

Richard Sellers

Director General, Department of Mines and Petroleum

Resourceful Western Australia continues to produce

The value of Western Australia’s mineral and petroleum industry has exceeded $100 billion for the third consecutive year.

Recently released figures from the Department of Mines and Petroleum (DMP) show that in 2012–13 the value of mineral and energy resources from WA was $102 billion.

“Although the value of the industry fell by 3.8 per cent from 2011–12, this represents the second highest on record, and during a period when the strong Australian dollar maintained an average exchange rate in excess of US$1,” Director General Richard Sellers said.

“While the high value of the Australian dollar played a part in lower prices for Western Australian producers, the value of sales overall was maintained by an increase in quantities sold,” he said. 

Iron ore and gold together accounted for $65.3 billion (84 per cent) of all mineral sales in 2012–13. 

Iron ore remained the State’s highest value commodity, accounting for $56.4 billion (73 per cent) of total mineral sales in 2012–13.  With strong demand, led by China, the sector achieved record levels of export quantities. 

This resulted in 513 million tonnes being exported, representing an increase of 13 per cent on the previous financial year.  Lower prices however, resulted in a decrease of 7.3 per cent in the value of iron ore sales.

Mr Sellers said the gold price continued to climb in the first half of 2012–13, but started to weaken in December 2012 and continued its downward trend to June 2013. 

“This resulted in total sales of just under $9 billion for 2012–13, a fall of 4.6 per cent over the previous financial year,” he said.

While gold was the second most valuable mineral sector the quantity sold fell slightly from 5.8 million ounces in 2011-12 to 5.7 million ounces.

The petroleum sector, which includes crude oil, condensate, LNG, natural gas and LPG (butane and propane) was valued at $24.5 billion, an increase of 2.9 per cent on the previous year. 

“This increase was due to the Pluto LNG project coming on stream which countered falls in crude oil, LPG and domestic gas,” Mr Sellers said.

He said mineral and petroleum exports comprised 89 per cent of the State’s total merchandise exports, representing the major contribution to Western Australia’s 47 per cent share of the nation’s total merchandise exports. 

China remains WA’s major trading partner taking 47 per cent of merchandise exports followed by Japan at 19 per cent.

Mr Sellers said Australian Bureau of Statistics (ABS) figures showed that investment activity in Western Australia strengthened during 2012–13, with the State’s mining industry investing a record $48 billion, a seven per cent increase compared to 2011–12.

Western Australia remained the nation’s leading mining investment destination, attracting 51 per cent of total national capital spending valued at a record $95 billion.  

Fuelled by strong demand for resource commodities from Asia, new capital expenditure by the State’s mining industry has grown at an annual rate of 23 per cent during the five years to 2012–13.

“The dominance of the resources sector in the nation’s economy is expected to continue given the number of projects which have been expanded or developed, in particular iron ore and LNG,” Mr Sellers said. 

As at September 2013, Western Australia had an estimated $146 billion worth of resource projects under construction or in the committed stage of development.  A further $97 billion has been identified as planned or possible projects in coming years.

WA's prospectivity promoted in India as Director General takes international stage

Department of Mines and Petroleum (DMP) Director General Richard Sellers last month promoted the prospectivity of Western Australia at a key conference in India.

Mr Sellers was one of the presenters in the Australia minerals session on the first day of the Federation of Indian Mineral Industries Mining Mazma 2013 in Bangalore, India.

The Director General’s presentation was on Western Australia as a desirable investment and exploration destination.

“The international conference allowed me the opportunity to focus on WA’s prospectivity, and I was able to highlight recent discoveries in gold, uranium, rare earth elements, nickel and base metals,” Mr Sellers said.

“Surprisingly, some of the interesting discoveries are being made in brownfields areas, sometimes in areas that have been explored intensively in the past.

“Other world class discoveries are being made in greenfield areas, and we welcome more investment, particularly at the earlier part of the exploration and development process.”

During the three day conference attendees covered a range of interest from exploration through to mining and refining.

Mr Sellers told attendees that due to the lack of equity capital for exploration and feasibilities studies, many explorers were looking for joint ventures in their projects, or new investors in their company.

Western Australia was one of the exhibitors at the Australian booth, which was awarded the ‘best foreign booth’, along with Geoscience Australia, South Australia and Queensland.

