Quarterly News • March 2002www.thiess.com.au

Indonesia Training Setting the Standard

Breaking into South America Mining

Design Innovation Secures Karuah

The NSW Roads and TrafficAuthority (RTA) has awarded Thiess a$90M contract to design, constructand maintain the Karuah Bypass.

As part of the works, Thiess willconstruct 10km of median divideddual carriageway freeway, with twomajor bridge crossings over theKaruah River and sensitive wetlands.

Thiess devised an innovativesolution to construct the 200m and600m long major bridges which will beseparated by a 250m long island. Usingthe incrementally launched technique,Thiess will construct one single 800mbridge, severing the bridge at the200m mark and launching theremaining bridge across the island.

At 800m long, this will be thelargest incrementally launched bridgein Australia.

Civil Manager NSW/ACTPeter Chatburn said Thiess was

looking forward to renewing its longand successful relationship with theNSW RTA.

“For this project, we will bepredominantly using the sameteam which undertook the highlysuccessful Bulahdelah to CoolongolookDeviation,” Peter said.

“Our long term relationship withthe NSW RTA has seen Thiess securemore than $300M of work in recentyears and we are looking towardsstrengthing this relationship on theKaruah Bypass.”

The award of the Karuah Bypassadds another road project to Thiess’civil engineering portfolio in NSW,following the successful completion ofthe $50M Bookham Bypass last year,ongoing works at the $10M Soldier’sPinch Project and the recent award ofa $25M contract on the WestCharlestown Bypass. ■

THIESS 2

Contents Headline News

FRONT COVER: Apprentices in theworkshop at Balikpapan TrainingCentre, Indonesia.

▲ (L to R) David Stuart-Watt, Michael Najem, Mike Hannon, David Saxelby and Peter Chatburn.

3 InsightManaging Director, Roger Trundle,examines the contributors to Thiess’strong performances and looks toopportunities ahead.

4 South America OperationsSolid base providing springboardfor expansion.

8 Indonesia OperationsExisting and new business to drivegrowth in 2002.

18 WA OperationsPrimed to capitalise on an expected$5B in new projects.

21 New ContractsTelstra extends national wastemanagement contract by three years.

22 Opening CelebrationsMandated Projects connectingcommunities and driving growthin Victoria.

23 News In Brief

> THIESS Quarterly News is published byThiess Pty Ltd, ABN 87 010 221 486Marketing Services Section of theTechnical Services Department.

> Editor: Rebecca McDonald

> Phone, fax or email your commentsand feedback to:Ph: (07) 3002 9661 Fax: (07) 3002 9690Email: rdmcdonald@thiess.com.au

Visit our homepage @http://www.thiess.com.au

In a major milestone, Thiess hasforecast turnover of $2.2B thisfinancial year. The result followsstrong performances across Thiess’diverse operations which includebuilding, civil engineering,mining, process engineering,environmental services, oil and gas,telecommunications, facilitiesoperations and maintenance andutilities services. ■

Turnover Tops $2B

Thiess Secures Karuah Bypass

$ Million

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2000 2001 2002

I n s i g h t

Strength Through DiversityDuring Market Highs and Lows

In the face of a major globaldownturn in 2001, the Australianeconomy has remained remarkablyresilient. While the economy hasperformed well overall, the non-residential building and engineeringconstruction industry has beenstagnant. Despite the marketconditions, Thiess has maintained astrong position through the diversityof our business and the long-termnature of many of our operationsacross a range of markets. Thesemarkets include mining, transportinfrastructure and facilitiesmaintenance, telecommunicationsand environmental services.This work provides a solid foundationto our business and highlights theimportance of developing long termrelationships, built on mutual trust,commitment, flexibility andunderstanding.

Although market conditions havebeen weak in the non-residentialbuilding sector, Thiess continues todeliver services to clients in thehealthcare, correctional, commercialand tourism sectors, including twomajor healthcare projects atSydney’s Royal Prince Alfred Hospitaland Brisbane’s Herston Hospital.

