Newsletter #8 July 2007
In this edition:
Fourth Annual Forum
Fourth Annual Forum, Westport, 4 July 2007
Approximately sixty-five people representing industry, consultants, contractors, regional government, training providers, employment agencies, infrastructure and local councils, and product and service providers attended the 2007 Annual Minerals West Coast Forum held in Westport on 4th July.
In keeping with Minerals West Coast Trust’s intent to move the Forum around the Coast’s four main centres, this year it was Westport’s turn to host what is believed to be the country’s only regional minerals industry regular get together. While moving the event each year does introduce some problems with respect to travel for speakers and attendees the informality of Coast events and the benefits to smaller centres far outweighs any disadvantages. It also gives visitors a better feel for the spread of projects and the size of the region and the difficulties this does bring in terms of operations and logistics.
The Forum provides a unique Coast opportunity for all to network and appreciate the extent and diversity of the regions mineral industry. It also serves to highlight the pivotal role in the Coast’s resurgence over recent years both in terms of the value of ‘gate sales’ of production and the crucial role this wealth creation plays in building community well being and spirit, irrespective of the variety of philosophical views held about the winning of natural resources.
The day’s proceedings fall into a morning session that brings out of region speakers to present on national issues that continue to have an effect upon the Coast, and an afternoon session of updates of major developments and topical issues within the Coast. The theme for this year’s Forum was People, Power and Politics – with three speakers presenting their perspectives. Peter Hall from the Department of Labour spoke about the skills shortage. Charlie Hand from Enercon presented his views on the security of electrical supplies to the region and Chris Baker from Saunders Unsworth gave a heads up on the political scene in Wellington. The afternoon presentations were followed by a field excursion to Holcim’s cement works at Cape Foulwind and an ‘aftermatch function’ review of the day and networking.
Minerals West Coast AGM
The Forum got underway with Eddie Davis acting chair for MWC Trust welcoming all attendees and presiding over a short AGM where six of the seven existing trustees were reappointed and Peter Whittall re-appointed as the standing Chairman. Mike Lynn of Solid Energy was replaced with Nick Horswell as Solid Energy’s Trust representative. In welcoming attendees Eddie made reference to the advocacy role for all West Coast industry stakeholders through the efforts of the Trust, and reflected upon the importance and role of a regional association when at times the industry is confronted with seemingly overwhelming difficulties. The success of this mining sector initiative is due to the hard work and commitment of a dedicated band of people and trustees. Eddie provided a list of initiatives and accomplishments the Trust had been involved with during the past year.
At the close of the AGM Minerals West Coast Trust Project Coordinator Keith Brodie briefly reflected on the Trust’s progress over the year and outlined where efforts will be concentrated in the next twelve months. Salient matters to be worked upon over the year include a proposal to have a comprehensive region-wide Mineral Resource Assessment completed, to consolidate the importance of the industry to the area both in terms of absolute and relative importance, reviewing resource consent bonding, and holding a series of seminar/workshops (provided industry interest and support exists ) on a variety of opportunities and threats confronting the industry such as acid rock drainage, emission trading, climate change and sediment control.
The Forum
Presenters
The Labour Department’s Labour Market Development Unit of Work Directions spokesperson Peter Hall provided a comprehensive picture of the labour market in local, national and global terms. Stopping short of offering suggestions of how the region and sector might address these imperatives, Peter put it to the floor as to how to best respond. It is an industry problem best solved by the industry itself – a clear-cut case of self help – or be compromised. There does not seem to be any quick fix or concerted central government plans to alleviate the skills shortages, that occur at all levels from labourer to senior management.
There are some shorter-term solutions such as immigration, or competing locally and nationally within the industry, but neither of these will provide long-term solutions that the sector requires. Peter noted that there are as many New Zealanders in the mining industry in Australia as there are in the industry in this country. Some may be attracted back, others will depart. One certainty is that this problem will not solve itself, and if industry is to alleviate the problem we must work together to find innovative answers in the absence of any central government policy or action.left:There are as many New Zealanders in the mining industry in Australia as there are in the industry in this country.