Exhibitors were mainly from India with some rather spectacular displays mounted to entice interest. A few foreign countries including Canada, PNG, South Africa and Peru also had exhibitions at the conference.

Top DMP's executives visit Pilbara region

Earlier this year the Department of Mines and Petroleum’s (DMP) Director General, Richard Sellers, joined a team of six Federal and seven State Government representatives who spent three days visiting the Pilbara.

This was prior to a visit by executive directors of the Mineral Titles and Environment Divisions to take part in the 7th Annual Mining the Pilbara Conference in Port Hedland, and also included a tour of Karratha and Marble Bar

The Director General’s tour, hosted by the Chamber of Minerals and Energy, included visits to Barrow Island, the town of Roebourne, Rio Tinto’s Cape Lambert Operation, Woodside Energy, BHP Billiton Mount Whaleback, FMG’s Cloudbreak, a plane flight over the Wheatstone site and a boat tour of Port Hedland’s harbour.

The visit was a chance for the group to have a look at the sites first hand and become more familiar with the Pilbara region.

“This trip was a fantastic opportunity to see how some of the State’s biggest mining and petroleum operations are progressing, with fellow government executives,” Mr Sellers said.

The Port Hedland conference was attended by about 60 industry representatives with the opportunity to to showcase their expanding projects and current successes, discuss common concerns and confer with government.

DMP discussed the latest developments in mineral titles regulation in WA and progress towards approval process reform and stakeholder engagement, as well as the Mining Rehabilitation Fund (MRF) and the environmental reform program, including legislative, regulatory and policy developments and the IT infrastructure being built to support them.

In 2012, the value of minerals and petroleum was $96.9 billion - 52 per cent of which came from the Pilbara.

“Trips like this are crucial to maintain government and industry relations and discuss emerging issues,” Mr Sellers said.

DMP slashes Mineral Title approval backlog

The Department of Mines and Petroleum (DMP) has cut the Mineral Title applications backlog by more than 75 per cent.

The move is part of the State Government’s commitment to streamline approval processes, slashing Western Australia’s mineral title applications backlog to its lowest level in almost two decades.

The State Government had committed $5.5million during the past six and a half years to assist DMP to address stalled mining and exploration applications.

The total number of applications waiting for approvals now sits at about 5,000, almost a 75 per cent decrease from the February 2007 figure of nearly 19,000.

“We’ve granted applications over nearly 17,000 square kilometres of land in previously stalled mining and exploration applications during the past year,” Director General Richard Sellers said.

“This includes some significant and highly prospective areas across the State.”

Mr Sellers said the outcome was helped by a specialist departmental taskforce that has worked throughout the past year to reduce applications from 6,400 to 5,050.

Through the taskforce’s proactive engagement in the native title negotiations, DMP was able to help reduce the backlog of applications, and aims to reduce WA’s stalled applications to 4,000 by June 2014.

“We want to prevent mining companies from so-called ‘application parking’ or ‘land banking’ - where access to land for mineral exploration is purposely stalled in the Native Title Act proceedings, to maintain priority over areas and prevent other companies from developing it,” Mr Sellers said.

More information on mineral titles can be found here.

DMP cuts more mining red tape

The Department of Mines and Petroleum (DMP) has cut red tape for the mining industry with a change to the Programme of Work (PoW) approvals system.

DMP Director General Richard Sellers said the change would improve efficiency and reduce duplication for the resource industry - and continue to ensure strict environmental standards were met.

The department had extended the validity period for PoW approvals from two to four years.

PoW approvals ensured resource companies conducted exploration in an environmentally sustainable way and set out the timeframe for companies to complete exploration works.

DMP received 2,596 PoW applications in 2012, and 1,160 applications in the first two quarters of 2013.

"This will improve efficiency and reduce duplication for the resources industry, while at the same time ensuring strict environmental standards," Mr Sellers said.

"This decision provides greater flexibility for industry to manage exploration programs. This includes unforeseen events that can impact on exploration work such as extreme weather, access to operators and equipment, and funding."

The standard PoW period of validity was extended in December last year from one to two years. It has been extended again following feedback from stakeholders.

