Welcome to the 17th edition of The Groundbreaker. In this issue we have included an excerpt from our Chairman Dr Ian Burston’s AGM address on page two. At the AGM it was also announced that John Cooper was retiring from the Board. I would like to take this opportunity to thank John for his service and contribution, and wish him well for the future. On the 10th November NRW announced that we had reached a settlement with Samsung after nearly 12 months of protracted negotiations and legal disputes for the Roy Hill Rail contract. The Board considered other options to enable us to continue our legal fight in order to pursue a better outcome, but concluded that in all circumstances the settlement reached was in the best interest of shareholders and also allowed the company to move forward with certainty. Despite the challenges of the Roy Hill Rail contract, NRW successfully constructed several large civil projects during the year including the Concrete package at Roy Hill Plant site, the Nammuldi Below Water Table project for Rio Tinto and the Ravensthorpe Heavy Haul route for Main Roads WA, which will be officially opened on December 21st (page five). During the last quarter of the year the civil team were also awarded a smaller project for Fortescue Metals Group at the Solomon Mine (page six). Our mining business maintained its key contracts with Fortescue at North Star and for Middlemount Coal, and pleasingly during the year we were able to negotiate an extension to the Middlemount contract to 2020 which provides improved certainty for the business. The award post the year end of the Nammuldi Incremental Tonnes project is featured on page six. We have experienced a long and successful relationship with Rio Tinto in both the major expansion construction phase and also with prior mining load and haul contracts across their operations. The award of this contract has increased the groups’ asset utilisation to over 75%. The drill and blast business secured an extension at Greenbushes, retained a two year extension to the Fortescue Cloudbreak contract and secured their first contract in the gold sector at St Ives gold mine for Goldfields Limited. You can read more on their year on page seven. Action Drill and Blast are also moving offices early in the New Year, into the NRW Holdings office at 181 Great Eastern Highway Belmont. The entire team at the Belmont offices are looking forward to making our drill and blast family feel welcome in the coming year. During FY15, the AES business also worked hard to expand their customer base and have diversified their services. Three apprentices at AES also complete their trade studies this year and become qualified tradespersons – Congratulations to Jack, Ben and Michael (page seven). As David McCaughey discusses in his safety message on page three, and we count down to the end of the year, we need to maintain a strong focus on safety by taking the time to consider the task at hand as you go about your daily work. Give proper attention to your task and please also look out for your colleagues so that we can ensure everyone gets home safely on their break. Finally, a special thanks to those of you who are working through the Christmas period on site. I hope you enjoy your break at the end of your swing and take the time to catch up with your family and friends. Thank you for your hard work during the year, and have a very Merry Christmas. Jules Pemberton Chief Executive Officer IN THIS ISSUE ... • NRW UPDATES • CHAIRMAN’S AGM ADDRESS • A SAFE DAY. EVERY DAY • PROJECT UPDATES • OUR PEOPLE & COMMUNITY • EMPLOYEE FOCUS A MESSAGE FROM THE CEO GROUNDBREAKER THE ISSUE 17 DECEMBER 15
Transcript
Welcome to the 17th edition of The Groundbreaker. In this issue we have included an excerpt from our Chairman Dr Ian Burston’s AGM address on page two. At the AGM it was also announced that John Cooper was retiring from the Board. I would like to take this opportunity to thank John for his service and contribution, and wish him well for the future.
On the 10th November NRW announced that we had reached a settlement with Samsung after nearly 12 months of protracted negotiations and legal disputes for the Roy Hill Rail contract. The Board considered other options to enable us to continue our legal fight in order to pursue a better outcome, but concluded that in all circumstances the settlement reached was in the best interest of shareholders and also allowed the company to move forward with certainty.
Despite the challenges of the Roy Hill Rail contract, NRW successfully constructed several large civil projects during the year including the Concrete package at Roy Hill Plant site, the Nammuldi Below Water Table project for Rio Tinto and the Ravensthorpe Heavy Haul route for Main Roads WA, which will be officially opened on December 21st (page five). During the last quarter of the year the civil team were also awarded a smaller project for Fortescue Metals Group at the Solomon Mine (page six).
Our mining business maintained its key contracts with Fortescue at North Star and for Middlemount Coal, and pleasingly during the year we were able to negotiate an extension to the Middlemount contract to 2020 which provides improved certainty for the business.
The award post the year end of the Nammuldi Incremental Tonnes project is featured on page six. We have experienced a long and successful relationship with Rio Tinto in both the major expansion construction phase and also with prior mining load and haul contracts across their operations. The award of this contract has increased the groups’ asset utilisation to over 75%.
