The “once in a generation” resources boom currently gripping the nation is spurring the growth of new and innovative supply companies that are adapting their offerings to suit the special needs of the mining industry.
As production targets are stretched to meet growing demand, coal mining centres such as Queensland’s Bowen Basin are attracting new suppliers and contractors. Those who succeed in this arena have identified the particular requirements of intensive dragline stripping and mining in a climate of skills shortages and plant scarcity.
The support these suppliers give the major mining groups in engineering and maintenance must therefore include a strong commitment to the Occupational Health and Safety issues demanded by today’s mining industry.
Lifting solutions and crane hire group Boom Logistics has recognised the Bowen Basin coal industry could benefit from its significant expertise in the construction and infrastructure sectors and its solid track record on OH&S management.
Boom chief executive Rob Harmon said the company initially moved into the Bowen Basin by acquiring Brambles Industries’ crane hire businesses in the region. Boom then demonstrated a unique level of service for its mining industry customers, which include the BHP Billiton Mitsubishi Alliance (BMA).
“The key to our approach was two-fold,” Harmon said. “Firstly, we specially restructured our fleet of cranes in the region so that we could offer our customers better cranes, which enabled a reduction in costs for the mining company.
“A typical example was back in 2005 when we added 18 additional cranes, nine of which were brand-new, to our existing fleet of 38 cranes in the Bowen Basin. Three of our cranes had a lift capacity in excess of 140 tonnes and were fitted with a 60m live boom as well as swing-around fly jibs.
“For BMA, we specifically introduced cranes of this specification in order to achieve major savings in time, and therefore money for them. They were used to give access to the boom tips of draglines. This specifically helped BMA identify ways of lifting efficiency.”
Prior to the introduction of such cranes at the BMA Riverside Goonyella site, where BMA needed to access dragline booms, it carried out the work using older equipment, resulting in unrecoverable delays in set up time.
“The time savings and thus cost reductions were achieved by a readily available supply of modern equipment fitted with technological advantages over the previously used equipment,” Harmon said.
Boom invested $10 million in 2005 to upgrade the fleet and vehicles for the BMA minesite and other mines in the Bowen Basin. Harmon said this was one of the benefits of being a large national group with the resources of a public company.
The second facet of Boom’s service-driven approach is in its adherence to safety and operational procedures. Harmon said Boom demonstrated that it has the resources to meet the highest standards in safety protocols right across the whole range of OH&S issues in the mining industry.
Since 2005, Boom has moved again to expand the fleet and increase human resources and expertise with its acquisition of Camilleri Industries Australia, based in Mackay.
The acquisition means another big addition to the Boom fleet in the region – another 48 cranes, as well as associated support equipment and a fleet of 90 forklifts.
“What is also good news for coal mining companies in the Bowen Basin, is that the acquisition brings to Boom additional experienced people who are locals, who know coal mining, who know the support companies and know how to organise backup services from local suppliers but are now better resourced with the facilities associated with Boom,” Harmon said.
Boom, which listed on the Australian Stock Exchange in October 2003, has been embraced by the market for its steady business development and its ability to see opportunities in growing sectors such as resources, and in particular the Bowen Basin. The company’s shares at the time of its initial public offering were priced at 80c (October 2003). The price has risen steadily since to a high of $4.75 around the end of April 2006 and settled at a price of $4.55 around mid-May.
Headquartered in Melbourne, Boom currently employs more than 1100 people Australia-wide and operates in all Australian states and territories and offshore at petrochemical industry facilities in the Bass Strait. It provides crane, heavy haulage and rigging services under the Boom brand and travel towers and access equipment under the Sherrin Hire brand.
Australia's Mining Monthly