"This will see a reduction in the number of PoWs requiring annual review and will deliver considerable efficiencies for the department and industry," Mr Sellers said.

The period of validity will only apply where the scope of the exploration work remains unchanged.

If a company wants to conduct work outside what was approved, they will need to seek further approval before they are able to carry out that work.

"This decision strikes an important balance between reducing duplication, providing flexibility, increasing efficiency and upholding environmental standards."

The Department of Mines and Petroleum recently introduced the Mining Rehabilitation Fund and is currently undertaking the Reforming Environmental Regulation initiative.

DMP launches Royalties Management System

A new Royalties Management System has been introduced by the Department of Mines and Petroleum (DMP), as part of a State Government commitment to improve efficiency.

DMP Director General Richard Sellers said the Royalties Management System (RMS) would allow companies to view and monitor their royalty obligations online, resulting in fewer late payments and royalty return and production report lodgements.

“The new system will assist industry to self-manage and monitor their account details online and provide a simplified and consistent lodgement process,” Mr Sellers said.

The RMS will provide a facility for companies to print an online royalty return, and allow changes to past returns and the re-submission of returns by users.

“The improved customer home page has a number of new features that will encourage companies to use the system, which can now provide a summary of returns, including under payments and over payments,” Mr Sellers said.

“DMP royalties staff will be able to offer industry improved response times to queries on royalty status and obligations, while there are now improved system query options for each royalty payer and project.”

The improved online interface will eliminate the need for data re-entry, free up staff for other royalty assessment and audit tasks, provide greater reliability of royalty data, and improve payments processes and automated accounting systems.

“Over time the RMS will result in an increase in the online lodgment of returns and reports, creating further efficiencies in the administration, collection and auditing of royalties,” Mr Sellers said.

“As royalty revenue has become a major component of the State Budget, so has the importance of its administration, which will be greatly improved by a more effective online data lodgement service, resulting in a reduced operational burden on industry.”

The system allows royalty staff to have a dashboard of daily tasks and activities on their own home page, including audits to be completed, outstanding royalty returns and payments, recent communications, and daily payments received.

The RMS effectively allocates and monitors audit activities to ensure submitted royalty returns are verified according to the audit program and tracked for performance.

An additional benefit is the new system effectively links up with a number of other DMP online processes such as Minedex, Comms Manager, e-file record systems and the Mineral Titles eMiTs system.

“During the 2011-12 financial year the State Government, through DMP, collected more than $5.3 billion in royalties from mineral and petroleum producers in Western Australia,” Mr Sellers said.

“More than $4.4 billion comes from mining, with the funds used by the State Government for law enforcement, education, health, roads and community development programs.”

Shale and tight gas on the agenda at DMP industry event

Last month Petroleum experts used the annual Department of Mines and Petroleum’s (DMP) Petroleum and Geothermal Open Day today to put the spotlight on WA’s emerging oil, shale and tight gas sector.

A number of presenters spoke about the State’s regulations and how DMP, in conjunction with other State agencies, are putting in place best practice regulation for this new industry.

DMP’s Acting Executive Director of Petroleum Jeff Haworth told the 300-strong crowd at the Esplanade Hotel in Fremantle that, while natural gas from shale and tight sources was in the early stages of exploration, indications are that these potential resources offer important opportunities for the State, which will likely be realised in the next decade.

“Initial estimates suggest WA could hold up to 280 trillion cubic feet of natural gas from shale and tight rocks – that’s enough to supply the State’s current energy needs for about 500 years,” he said.

Mr Haworth was quick to acknowledge community concerns surrounding the method used to extract natural gas and oil from shale and tight rocks (hydraulic fracture stimulation or fraccing), and that strong government regulation and careful industry practices were essential to manage risks.

“We’re working closely with communities across WA and the most common concern is whether fraccing could affect our water aquifers,” he said, noting WA’s shale and tight gas resources occurred hundreds or even thousands of metres below our critical water resources – separated by dense rock.

“We have put in place new rules for industry, which we believe are the strictest in the country, particularly around transparency and public disclosure,” he said.

Special guest speaker, Keele University’s (UK) Professor Peter Styles, weighed in on environmental issues surrounding fraccing.

“Protection of the environment must be considered carefully in this sector,” he said.