The drill and blast business secured an extension at Greenbushes, retained a two year extension to the Fortescue Cloudbreak contract and secured their first contract in the gold sector at St Ives gold mine for Goldfields Limited. You can read more on their year on page seven. Action Drill and Blast are also moving offices early in the New Year, into the NRW Holdings office at 181 Great Eastern Highway Belmont. The entire team at the Belmont offices are looking forward to making our drill and blast family feel welcome in the coming year.
During FY15, the AES business also worked hard to expand their customer base and have diversified their services. Three apprentices at AES also complete their trade studies this year and become qualified tradespersons – Congratulations to Jack, Ben and Michael (page seven).
As David McCaughey discusses in his safety message on page three, and we count down to the end of the year, we need to maintain a strong focus on safety by taking the time to consider the task at hand as you go about your daily work. Give proper attention to your task and please also look out for your colleagues so that we can ensure everyone gets home safely on their break.
Finally, a special thanks to those of you who are working through the Christmas period on site. I hope you enjoy your break at the end of your swing and take the time to catch up with your family and friends.
Thank you for your hard work during the year, and have a very Merry Christmas.
Jules Pemberton Chief Executive Officer
IN THIS ISSUE ...• NRW UPDATES• CHAIRMAN’S AGM ADDRESS• A SAFE DAY. EVERY DAY
• PROJECT UPDATES• OUR PEOPLE & COMMUNITY• EMPLOYEE FOCUS
A MESSAGEFROM THE CEO
GROUNDBREAKERTHE
ISSUE 17 DECEMBER 15
2015 was certainly a year of challenging market conditions. Quoting Charles Dickens “It was the best of times and it was the worst of times”. For NRW this was most evident in respect of the Roy Hill Rail contract for Samsung and the resultant legal action that we were forced to pursue.
The market and shareholders are now aware that NRW have reached a financial settlement with Samsung that resolves all legal matters.
A thorough and exhaustive analysis of the situation has led to a restructuring of the executive management team and changes are ongoing across the complete range of activities which contribute to our contracting business. We are determined that controls will be improved and instigated where necessary to prevent situation from being repeated.
Another more general effect of the wider slowdown being experienced across the sector has been the large number of redundancies from our workforce during year. These were regrettable, but absolutely necessary in order to return the Company to a profitable footing.
The Board is implementing a process of refreshment and renewal and will modify as necessary processes and procedures to better reflect the significant changes which have occurred in recent times.
I have also announced that it is my intention to retire as soon as a suitable replacement is identified. It has been a pleasure serving on the NRW board since its listing in 2007 but after 8 years as Chairman it is the right time for a transition.
I would like thank my fellow Board members, management, staff, stakeholders and shareholders for their support during these challenging times.
As NRW enters its 21st year of operations I remain confident we will bounce back with that continued support.
CHAIRMAN’S AGM ADDRESS
NRW UPDATES
DR IAN BURSTONCHAIRMAN
This month, we say goodbye to one of the originals at NRW – Keith Bounsell, who is retiring after a 20 year career at NRW.
“Over the past 20 years I have had the pleasure of working with NRW employees and contractors who have been an intricate part of producing the many outstanding Mining and Civil projects that are now some of the best known landmarks and producers within Western Australia. My career as a heavy duty mechanic changed direction from being NRW plant mechanic to a Plant Manager role, NRW director and part owner of NRW. Once the company went public in 2007, I moved to AES as a Director whilst also overseeing the NRW plant department. I then moved back to NRW as Asset Manager, overseeing AES Solutions and the plant department.I am retiring from my position within NRW as I believe it’s time for me to allow others within the group to gain further exposure to the areas I have been working. I am looking forward to taking some time off to enjoy my family, friends, and holiday and at some point potentially consider taking on further employment.
I am proud to have been associated with NRW, its staff and employees and our many clients. I want to thank all the people who have been part of the success of NRW and wish everyone all the very best for their future.”
Keith, the whole family at NRW wishes you the absolute best in your retirement!
KEITH’S GOODBYE MESSAGE
Keith (right) in the early days with one of NRW’s first brand new machines.
First headquarters with a fully operational workshop.
NRW Newsletter Issue 17 | December 2015 | 2
A SAFE DAY, EVERY DAY
The Christmas season is upon us and as we start to look forward to some time off – which will hopefully be spent with family and friends – we must also remember that this is a time of the year where many organisations see an increase in preventable workplace incidents. Many of
these incidents will result in serious injuries or even fatalities.