Strong growth is expected in theengineering construction sector withover $7B worth of major Governmentinfrastructure developments planned.This includes transport infrastructureprojects set to commence in2002/03, such as the Western SydneyOrbital and Parramatta Rail Link inNSW, Regional Fast Rail and ScoresbyBypass in Victoria and the South WestMetropolitan Rail in WesternAustralia.

With some $2B worth of road andrail projects recently completed orunderway nationwide, Thiess is wellpositioned with the skills and

capacity to make a majorcontribution to the successfuldelivery of these significant projectswhich will play an important role inAustralia’s continued economicperformance.

As construction and operationsopportunities emerge in the energyand resources sector, we willcontinue to build on our experiencein this area, both through existingand new relationships acrossAustralia and the near Pacificregion, Indonesia and SouthAmerica. Thiess’ presence in NewCaledonia follows the recent awardof an early contract on the $2.7BGoro Nickel project, for the world’ssecond largest nickel producer, IncoLimited, a long term client inIndonesia.

While the positive outlook acrossmany of our markets is encouraging,we remain focussed on the qualityand efficiency of the services weprovide. In May this year, we willhold our fourth, biennial ‘bestpractice’ business summit, bringingtogether approximately 300delegates from across the company.Titled "Competitive Edge: ChallengeNow", this is an important forumdesigned to challenge us individuallyand collectively, to greater levels ofservice performance andachievement for our clients.

Roger TrundleManaging Director. ■

▲ Managing Director, Roger Trundle.

3 THIESS

With improving market conditions forecast across a range of industry sectors, includingengineering and non-residential building construction, Thiess is well positioned

for the major opportunities ahead.

THIESS 4

TSA opened its office in Lima,Peru in November 1999 and wasawarded its first project in May2000 for BHP at the Tintaya Mine.Today, TSA has ongoing projects at four mines in Peru: Tintaya,El Brocal, Minsur and Yanacochaand is projecting a turnover ofUS$40M for the 2001/2002financial year.

Our works have now expanded toinclude our first South Americancontract mining operations at ElBrocal and a broad range of minesite infrastructure services.

As our operations haveexpanded, safety and thechallenges associated with workingat high altitude remain a priority.This is reflected in our safety

record, achieving one millionmanhours without an LTI.Our efforts in this area havereceived praise, with the Peruvianconstruction industry recognisingThiess as one of the local leadersin safety.

We remain aware of ourresponsibility to the localcommunities. Our proactivecommunity affairs program aimsto harness and develop the localworkforce and promote theprocurement of goods andservices from the local economy.This program is supported byproject based initiatives whichprovide additional support andservices to the local communities,including the efforts of the GyMThiess JV project team at El Brocalto work with the local schools. ■

S o u t h A m e r i c a O p e r a t i o n s

Thiess South AmericaYear in Review

As our operationshave expanded, safetyand the challengesassociated with workingat high altitude remaina priority.

▲ Bob McTavishGeneral Manager, South America

Following on from a solid performance in 2001, Thiess South America (TSA) will continue to concentrate onproviding services to the mineral resources sectorin Peru and prepare to capitalise on contract miningopportunities in the Chilean mining industry.

5 THIESS

The construction of a newUS$18M tailings dam will bedelivered under an allianceagreement between BHPBilliton (client), MontgomeryWatson Harza (projectengineer), Thiess andCruz del Sur (electricalsubcontractor) and draws onthe successful relationshipestablished between Thiessand BHP on the CanningtonPort Project in Queensland.

This work will be carriedout concurrently with the completion of the bulkearthworks contract for the new oxide plant,maintenance of 150km of access roads and hourlyplant hire.

Originally responsible for raising the existingtailings dam five metres, Thiess has been successfulin securing additional site works, including theconstruction of a new wash bay and establishment of

a small water retentionstructure and associatedpumping and supply lines.

Thiess has maintainedpositive relationships withthe community throughemployment of local peopleand procuring local goodsand services. Thiess was thefirst major contractor atTintaya to house its entireworkforce, including staff,in the local communityrather than the mine’s

camp. Other initiatives include the recent gradingand rolling of a local athletic field for a weekendathletic carnival.