“However, most major reports, including those from the UK Royal Society and the Australian Council of Learned Academies, have concluded that the risks have been overstated or are of such a nature that properly regulated and controlled operations will not pose insurmountable obstacles.”

Professor Styles continued by saying the world would be moving towards an energy source with close to zero carbon emissions in the next few decades.

“Technical developments like fraccing have enabled natural gas extraction from shale rocks – something which could supply many decades of domestic energy to many countries,” Professor Styles said.

“The USA has already seen its gas costs fall to 25 per cent of Europe’s and the USA’s carbon footprint seems to have fallen by 17 per cent since 2009.”

Other topics to come under the spotlight at today’s open day – which was opened by Minister for Mines and Petroleum Bill Marmion – included past and future petroleum developments, government reform and policy initiatives, resources management and carbon capture storage.

Shale and tight gas community meetings in Northwest and Midwest

As Western Australia’s emerging shale and tight gas sector develops, the Department of Mines and Petroleum (DMP) is continuing to work with WA communities to address concerns and share information.

Last month DMP officers travelled to the Northwest and Midwest, following on from previous meetings with community members in these regions during the past year.

“The Broome visit allowed us to meet with a number of community leaders, including traditional land owners – which was extremely helpful for all involved” said DMP A/Petroleum Executive Director Jeffrey Haworth.

“We listened to everyone’s concerns and either provided answers or took the questions on notice – which really helps us get an understanding of what we, as a regulator, need to address.

“We also provided an overview of what natural gas from shale and tight rock is and where it could be found in the Kimberley, as well as how it’s extracted through hydraulic fracturing or ‘fraccing’, and what fluids are used.”

Late last month DMP officers attended the Midwest Expo in Mingenew to engage directly with community members and answer any questions relating to fraccing.
With the majority of attendees being farmers one of the most common questions was how fraccing could impact water resources and what land access rights apply to petroleum activities.

The Department of Water (DoW) regulates the taking of water and allocation limits for petroleum activities, and will not support proposals to take water which are likely to have unacceptable impacts on water resources, the environment or existing water uses.

Typically, fraccing within a shale or tight gas exploration well in WA uses approximately seven million litres of water. Production of WA shale and tight gas – which is estimated to be at least five to ten years away -would require around 21 million litres per horizontal well – however much of this water can be recycled or reused in other wells.

As a comparison for the farming community, a 10 hectare vegetable crop would require 150 million litres of water per year.

Many farmers who attended the show were also interested in the rights private land owners had in regards to petroleum activities.

Petroleum companies wishing to conduct activities on land greater than 2000 metres must hold the petroleum title over the area.

They must also gain approval from DMP for their proposed activity and receive written consent from the land owner before carrying out the activity. Written consent can include compensation for access to the land such as farm improvements or a financial arrangement.

If land owners and the petroleum company cannot reach a land access agreement, after three months the decision is referred to the Magistrates Court to determine a fair agreement – something that has only occurred once in almost 50 years.

Land owners can deny a petroleum activity on their land if it is less than 2000 square metres or the proposed petroleum activity is within 150 metres from a burial place, reservoir or substantial improvement, such as a house.

Mr Haworth said community briefings were crucial as they also covered how the industry would be regulated by DMP, the lead agency.

“While significant production of WA’s shale and tight gas is still at least five to ten years away, we made it clear that any future projects would be assessed by the department on a site by site and project by project basis,” he said.

“We think it’s important for people to know that, if there are any WA fraccing operations down the track, our safety and environment auditors will be conducting onsite inspections to check safety and environmental compliance.”

The briefings also provided an opportunity to talk about the benefits that shale and tight gas could bring to WA.

The Department of State Development (DSD) will assist in facilitating any major development in onshore gas.

WA is estimated to host potentially significant natural gas resources from shale and tight rock, the vast majority of which exists in the Kimberley, Pilbara and Midwest regions.

Initial estimates suggest WA holds up to 280 trillion cubic feet of natural gas from shale and tight rocks – enough to supply State gas needs for around 500 years.

For more information, visit www.dmp.wa.gov.au/shaleandtightgas

DMP study to help combat mining fatalities and injuries

A recent study into 13 years of WA mining fatalities by the Department of Mines and Petroleum (DMP) demonstrates the importance of inductions and training of new employees within the mining industry, according to Resources Safety Executive Director Simon Ridge.

