Selling Territory mining and supply

Selling Territory mining and supply

The organisers of the event believe Darwin is positioned to become a key regional supply base for mines, particularly on the eastern Indonesian islands of Kalimantan, Sulawesi, Sumbawa, Halmahera and Papua. Many of these projects are currently supplied from cities as far away as Sydney, Brisbane and Singapore while Darwin, situated just a few days sail from those projects, cuts delivery times and shipping costs to the miners.

“I Iike the networking - talking with your colleagues. And make no mistake - deals are done here. People have the opportunity to talk with the speakers as well as their peers.”

Since the Adelaide to Darwin railway has begun operations, supplies and equipment can be sourced in southern capitals and transported to Darwin for a quicker, cheaper delivery. “Darwin’s ideally suited to supply some of the big projects in eastern Indonesia,” observes Bob Scouller, infrastructure manager for engineering and project manager Worley Parsons Indonesia. “So many of the products we buy are unavailable in Indonesia. They’re handled by agents, all of whom are represented in Darwin.”

The forum delegates are reminded that Australian companies are already strongly represented in Indonesia, a world leader in the export of coal, gold, tin, copper and nickel. Over 400 Australian companies are operating there with a large percentage in mining / infrastructure, investing more than AU$3.5 billion. The forum’s presenters concentrated on the important issues associated with doing business in Indonesia: how do the country’s new mining laws apply to foreign suppliers? How do you get started? Where do you go to get approvals? Do you need to set up an office there? And importantly, what do they want to buy from Territory based suppliers?

The Indonesian Mining Procurement Forum is one of a number of mining supply conferences and expositions in Australia and overseas where the Territory Government has organised trade delegations that give local businesses access to the people running the major projects in the region. Some of the events are aimed at offshore supply to the gas and oil industry, while others deal with onshore mining and exploration.

One of the most popular events is the AGES (Annual Geoscience Exploration Seminar) conference in Alice Springs, organised by the NT Geological Survey. The event is in two parts - the seminar attracts industry geologists from across Australia and overseas to attend presentations on the latest geophysical surveys and discoveries. The associated Mining Services Expo is organised by the Territory Department of Business and Employment, providing opportunities for Territory based businesses to get together with the explorers and the mining companies. “Miners and explorers come to the AGES event and they are a captured audience for the exhibitors,” noted one observer.

AGES now draws international interest with a 37 strong contingent from China attending this year. One Chinese group was taken for a tour of uranium miner Cameco’s operation in Alice Springs where they visited the company’s exploration core facility and its Angela and Pamela exploration site. Others had specific goals. “We have [exploration] tenements in the Northern Territory and are here looking for skilled geophysicists and some drillers,” explained Eagle Kao from the Anhui Bureau of Investments, a Chinese Government company. “We think the conference is good. So many industry people are here so we get to know the companies in Australia.”

Anhui attended AGES last year and picked up Territory exploration tenements in Alice Springs, Katherine and Batchelor, looking for gold, nickel and copper. “I like the networking - talking with your colleagues,” says Arafura Resources’ Richard Brechininni, “And make no mistake - deals are done here. People have the opportunity to talk with the speakers as well as their peers.”

While AGES was running in Alice Springs, the Australasian Oil and Gas (AOG) Exhibition opened in Perth, attracting a strong Territory contingent of businesses associated with offshore engineering and supply. The Territory Government supplied the stand where the delegates networked with a wide range of industry professionals. Following the event, delegation members reported making significant connections during the networking opportunities and at the exhibition itself. Almost all members of the delegation have advised organisers that they wrote business through contacts made at AOG and several delegates have been offered agency arrangements for products on display at AOG.

The Territory also had a 26 person delegation of participating businesses at Ozmine 2010, a showcase of Australian mining industry suppliers in Jakarta. The conference and expo was attended by an audience of procurement staff from Indonesia’s major mines and mine subcontractors. Supported by Territory Business Minister Rob Knight, most of the Territory companies are remote area specialists, making them ideally suited to supplying the isolated mining operations in eastern Indonesia.

Do the results of these business events reflect the expense and the efforts of the participating businesses? While most businesses are reluctant to detail the extent of their successes, it is certain that the effort is attracting rewards.

The Indonesian Mining Procurement Forum alone has seen a Darwin motor vehicle company securing contracts for the export of light vehicles and spare parts to major mine sites in eastern Indonesia. Engine Engineering and its Indonesian partner PT Powertrains established a successful engine overhaul operation in Balikpapan. Linetec of Pinelands has secured orders of over $700 000 to export its hydraulic ladders to Kalimantan. Blackwoods of Winnellie has developed a multi-million dollar business in industrial hardware opportunities in eastern Indonesia, and Nedrill of Humpty Doo is in discussions regarding the supply of drill rigs and personnel to a new project on Sulawesi.

The Territory Government and local business saw the expansion of Darwin as a supply centre for the regional mining and offshore oil and gas industry as an opportunity that was within their grasp. With the Territory capital just 2000 km from some of the world’s biggest mining operations, it is a wonder that making that industry a reality took this long.