Located in southern Peru, the Tintaya Mine issituated approximately 4,200 metres above sea level,with temperatures ranging from –15 degrees to +20degrees. The annual rainfall is 900mm, with most rainoccurring from mid-December to mid-April. ■

Continuing Workat Tintaya Mine

Following on from its first contract in South America at the Tintaya Mine in 1999,Thiess has secured further infrastructure work at the site.

THIESS 6

Safety FocusRecognised at San Rafael

The introduction of an OHSfocus to the mine has beenwell recognised by all projectstakeholders and, to date, theproject enjoys zero LTIs.

Under a US$2.2M contract,Thiess is currently responsible forthe construction of a dyke andreconstruction of two of the threeexisting tailings dams. Unforeseen

ground conditions have significantlychanged the scope of the work,creating an additional challenge forthe client and Thiess.

Within just four weeks of award,Thiess established a workshop and sitefacilities at the mine, with campfacilities developed at theneighbouring village of Antauta.Twenty per cent of the workforce

have been sourced from nearbytowns, representing a significantcontribution to the training anddevelopment of the local people.

The San Rafael Mine is locatedin the Province of Puno, near theBolivian border, 4,500 metres abovesea level. The mine produces tin forthe world market and has a dailyoutput of 2,000 tonnes of ore. ■

A three-year campaign tosecure work at the highlycompetitive YanacochaGold Mine has resulted inthe award of a US$12Mcontract for the constructionof a leach pad.

Online BiddingSuccess at Yanacocha

Thiess’ operations at the San Rafael Mine in South America have drawn praisefrom the client, Minsur, and the local community for its efficiency andcommitment to health and safety.

The award of the projectrepresents TSA’s first success in a‘Reverse Dutch’ internet auction.This form of tendering allowsparticipants to place their bidsonline. While the name of eachbidder remains anonymous,tenderers can view all the offersand lower their bids to securethe contract.

The Stage 9 Expansion of theexisting large leach pad will beconstructed at an altitude of 4,000metres. Despite the wet season,

Thiess mobilised and commencedtopsoil stripping in March this year,with the project expected to lasteight months.

The mine is located in aculturally and environmentallysensitive area. Recent initiativesundertaken by the client includehiring a local theatre group toconduct a poll among the localcommunity. This provided valuableinsight into the perceptions ofthe local community towardsYanacocha mine personnel and

resulted in a play to demonstratethese attitudes.

Minera Yanacocha producesapproximately two million ouncesof gold per year and is owned byNewmont Mining (51.35 per cent),Compania Minera Buenaventura(43.65 per cent) and InternationalFinance Corporation (five percent). It is the largest goldproducer in Latin America and islocated 375 miles north of Lima inthe Peruvian Andes. ■

7 THIESS

Following the award in June2001 of an eight month interimcontract to mine waste, Thiess,in a 50:50 joint venture with localPeruvian contractor Graña yMontero, has assumed all ore andwaste mining operations at the sitefor a three year period. This willsee the GyM Thiess JV mineapproximately 10.5 million basecubic metres of waste and 1.1million base cubic metres of ore.

Situated between 4,200 and4,400 metres above sea level, 290km north east of Lima, the ElBrocal Mine is the only open pitmine in Peru that is 100 per centcontractor mining.

The mine produces lead, zinc,silver and copper from multiple veinsof thin steeply dipping ore, emplacedin limestone formations through

volcanic intrusive activity from theadjacent Cerro Marcapunta Volcano.

The Thiess GyM JV has commenced

working with the local schools andimplemented training programs forpeople from the local community. ■

Breaking intothe SA Mining Market

Working TowardsNew Heights

With work currently beingcarried out at four mine sitesthroughout Peru at heights up to4,500 metres above sea level, TSAis familiar with the unique healthand safety challenges of the regionand has implemented a formalised

‘Working at High Altitude’procedure on all its sites.

This procedure prescribes for allemployees travelling to a highaltitude location to be briefed onaltitude sickness. Each employeemust undergo a pre-employment

medical examination and, in somecases, a specialised altitude test atthe University Cayetano in Lima.This test provides an indicationof the employee’s tolerance orintolerance to altitude locations.

