Australasia Outlook Issue 1

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Australasia Outlook Issue 1

Transcript of Australasia Outlook Issue 1


    Bad Boss tipsThings only bad managers say and do

    Endocoal The Bowen Basins next emerging coal producer

    cEll aquaculturE Reaching out to new markets

    phillips rivEr Mining Interview with Jason Stirbinskis

    City Square Rio Tintos new HQ


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    Welcome! Welcome to the first issue of Australasia Business Outlook, a digital and print magazine aimed at an international readership comprising business people, property owners, wealthy investors and migrants. It reaches a diverse section of society, not only in Australia, New Zealand but internationally.

    Established in 1974, the Outlook series was originally developed by Consyl Publishing and was purchased by TNT Publishing in 2010. The business now aims to establish an even bigger footprint in the territories where it was once prominent, while conquering new markets.

    Finely balanced content makes this magazine a must for any business operating globally with connections to Australasia. Our remit embraces coverage of key business components and best practice around operations, enterprise efficiency, productivity, HR, corporate social responsibility, energy and environment, sales and marketing, IT, communications, finance and much more. It is essential reading for business leaders who want to keep up to date with news affecting Australasia, be enlightened by informative features and share the successful strategies of their peers.

    This month we look at what makes a bad boss, the ASX and profile some of the biggest companies in Australia, with the common theme being resources.

    Enjoy the magazine! Ian Armitage Editor

    editorial editor Ian ArmitageSub editors Jahn Vannisselroy Janine Kelso Tom Sturrock Writers Colin ChineryJane Bordenave Robert Michaels

    BuSineSSadvertising Sales manager Sean Brettresearchers Nicholas DaviesStuart Shirra

    Sales administrators Katherine EllisDaniel George

    accountSFinancial controller - Suzanne Welsh

    Production & deSigndesign & Production manager Lisa Ferronimages: Getty news: NZPA, AAP, SAPA

    digital & itHead of digital marketing & development Syed Ahmad

    tnt PuBliSHing ceo - Kevin Ellis chairman - Ken Hurst Publisher - TNT Multimedia Limited

    TNT Multimedia Limited,10 Greycoat Place, London, SW1P

    enquirieSTelephone: 0061 (0)2 8518 1223Fax: Email: [email protected]

    SuBScriPtionS Call: 0061 (0)2 8518 1223Email: [email protected]

  • 30


    44 48 52

    60 704

  • 06 NEWS12 Bad BoSS tipS 14 EuropEaN dEBt criSiS: rEaSoN to Worry

    16 aSX LimitEd: iNvESt iN auStraLia18 EvENtS20 cELL aquacuLturE While global fish stocks remain under threat, Cell Aquaculture is

    reaching out to new markets

    24 cENtraL pEtroLEum Exploration and production company Central Petroleum has assembled the biggest prospective acreage package in Australia

    30 cLEaNSEaS tuNa Cleanseas is a company with a long history of innovation and excellence within the seafood industry

    34 coNSoLidatEd tiN miNES Consolidated Tin Mines is engaged in tin exploration and development in Queensland

    38 coNtiNENtaL coaL Coal remains the cheapest and globally in-demand power generator says Perth-based Continental Coal executive Jason Brewer

    44 EmpirEd Ian Armitage talks to Empireds chief executive officer and managing director Russell Baskerville














    Bad Boss tips

    Things only

    bad manage


    say and do


    The Bowen

    Basins nex


    emerging co

    al producer

    cEll aquacult


    Reaching ou

    t to new mar


    phillips rivEr


    Interview w

    ith Jason


    City Squar

    e Rio Ti


    new HQ


    48 ENdocoaL Coal explorer Endocoal aims to be the Bowen Basins next emerging coal producer

    52 ENviroNmENtaL cLEaN tEchNoLogiES The need for cleaner industries is now more prevalent than ever says ECTs Adam Giles

    56 frEEdom foodS FNP Group CFO Rory Macleod talks to Ian Armitage60 froNtiEr rESourcES Peter McNeil, chairman and managing director of Frontier Resources Ltd,

    talks about a great 2011

    64 grocoN The award-winning Pixel is a groundbreaking eco-building, developed and built by Grocon

    70 iNtra INTRA plans to invest in Tanzanias first privately funded coal mine and coal-fired power plant

    76 pacific iNduStriaL compaNy PIC is currently involved in building City Square, a 47-storey office skyscraper under construction in Perth

    82 pErSEuS miNiNg The rapid growth of Africas mining industry is to continue into the future88 South BouLdEr miNES Lorry Hughes, CEO of Perth-based South Boulder Mines, tells us that

    his main focus is to getting to potash production in Eritrea

    92 phiLLipS rivEr miNiNg Jason Stirbinskis, managing director of Phillips River Mining NL, talks to Australasia Business Outlook



  • 6Sport


    Australian underdog Samantha Stosur stunned the mighty Serena Williams to win the U.S. Open final - her first Grand Slam tennis title.

    In doing so, Stosur became the first Australian woman in 31 years to capture a major singles championship.

    Stosur, 27, seeded ninth, beat the 28th-seeded Williams 6-2, 6-3.

    Im still kind of speechless, Stosur said in a news conference. I cant actually believe I won this tournament.

    I had to believe I had a chance to win, she added. I think having two victories over her in the past definitely helped me feel it was possible.

    The game was surrounded by controversy with Williams yelling Come on! before a point was over during the second set.

    Stosur managed to get the frame of her racket on the ball but had no chance to return it.

    Chair umpire Eva Asderaki of Greece awarded Stosur a penalty point for verbal interference, and that point broke Williams serve.

    Tournament referee Brian Earley, asked by television commentator Pam Shriver off-camera about the situation, said that Asderaki had made the correct call and that such a call had been made earlier in the tournament.

    Williams approached the umpire and shouted, Arent you the one who screwed me over the last time here? which seemed to refer to Asderaki as the chair umpire of the 2009 semi-final match against Kim Clijsters at the Open when Williams was called for a foot fault

    on a second serve, aimed a profane tirade at the lineswoman who called it, then was assessed a penalty point for unsportsmanlike conduct that was also the match point.

    Asderaki was not in the chair for that match, and that penalty point was assessed only after consultation with Early.

    After the match, Williams hugged Stosur and didnt shake the umpires hand.

    Stosur sat next to Williams and the two laughed and appeared to be having a good time.

    She was cracking them today, Williams said. She definitely hit hard and went for broke. I think sometimes a lot of people were putting me as the favourite, and I was definitely trying not to put myself as the favourite.

    The statistics did tell a story. Williams got in only 35 percent of her first serves in the first set, and made 11 unforced errors.

    Stosur broke her twice, served 67 percent and hit nine clean winners. From the sixth game of the first set to the first game of the second, Stosur won 13 straight points.

    I give her all the credit because she really played phenomenal and she deserved to be the U.S. Open champion this year, Williams said.

    StoSur winS u.S open

  • 7Sport


    New Zealand manufacturing growth slowed for a third month in August as global economic growth faltered, the U.S. had its credit rating cut and Europes sovereign debt crisis grabbed headlines again.

    The BNZ-Business New Zealand performance of manufacturing index slipped 0.3 points to 52.9, remaining above the 50 level, which indicates expansion.

    Deliveries was the fastest growing component last month at 55.8, followed by new orders at 54.3, production at 53.7 and finished stocks at 52.3.

    The employment component fell to a contracting 49.2.

    Augusts PMI continues a remarkably steady run over recent months, but masks considerable and widening variation in the detail, BNZ economist Doug Steel said in his report. While this variation reflects the many factors pushing and pulling the economy, it is encouraging to see the overall trend remain positive.

    BNZ expects manufacturing to make a smaller contribution to economic growth in the second quarter data, and is picking 0.2% expansion in the three months through June 30.

    manufacturing growth slows for third month



    Commodities giant Glencore has dropped all conditions attached to its A$1.017 billion takeover bid for West Australian nickel miner Minara Resources.

    Glencore launched the offer in August, offering to mop up the 27 percent stake in Minara that it did not already own.

    Glencore has so far secured an additional interest in Minara of only 0.54 percent, giving it a current stake of 73.54 percent, according to a notice lodged with the Australian Securities Exchange.

    The offer is expected to remain open until at least October 10.Minaras key asset is the Murrin Murrin nickel laterite mine in WA.