The study analysed the 52 mining deaths that occurred from 2000 to 2012, a time period that saw the industry workforce increase by 60,000.

“Forty nine per cent of these deaths involved workers who were in the first year at their respective mine sites or fulfilling new roles,” Mr Ridge said.

“We believe high staff turnover can also further influence the number of accidents in the first year of a new role,” Mr Ridge said.

The DMP study found 62 per cent of the cases involved onsite procedures not being complied with.

“This drives the point home that we must always apply known precautions to known hazards and, where new tasks, machines or processes are being introduced, detailed hazard analysis and risk assessment should be carried out,” Mr Ridge said.

The research also showed that 44 per cent of the fatal accidents involved supervisors in their first year ‘on the job’ – highlighting the need for supervisors to be fully aware of the hazards and risks associated with set tasks, so workers are monitored accordingly.

During the 13-year timeframe, clusters of accidents occurred at the end of day shift (between 3pm and 6pm), five hours into both day and night shift (at 11am and 11.00pm) as well as at 3am.

“Although the sample size in our study is relatively small, these incident times seem to align with the very times when employees may be fatigued and more prone to making errors,” Mr Ridge said.

“That’s why it’s crucial for employers and employees to understand the importance of meal and rest breaks in improving energy and concentration, particularly every four hours during the common twelve hour shift.”

While the study did not show any evidence that longer rosters resulted in increased fatalities, more than half of the incidents involved employees working on the most commonly used FIFO roster, the two-on one-off.

The most prevalent occupations included fitters (nine fatalities) and haul truck operators (five fatalities), and technicians, drivers and jumbo operators (4 fatalities each).

The largest cause of all incidents included incorrect use of fall arrest equipment; procedures not being followed; run-away vehicles, vehicles over edges and collisions; electrocution; rock falls and pit wall failures; water in-rush; and tyre handling.

Fifty six per cent of incidents occurred at gold and nickel mining sites in the Goldfields, while Pilbara iron ore sites accounted for 33 per cent – with 35 incidents occurring at surface and 17 underground.

“Because the number of surface employees was 10 times higher than those working underground during this 13 year timeframe – working underground during this time period carried five times more risk,” Mr Ridge said, urging companies and workers to take notice of the study’s important findings.

“We know a young contractor tragically lost his life at a Pilbara mine site earlier this year after a nearly two year fatality-free run,” Mr Ridge said.

“It’s for that reason the department carries out such studies, so that from a regulator perspective, we can provide feedback to industry to help stop these incidents from occurring.”

DMP is backed by a 65-strong safety inspector workforce, which carries out around 2,400 site inspections each year.

DMP sets the standard in safety regulation

Safety regulations at Western Australia’s major hazard facilities have been taken to a new level as the Department of Mines and Petroleum (DMP) ramps up audits.

Reviews of the State’s 19 major hazard facilities have been increased to three times a year, and more if necessary. This includes one in-depth three-day audit and two six-monthly performance review meetings and inspections.

The department’s Director General Richard Sellers, said the rigorous audits had set a new benchmark in Western Australia.

“While the ultimate responsibility for worker and community safety rests with companies – who will continue to present their own audit results to the department – DMP is providing an additional level of scrutiny by carrying out its own compliance audits,” Mr Sellers said.

“This makes our major hazard facilities’ safety and health system one of the most thorough in the world.”

Mr Sellers said the high safety standards required at these types of facilities, which handle anything from natural gas to ammonium nitrate, are of crucial importance.

“With this in mind, the new auditing process allows our safety experts to identify critical safety issues on-site, recommend areas of improvement, and if necessary issue remediation or ‘improvement’ notices that require an ‘immediate fix’,” he said.

Five remediation notices have been issued to Western Australian major hazard facilities in the past 12 months, all for relatively minor non-compliance, such as having inadequate electrical earthing.

“While the majority of major hazard facilities are doing an excellent job, the department will enforce regulations for any that do not comply,” Mr Sellers said.

 

 

 

 

 

DMP calls on industry to keep WA safe

The Department of Mines and Petroleum (DMP) has today welcomed the launch of the National Code of Practice for Chemicals of Security Concern.