Other measures include therequirement for all employeestravelling to sites to have oxygenand water in the light vehicles,with further oxygen containerslocated on site and in staffhousing. ■

In response to the challenges associated with working inclimatic extremes at high altitude, TSA has developed andimplemented a range of strategies and control measures

to mitigate the effects of altitude sickness.

Within just over two years of opening its office in South America, Thiess has commencedits first mining operation in the region, with the award of the

El Brocal contract for Sociedad Minera El Brocal.

Of significance is our contractwith PT Arutmin at the Senakin andSatui sites which will see Thiessundertake total mine servicesthrough to June 2005. This providesa substantial level of repeatbusiness to support furthercorporate growth.

Heading into 2002, we continueoperations at PT Inco’s Nickel Minein Sulawesi and PT Newmont’sSumbawa Copper and Gold Project.In both cases, the ongoing workshave been awarded on the back ofThiess’ performance. Additionalwork at Newmont’s Minahasa GoldProject has also been secured.

While civil engineeringopportunities remain limited,Thiess maintains a reasonable levelof ongoing work, derived from itsmining operations. Until such timeas issues associated with the legaland banking systems, security andregionalisation are satisfactorily

resolved, it is unlikely that themajor foreign investment necessaryto drive the economy will beforthcoming.

In contrast, there are majorcontracting opportunities inIndonesia’s oil and gas industry,which has expanded considerablyover the last two years. In 2001,Thiess secured its first oil and gasproject since 1993, with the awardof the Sand Removal Facilitiescontract for Caltex in Sumatra.We remain optimistic of securingfurther work in this industry.

With 4,500 employees and almost1,000 subcontractors workingthroughout our operations, safetyand training is a priority. In the mostrecent NOSA audit at the PT KaltimPrima Coal site, we retained ourfour star rating, with an improvedeffort rating also recorded. We arecurrently implementing additionalstrategies to address our safety

performance. This includes furthertraining of all of our employeesand subcontractors, and theimplementation of a number of newsafety programs.

Thiess Indonesia is proud of itstraining efforts, which centre onour Balikpapan Support Facilitybut which also involve a largepercentage of site based initiatives.In Balikpapan, the size of thetraining centre will be more thandoubled, with a new workshop,training rooms and administrationcentre due for completion this year.Training staff, excluding those basedon site, have increased to 50 andthe overall training budget tripled.

In Indonesia, we currentlymanage more than 40 per cent (byvalue) of the total Thiess equipmentfleet. This provides some indicationof the size of our operations.However, this also presents a uniquechallenge to adequately supportthis fleet and our people, spreadacross 12 different sites, fivedifferent islands, eight differentprovinces and a total area of some3,000,000 km2.

Thiess Indonesia remainsconfident that the economicindicators in the region will improvein the coming years and thatadditional constructionopportunities will open up. Evenwith the recent difficultcircumstances, there has beensignificant growth in operations,with this trend predicted tocontinue during 2002. ■

THIESS 8

I n d o n e s i a O p e r a t i o n s

With annualised raw coal production of 20 million tonnes,Thiess Indonesia has strengthened its mining portfolio inKalimantan, with current works extending across sixmines and opportunities for further work expected toemerge in the coming year.

▲ Bruce MunroPresident Director, Indonesia

Thiess IndonesiaOverview

While the target production at the start of theproject was 3.6 million tonnes per annum, the currentproduction target has been increased to 7.4 milliontonnes per annum as a result of stronger sales.This increase in production has seen Thiess complete amajor upgrade of the port and crushing facilities whichnow has the capacity to deliver 9.4 million tonnesper annum.

Project Manager Garry Zuvich said the Satui Coal Minewas distinct from many other coal mines in Australia dueto its challenging coal seams, rainfall and topography.

“The seams at Satui are quite unique, as the steeplydipping deposit is multi-seamed and up to four pits aremined simultaneously,” he said.

“The topography and rainfall characteristics of thearea also create extra mine planning and drainagechallenges.”

In November 2001, the Satui site was recognisedas one of the safest mine sites in Indonesia by theIndonesian Mining Inspectors from the Department ofMines and Energy.