    New Zealand consumer confidence fell from a seven-month high in September, led by Wellington residents, while Aucklanders were more buoyant, suggesting the opposing influences of state sector job cuts and the Rugby World Cup.

    The ANZ-Roy Morgan Consumer Confidence measure fell 0.7 points to 112.6.

    The future conditions index fell 0.6 points to 117.5 and the current conditions index fell 0.9 points to 105.2.

    glencore drops

    nZ consumer

    takeover conditions

    slips in september



  • Sport



    Rio Tinto has announced plans to spend $US833 million ($A813.0 million) on power and fuel infrastructure under plans to increase iron ore production in Western Australias Pilbara region.

    The investment is part of a five-year programme started in 2010 to increase the mining giants production capacity in the region by 50 percent to 333 million tonnes per annum (Mtpa) by the first half of 2015.

    Rio Tinto said $US520 million of the investment would be spent on upgrading the miners integrated power and gas network, while $US313 million was earmarked for fuel infrastructure facilities.

    Both the power and fuel projects are needed to support annual production capacity of 283 Mtpa, a level Rio Tinto expects to meet in towards the end of 2013.

    The fuel project will also help support the planned expansion to 333 Mtpa, from 225 Mtpa currently.

    This investment marks yet another significant step towards the expansion of iron ore production by 50 percent in the five years to 2015, a timeline we recently brought forward by six months, chief executive iron ore and Australia Sam Walsh said in a statement.

    These projects provide certainty in meeting our power and fuel supply requirements, both now and into the future.


    Thousands of public sector workers and their families rallied in Sydney on September 8 in protest of the public sector wage gap and job cuts.

    Unions leaders say more than 30,000 workers gathered as part of a massive protest against the NSW governments industrial changes and the OFarrell governments public sector reforms.

    Carrying flags and waving placards, a sea of teachers, nurses, police, firefighters and other public servants flooded into the Domain just before midday, for what has been described as a day of chaos.

    I stand here and see over 30,000 people from across the state in front of me, who have spoken with their feet and taken action today to come here and send a very clear message to Barry OFarrell, Unions NSW secretary Mark Lennon told the crowd.

    Stop the cuts, restore our rights, because Barry were not going to take it anymore.

    OFarrell described the protest as pointless.

    Its just chaos for the sake of chaos, he told reporters.

    He questioned the legality of some of the action, particularly by ferry workers.

    Their decision to walk off the job to protest against plans to franchise out Sydney Ferries was an act of bastardry, he said.

    Mass Union protest

    sYDneY CBDDisrUpts

    rio spenDs Big on

    e X p a n s i o niron ore

  • SportBusiness



    New Zealand beat Japan 83-7 in their second World Cup Pool A match.

    The All Blacks, who led 38-0 at halftime, totally outclassed the Asian champions, recording their second straight win.

    The makeshift All Blacks, with Richie McCaw, Dan Carter and Mils Muliania among those missing injured, scored 13 tries at a rate of one every six minutes.

    The big thing for us was to improve ... to really get the structure of our game right, said All Blacks skipper Keven Mealamu.

    But we have still got a few things that we can work away at. Next week (against France) will be another big step up for us.

    Coach Graham Henry said: We started slowly, but it was a better performance than last week.

    Toyota has said that continuing industrial action will hurt its Australian manufacturing operations and warned that the cars can be made elsewhere.

    Toyota Australia president and chief executive Max Yasuda said Altona was competing with other Toyota plants around the world to supply export markets.

    We are already under severe competitive disadvantage due to currency, high local costs and reduced volumes, he said in a statement.

    He added that industrial action at this time could only hurt Toyota Australias case to maintain its export programme.

    If Australian operations are uncompetitive and perceived as unreliable, these cars can be made at another Toyota plant, Yasuda said.

    More than 3000 employees walked off the job earlier this month over a wage claim, with further industrial action planned at Toyotas Altona manufacturing plant in Melbournes west and parts centres in Melbourne and Sydney.

    Fair Work Australia granted an interim order suspending industrial action planned for last Thursday and Friday but rejected Toyotas application to suspend further 24-hour stoppages planned for later this week and next week.

    The Australian Manufacturing Workers Union has said employees have not had a pay rise since early 2010 but Toyota could only offer an immediate one percent rise, and the issue was the timing of the increases.

    Toyota says its offer of 11 percent over 39 months is fair and reasonable and that it has varied the timing of the payments in response to employee concerns, with unions yet to accept or reject that offer.

    ToyoTa issues all BlacksThrashj a p a n


  • 10

    Former Virgin Blue chief operating officer Andrew David has been named the new chief executive of Tiger Airways Australian operations, the airline has announced.

    Tiger has been seeking a new Australian CEO since Crawford Rix left in July when the air safety watchdog extended Tigers initial week-long grounding over safety concerns.

    Tony Davis, group president of Tiger Airways Holdings, stepped into the role in a temporary basis after Rixs departure.

    Prior to leading Virgin, Andrew David held a number of senior management roles including chief information officer at Air New Zealand and general manager of Pacific Airlines.

    He will begin his new role at Tiger Airways Australia on October 17.

    Acting CEO of Tiger Airways Holdings, Chin Yau Seng, described David as a proven performer within the industry.

    We are pleased to welcome Andrew David as the new CEO of Tiger Airways Australia. He brings a wealth of airline business experience and a proven leadership track record, he said.

    Tiger Airways Australia returned to the sky on August 12, six weeks after being grounded by the Civil Aviation Safety Authority over safety concerns.


    AustrAliAn CEOtigEr nAmEs nEw


    gEts undErwAy

    rugBy in AuCklAnd

    wOrld CuP

    The seventh Rugby World Cup has been officially declared open at Eden Park Stadium in Auckland, New Zealand.

    The president of the International Rugby Board Bernard Lapasset set the ball rolling for the 48-match tournament, which will reach its climax with the final at the same venue on October 23.

    The first match between New Zealand and Tonga started immediately after the opening ceremony at 8.30pm local time on September 9.

    The rugby world is primarily focused on the All Blacks and their quest to end their 24-year wait for World Cup glory so the pressure is pretty much off the Boks, which makes them a formidable proposition.



    Pike River Coal receivers have negotiated full and final insurance payout deal for creditors.

    Under the terms of the deal, which still requires formal execution, 29 percent shareholder New Zealand & Gas will facilitate an early payment plan for the mines 465 unsecured creditors.

    Priority right holders Bank of New Zealand and the owners of leased mining equipment will be paid out a total of $29.5 million.

    Despite having priority rights, NZOG says it will continue to support West Coast businesses and families affected by the November 19 disaster, which claimed 29 lives when the mine exploded, by offering

    an early repayment scheme for unsecured creditors.

    Under the proposals, unsecured creditors will be paid up to a cap of $10,000 plus 20 percent of any outstanding amount above that, up to a capped aggregate of $10.5 million.

    Some 243 unsecured creditors are expected to be paid in full and another 222 partially repaid under these arrangements.

    Hopefully all of Pike Rivers creditors can receive full payment when the sale of the mine occurs, NZOG chief executive David Salisbury said.

    For the mine workers, contractors and suppliers this has been a very stressful time, emotionally and financially.

    Pike RiveR CoalReCeiveRs negotiateinsuRanCe Payout

  • 12

    M anagers are busy people. Every day brings new challenges and not enough hours to accomplish what they need to do. But no matter how busy they are, the best make time for their people and they make sure they WATCH WHAT THEY SAY.

    What a manager says and does and their style figures more heavily than anything else in keeping employees productive, loyal and happy. Often, when an employee quits their job, they do so because of problems with their bosses. Who many times have you heard a friend say, Id still be there even for that pittance of a salary if it werent for that awful boss? Youve probably even said it.

    The following list will set the good bosses from the god-awful ones.

    1. Embarrass EmployEEs in public

    At some point, nearly everyone has observed someone being ridiculed in public at work. I can remember a time when I was chastised almost daily in front of my team for

    not understanding a set of new instructions. And my partner Clare left her job because her manager would yell criticisms at her in front of long lines of people at the checkout.MAnAgErS, TAkE nOTE!

