Equipment Manufacturers The segment of firms that manufacture and/or supply equipment includes over 30 companies which employ over 20,000 people and had total sales in 2011 of almost $6 billion. Table 4.1: Categories of Suppliers to the Mining Industry Knowledge- intensive Services Consultants Specialized Services Contractors Capital Goods & Equipment Suppliers Consumable Inputs Suppliers Services and goods mainly for investment projects Exploration services. Investment project management. Engineering services such as mine planning, process design, and metallurgy engineering. Mine closure, reclamation and remediation design Development & construction services. Tunnelling services. Shaft sinking. Drilling services Sampling services Heavy machinery and equipment such as: mills, crushers and smelting equipment Services and goods mainly for Ongoing operation Mine automation & optimisation. Blasting engineering. Equipment design and adapting. Equipment maintenance and repairing. Geological testing. Metallurgical analysis. Drilling services Shaft sinking Laboratory Services Mineral handling contractors Education & training Mineral processing Environment monitoring Tailing dam operating Light machinery & equipment Replacements Drilling equipment Conveyors Ventilation equipment Excavators Electronic equipment Engines and generators Explosives and blasting accessories Chemical products. Abrasives Acids. Drill bits. Tyres Urzúa (2012) Figure 4.1: Major METS Categories Table 4.2 provides example of the major METS firms. A more detailed breakdown, with example of the main products and activities in each segment is shown in Figure 4.2. Figure 4.3 summarises available information on the size of each segment and again provides examples of the major firms. Each of these segments is discussed in further detail below. Figure 4.2 METS Categories and Sub-Categories with Examples of Products and Services Figure 4.3: METS Categories and Sub-Categories with Estimates of Size and Major Firms. Table 4.2: Major METS Firms and 2011 Mining-Related Turnover Company Segment Revenue (A$m) Orica Mining services, explosives & ground support products $6272 Leighton Group (Thiess, Leighton Contractors, John Holland)# Mining (particularly open cut) contractor $6150 Boart Longyear* Drilling services and manufacturing. $2000 Incitec Pivot (Dyno) Explosives $1680
such as SRK, Golder, AECOM and AMEC, will have greater opportunities to capture market share in a supply constrained market (Table 4.7). Table 4.6: Major Diverse Mining Service Firms Company Services (& products) Est’d Emp’s Revenue (million) Orica Explosives manufacturing and supply; blast management services; strata support products; chemicals. 1874 14,000 $6272 Boart Longyear Contract drilling services; drill product and equipment manufacturing. 1890 9000 $2000 UGL Group Contract construction and engineering services. 1971 5900 $959 Campbell Bros. Analytical laboratory services, certification 1863 10,000 $858 Monadelphous Contract maintenance and engineering services 1978 3000 $809 Emeco Equipment hire 1972 950 $500 Table 4.7: Major Mining Consultancy Firms. Company Services (& products) Est’d Emp’s Revenue (million) GHD (Priv) Engineering and environmental consulting services 1928 1200 ~$150 SKM (Priv) Consulting and Engineering 1964 1900 $500 Coffey Mining Exploration and Mining consulting 1959 320 $44* Runge Mine design, planning, optimisation, valuation 1977 370 $94 Snowden Mining consulting services 1987 200 ~$40 GR Engineering Services Engineering consulting and contracting 2006 150 $130 Xstract Mining Consultants (Priv) Mining consulting services 2008 ~35 ~$7* Optiro (Priv) Mining consulting services 2008 ~20 ~$5* AMC (Priv) Mining consulting services 1983 200 ~$40* CSA Global (Priv) 1986 75 ~$15* +-majority foreign owned *- figure is an estimate for 2009-10. Other consulting firms include: Mining One, Whittle, IMC Mining Solutions, Beck, Arndt Engineering, Mining Plus and Cube Consulting. Mining Equipment Suppliers and Manufacturers (Table 4.8) There are few Australian producers of large machinery and most large equipment for drilling, mining and processing is imported. It is important to emphasise this point – Appendix 1 sets out the major