Thiess entered into an alliance with PT ArutminIndonesia in June 2000 to operate the Satui Coal Mine inSouth Kalimantan. As part of the agreement, Thiess

assumed operation and maintenance responsibilityfor all existing equipment and infrastructure andtransitioned the majority of the workforce. Thiscontract signalled an extension of Thiess’ long standingrelationship with PT Arutmin, which began when theclient first established operations in Indonesia in 1989.The arrangement allows Thiess to further support PTArutmin’s operations and meet critical product qualityand production requirements. ■

Nearly two years into the five-year operation of the Satui Coal Mine, Thiess ismeeting increased production targets and delivering 20,000 tonnes of coal per day,

despite challenging and complex coal seams.

Increased Coal Productionat Satui

9 THIESS

THIESS 10

Senakin Coal MineA Community Affair

Project Manager Bill Dixon saidcommunity relations continued to beone of the most challenging aspectsof the project.

"The one principal lesson we havelearnt is that we must proactivelysearch for different ways to engagethe local people," he said.

"This will show that we, as acompany, acknowledge a rising tideof expectation and are prepared tostay ahead of the game.

"Approximately 1,000 of the site’semployees reside in many of thelocal kampongs (villages), with thecommunity utilising the haulroads fortransport and regularly traversingoperating areas."

In response, the CommunityRelations Team has carried out awide range of activities, including:• Sports competitions;• Special community

entertainment events;

• Medical services;• Education programs;• Health and well-being initiatives;• School infrastructure

improvements; and• Safety education.

Bill said the specifically designedalliance agreement between Thiess

and PT Arutmin Indonesia ensured acollaborative approach to decision-making and allowed initiatives suchas the Community Relations Team tobe very effective.

"We have drawn managementrepresentatives from both parties toform committees which cover areassuch as safety control, landadministration, community, planningand development, environmentalcontrol and production," Bill said.

As part of the works, Thiessships 4.8 million tonnes of coaleach year, with strip ratiosbetween 3:1 and 5:1. Additionally,Thiess is responsible for all mineplanning, operations, processing,hauling, loading and siterehabilitation.

To meet this target, Thiess iscurrently working two mainresources: East Senakin and WestSenakin (also known as Sepapah).At East Senakin, the project team isconcentrating on three pits and issupported by a dedicated Jig WashPlant with a rated capacity of 550tonnes per hour.

The West Senakin resource iscurrently working in two pits andis supported by a dense mediumprocessing plant which hasconsistently been exceeding itsrated capacity, processing up to330 tonnes per hour. The coal istransported to the Air Tawar 2 loadout facility before being loaded outat a rate of 1,500 tonnes per hour. ■

In co-operation with the client PT Arutmin Indonesia, theSenakin project team has established a site CommunityRelations Team – a first for Thiess in Indonesia.

The client, PT Kideco Jaya Agung,is Korean, and the contractorson site are a mixture of English,Indonesian and Korean managedentities, each with their own distinctoperating philosophies. Consequently,it is not uncommon for site meetingsto be conducted in a mixture of allthree languages.

In addition, the project teamhas had to deal with the rapidlychanging face of Indonesian society.A recent decision by the centralgovernment to devolve a number ofits powers to the region has raisedthe expectations of the localpopulation with regards toemployment. In response, Thiess isovercoming the relatively low skillsbase of the area through theprovision of comprehensivetraining and education programs.This training covers safety, operatorcourses and language skills.

The site currently produces11 million tonnes per annum of lowgrade steaming coal for Indonesian,Korean and South East Asian markets.As part of the works, Thiess isresponsible for hauling 2.6 milliontonnes of coal per annum from theload out stockpile to the port – a

distance of approximately 40km.An overburden contract also seesThiess removing 40 million bankcubic metres of overburden per year,with 70 per cent of the overburdenwon by drill and blast.

Thiess has also been involved in arange of local community programs,including repairs and improvementsto schools and providing assistance intimes of natural disaster. Mostrecently, two tonnes of rice wasdonated to flood victims in villagesnear the mine site.