    2. Dont follow up on EmployEE iDEas

    Employees thrive on providing ideas and feedback, but if mistrust is part of the set-up, they wont commit to results. And there is nothing more frustrating than putting your efforts into planning initiatives for the future of a company only to discover that you wasted your time as directors had already put together a list of ideas. The result is unprepared, uninterested staff. Due to lack of interest, actions are often ignored and never mentioned again. I dont pay you to think is what a bad manager says when an employee offers an idea he doesnt like.

    3. if you Dont want this job, ill finD

    somEonE who DoEs

    Most of us have heard this in the workplace at some point of another. great

    T h i n g s o n l y b a d m a n a g e r s s a y a n d d o

    by ian armitage

    BA D B O S S t i p s

  • 13

    Bad Boss Tips FEATURE

    leaders understand the importance of not saying something like this and know that to get and keep great people, they have to let people own their jobs. Good leaders give people responsibilities and let them know that their contributions have value. BAD managers though love to remind employees that You work for me. They never fail to remind you that someone else would take the job if you ever got sick of it or let the lousy manager down in some way.

    4. I wonT have you on FaceBook whIle

    youre supposed To Be workIng

    The fact is even the best workers need a mental break and sites like this are the perfect opportunity for them to get them. Telling your employees that theyre banned from the Internet while theyre on work time is one of the most costly mistakes bosses make. If good workers want a mental break during the day, they should be able to go on, or whatever, without fear of managerial reprisal. Theyre not robots. They need to stop and shake off the corporate cobwebs every now and then. After all, they could be on the verge of your next million-dollar product idea, so dont upset them!

    5. Ill Take IT under advIsemenT

    There are certain words that we never use in real lifeonly in business and only in ways that let us know that the speaker is somehow better than us. Ill take it under advisement means Go away, I dont care AND dont speak to me again unless I ask you to. It definitely hasnt been taken onboard.

    6. who gave you permIssIon To do


    People who obsess about hierarchy and permission ARE THE DEVIL! All bad managers, without exception ask this question. These are the people youd

    be better off avoiding, especially in relationships that give them power over your life and career.

    7. make unrealIsTIc demands

    My point here is that good managers enforce rules and regulations. Poor managers enforce unrealistic rules that cause employees to feel like children. I worked under a boss once who, upset at being left out of staff chitchat and general conversation, proclaimed that, thenceforth, there was to be no talking, joking or laughter in the office, as it was unprofessional. Im not joking.

    8. Ignore proFessIonal growTh needs

    This is the worst mistake a manager or boss can make. When employees take steps for self-development, its important for you to be their biggest cheerleaders. Adult learning research repeatedly shows that management reinforcement of training is what makes it stick; yet too often trainers have heard managers last minute excuses to not attend a training initiative. How many of you reading have been denied a professional development opportunity because your own manager said that it would take too much time away from work? Be honest!

    moTIvaTIng musTs 1. Give constructive feedback in private.2. Follow up on employee ideas.3. Give frequent praise.4. Support employee development.5. Allow flexibility and realistic freedoms.

  • 14

    d e b t c r i s i s : european

    A s w o r l d p o w e r s s e e k t o c o n t a i n E u r o p e s d e b t c r i s i s , A u s t r a l a s i a B u s i n e s s O u t l o o k a s k s , s h o u l d w e b e w o r r i e d ? By Ian Armitage

    r e a s o n t o w o r r y ?

    Global finance officials have this week pledged to take bolder moves to confront the European debt crisis that threatens to plunge the world into another deep recession.

    Australia, New Zealand and other countries outside of Europe fear the economic fallout from the crisis. They are raising the pressure on Europeans to settle their differences and agree on a plan to rescue heavily indebted European countries.

    US Treasury Secretary Timothy Geithner bluntly told officials at a meeting of the International Monetary Fund that time was running short to stave off potential domino-style defaults in Europe. European governments, he said, need to join with the European Central Bank to provide stronger support to calm market fears.

    He said the ECB, the central bank for the 17 nations that use the euro as a common currency, should make sure that financially troubled countries trying to reform their

    economies can get loans at affordable rates and that European banks have access to the capital they need to operate.

    Fears that Greece is in danger of defaulting on its debt have rattled Australian and global markets. Such a development would add to the stress for major banks in France and Germany that have a large exposure to Athens debt. It also would further strain on other heavily indebted Portugal and Ireland, and even bigger economies such as Italy and Spain.

    The IMF panel, which sets policy for the 187-nation lending institution, has pledged to work decisively and in a coordinated way to deal with Europes debt crisis.

    It said it stood ready to back further efforts to deal with the crisis beyond bailout support for Greece, Portugal and Ireland.

    Today, we agreed to act decisively to tackle the dangers confronting the global economy, the IMFs managing director, Christine Lagarde, told reporters.

    Australian Foreign Minister Kevin Rudd

  • 15

    Debit Crisis FEATURE

    said that Australia is well positioned to weather the current volatility in global financial markets, but must remain vigilant.

    Australia, of course, is well positioned against these international challenges, he told journalists in New York.

    The economy is strong.Nonetheless, we must remain

    absolutely vigilant, as weve learnt from the experiences of the last several years through the global financial crisis of 2008, Rudd said.

    This is a wild beast, the global economy.Our job is to tame the beast to the

    greatest extent we can and in Australia we are well positioned, and we are strong in doing so.

    Treasurer Wayne Swan said was hopeful European leaders would be able to get their

    economies firing again but warned its vital for global economic confidence that they overcome any political gridlock.

    Im slightly more optimistic the Europeans will make some progress, Swan told ABC Radio following meetings with his G20 counterparts in Washington.

    The problem we have at the moment in terms of global growth is two of the big economic engines in the global economy arent firing.

    Apart from the troubles in Europe, the US is also in strife.

    The Australian share market has recently fallen to near its global financial crisis lows, amid fears another global recession was on the way.

    Keep up to date with this crisis on our website

  • 16 australasia business outlook

    A S X L i m i t e d : I n v e S t I n A u S t r A L I AW i t h a r e l a t i v e l y h i g h - g r o w t h a n d l o w - i n f l a t i o n e c o n o m y s u p p o r t e d b y r o b u s t p o l i t i c a l a n d e c o n o m i c i n s t i t u t i o n s , a n d a n i n t e r n a t i o n a l l y c o m p e t i t i v e b u s i n e s s s e c t o r , A u s t r a l i a n o w r a n k s a s t h e 1 4 t h l a r g e s t e c o n o m y i n t h e w o r l d m e a s u r e d b y G D P , a n d t h e f o u r t h l a r g e s t i n t h e A s i a P a c i f i c r e g i o n . By Robert Michaels

    Australias economy is strong. It is a relatively high-growth and low-inflation economy supported by robust political and economic institutions, and an internationally competitive business sector.

    The Australia economy is strong, Australian Foreign Minister Kevin Rudd said recently.

    Australia ranks as the 14th largest economy in the world measured by GDP, and the fourth largest in the Asia Pacific region.

    Its three largest trading partners China, Japan and the United States - are the three largest economies in the world; and its two largest investment partners - the US and

    UK are home to the worlds largest capital markets.

    Such solid trade and investment relations have helped see real economic growth average 3.0 percent per annum over the past decade, positioning Australia as one of the stronger performers among developed countries during the period.

    This steady economic growth has also been aided by a resources boom that has seen its economy emerge as one of the largest global suppliers of raw materials.

    The resources sector makes up around 7.5 percent of Australias total economy, with the remainder being comprised of financial services (10.8 percent), manufacturing (9.3 percent) and construction (7.8 percent).

    Spurred by its healthy political and economic position, Australia has become an attractive investment destination for global investors as well as home to many major multinational financial services providers. With a diverse investor group comprised of 40 percent foreign investors, 40 percent domestic institutional investors and 20 percent retail investors the Australian equity market is well placed in the global economy.

    There are many reasons, then, to invest in Australian shares.

  • 17australasia business outlook


    MArket cApitAliSAtionA$1.3 TrillionnuMber of liSted coMpAnieS2225new liStingS (fY to dAte)12cApitAl rAiSed (fY to dAte)A$5,768 MillionS&p/ASX 2004296.55MSci globAl indeX rAnking8th(As at 31 August 2011)

    facilities, as well as through the financial system stability oversight conducted by the Reserve Bank of Australia (RBA). ASIC also supervises ASX Groups own compliance as a listed public company.