During the lead up to the shutdown period I ask everybody at NRW to maintain their focus on safety, both their own safety and the safety of their workmates. Take time to discuss the hazards, plan the job and don’t take shortcuts. A few minutes spent discussing the right way to do the job will be time well spent. Even a relatively minor injury can ruin your holiday plans, so think safe and be safe.
This time of year is also one of the most high risk periods on Australian roads with many people hitting the road to attend Christmas parties, end of year celebrations, and heading away for a well-deserved break. Travelling during holiday periods can be more risky because of increased traffic volumes, congestion, tiredness, people driving in unfamiliar environments, and a higher number of people who are driving under the influence of drugs or alcohol. I also urge you to take a good safety attitude home with you. A bit of planning with a focus on safety can
help you and your families enjoy the break without unfortunate accidents.
For those that are working over Christmas please stay focussed on the job at hand and make sure that you look out for yourself and your workmates. Avoid taking shortcuts and make sure when it is time to go home for your break you do so without an injury.
I think it is fair to say that 2015 has been a challenging year for the business. It has also been a year that has seen plenty of hard work undertaken and in most cases it was done safely and without incident. This is something that we can be proud of but we must also remember that we can and must continue to improve.
Our challenge for 2016 is to improve our overall safety performance and strive to reduce our incidents even further. Twelve months from now, will we look back and be able to say we had a great year and we can be proud of what we have achieved? Improvement does not come easily but I know we can improve our safety, health and environmental performance and that will be our focus.
So finally I hope everyone has a safe and happy Christmas whatever you are doing, and I look forward to seeing you all in the new year.
David McCaughey General Manager, HSET
A SAFETY MESSAGE FROM DAVID MCCAUGHEY
DON’T LET AN ACCIDENT RUIN YOUR FESTIVE SEASON TAKE SAFETY HONE
Never drive under the influence of drugs or alcohol.
Keep batteries away from small children - if swallowed they can be deadly.
If putting up Christmas lights or using a ladder maintain 3 points of contact.
If you go boating check the flares & life jackets.
Have you packed your first aid kit?
Wear safety glasses & boots when you mow the lawns.
Watch out for snakes.
Do a pre start on your car before heading off on a trip.
Always wear your seat belts and take regular driver breaks.
Allow plenty of time for a trip and drive to conditions.
Check the condition of your barbeque before lighting it for the first time this season.
Slip, slop slap - avoid sun burn.
Drink plenty of water on those hot days.
At the beach swim between the flags and watch for rips.
NRW Newsletter Issue 17 | December 2015 | 3
A SAFE DAY, EVERY DAY
TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR) FOR NRW HOLDINGS
With the December break approaching, sites need to be sure that the appropriate tools are in place so that every employee is informed of any changes that have happened on your site during their time away. In doing this, it will assist in ensuring that everyone’s focus is back on their work tasks when they come back to site.
Workplaces change on a day to day basis, whether it’s a change of personnel, change of traffic management, change of work areas or change of site or company requirements and these all have the potential to create additional or new hazards within the workplace.
People returning to work from their R&R, a holiday break or prolonged periods of time off due to illness or an injury need to be made aware of all site changes. Under duty of care, consultation and communication to all employees of any changes within the working environment should be given to the entire workforce.
NRW has several tools to facilitate this, such as the R&R Return to Work document, or the Manager/Supervisor Shift Handover documentation. These documents are designed to communicate any changes or ongoing requirements such as; any hazards, incidents, safety or environmental issues, how the job is progressing, any open permits or JHA’s in place that need to be reviewed and signed on to or any other actions that are outstanding.
The NRW policy for Consultation, Communication and Participation stipulates the requirement that any relevant information on HSE matters, risk, plans, performances and any other information and learnings are to be communicated throughout the organisation to all persons working for or on behalf of, NRW.
Duty of care also applies to employees; in that if you are fatigued or suffering from an injury or illness, it is your responsibility to notify your supervisor so that appropriate action can be taken.
The tools we have at our disposal to ensure that this communication happens include:
• NRW HSE Posters
• Site inductions
• Notice Boards
• Daily Pre-start meetings
• Weekly Toolbox talks
• Safety Stops
• Return to work Site induction
• Shift hand over document
• Site re-familiarisation drive around
• Fatigue Management
NRW Newsletter Issue 17 | December 2015 | 4
NRW UPDATES
RAVENSTHORPE MAIN ROADSNRW was awarded the Ravensthorpe project in December 2014, following a planning study by Main Roads Western Australia in response to community concerns about the South Coast Highway. The highway has operated a significant freight route for many years and climbs steeply through the town of Ravensthorpe.