Since starting work at Kideco in1993 on a plant hire agreement,Thiess has expanded its operations toinclude coal hauling and overburdenremoval contracts. The success ofthe site is built on a long-termrelationship with PT Kideco JayaAgung, with a significant portion ofthe works secured in the form ofrepeat business. ■

11 THIESS

Thiess is adopting a proactive approach to the training and development of itsworkforce at the US$222M Kideco Project, as it overcomes the challenges

associated with wet weather and a multi-cultural workforce.

Overcoming Challengesat Kideco

THIESS 12

Mining operations have recentlycommenced in two pits: Bebek(Indonesian for ‘duck’) and Keledai(Indonesian for ‘donkey’), withworks nearing completion in theMusang Pit. These mining operationssee Thiess contributing 250,000tonnes of coal per month using acombination of a conventional truckshovel fleet and a Brydet coal auger.

Project Manager Peter Rodd saidthe high level of repeat business atKPC was evidence of the client’sconfidence in Thiess’ ability to meetthe coal targets.

He said, in light of increasingcompetition, Thiess was workinghard to improve operational costefficiencies, safety performance,training, industrial relations andcommunication.

“This is reflected in the NOSA 4star certification we received in

February last year. Safety educationand continuous safety improvementprograms are essential to ouroperations in this environment,”he said.

As part of a company widecampaign, the site has adopted aSafety Day Program in which allemployees are reinducted everythree months.

Peter said the purpose of thisprogram was to reinforce safetyissues and introduce new findings,procedures and approaches tosafety.

A Mobile Learning Centre (MLC)has been provided on site for thelast two years, with a new trainingroom opened in February this year.This provides employees with accessto computers and almost 100 CDsof various learning programs.Training is delivered by a numberof onsite trainers and assessors,ensuring the MLC continues to enjoyone of the highest participationrates throughout Thiess’ operationsin Indonesia. ■

In 1989, Thiess commenced infrastructure works at PT Kaltim Prima Coal’s (KPC) minesite in Sangatta before securing mining works in June 1999. Now, 13 years on, Thiesshas worked in six pits and delivered a total of five million tonnes of coal.

Client ConfidencePrompts New Works at KPC

13 THIESS

This contract represents asignificant breakthrough at thesite, in which opportunities toenter the mining market were,until recently, unavailable tocontractors.

The pre-stripping miningcontract requires the removal of1.75 million bank cubic metres ofoverburden and ROM in a period offour months. With contractorsremoving the overburden, PT Incoplan to increase production levelsfrom 128,000 to 170,000 tonnesper day of overburden and ore.

As a result of a low market priceon nickel and shortfalls on oremining production, a reduction ofmore than 50 per cent in PT Inco’scapital spending is anticipated for2002. But while Capital WorkProjects have been reduced to thosecritical, Thiess continuesto support PT Inco on variousconstruction fronts under the MasterSite Services Contracts, including:• Quarrying of Silica ROM material

with drilling and blasting,operating and maintaining threecrushing plants and a concretebatch plant, supplying all theSilica flux requirement for theprocess plant consumption, andconstruction materials forconcrete mix and roadpavement;

• Mechanical maintenance andrepair of a ROM screeningstation, with a capacity of 1,600tonnes per hour;

• Various mechanical andstructural shutdown works;

• The recently completedconstruction of a rockfill dam totrap sediment from the plant and mining operation upstream.This involved hauling and placing130,000m2 of ripped slag and50,000m2 of rip-rap boulders.The contract was completed injust over four months and sixweeks ahead of schedule; and

• Supply of mining excavators andtrucks to load ROM and haul

300,000 tonnes per month ofslag material for road pavement.

Thiess will draw on its longterm relationship with Inco tocapitalise on a range of newcontracts opening up in thecoming year, including threemonths of shutdown works inOctober and 30km of roadrehabilitation works. ■

Thiess AwardedFirst Mining Contract at Inco

With the completion of the Balambano Dam Project in February 2000, Thiess hasbeen successful in consolidating its works with PT Inco, following the award of a

US$2.5M pre-stripping mining contract.

THIESS 14

Currently, Thiess is completingworks for a new pebble crusher.As part of the scope, Thiess isconstructing 1,700 cubic metresof reinforced concrete work,fabricating, supplying and erectingconveyor structures, chutes and

bins, and completing mechanicalinstallations, including relocatingthe two existing cone crushers andprecommissioning. All works will becompleted within a tight timeframeof five months.