    StrAtegY AnAlYSiS

    ASX reported underlying net profit after tax of A$356.6 million is up 7.2 percent on the prior year in its 2011 full year result. Statutory net profit after tax was very close to that of A$352.3 million, up 7.4 percent year on year. Composition of that outcome was operating revenue excluding interest and dividends of A$617.6 million which was up five percent, cash operating expenses of A$135.5 million up a modest one percent, underlying earnings per share of 204 cents per share up 5.7 percent year on year, and off the statutory accounts, statutory earnings per share of 201.6 cents per share, up 5.9 percent. The end game of the financial year, ASX said, was a final dividend of 93 cents per share fully franked, bringing the full year dividend up 5.8 percent to 183.2 cents per share.


    About ASX liMited

    ASX Group is the brand name for ASX Limited. It was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006 and is today one of the worlds top 10 listed exchange groups measured by market capitalisation.

    Functioning primarily as a market operator, clearing house and settlement system facilitator, ASX also oversees compliance with its operating rules, promotes standards of corporate governance among Australias listed companies and helps to educate retail investors.

    As a multi-asset class, vertically-integrated exchange, ASX provides opportunities at every stage of the market services value chain. Its activities span primary and secondary market services, including capital formation, capital allocation and hedging, trading and price discovery (Australian Securities Exchange); central counterparty risk transfer (ASX Clearing Corporation); and securities settlement for both the equities and fixed income markets (ASX Settlement Corporation).

    ASX services a diverse domestic and international customer base, including issuers (such as corporations and trusts) of a variety of listed securities and financial products, investment and trading banks, fund managers, hedge funds, commodity trading advisers, brokers and proprietary traders, market data vendors and retail investors.

    ASX relies on the work of its wholly owned subsidiary, ASX Compliance, to provide the monitoring and enforcement of operating rules. By providing systems, processes and services needed for a fair, orderly and transparent market, ASX inspires confidence in the markets. Such strict quality assurance is integral to ASXs long-term commercial success.

    Confidence in ASX is further reinforced by the Australian Securities and Investments Commissions (ASIC) regulation across all trading venues and clearing and settlement

    ASXs Market Statistics

  • 18 australasia business outlook

    Whats on

    Melbourne Cup Carnival448 Epsom Rd, Flemington, Victoria, 303129 Oct 05 NovThe Melbourne Cup Carnival is a weeklong celebration of racing, food and wine, fashion and entertainment. Its when fabulous Flemington becomes the corporate, social and sporting epicentre of Australia. The event not only captures the imagination of Melburnians but attracts visitors nationwide and from all points of globe. The Melbourne Cup Carnival is comprised over four unique racedays: AAMI Victoria Derby Day; Emirates Melbourne Cup Day; Crown Oaks Day; and Emirates Stakes

    Crave Sydney international Food FeStivalSydney, New South Wales, 20001 Oct 31 OctCrave Sydney International Food Festival celebrates Sydney as a global dining destination enhanced by regional New South Wales produce and wine. The full festival program is available on the Crave Sydney

    rugby World Cup FinalEden Park, Auckland, New Zealand23 Oct Staged every four years, the Rugby World Cup is the biggest event on the Rugby calendar and has grown to be the third largest sporting event in the world.Rugby World Cup 2011 will be a six-week festival of Rugby featuring the top players from all parts of the globe.The Tournaments 48 matches will be playing in 13 venues spread over the North and South Islands of New Zealand, showing off the country to the full. Off the field, visitors will discover a country that boasts scenery that is as spectacular as it is

  • 19australasia business outlook

    Whats on

    AFL GrAnd FinALMCG, Melbourne, Victoria1 OctHas there ever been a more clearcut division between the best, and the rest in the AFL? No! It really is a two horse race for The 2011 Toyota AFL Grand Final. A strong Hawthorn effort aside nobody could challenge the dominance of reigning premiers Collingwood or a rejuvenated Geelong Cats, who seem to have once more found their hunger for the ultimate prize. But who will win? Watch and find out.

    institute oF QuArryinG AustrALiAs 54th AnnuAL ConFerenCeCrowne Plaza, Hunter Valley, NSW12 Oct 15 OctThe Institute of Quarrying Australia is open to everyone with appropriate qualifications and/or experience in, or supplying to, the surface mineral extractive and processing industries. This includes hard-rock quarrying, sand and gravel, recycling, special sands, cement, lime, gypsum, clays, coal, slate, asphalt, ready-mixed concrete and concrete products. The Institute also embraces all the professional and consultancy services which support the industry, and there is a special section reserved for those engaged in the supply of plant, equipment, materials and services.

    nZ Food innovAtion showCAseViaduct Events Centre, Westhaven, Auckland, NZ16 Oct 18 Oct True food Innovation is not just about a good food idea. Its about successfully and safely commercialising that idea. The NZ Food Innovation Showcase will lead visitors on a journey of discovery. See how food manufacturers are using purpose built food processing facilities to help commercialise food ideas for markets in NZ and around the world.

  • Peter Burns, Executive Director of Perth-based Cell Aquaculture says he is operating in an insatiable market. He has good reason. The worlds oceans are becoming fished out, populations are increasing and more and more people are chasing less and less fish.

    In a new report the UN Food and Agriculture Organisation (FAO) paints another bleak picture of the state of global fisheries. Fish consumption has reached an all-time high while 32 percent of world fish stocks is estimated to be overexploited, depleted or recovering, and need to be

    urgently rebuilt.Against this backdrop Burns company

    has developed the Cell System - a sophisticated yet simple and economical land-based recirculating aquaculture system delivering premium seafood in an environmentally responsible manner consistently throughout the year. For a company like us, able to produce a sustainable, high quality product, the market potential is quite simply enormous.

    Weve built what has become very much a quality-focused product, targeted at the mid high end of the market. The way we


    c e l l a q u a c u l t u r e

    l a n d i n g t h eb i g f i s h

    While global fish stocks continue to be under threat, the rising output from top quality Western Australian

    aquaculture pioneer and innovator Cell Aqua is reaching out to new markets. By Colin Chinery

  • grow fish is not the cheapest, in fact its a fairly costly exercise but at the end of it we produce a very high quality product. Our major customers are here in Australia where we service and supply a lot of the mining sector for example, and have developed retail products selling through the IGA, Farmer Jacks and Food Works supermarket chains. The feedback we are getting has been exceptional and very very encouraging.

    The Cell food growing system originated in 1997 when Cell Aqua chairman Perryman Leach identified a massive window of opportunity. With an engineering background and extensive experience of intensive farming, Leach set out to investigate whether proven farming methods could be replicated in the seafood industry.

    Aware of environmental issues inherent with existing aquaculture, he concluded there was immense opportunity if a system could be developed incorporating low risk, low water usage, and truly re-circulating and environmentally-friendly.

    Leach was also looking for a method operationally economical in a controllable environment, locatable anywhere in the

    world on the markets doorstep, effective in either fresh or salt water, and producing consistently fresh, high end premium seafood. With the intensive development of the Cell system, he achieved all objectives.

    At its heart is a tested and proven filtration technology, with each production unit modular in design, enabling efficient containerised transport, relocation and scalability to meet market demand.

    Providing there is access to power and water, the system can be set up and operated anywhere in the world where premium seafood markets exist. A typical production cycle producing premium grade finfish is five months for plate-size fish and eight months for filleting size.

    The process begins in the hatcheries, the engine room to our whole operation, says Peter Burns. Getting a consistent supply of quality small baby fish allows us to build a good and consistent supply of high quality product at the other end.

    While the hatchery and breeding operation is controlled here production has been outsourced, the baby fish flown offshore to company plants in Malaysia and

    Cell Aquaculture FEATURE 21

  • 22

    Cell Aquaculture FEATURE

    Thailand. There they are grown to market size, processed, and flown back as the finished product to Australia or on to export markets.

    We started by producing in Australia but production costs here are fairly high; the biggest inputs are labour, power and feed. So we looked at countries such as Thailand and Malaysia where we can get a much lower cost yet still produce an equally quality product.

    Cell Aqua has set out to build a footprint in a number of countries and key strategic regions and looks to expand from there. In Thailand it is targeting a current production capacity of around 150 tonnes of barramundi per annum with an expansion programme in place that will take this to 1,000 tonnes. Barramundi is its Number One species, a

    hearty, fast growing, premium white flesh game fish with strong established demand in domestic and international markets. Australian barramundi has a high yield when filleted and has an excellent preparation diversity it can be baked, pan fried, deep fried, grilled, cooked whole and sashimied.