Most heavy vehicles climb the Ravensthorpe Hill without incident, however a small minority fail to negotiate the steep grade and stall on the hill. The local community and stakeholders became increasingly concerned with the regularity of these incidents and the risks associated with the recovery of these vehicles.
NRW commenced construction works in January 2015 utilising local earthworks contractors from Ravensthorpe and surrounding towns. Delays due to rock and unsuitable material, combined
with the onset of wet weather, required the project team to break for winter and works recommenced in September.
The project is currently in its final stages and pavement stabilisation and sealing activities recently completed. The laying of asphalt is currently in progress with line marking, signs and road barriers due to commence shortly. Final completion is scheduled for 21st December 2015 with an official opening ceremony, to be conducted by the State Minister for Transport in attendance by Dennis Donjerkovich, NRW’s Civil General Manager.
The successful completion of this project will stand NRW in good stead for a high MRWA prequalification status allowing the business to tender for larger main roads projects in the future.
Ravensthorpe Intersection sealing.
Sealing of the Heavy Haulage road. Installation of kerbing.
NRW Newsletter Issue 17 | December 2015 | 5
SOLOMON TRINITY OVERPASSNRW was awarded the Solomon Trinity Overpass Construction project by Fortescue Metals Group in November 2015. This project is important to NRW as it continues our strong relationship with Fortescue after completing a number of projects for the company recently.
The key elements of the scope of works include the erection and backfill of Heavy Mobile Equipment Overpass, to be built over the existing trinity drive light vehicle road. The overpass structure consists of a multi plate steel arch with dimensions of 11.4m span, 7.2m rise and approximately 82m in length. The structure will be mounted on reinforced concrete strip footings (400m3) and will be backfilled with approximately 28,000m3 of engineered backfill.
The project team mobilised to site at the end of November 2015 and the project is scheduled for completion in February 2016.
Key challenges on the project include an aggressive mobilisation schedule, a very tight construction programme, the complex nature of the installation of the steel plate arch system and extremely delicate backfilling of the steel structure. Works will be progressing throughout the Christmas period to safely achieve contract milestones. The project team has previous experience in similar works, having recently completed multi plate tunnel installation at the Rio Tinto Nammuldi project.
Another key focus of the project is to continue NRW’s support of indigenous engagement, which includes strong commitments in employment opportunities as well as with local subcontractors and suppliers. The project team has already engaged with ICRG, who has partnered with NRW on other projects in the past.
The team looks forward to the challenge and successful completion of the project.
In late July NRW were awarded a contract from major client Rio Tinto, for contract mining and ore haulage at the Nammuldi mine site.
The scope of works for the contract includes:
• Construction of mine haul roads, ore stockpiles, waste dumps, drainage and other mine infrastructure;
• Production mining including Drill and Blast,
• Haulage of high grade ore from mine area to the existing Nammuldi plant site,
• Supply, installation and operation of two 5MtPa crushing plants.
The project has a value of approximately $140M and utilises the following equipment:
The NRW team worked hard to complete a quick mobilisation using staff who had recently finished at other NRW projects, and establishment of the project was completed in September. The contract will run for 24 months and currently has a workforce of 140 personnel, including local indigenous participation.
NAMMULDI INCREMENTAL TONNES
3 Excavators
5 Loaders
17 Dumptrucks
4 Roadtrains
7 Dozers
3 Graders
5 Watertrucks
NRW UPDATES
NRW Newsletter Issue 17 | December 2015 | 6
AES faced a very challenging and demanding year in FY15 due to difficult market conditions.
The staff at AES have rallied during the tough market and sought to grow their client base and diversify their product range. FY16 will see AES capitalise on the opportunities they have generated in the marketplace from their heavy campaigning in the last quarter of 2015.
HIGHLIGHTS FOR AES IN 2015 INCLUDE:
QUALITY:
• Accreditation for ISO9001 -14001 and OHSA 18001
APPRENTICES:
• Three apprentices completed their trade studies and became qualified tradespeople. Congratulations to Jack Konrath (Boilermaker) Ben Matthews (Boilermaker) and Michael Taylor (Heavy Duty Fitter).
SAFETY:
• Awarded a Gold safety rating from Worksafe
• Achieved 1910 days with no lost time injuries (LTIs).
AES UPDATE
NRW UPDATES
Jack Konrath (left) and Ben Matthews (right) congratulating each other.
ADB UPDATEThe market conditions of 2015 has seen Action Drill and Blast offer a broader variety of services to their clients, ranging from skilled labour hire to complete drilling and blasting operations.