This follows on from the recentsuccessful completion of theBenete Lime Plant for which Thiess

carried out all civil works anderected the client supplied limesilo, tipping frame and building.

Thiess has developed a closerelationship with the nearby villagepeople and worked with the clienton a number of communityprojects. A major contributioninvolved clearing and levelling twoareas of land totalling 80 hectareswhich are today used by thevillagers for agriculture.

Batu Hijau (Indonesian for ‘greenrock’), produces high qualitycopper. As the first contractor atthe greenfield site, Thiess wasextensively involved in thedevelopment of infrastructure,carrying out such works as:• Pioneer camp and offices;• Concentrator bulk earthworks;• 2100 person camp;• Three kilometre long 1.2m HDPE

tailings line, together with 1.4mHDPE intakes;

• Major earthworks for threekilometres of coarse oreconveyor formation;

• Two major dams with concretespillways; and

• Santong Water Treatment Plant.

In addition, Thiess secured aseries of Master ServicesAgreements under which asignificant volume of work wascarried out over a three-yearperiod. ■

Long Term RelationshipReaps Rewards at Batu Hijau

Thiess has developed aclose relationship withthe nearby villagepeople and worked withthe client on a numberof community projects.

Almost five years after securing its first contract at the Batu Hijau Copper / Gold Mine forPT Newmont Nusa Tenggara, Thiess has continued to be a major contributor to thedevelopment of the site, completing more than 20 contracts valued in excess US$120M.

15 THIESS

Project Manager John Scott saidThiess was meeting all clientrequirements with regard toproduction, plant availability, safetyand quality.

“In particular, the site hasremained LTI free, during both theconstruction and operational phaseswhich is a credit to the project teamand the commitment which theyhave shown towards maintaining asafe workplace,” he said.

Located in the north east cornerof Kalimantan, 55km from theremote township of Tanjung Redep,Thiess operates the facility on adouble shift basis, with a crewconsisting entirely of national staffand wages personnel. The facility isPT Berau’s primary coal blendingand handling terminal for itsBinungan mining operation.

Under a build, own, operate andtransfer arrangement, Thiess willown the facility for five years,before transferring ownership backto the client.

The fixed plant facility consists ofa truck dump hopper, a 200,000tonne stockyard and a series ofinfeed and reclaim conveyors andtransfer stations. This includes twounderground stockpile reclaimconveyors, a stockpile skylineconveyor and an overland conveyorwhich stretches 1.7km from thestockpile to the client’s bargeloading facility.

With an inloading and outloadingcapacity of 1,000 tonnes per hourand 1,500 tonnes per hour,respectively, the facility is capableof handling up to five million tonnesper annum – well in excess of the

current annual production demandof 3.25 million tonnes.

In co-operation with PT Berau,Thiess has actively participated inlocal community developmentprojects, including the constructionof a temporary bridge on the localaccess road from the village ofSuaran to the main commercialcentre of Tanjung Redep. Futurecommunity projects include theestablishment of a small secondaryschool in Suaran. ■

Berau OperationMeeting Targets

Following the successful design and construction of PTBerau’s Suaran Coal Handling Facility in July 2001,

Thiess is now six months into the five-year operationand maintenance of the facility.

In the last 12 months, more than2,600 people have undergone formaltraining courses conducted byTraining Centre staff. Currently, 95apprentices are undertaking thefive-year apprenticeship course,with this number expected todouble to 200 within three years.

Thiess Training Centre ManagerPaul Bond said the expansion of thetraining centre will provideclassroom facilities for 110 peopleand a dedicated training workshopwith a floor area of approximately1,000 square metres.

“This expansion will also besupported by the introduction ofone of the first simulators inIndonesia which will be used in thetraining and assessment of mine sitedrivers,” Paul said.

“This will add significant value tothe quality of our training systemsand prepare our drivers in the bestpossible way for the situations theymay encounter on site.”

The Centre consists of fourtraining delivery sections: Trade,OHS&E, Mining Operations andAncillary (which includes IT,administration, English and Bahasalanguage courses and trainertraining).