Charlie Hand from Enercon provided a very clear and informative description of the West Coast’s electrical supply system and vulnerability to power supply quantity and quality given that the region is at the end of the line. Charlie summarised the likely scenario in the next few years. He provided a toolbox of possible actions to allay the likelihood of supply side problems, that similar to labour supply, will compromise industry development ability through shortages and pricing. Again many of the suggestions are of a self help nature and require recognition that the situation is a ‘when’ rather than an ‘if ‘ problem.
Chris Baker or Saunders Unsworth public policy advisers presented an overview of the current political scene in Wellington and the likely developments over the next 12 months. Chris covered the likelihood or otherwise of a fourth term Labour led government (unlikely), government relations, the importance of access to officials as opposed to politicians, and important policy issues such as energy and climate change. Whilst the economy remains robust the present government is languishing whilst National under John Key is presenting a credible alternative. This may well have implications for the mining industry and the sector should be positioning to seek leverage from this.right: The West Coast's electrical supply system is 'at the end of the line' and is vulnerable to quality and quantity variations.
Updates
The afternoon session provided updates from Oceanagold/Stracon, Pike River Coal Company, Port of Greymouth, Holcim and the Department of Conservation. The Oceanagold update was presented by Bernard Connor of Stracon the mining contractors at Oceana’s Reefton project. The Globe-Progress mine was officially opened the previous day, July 3, and has been shipping concentrate to Oceana’s Macraes Flat mill for some months now. Bernard provided some perspective on the scale of operations and investment in the area and some of the supply side problems such as availability of mining fleet tyres.
Pike River development has improved very significantly in recent weeks with the commissioning of the stone drive waste removal conveyor system. Production still on target to get underway in the first half of 2008.
Tony Kokshoorn Mayor of the Grey District provided an inspirational update on the resurgence of the Grey District and especially the redevelopment plans for the port to enable the export of Pike River coal directly from the Coast. Tony certainly presented a very bullish future for the district and region all primarily driven by the minerals industry.
Chris Dempsey from Holcim rounded out the industry updates with some very positive news about the performance of Holcim’s Cape Foulwind cement plant and immediate future, but tempered this with a reality check on the longer-term fate of the plant at Westport. The importance of the facility to the Buller District and region is lost on nobody and although the decision to move production from the region or remain in Westport is still some time away the West Coast should not under estimate the impact that departure of Holcim would have.
Campbell Robertson from the Hokitika Conservancy of DoC bought the day’s updates to a close. Campbell outlined the current status of the Conservation Management Strategy for the West Coast and although acknowledging that the document has been a long time in evolution asked that the industry and public in general take up the opportunity to have input into the long term management approach and goals of the regions conservation estate. The next few weeks will see the public process underway.
The day’s official programme conclude with Chris Dempsey of Holcim guiding a bus trip around Holcim’s Cape Foulwind limestone and marl quarry and a drive around the cement plant. The weather was true to name and foul, and although unable to walk about at either site, participants received a really good overview of the overall facility and economic importance to the area. Special thanks to Holcim for hosting the field trip.
Thanks to all attendees and a special thanks to presenters who made time and particularly those who travelled from outside the region to attend the Forum. As has been said many times, the mining industry was a founding industry on the Coast. Like all resource /commodity industries there are up and downs. However there can be no doubts that the present wave of mining developments along with the existing operations remain a key driving force behind the region’s current prosperity. The challenge before us all now is to maintain the benefits that accrue from these good times. All sectors, private and independent miners, corporates, regulators, central government, educators and communities must work collaboratively and collectively to sustain this momentum.
Finally a special thanks to Doug Hood Mining (principal) and SGS who sponsored the Forum this year. With their support and commitment the event will break even for the first time in several years. Also Mary Wilson’s (Solid Energy, Westport) help. It is this kind of belief in the region and our industry that makes a real difference.
Keith Brodie
MWCT Project Coordinator