The voluntary code was developed to help WA and wider Australian businesses prevent potentially dangerous chemicals finding their way into the hands of terrorists.

The code contains practical information about how businesses can assess and take steps to reduce their chemical security risks.

Of the 40,000 chemicals approved for use in Australia, authorities have identified 96 chemicals that are of security concern.

The code focuses on 11 of the highest risk chemicals that can be used to make explosives.

This includes chemicals such as hydrogen peroxide, nitromethane and potassium nitrate.

The code applies to businesses involved in the import, manufacture, transport, storage, sale, or use of chemicals – whether that be in a factory, a shop, a laboratory, on a truck or online.

DMP Dangerous Goods Safety Director Philip Hine, who sat on a joint panel to help develop the code, said it was crucial.

“This is a national strategy to increase chemical security within industry, in order to reduce the risk of those chemicals being diverted for terrorist purposes,” he said.
“It is for this reason that industry was fully involved throughout the process.

“We want to make sure that Western Australia and indeed the nation remains a safe and resilient country.”

The code was a collaborative project developed by Federal, State and Territory governments and key representatives from the chemicals industry.

For more information, including a copy of the National Code of Practice for Chemicals of Security Concern visit www.chemicalsecurity.gov.au

Additional resources safety experts for WA

The Department of Mines and Petroleum (DMP) has reaffirmed its commitment to safety in the resources industry, with the appointment of seven new specialist safety inspectors.

The new safety specialists take the total of DMP inspectors to 111, including 65 mines safety inspectors, 16 petroleum safety assessors and risk analysts, and 28 dangerous goods officers.

DMP Director General Richard Sellers said the department had boosted its safety inspector workforce by nearly 30 per cent since late 2009, when the Reform and Development at Resources Safety (RADARS) commenced.

“RADARS was established following a series of independent inquiries and mining deaths, and continues to ensure high safety standards are being maintained at WA’s 975 operational mines and 65 petroleum sites,” Mr Sellers said.

“These new expert safety inspectors are crucial to the ongoing health and wellbeing of the State’s 98,000 resources workforce.

The new safety specialists share structural, mechanical, electrical, mining and petroleum engineering expertise.

Four have been appointed to the mines safety inspectorate team, which carries out 2,400 site inspections a year.

Three are working as petroleum safety assessors and risk analysts, performing safety documentation assessments, inspections, audits and investigations related to oil and gas operations.

The new personnel are now undertaking a rigorous six month training course, which includes familiarisation with WA safety regulation, as well as stakeholder liaison, four-wheel-drive and helicopter survival courses.

DMP works to stamp out industry bullying

A peak in Southwest mine site bullying reports has prompted the Department of Mines and Petroleum (DMP) to launch an awareness program aimed at the region’s 60 medium and large scale mines.

From 2011 to August 2013, DMP received triple the amount of reports related to bullying at Southwest mines, compared to the previous three years. To clamp down on bullying, the department has introduced a new program that will see DMP look closely during site visits at mines’ preventative systems, policies and procedures.

DMP’s Southwest Mines Safety Team Leader Tony Robertson – who heads the region’s six-strong Collie-based team – said the program would provide assistance and information to companies to ensure they fulfill duty of care.

To guide this process, the department has developed a code of practice that provides a bullying prevention plan and a new ‘anti-bullying checklist’ for inspectors and industry use while onsite.

“Southwest mines have also been sent a copy of this checklist so they have a fair understanding of what our inspectors will be looking for when inspecting their sites,” Mr Roberston said, adding the safety and health of WA resources industry workers would remain the number one priority for the department.

“We know there is a potential for workers to suffer serious and long term health effects from bullying – something that is completely unacceptable,” Mr Robertson said.
“We firmly believe that raising awareness with proactive programs like this is the best way to reduce work related injuries and illnesses.”

Minister for Mines and Petroleum Bill Marmion, who recently visited DMP’s Collie office, echoed Mr Robertson’s sentiments – saying DMP’s Southwest safety inspector team had his full support.

“Bullying is just not acceptable in this day and age,” Mr Marmion said.

“However we know it can still occur, so that’s why the work of my department’s Collie-based inspectors is so crucial.

“While most companies and workers are doing the right thing, we must stamp out any instances of this behaviour.”