    We aim to scale these facilities up along with a number of production projects were looking at, feeding the product into our processing, value adding and distribution arm, which we are also building up.

    Vertical integration is a core strategy and feature of Cell Aquas Hatch to Dispatch operation.

    We are one of the main pioneers of land-based re-circulating aquaculture and have developed the entire vertically-integrated business model.

    We basically control all the different elements of the supply chain and over the years have sought to develop and perfect each step from hatching to harvesting, processing, packaging, branding and distribution. This allows us to be firmly in control of product quality all the way through.

    R&D is another key. Weve always seen this as a big part of our future, and while our business model has been built around the

    One of the biggest challenges in this sector is getting

    the consistency of supply, freshness, quality and sizing


    Cell Aquaculture FEATURE

    barramundi, over time we want to introduce a whole range of seafood species.

    We are also looking at new and different techniques in the production process, different types of husbandry, reducing production costs, and broadening the end-market product range.

    The land-based re-circulating part of the aquaculture industry is very new however. Its successes are few and there have been failures. As with other operators in this sector, this has made it difficult for us to raise development capital, and represents our biggest challenge says Burns.

    Since weve started to get runs on the board and develop investor confidence weve been able to steadily raise capital as we go there have been recent and sizeable inputs from European and USA investment funds but wed like to grow the business faster.

    While Australia will remain the main focus of expansion, Burns sees a huge potential in Europe, the US, Japan and other markets in South East Asia. We are strong, passionate team and a very prosperous and sustainable business. We are certainly in the right sector. Food and its global availability is going to become an increasingly big issue, and the sustainability,

    Thailand Board of Investment considers the entire value chain of agriculture and agricultural products ranging from cultivation, production and services to the

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    environmental focus and other aspects of our business model put us in good stead to develop. We dont cut corners on any of these areas, and we are very actively developing our Eco-Star brand to communicate these unique attributes.

    One of the biggest challenges in this sector is getting the consistency of supply, freshness, quality and sizing etc. Supplying the retail sector or the restaurant markets as we do for example, we have the confidence that our products will be available 365 days a year - and we can guarantee this by being in control of all these supply links right the way through.

    Go to a restaurant, look at the menus, and you might read Fish of the Day and thats usually because they dont know what fish is coming in! With us they do.

  • Powerhouse Australia has the potential to replace all its high value liquid transport fuel imports and become a net exporter to SE Asia, India and China. Likewise coal. Thats the prediction of leading insider John Heugh of Perth-based Central Petroleum, one of the most dramatically undervalued resource groups trading on the ASX.

    Central Petroleum is a junior exploration and production company operating in the biggest package of prospective acreage in Australia - over 270,000 sq. km. Its core strategy, the development of a central Australian petroleum hub connected to appropriate infrastructure and allowing the export to domestic and overseas markets of both primary energy resources and value added petroleum and helium products.

    Earlier this month (September) a new report valued its unconventional gas and

    oil resources in central Australia at $412 million. Exciting times, says Heugh. But Centrals MD goes on to caution that this is a very preliminary report based on early stage exploration, and something that will need re-visiting on a frequent basis because the unconventional industry in Australia has only just started to get off the ground. A recent valuation put a value of $1.75-$2.16 per share on Centrals longer term interests, making this one of the most undervalued resource stocks trading on the ASX.

    Central Petroleums acreage includes the majority of the Pedirka Basin in Northern Territory and South Australia, most of the Amadeus Basin in Northern Territory, all of the known Lander Trough in NT, and approximately 25,000 km2 of the Southern Georgina Basin. Put together and you have a land holding close to half the size of Texas.

    The potential is clearly enormous, says


    O Z D E S ER TE X P L O R I N G T H E

  • O Z D E S ER T

    We believe the oil and gas potential

    of central Australia has been significantly

    overlooked and the area remains one of the true

    under-explored and under-developed proven petroleum provinces in

    the country

    Heugh, who co-founded Central Petroleum in 1998 in a countercyclical strategy aimed at securing large acreage tracts with substantial prospective target structures.

    Central Australia contains one commercial oil field and a commercial gas field with another large gas discovery undeveloped. Further commercial accumulations are set to be realised, with the potential for monetization of oil resources through trucking, rail or pipeline infrastructure. There is also potential for monetisation of possible large gas resources via Gas to Liquids (GTL) Fischer Tropsch (FT) processing to produce zero sulphur diesel, naphtha, jet fuel and LNG technology.

    Very large coal accumulations present in the Pedirka Basin are also being explored with a view to examining monetisation via very large scale beneficiation and export, coal to liquids (CTL), co-generation of power

    Central Petroleum FEATURE

    Exploration and production company Central Petroleum has assembled the biggest prospective acreage package in Australia. And the potential is massive, arguably mind-blowing, as Managing Director John Heugh tells Australasia Business Outlook. By Colin Chinery

  • and underground coal gasification (UCG). Any gas produced by UCG or coal gasification could be applied conceptually to value adding processes such as FT liquid production, says John Heugh.

    What could this mean for the average Australian? Weve got the biggest package of prospective ground in Australia which we own 100 percent aside from five very small prospect blocks where we own from 75-80 percent. In the Pedirka Basin we have discovered very thick intersections of coal which an independent geologist has put as an exploration target tonnage of over 800 billions tonnes. This is very significant because we have already embarked upon the process of attracting funding and technical expertise aimed at producing a 60,000 barrel per day GTL plant based on underground coal gasification.

    There are potential coal tonnages out there at reasonably shallow depths for UCG production, which roughly translated would give us the potential to produce well in excess of three million barrels of oil a day. At that level Australia not only replaces all of

    its import requirements for liquid transport fuels but also has potential for turning itself into a net exporter of high value liquid transport fuel to SE Asia, India and China. Plus the shallow coal potential to enable Australia to export coal to China and India for many, many years to come.

    Heugh puts the progressive asset-realising time scale at anywhere from six months to ten years. We are looking at three ways to monetize our assets. The first one starts off with oil exploration discovery.


    Central Petroleum FEATURE


    E: [email protected] T: 02 8745 2800461 Parramatta Rd. Leichhardt NSW 2040

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    For trusted remote area communications URSYS delivers

    URSYS provided private satellite communications to Central Petroleum for two exploratory drilling rigs operating in the Armadeus Basin. The links carried SCADA telemetry, corporate connections and telephones. URSYS had considerable prior experience supporting mobile rigs and knew the critical importance of reliability, timely response, 24 x7 support, and a working rapport with rig managers. URSYS knows how heavily mobile rigs depend on good communications links.

    URSYS participates across the entire range of satellite engineering services, providing terminals, earth stations and private networks. URSYS delivers: Engineering know-how for terrestrial, portable and maritime applications with peerless reliability Cost effective design and build for highly resilient and scalable remote area solutions In energy infrastructure, resource production, remote health care and environmental monitoring, URSYS is a trusted service partner. URSYS is also the engineering partner in CYGNUS Satellite, the outsource provider for the Telstra Iterra IP Satellite service.

  • 28

    If we are successful in bringing in the Surprise-1 well in the Amadeus Basin as a commercial producer by trucking oil to Port Darwin, we could literally be in a cash flow position in as little as six to 12 months.

    As an intermediate term project we are looking at gas and helium into helium export and mini-LNG for the transport industry- and thats probably three to five year programme. To monetize gas we might discover into GTL and/or LNG, a five to seven year programme and finally for coal into UCG and GTL and for coal export and to bring that up to anywhere near its full potential; we are looking at a five to ten year time frame. Expansion therefore should be dramatic. So theres sufficient coal there to fuel major

    industries for hundreds of years, as distinct from the 20 or so years lifetimes of many projects.

    Mind-blowing numbers agrees Heugh. And we are not alone. A report on a neighbouring acreage close to Centrals for example, reports access to 27 billion barrels of recoverable oil in unconventional acreage.