During the year, ADB celebrated several new important milestones:
• First Action Drill & Blast operations to achieve 1,500 days LTI Free, Middlemount, Queensland
• First gold project - St Ives
• First NSW project - Mt Owen
• First Kimberley project - Dunham Pilot Dam near Kununurra
Action Drill and Blast’s current operations and Clients include:
QLD: Middlemount, Middlemount Coal Pty Ltd
Blackwater, BMA
Caval Ridge, BMA
WA: Greenbushes, Talison Lithium
Cloudbreak, Fortescue
North Star, NRW
St Ives, GoldFields
Nammuldi Incremental Tonnes, NRW
NRW Newsletter Issue 17 | December 2015 | 7
OUR PEOPLE & COMMUNITY
NRW LOVES BABIES!Congratulations to all of our new parents including NRW’s Emma Kostarelas on the birth of daughter Harper born on the 18/08/15 and AES Equipment Solutions Neil Howitt on the birth of son Hudson on the 01/12/15.
SPOTTED: WILDCATS VS ADELAIDE 36ERS Some of our AES Equipment Solutions team members won tickets to the Wildcats VS Adelaide game recently through the staff ballot. Thanks to Jason Paparone for taking the snaps on the night!
Hudson Richard Howitt Tyrrell.
Gino Sarullo with his son Luke.
SALVATION ARMY CHRISTMAS We are once again supporting the Salvation Army with its annual Christmas appeal. Our staff have been busy shopping and donating toys and food for needy families.
This year, the Salvos are most in need of babies and toddler toys, and boys and girls toys aged 12+. If you missed out putting donation under the NRW tree, drop into the Salvos – they will happily accept your generosity.
Harper Kostarelas.
Jason Paparone’s son Caleb (right) with his freind Blair (left).
NRW Newsletter Issue 17 | December 2015 | 8
HOW LONG HAVE YOU BEEN WITH NRW? Four years. My role entails the delivery of generalist human resource advisory services such as Recruitment, Coaching, Employee and Industrial Relations. I support head office, our projects and the AES business.
WHAT DO YOU FIND MOST REWARDING ABOUT WORKING FOR NRW? I enjoy engaging people in the business and working with the leadership team. Working towards achieving goals such as manning up on projects as quick as we can or developing supervisory and graduate programs that helps build the capabilities of our employees, it is very rewarding.
WHAT QUALITIES MAKE A GOOD LEADER? I believe that every person learns and develops a different way. As a good leader you need to adapt your style depending on the person. Openness and clear direction are also very important qualities, as is the ability to work closely with their
team. It is a unique thing to have a leader that involves you in the process and asks for your ideas and your input.
WHAT IS THE BEST ADVICE YOU HAVE EVER BEEN GIVEN? Don’t wait for opportunities to be given to you.
WHAT GETS YOU OUT OF BED IN THE MORNING? I like being busy and I like the challenges that comes with my role - That’s what gets me up and gets me excited about going into work each day – Anticipation of what the day will bring.
WHAT KEEPS YOU UP AT NIGHT? Nothing - I am normally absolutely exhausted! My training schedule for ice hockey ensures that’s the case!
TELL US MORE ABOUT YOUR INVOLVEMENT WITH ICE HOCKEY. I have been playing ice hockey for about nine years. In Perth I play on a mixed team as there are no all-female teams in the state, although we are trying to get this
off the ground for next year. I am currently training for the Singapore International Ice Hockey Tournament in March next year.
HOW MUCH DO YOU TRAIN? I am up at 5.30am most mornings for a run, and then during the week I try to do 3 sessions in the gym during lunch time. I also do boxing or weight training (explosive training) and then put in five hours per week on the Ice.
ICE HOCKEY IS A VERY PHYSICAL SPORT - HAVE YOU SUSTAINED ANY INJURIES? Well, I had a concussion 2 weeks ago. I suffered a grade 2 ankle sprain in October whilst on a training camp in Czech Republic, and when I was younger I had a cracked tailbone injury and a broken wrist.
WHAT ARE YOUR PLANS FOR CHRISTMAS? I am looking forward to having a break! I’ll play lots of hockey, relax, go to the beach, and if I have time we might do some work on the house.
IN THIS EDITION WE SPEAK TO JUANITA BERROW ABOUT HER ROLE AS A SENIOR HR ADVISOR, HER PASSION FOR ICE HOCKEY AND HER GRUELLING TRAINING SCHEDULE.
This great photo was taken by NRW employee Lance Scott, who was parked up for the night in Pithara.
Lance was delivering the watertruck into the Fortescue Metals Group Solomon mine as part of the mobilisation for the Solomon Trinity Overpass. If you have a photo or story you would like to share with us please send it in to [email protected].