Mr Robertson added while DMP could provide assistance, it was industry’s ultimate responsibility to ensure bullying issues were resolved onsite.

“In saying that though, if companies aren’t doing the right thing our inspectors have the power to take enforcement action regarding bullying,” he said.

“This can include issuing sites with improvement notices that force companies to demonstrate how they are remedying ineffective anti-bullying or preventative measures onsite.”

Further information on mining safety and health can be obtained by telephoning DMP on 9358 8079 or by visiting this page.

Substantive Equality at the Department of Mines and Petroleum

The Department of Mines and Petroleum (DMP) has demonstrated its commitment to training and staff awareness of substantive equality through its Reconciliation Action Plan (RAP) for 2012-14.

“The department recognises that people are different and therefore must be treated according to their cultural diversity.  An important component of the RAP is Culture and Awareness training, which is now compulsory for all staff,” DMP Director General Richard Sellers said. 

“This training gives staff an understanding of traditional culture and how it affects the department’s work today.” 

During the training the history of Indigenous people is covered, as well as how DMP can build stronger relationships between Aboriginal and Non-Aboriginal people, with a focus on how staff work and communicate. 

In the past eighteen months, 215 staff have participated in Culture and Awareness training. 

Reconciliation Week

In celebration of Reconciliation Week 2013 the department invited staff to participate in creating an artwork using the traditional Aboriginal method of dot painting.

Local Aboriginal artist Geoffrey Woods designed the artwork and came along to teach staff the technique of dot painting.

More than 150 staff took the opportunity to participate in the event and contributed to the artwork.

“Many of those who attended took great interest in the significance of the painting and willingness to build on their understanding of Aboriginal culture and history,” Mr Sellers said.

“Over all, the department’s Reconciliation Week celebrations received a successful turn out and also some great feedback.”

The department also celebrates National Aborigines and Islanders Day Observance Committee (NAIDOC) Week, and encourages staff to participate in activities focused on learning more about Aboriginal culture and heritage. 

“For NAIDOC week this year DMP held a number of events and activities which included a performance by Aboriginal singer, Gina Williams and renowned Aboriginal guitarist Guy Ghouse,” Mr Sellers said.

“Gina’s songs are a reflection of her life and culture which she performs in English and Noongar language. It was a truly amazing performance by the two talented professionals which staff found moving and inspiring,” he said.

Following the performance staff were able to enjoy a traditional bush tucker lunch and talk to Gina and Guy.

The completed artwork produced during the Reconciliation Week celebrations was unveiled during the NAIDOC Week celebrations and is now displayed in the department’s Mineral House theatrette.

More than 80 staff also had the opportunity to learn to throw a boomerang down the park with Neville, a local Aboriginal elder, followed by a barbecue lunch and a yarn.

During the year the RAP also resulted in the recruitment of seven Aboriginal employees through the department’s Indigenous Employment Strategy.

“DMP acknowledges and respects Aboriginal and Torres Strait Islanders as being the first people of Australia and value their contribution to the department,” Mr Sellers said.

“Furthermore, the department has implemented Welcome to Country and Acknowledgement of Country Guidelines to acknowledge the traditional owners and show respect.” 

Welcome to Country or Acknowledgement of Country are performed at corporate and external events as standard practice. 

The department is involved in projects across Western Australia, often working closely with Indigenous people. 

“By building on existing relationships, respecting the differences in cultures and working together, the department is establishing a foundation for ongoing reconciliation and substantive equality,” Mr Sellers said.

The DMP Reconcilliation Action Plan is available from the department’s website.

New State areas released for petroleum exploration

Western Australia’s petroleum sector has been given a major boost, with the Department of Mines and Petroleum (DMP) opening up six different areas across the Midwest, Pilbara and Goldfields for exploration.

The department’s latest acreage release included a mixture of highly prospective and greenfield areas.

One release area is located east of Geraldton in the Perth Basin – which is known for oil and gas production and excellent infrastructure.

An additional two areas are situated off the Pilbara coast within the highly prospective Northern Carnarvon Basin – which produces more petroleum than any other Australian basin.

Also on offer is an under-explored area south of Exmouth in the Southern Carnarvon Basin, as well as two larger release areas in the Officer Basin, located in the central eastern part of the State.