    Australia has two unique advantages, says Centrals MD. Firstly we are the best positioned country of any to export to China and India. Secondly we are a First World country regarded as having one of the very lowest levels of sovereign risk in the world, and with a fiscal regime if we can oust this current Government - that will remain very

    Central Petroleum FEATURE


    proven petroleum provinces in the country.But we are not estate agents. A lot of

    juniors set themselves up to be taken over or make a quick buck by selling parcels of land. Thats not us. We aim to grow this company as serious and genuine explorationists, targeted on discovering and producing major petroleum and coal related products. At the end of this month we hope to have kicked off three liquid-focused drillings that should bring considerable attention to Central Petroleum. Yes, exciting times.

    attractive. So yes these are exciting times, and I think Australia already now is being regarded as the country that will probably take over from the Middle East in terms of ready supply, certainly of LNG.

    And so far as Central Petroleum is concerned we have the biggest land position and prospective acreage in Australia by a long shot. We believe the oil and gas potential of central Australia has been significantly overlooked and the area remains one of the true under-explored and under-developed

    Central Petroleum FEATURE

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  • 30


    Cleanseas is a company with a long history of innovation and excellence

    within the seafood industry. by Robert Michaels


  • Australian aquaculture company Cleanseas recently announced that it has been successful in breeding one of the worlds most endangered fish species - the bluefin tuna.

    The company said in June it had managed to produce bluefin from its offshore Arno Bay facility on South Australias Eyre Peninsula.

    Bluefin has become a focus amongst environmentalists in recent years, with calls for a global fishing ban from some groups.

    Stocks in the Mediterranean and in waters around Australia are seriously threatened.

    But, Cleanseas may have developed a solution and two world-first transfers of batches of fingerlings were carried through successfully from onshore nursery tanks to sea cages for controlled grow-out trials in the ocean environment.

    Cleanseas said at the time that the 90 fingerlings, which were generally between 8 and 10cm long and weigh up to 15 grams, had been weaned on to a manufactured diet and transferred to a 25 metre offshore holding pen.

    A test sample of a similar number of fish has been kept in the nursery tanks, while progress of both

    groups was tracked.Cleansea managing director Clifford Ashby said: This

    is the worlds first transfer of Southern Bluefin Tuna fingerlings to the ocean. These recent steps achieved by Cleanseas are part of a long term, international project to propagated production of Southern Bluefin Tuna.

    It is another significant step forward for us. It is not only a critical stage for Clean Seas Tuna, but also places Australia at the forefront of technological initiatives being undertaken in global marine aquaculture, he added. The pioneering nature of the breeding programme means that every stage produces a challenge for our skilled production, research and development and grow-out teams and we are closely monitoring these fingerlings with great anticipation.

    Cleanseas is at the forefront of environmental best practice.

    Its farming activities go above and beyond all required legislation and worlds best practice standards.

    Cleanseas FEATURE

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    Cleanseas FEATURE

    The use of natural feeds, minimal stocking densities and site fallowing practices, delivers a fish, which is totally sustainable.

    The Australian Southern Bluefin Tuna fishery is one of the most closely managed fisheries in the world, Cleanseas website says. Caught in the wild between December and March, a tightly controlled annual harvest has been held at the same level for nearly 20 years. The exciting advances in the industry are reflected in the recovering wild stocks.

    Operating to certified ISO 14001 and ISO 9001 standards, and with certification by Friend of the Sea (Sustainable Seafood) for Kingfish and Mulloway we remain committed to quality every step of the way, from water to pack, it adds. Our comprehensive environmental engagement is also leading Cleanseas towards being carbon neutral.

    In August Cleanseas announced that Clifford Ashby had resigned as managing director and CEO of the company and would be leaving in October to take up a senior position with a leading Australian agribusiness group.

    Ashby would continue with the company as a non-executive director, it said.

    An international search is being undertaken to identify a suitable candidate to replace Ashby and Paul Steere, an independent director, will serve as interim CEO should a replacement not be found prior to Ashbys departure.

    Progress towards commercializing tuna aquaculture has been substantial over this period and the company has developed the Kingfish business to the stage where it is now cash flow positive, said John Ellice-Flint, chairman of Cleanseas. Both have been significant achievements and place the company in an excellent position to continue progress. We wish Clifford success in his future career.

    Cleanseas is a company with a long

    history of innovation and excellence within the seafood industry. A result of the vision of founder and Australian seafood industry icon Hagen Stehr, Cleanseas has long been associated with premium seafood.

    Hagen and son Marcus farmed the prized Southern Bluefin since the inception of this unique, sustainable ranching programme in the early 1990s.

    Cleanseas experience and understanding of the premium Japanese sashimi markets encouraged the development of a fish farming operation which could deliver the highest quality fin-fish to the most discerning markets in the world. By focussing our efforts on three indigenous local species; Yellowtail Kingfish, Mulloway and Southern Bluefin Tuna, we have been able to develop a family of fish which are not only produced by worlds best-practice methods, but which are also undeniably delicious, the companys website says. Cleanseas has evolved into an integrated operation covering all aspects of fish management from water to plate. As the largest farmer of Yellowtail Kingfish and Mulloway in Australia, Cleanseas invests in its farm, its fish and its people, proudly imposing the toughest standards to deliver the highest quality.

    Cleanseas recently scooped two major awards at the 2011 South Australia Seafood

    NETS Tasmania NETS Tasmania has contributed net making expertise and products to Clean Seas since the commencement of fish farming in South Australia. NETS has provided increasingly efficient net enclosures and anti-predator systems for Clean Seas along with reducing their net related maintenance costs. The use of the latest generation of Super 20 Co-Polymer nets will provide 60% plus cost savings throughout the working lifetime of NETS latest Clean Seas high tension designs.


    Cleanseas FEATURE

    Awards: the research and development excellence award, beating SARDI Aquatic Sciences Wildcatch Fisheries Program; and it shared the seafood business excellence award with Coorong Wild Seafood the Judges could not split the two businesses and made them joint winners.

    Cleanseas also won the leading seafood industry producer category.

    To learn more visit

  • Consolidated Tin Mines is an emerging ASX-listed tin explorer and developer, with an advanced project and substantial JORC resource.

    Founder and managing director Ralph De Lacey says its primary goal is to secure new tin supply beyond the current producers.

    Our projects are in the lower Herberton Tin Field in northern Queensland, once one of Australias premier tin producing fields, and were focused on discovering and developing major tin deposits at Mount Garnet, near Cairns.

    Consolidated Tin, he says, has acquired an impressive portfolio of advanced tin

    exploration projects in the area, which it plans to transform into a major mining operation.

    The most advanced project within the Mount Garnet Project is our Gillian deposit , says De Lacey.

    The Mount Garnet Tin Project , he adds, is made up of three key deposits: Gillian, Pinnacles and Windermere.

    Our goal is to confirm an initial JORC resource base of 8 to 10 million tonnes of ore from those deposits, to feed a centralised mill and process around one million tonnes per annum to produce around 5,000 tonnes of tin per year, De Lacey explains.

    Consolidated Tin has conducted extensive exploration programs at Mount Garnet and


    top tinm i n eConsolidated Tin Mines is engaged in tin exploration and development in Queensland. It is focused on discovering and developing tin deposits at its Mount Garnet project and its vision is to develop a major Australian tin mine, says managing director Ralph De Lacey. By Ian Armitage

    A u s t r A l i A s n e x t

  • has a total current JORC resource of 7. 4 million tonnes at 0.60 percent tin.

    Thats right, says De Lacey. And that includes a JORC measured resource of 1.2 million tonnes at 0.82 percent at Gillian.

    Currently, drilling designed to update the projects resource base is ongoing, and drilling is also underway at new project areas.

    We are progressing pre-feasibility study work at Mount Garnet, which will play a key role in our future mine development plans, De Lacey comments.

    Consolidated Tin remains on track for production in Queensland in 2013, he adds.

    We are on course for that. Indications are that tin prices will remain positive . I certainly have not seen any negative indication on tin prices. There is a

    Consolidated Tin Mines FEATURE

    supply/demand shortfall for sure. Price is always a challenge; Tin is a

    good price at the moment and the future of tin looks good with new uses for tin being developed constantly.

    Prices might come down a little or go a lot higher but Im confident, whatever happens, we will make it work.

    The tin price was sitting at US$5,000/t when Consolidated Tin started taking up areas of the tin field at Mount Garnet.

    Tins rise as a metal has certainly coincided with our rise, De Lacey says. The price rise over the last 18 months has been driven by a global increase in the sale of electronic goods and legislation removing lead from solder, where tin is the major substitute.

