Home' Australian Resources and Investment : March 2016 Contents 8 • Australian Resources and Investment • Volume 10 Number 1
The Remote Operations Centre,
located at our head office, is up and
running, and leads the industry in
terms of controlling all of our operations
from pit to port in one place, as well as
integrating our production operations
with our supply chain and maintenance
This control allows end-to-end
business optimisation, removing silos
and eliminating costs associated
with sub-optimal planning. We are
also using drones for surveying and
automation on drills to increase
accuracy and eliminate some waste,
and we are investigating whether we
can use robotics to assist with conveyor
maintenance and refuelling.
Ways need to be found to
help Australia maintain its cost
competitiveness in an increasingly
tough and competitive market. We also
must realise the extra cost burden
imposed by governments, both state and
federal, with their approvals, permits
licences and regulatory compliance,
and find ways to significantly cut this
burden to help our high-cost Australian
environment maintain its ability to be
competitive in world markets.
Thank you for your attention.
Apart from being the largest financing
in mainland resource history ever, we
have achieved other notable firsts, such
as having the largest ever commercial
contract between Australia and Korea
when we signed the EPC Construction
contract needed to underpin the financing.
So many negative people said
we’d never be able to pull the major
debt financing off, or build this mega
project ... but we have. As Garry
mentioned, some of the banks who
helped us achieve our financing are here
tonight. May I take this opportunity
to publicly thank them; if some of the
representatives here tonight wouldn’t
mind standing, please do.
Please join me in applause.
Thanks to this financing, Roy Hill
now has four large mine pits operating
successfully, with their production well
ahead of schedule.
Our 344-kilometre heavy haul
railway is complete and employs the
latest technologies with options for
automation. We have celebrated in the
last two months the production of our
first coarse ore and first fine ore being
loaded onto a train, and their deliveries
to Port Hedland.
Our dedicated two-berth port facility at
Port Hedland is capable of exporting more
than 55 million tonnes per annum of iron
ore as lump and fines. And the first ship is
in port, being loaded with our first ore!
Our staff morale is high, we are
more than a month ahead of what
the partner’s aggressive schedule
had planned in the detailed bankable
feasibility study. A fantastic
achievement. And we currently remain
within budget – somewhat of a rarity for
a major project in West Australia.
This is an amazing achievement by
our executives and project team, and
the approximately 50,000 men and
women who’ve been involved across the
project over years.
In terms of the world iron-ore market,
Roy Hill is a low-cost producer, with low
phosphorous impurities, significant lump
ratio, and consistent quality, so we are
better situated than most.
With Australia exporting record
quantities of almost 800 million tonnes
per annum of iron ore, quality iron ore
resources are being consumed at a fast
rate, and it takes many years to achieve
government approvals, permits and
licences to enable new mines. Over time,
the demand-supply situation changes.
Roy Hill is a long-term project with a
long-term outlook, and approximately
90 per cent of Roy Hill’s quality product
is already under long-term contracts.
But Australia needs to understand
that there is nothing we can do about
international prices, and if we don’t
keep our costs down and export
competitively, other nations will.
Roy Hill should serve as a beacon
of hope, but Australia needs to do more
to unleash the potential of our largely
We need to stop finding reasons
not to do things and pursue ways of
making it happen. Special economic
zones, working successfully in other
parts of the world, could work in our
North, too, which is why ANDEV,
Australians for Northern Development
and Economic Vision, has spent years
promoting these less government-
burdened zones. Special economic
zones would reduce the cost of
developing projects and encourage
further investment and growth.
We should be implementing ways
to entice investment and welcoming
Australians investing in Australia. We
need to act to stop the continual decline
of investment in Australia.
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