It is expected the latest acreage release will further enhance the State’s reputation as Australia’s premier destination for petroleum exploration.

“In 2012, the Western Australian petroleum sector was valued at a record $24.4 billion, so this is an exciting opportunity to expand on such growth,” Director General Richard Sellers said.

Work program bids for the release areas close at 4pm on Thursday 14 November 2013.

The last petroleum acreage release in September 2012 attracted a number of highly competitive bids.

For more information, please contact the department’s Petroleum Exploration Geologist Richard Bruce on +61 08 9222 3314 or log here

 

Bond retirement reaches $100m milestone

The State Government has now retired more than $100 million in environmental bonds since the introduction of the Mining Rehabilitation Fund (MRF) in July.

Department of Mines and Petroleum Environment Division Executive Director Dr Phil Gorey said the industry response to the fund was overwhelmingly positive.

“The fund was introduced on a voluntary basis by the Department of Mines and Petroleum over two months ago,” Dr Gorey said.

“In that time about 600 tenement holders have voluntarily registered and more than $2.5 million has been contributed to the fund.

“We have also retired more than $100 million in environmental bonds.”

Dr Gorey said the fund was developed after extensive consultation with industry and stakeholders, and provides significant cost savings to industry.

“The new system encourages early rehabilitation and will provide a mechanism for the State to rehabilitate abandoned mine sites in the event that a company defaults on its obligations,” Dr Gorey said.

“This really is a win-win for the sector and the environment.”

Under the previous system, more than $1 billion in environmental bonds were held by the State Government.

“This money was previously sitting idle,” Dr Gorey said.

“We now have a system that encourages early and ongoing rehabilitation by companies; frees up considerable funds for re-investment in the sector; and allows us to address the issue of abandoned mine sites.”

Stakeholder consultation will continue with the creation of an advisory panel to help shape the future of the fund.

Dr Gorey said the advisory panel will provide advice to the government on defining and identifying abandoned mines, and priorities for rehabilitation.
“The advisory panel will play an important role in the future of the Mining Rehabilitation Fund,” Dr Gorey said. 

Expressions of interest for membership of the advisory panel closed during September and the panel members are due to be announced before the end of the year.

The voluntary opt-in period for the fund continues until 1 July 2014, when it becomes mandatory.
For more information go to www.dmp.wa.gov/mrf

 

Golden Gecko success for biodiesel project

A project that recycles used cooking oil into renewable biodiesel fuel has taken out this year’s Golden Gecko award for environmental excellence.

This year’s award was won by ESS Support Services Worldwide and AshOil, a wholly owned subsidiary of the Ashburton Aboriginal Corporation.

Department of Mines and Petroleum (DMP) Director General Richard Sellers said AshOil recycled all of ESS’ used cooking oil in Western Australia - about 200,000 litres per year.

Mr Sellers said the project reduced carbon emissions by 500 metric tonnes, the equivalent of taking 100 cars permanently off the road.

He said the project also used waste products from producing biodiesel to develop other products, such as dust suppressant, which had the potential to save large amounts of water.

The Director General said the Golden Geckos recognise companies that had made an outstanding contribution to developing WA’s resources in an environmentally responsible manner.

“The gecko is a great symbol of environmental performance. It is among the last species to return to an area after a land disturbance such as mining, and their presence indicates a return to a healthy functioning ecosystem,” he said.

The event also recognised Franmarine Underwater Services Pty Ltd and the Department of Fisheries with a Certificate of Merit. Franmarine and the Department of Fisheries have designed a system to trial the in-water eradication of marine bio-fouling of big marine vessels.

The system promotes a preventative risk-management approach to biosecurity, and a ‘clean-hull’ operating policy for WA and Australian waters, and sets a precedent for in-water hull cleaning..

This year’s Golden Gecko award entrants were:

• ESS Support Services Worldwide and AshOil
• Franmarine Underwater Services Pty Ltd and the Department of Fisheries
• Newmont Mining Corporation, Central Desert Native Title Services and Biota Environmental Sciences
• Rio Tinto Iron Ore
• Rio Tinto Iron Ore and Sinclair Knight Merz

For more information go to the Golden Gecko web page.

This year's winners have a video detailing the project on their website.