    Tins performance has certainly helped us become one of Australias leading tin exploration and development companies.

    Like most Queensland miners, Consolidated Tins process was slowed by the heavy wet season experienced last summer, however the project at Mount Garnet is now at full operation and De Lacey expects any lost time to be made up throughout the rest of this year.

    It did put us back, he says.

  • 36

    Consolidated Tin Mines FEATURE

    Consolidated Tin commenced its 2011 drill campaign in April with a 3,500 metre, 65 hole reverse circulation program at the Windermere deposit. Further drilling is currently underway at Windermere, and elsewhere. The outlook remains positive.

    While Gillian and Windermere are the companys most advanced projects at Mount Garnet it has not limited its programme of work exclusively to them, De Lacey stresses.

    Were drilling at Pinnacles, he says. And we are also planning to undertake a regional drilling programme at other nearby projects held by the company in order to expose potential mineralised zones.

    .We see our company as one that has genuine credentials and is moving towards being a production company and it will be a major tin producer. I see us as being a leader in the field.

    Consolidated Tin recently announced that it has secured a major cornerstone investor for the Mount Garnet Tin project.

    Hong Kong based investment company Snow Peak International Investment Limited has taken an initial placement of A$1.6 million into Consolidated Tin, as the first tranche of a proposed long-term investment designed to see the project through to production.

    The initial placement is for 20 million shares at A$0.08c per share.

    Proceeds from the issue will be used to advance the development at Mount Garnet and provide working capital, De Lacey says.

    SEMF PTy LTdProject approvals are managed by an experienced multi-disciplinary team, with the Project Manager and specialist sub-consultants located in the project home State bringing the necessary local knowledge of environmental and engineering conditions and the State based regulatory framework. The significant advantage we can offer is that the bulk of the project team is located in Tasmania, where we have a large and experienced, committed and highly stable professional workforce, which has been involved in such processes for many years and in all States. The decision to live and work in Tasmania means we have a team which is stable and extremely cost competitive.

    We are delighted to welcome Snow Peak as a strong partner and look forward to a mutually beneficial relationship to take the Mount Garnet Tin project through feasibility studies and into production, to unlock the real value in the project for our shareholders.

    Looking forward, Consolidated Tin will continue with its development plans to position itself as a substantial tin mining company.

    In 2000 there was very little interest in tin as a commodity, but my partner John Sainsbury and myself saw great potential in the future of the metal and accumulated the best tin projects in the lower Herberton Tin Field, De Lacey says. Some seven years later we transferred those projects into a

    Herberton NQ main shaft 1906

  • 37

    Consolidated Tin Mines FEATURE

    SEMF Pty Ltd are pleased to support Consolidated Tin in their mining developments.

    SEMF is a multi-disciplinary engineering and management firm that can provide skills to all facets of your project. We provide a total project delivery solution to clients in a diverse range of industries including feasibility studies and engineering design, planning, environmental and community relations and project, construction management and commissioning.

    Permanent offices are located in Brisbane, Townsville, Gladstone, Hobart, Launceston, Burnie, Melbourne and Sydney. We have in excess of 120 full-time employed professional and administration staff available.

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    new company: Consolidated Tin Mines. At the time, there was potential that tin

    might revive -- the price having previously crashed -- and we managed to accumulate a number of very valuable tin areas in the Herberton Tin Field.

    We had the opportunity to pick and choose the very best of what we wanted. We chose the Herberton Tin Field in Northern Queensland because it was once one of Australias premier tin producing fields and we had faith that the tin price would revive and, sure enough, it did. As we established Consolidated Tin Mines, we raised funds to carry out the development in 2008 we listed

    on the Australian Securities Exchange. We raised four million dollars in that listing and we put every bit of that towards developing the project and taking the project to where it is today.

    The Herberton Tin Field was already well explored by other mining companies and taken to a certain point when De Lacey acquired his assets. Consolidated Tin has taken the projects on to the next level of development, with the express purpose of bringing them into a mining operation.

    Were a small company with an enormous project at Mount Garnet, he concludes.

  • R EN EWA B LE S ? M AY B E , B U T T H E K I N G S T I LL R EI G N S

    King Coal or Carbon Pariah? For Jason Brewer, Executive Director of Perth-based Continental Coal, a no-contest. Coal is still one of the most cost effective sources of energy and power generation. Theres massive energy demand in Asia, especially China, and coal shortages are highlighted in weekly updates out of India. The outlook for thermal coal is positive and immense.

    Continental produces thermal coal, with a project portfolio in South Africas major coal fields. Used in power stations worldwide to generate electricity, thermal coals importance is set to continue, fuelling an

    Coal remains the cheapest and globally in-demand power generator says Perth-based Continental Coal executive Jason Brewer By Colin Chinery


  • R EN EWA B LE S ? M AY B E , B U T T H E K I N G S T I LL R EI G N S

    estimated 44% of global electricity in 2030.Already listed in Australia, last month

    (September) Continental listed its ordinary shares on the London Stock Exchanges Alternative Investment Market (AIM), a move CEO Don Turvey says will enlarge its international profile and engagement with additional European funds and institutional investors.

    Continental Coal currently has two operating open cast coal mines, Vlakvarkfontein and Ferreira, producing two million mt per year of thermal coal for the export and domestic markets. Last month it began development of its third mine,

    Penumbra. With a further nine thermal coal projects progressing towards development Continental is targeting run-of-mine production of seven million metric tons per year by 2013.

    Weve got to this position very quickly, says Perth-based Brewer. Its only eighteen months ago since we mobilised contractors to our first mine development and just this month weve announced the same for our third. With strictly limited risk capital available in a South African market built up to support the Anglos, De Beers, and BHP Billiton, Continental has had to look elsewhere for asset growth investment equal

    Continental Coal FEATURE

  • 40

    Continental Coal FEATURE

    to its ambitions.The Australian market

    has supported us very well and has a strong track record of providing risk capital for junior exploration companies. But when it gets to a company thats in operation and certainly in the case of those developing assets off-shore inevitably that support becomes less likely.

    If you are in Australia and looking to invest in coal, the big institutions will look first at the Hunter Valley and Bowen Basin, less so off-shore and in jurisdictions with a perception of higher sovereign risk. But look at the London market and its a whole quantum shift in terms of the amount of capital that is available for mining companies active in Africa. The next step for Continental - once we have completed the first phase of organic growth - has to be dependent on the support of the London market. Thats whats needed. And nowhere are the risks inherent in South Africa and in mining better understood than in London which has been instrumental in supporting South Africas mining industry over the past 100 years.

    Brewer acknowledges a place for renewables, but says coal remains the cheapest and most efficient form of power generation. It was only twelve months ago that uranium was being pushed dramatically, and now we see governments pulling back from their nuclear programmes.

    There will always be a role for renewable, but coal is a very established and cost effective form of power generation for many developing economies, and any impact other forms of power generation might have on it is well offset by the tremendous growth

    in coal demand. As a coal producer Im certainly not concerned by renewables. Theres tremendous demand for coal-based power generation in developing economies, and that demand is not going to subside.

    Continental began mining at Vlakvarkfontein, a shallow, open cast operation, in May 2010 and will continue for at least the next fifteen years, says Jason Brewer. We are producing at a rate in excess of 1.2 million tons - and at times on an annualised basis as much as 1.8 million tons. For the first two months in

    this financial year July and August we had record sales of thermal coal from the mine generating R12.5 million of free cash flow.

    We took over mining operations at Ferreira, our second mine, last November, replacing the contractor, stopping operations in one pit and began developing a new one. Here too record quarterly production and sales to the export market; 600,000 tons of an export thermal coal sold through the Richards Bay coal terminal. This will continue for at least another 12-18 months, and we are just finalising the opportunity to extend the mine further through the acquisition of adjacent resources which would take that out for another one or two years. Its a small operation but generating good positive cash flow to support our other activities.

    Ground breaking at the third mine, Penumbra, an underground operation located just 3km from the Ferreira mine, started last month, with Brewer anticipating production start-up in the second quarter of next year, a fifteen to twenty year life and

    Coal is still one of the most cost effective

    sources of energy and power generation...

    The outlook for thermal coal is

    positive and immense

  • Trollope Mining Services is a Level 4 BEE rated company which is 30% Black owned. It was established in 1975 by Peter and John Trollope and provides the services of opencast mining, crushing & screening, mining and rehabilitation services while operating in the Civil and Mining Industries.