evolution of the industry proceeded from producing lumber through to a diverse range of milled wood, pulp, paper, and furniture, and specialised inputs and diverse goods, as shown in Figure 5.1. This evolution increasingly drives, and its survival is dependent on, a deepening and diverse knowledge base and the organisations which acquire and diffuse knowledge and develop human resources – Figure 5.2 Figure 5.1: Development of the Forest Industry and Linkages in Finland Source: Fuchslocher (2007) p9. Many countries, both developed and developing, have sought to link capability and industry development to major investment in resource projects. Several researchers have sought to identify the factors that shape the effectiveness of measures to harness resource investment for local industry development. The factors identified in a number of recent studies are summarised in Table 5.1 Figure 5.2: Development of Backward Linkages in the Finnish Forestry Industry Source: Fuchslocher (2007) Table 5.1: Main Determinants for the Development of Domestic Technology suppliers Industry‐Level [Mining Companies and Major Suppliers] Supplier Firm Level Industry and Institutional Context Industrial Policy Level Demand (size, growth, diversification, novelty, the cumulative effect of other domestic demanding industries, the scale and technology-level required, the age and maturity of technologies worldwide and the distance to potential international suppliers) Customer behaviour and policies for collaboration Competitiveness/ Competence (position of established global producers, production and operations, Industrial context Financial and regulatory barriers to firm formation, inter-firm collaboration and division of labour Level of technological interdependence or systemic links. SMEs (innovation, venture and start-up capital, export promotion, training, technology and information transfer) Structure (high concentration and instability have a negative influence on cooperation – rivalry favours innovation and bargaining power of technology suppliers, relationships/division of Entry strategy (acting on the competitive factors, capable entrepreneurs strategic management and cooperation), Mentoring Entry from suppliers to other industries, ‘spin Industry organisations that support networking and policy lobbying Linkages (territorial promotion, information transfer, coordination, local content requirements, linking dynamic sector with strategic but less dynamic ones, tax
Table A3.2: Mining Services Categories Group 1 Services related to the exploration stage: geotechnical engineering, geophysics, geology, geochemistry, economic geology and drilling. Group 2 Services mostly related to the project development stage such as project management, EPCM (engineering, procurement and construction management) services, due diligence and construction management. Group 3 Services mostly related to the mining stage such as Seismicity, rock mechanics, mining engineering, mine design and blasting). Group 4 Services most related to the processing stage such as metallurgy, leaching, hydrometallurgy and chemistry. Group 5 Services mostly related to environmental services and the closure stage such as paste and thickened tailings, remediation, environmental engineering and acid mine drainage. Group 6 Others relate to no particular stage, such as mechanical engineering, management, maintenance, electrical engineering, data interpretation services, civil engineering and biotechnology. A similar basic characterisation of inputs for offshore oil and gas projects is at Table A3.3 Table A3.3: Service and Equipment Categories for Offshore Oil and Gas Projects Offshore Equipment and Services Services Equipment Reservoir Information Seismic acquisition Seismic processing Reservoir imaging Data management Data integration Geophysical equip Contract Drilling Land rigs Jackup rigs Semisubmersible rigs Drillships Tenders/barges Submersible rigs Workover rigs Drilling Related Services and Equipment Open hole wireline Mud logging Rental tools Fishing services Underbalanced drilling Solids control Directional drilling Drill bits Drill pipe Drilling fluids Downhole tools Casing and Completion Casing, cementing Cased hole logging Perforating Pressure pumping Intelligent completions Completion fluids Coiled tubing Infrastructure and Installation Engineering/design Offshore fabrication Offshore construction Field processing equip Offshore rig manufacturing Production & Production logging Artificial lift
Onshore FEED Process design & specification Instrumentation/ control system specification Electrical, piping, civil and structural engineering risk, safety & environmental engineering Detailed Design Architectural Civil Construction Drilling Electrical Fire Piping Safety Security Software Topsides Risers and umbilicals Service Vessels Jacket design Facilities design Transportation analysis Offshore Gas gathering Equipment Development Wells Subsea Trees Cluster Manifolds Control System Pile driving Onshore Facilities gas processing facilities Power Plant Marine Loading Terminal Facilities LNG trains LPG plant Condensate plant Product storage Site studies Geotechnical Facility design Site grading and development Drainage Earthworks Stormwater Fabrication Installation Pipelay Barges Multi Purpose Vessels Operation Barges Transfer vessels Multi Purpose Vessels Processing Under-sea