    Traditionally the business has predominantly operated in the coal sector however we are currently in coal, platinum, andalusite and gold and our strategic intent is to diversify into other mineral sectors and grow our geographical footprint into Africa.

    The company is a privately owned entity which operates on good sound corporate practices. Our focus is customer orientated and performing at the highest levels of production and safety. We pride ourselves on the quality of workmanship on our operations through good training and upliftments of our staff in the field to maintain our reputation in the industry. We therefore put a lot of effort into maintaining our fleet to ensure high levels of availability with little or no reliance on our suppliers. We are therefore very much self-sufficient.

    Our core philosophy is Business in about people and not just plant and equipment. We therefore invest a lot of time and money in our employees and communities. This is done through various mechanisms from external and internal to learner ships, SED programs and charity fund raising functions. We currently employ just over 1000 people in the company

    Telephone: +27 11 281 6000 Fax: +27 11 281 6017Email: [email protected]

    TMS.indd 1 27/09/11 8:41 PM

  • 42

    Continental Coal FEATURE

    another 600,000 tons of export coal. After that weve got the De Wittekrans, a combined underground and open cast mine. Weve just completed the bankable feasibility study, and you should see some production coming on in mid-2013. And thats going to produce 3.6 million tons a year of run-of-mine coal.

    Looking beyond South Africa, an exploration programme in Botswana began last month, with a shallow coal exploration target of 2.5 billion tons. Tenders have been submitted for early stage properties throughout East Africa, and Continental is also looking at hot spot Mozambique, and Tanzania, as well as consolidating and expanding its footprint in South Africa.

    Weve got a very, very strong management team in South Africa, major executives from major coal mining companies who are really driving the business, executives who have been used to operating and managing single mines producing ten to 30 million tons a year and now finding themselves involved in a company producing a bit over two million tons.

    But they are not here just to operate mines like that; they are here to grow a business. Its about growth. And weve got an operating cash flow and depth funding behind us that allows us to deliver on that growth. The Company has concluded strategic off-take and funding agreements with

    fraser alexander

    EDF Trading for its export thermal coal production and recently signed a joint development agreement with KORES, Koreas state mining and Exploration Company.

    Bullish for coal and Continental? Yes, absolutely

    To learn more visit

    faMP offers Mineral Processing services on either a build, own, operate and maintain (BOOM ) or operate and maintain (O&M) basis to the Coal and Metals industries.

    fraser alexander Mineral Processing, is a division of the fraser alexander Group and wholly owned by royal Bafokeng Holdings.

  • 300 ton per hour DM plant and Spirals at Continental Coals Mashala Colliery

    In 2009 Fraser Alexander Mineral Processing was awarded a 5 year BOOM contract for the processing of the ROM at Continental Coals Mashala Colliery. Processing is done in a Dense Medium section: Drum and Cyclone and a Spiral Plant.

    Fraser Alexander (Pty) Ltd Phone: +27(0)11 929 3600 Fax: +27(0)11 397 4607 Email: [email protected]

    innovative performance



    Inspectorate, through its various laboratories offers a range of

    analytical testing services to the South African mining industry.

    Through our Rustenburg: Johannesburg and Middelburg

    laboratories we cover full geochemical exploration testing

    including PGM; Base Metals; Metals and Ores and Coal as

    well as the analysis of water and environmental samples.

    Inspectorate SA, backed by Inspectorate Global offers a

    comprehensive pit to port service including on-site mine

    laboratories scope to the mines particular requirements.

    Contact details:- Celia Barbosa

    Phone: +27 11 661 7900 l Direct: +27 11 661 7915 Fax: +27 11 496 2337

    Email: [email protected] l

    inspectorateA Bureau Veritas Group Company

  • Empired is one of those rare gems and it is proof that in business you can take on the big boys and WIN. The Perth IT companys managing

    director Russell Baskerville says that big thinking in a small business stops you from ignoring potential markets and allows you to try those cool ideas you might think your business is too small to attempt.

    The publicly-listed company, started by a handful of Perth people in 1999, has used this philosophy and taken the battle to the multinationals in both managed services and Cloud Computing, that ever expanding part of cyberspace where companies have IT services hosted on the internet, rather than in their own buildings.

    We are taking on, and in some cases, beating the big guys in their own game, Baskerville says.

    Last month, Empired posted record

    revenue of $39.71 million up 42 percent on the year before. Full year earnings before interest, tax, depreciation and amortisation (EBITDA) were $1.28 million, an increase of 132 percent.

    Baskerville was delighted with the results.

    Both the operational and financial performance delivered during the 2011 financial year was fantastic, he says

    Coming off the back of such a difficult 2010 and a patchy 2011 financial year, this performance not only vindicates our strategy and the underlying strength of our business model, but strategically positions us for considerable revenue and earnings growth during the current financial year.

    We are confident that the investments we have made will ensure a sustainable growth profile with clear strategic focus on growth opportunities in 2012.

    Empired, he says, has invested to improve


    From humble beginnings, Empired has grown an empire! Australasia Business Outlook talks to Empireds chief

    executive officer and managing director Russell Baskerville, who has big plans for the company.

    By Ian Armitage

    b igvis ionS m A l l B u S I n E S S

  • its sales focus and depth across all areas of the business.

    That investment has delivered two key benefits and drivers to value for the 2012 financial year. Firstly the level of run rate business is at the companys highest since inception. Average monthly revenue increased 79 percent in the last quarter of the 2011 financial year when compared with the last quarter of the 2010 financial year. Secondly Empireds sales pipeline is stronger than that ever experienced in the companys history providing confidence in our ability to sustain this growth and continual performance improvement.

    Baskerville says the investment has resulted in significant growth in Empireds client base, with new clients secured across Western Australia and Victoria.

    These clients are typically high growth medium sized organisations or well established large enterprise clients within the resources sector and State government.

    Our client base is growing all the time and it provides an outstanding growth opportunity, Baskerville says.

    Rather impressively Empired has managed to extend its reach in the Victorian market, with revenue growth in Victoria of 98 percent.

    The sheer magnitude of that market continues to present a great growth

    opportunity to us. We are very pleased that we have managed to achieve significant growth.

    We are confident that over the medium term this market will experience significant investment in the IT sector and that we are strategically placed to capitalise on the growth opportunity.

    Empired has also secured a number of major multi-year contracts with large Government and corporate organisations, while a number of its largest strategic clients have expanded the managed services they receive.

    Empired FEATURE

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    Empired FEATURE

    Baskerville says this is a testament to the high quality and value that clients see in Empireds services.

    We have a genuine competitive position in the market and we have shown an ability to win major contracts against large national and international competitors.

    Empired has recognised early a fundamental shift in market trends and alternate consumption models for IT services within the Australian IT sector.

    This has led to the development of Empireds cloud services offering FlexScale. which enables a new approach to IT by offering organisations a flexible new range of options for how IT services are designed, delivered and managed.

    What it means is that IT services can be packaged into consumable IT products, Baskerville says. These products are offered through Cloud Computing in the form of online service catalogues, in much the same way as using a shopping cart.

    We expect that this innovation will provide a strong competitive advantage when tendering on managed services contracts

    and provide long term opportunity.We are very excited by this considerable

    market opportunity and we are confident in attaining a leadership position in this rapid growth and high margin market.

    The area of Cloud Computing was poised for rapid growth, Baskerville stresses.

    Were basically selling them space on a shared computing utility for the use of their systems. They pay on a usage basis so they can scale up and down, as they need to.

    Typically its a journey where they take a few services into the Cloud and gradually move more. Today were seeing people

    Both the operational and financial

    performance delivered during the 2011

    financial year was fantastic

  • Empired FEATURE

    putting their research and development into the Cloud, their back-up and disaster recovery systems, and more and more their core production systems.

    Empired is headquartered in the Perth CBD where it employs 175 people - another 40 are based in Victoria.

    It is a remarkable growth story considering Empired started out as an IT services provider with six staff targeting medium-sized organisations employing between 500 and 5000 people.

    Before we came along there were very few options for clients who often had to resort to large multinationals and pay significant premiums for the service. We thought we could do it much better.

    We are all about understanding their

    business, engaging with them, and providing a service over and above what they were getting.

    And we have grown significant