Training is delivered either at theBalikpapan centre or through Thiess’network of site Mobile LearningCentres (MLCs). The portable MLCsare 20” insulated, air-conditionedcontainers with two multi-mediaworkstations and a selection of hardcopy resources. These containerscan be rapidly deployed to any site,ensuring all employees have equalaccess to training.

The five-year apprentice programprovides participants with theopportunity to gain both on and off-the-job practical training. At theend of the program, participantsgraduate with qualificationsequivalent to Australian standards.While the training is provided byThiess, an alliance with the MoretonInstitute of TAFE has been

established, whereby the TAFEundertakes regular audits to ensurethe training meets the requiredstandards. This initiative is the firstof its kind in Indonesia, wherebyan Australian company providestraining accredited to Australianstandards.

The Training Centre wasestablished in 1992 after Thiessrecognised a lack of vocationaleducation institutions and skilledtradespeople within the region.The initial facility comprised twoclassrooms and a small practicaltraining area, with an initial intakeof eight apprentices. Today, theCentre has an annual intake of 40apprentices and has the capacityto produce its own world class,multi-media training material. ■

Thiess’ Training Centre in Balikpapan is set to undergoexpansion after recording unprecedented intake numbers in2001, with participation levels predicted to soar by 2005.

Training CentrePrepares for the Future

This initiative is thefirst of its kind inIndonesia, wherebyan Australian companyprovides trainingaccredited toAustralian standards.

Supporting CaltexSand Removal Facilities in Sumatra

The US$5M contract involvesthe engineering verification,procurement, construction,commissioning and start-up of thefacilities which include a sand panautomation unit, a slurry tank/make up water system unit andsand plant unit.

The works facilitate the removalof sand slurry via the sand pans, and

its collection in the slurry tank. It isthen delivered to the sand plantfacilities for phase separationpurposes using primary cyclone feedpumps. The make up water systemunit supplies the waterrequirements which include sandmobilization in the bottom of theFWKO and WASH tanks, the flushingof any accumulated sand in the Sand

Slurry Pumps suction lines andprocess piping, and dilution of thesand slurry in the sand plant system.

Since commencing site work inMay last year, the total workforcehas peaked at 649 people, with 294days LTI free. ■

For more than 12 months, Thiess has been a key player in the development of sandremoval facilities for PT Caltex Pacific Indonesia in Duri, Sumatra.

17 THIESS

Thiess’ strategy in WA has seenthe company strengthen itscapabilities in the resources,mechanical engineering andconstruction markets, whilecontinuing to perform in the civilengineering and mining sectors.

Outstanding results on the $132MKwinana Freeway Interchanges andExtension Project were rewarded atthe 2001 Western Australian CASEEarth Awards. The project is alsoone of five finalists short-listed inthe 2002 Australian ConstructionAchievement Awards. Additionally,Thiess is completing a $25M contractto build the reinforced concrete

footings for the LNG Stage IVExpansion in the North West Shelf.

While civil engineering, buildingand mining remain core business forThiess, we are looking towardsbroadening our capabilities.The acquisition twelve monthsago of Western Australianmechanical services company BOSAustralia is already deliveringtremendous benefits.

In October 2001, BOS completeda successful shutdown of the CSBPammonia plant. This highlysuccessful project saw 46,000man-hours completed in 22 daysand further supports Thiess’ aim of

developing a process engineeringarm in WA to support the rapidlygrowing oil and gas industry.

Thiess continues to build a strongpresence in Jamaica, with a furtherextension of civil works for Mossell(Jamaica) Limited to establish

Jamaica’s second cellular phonenetwork. We have been operating inthe region for almost three yearsand enjoy a strong relationship withleading contractor Tankweld.

Underpinning Thiess’ businessstrategy in WA is a continuedcommitment to making a differencein the key areas of safety,environmental management andcommunity relations. In addition,we recognise the need to attractand retain the very best staff, asthe major infrastructure, gas toliquid, and other resource projectscome on stream. ■

THIESS 18

W A O p e r a t i o n s

Synergies stemming from new strategic partnerships andacquisitions have positioned Thiess to capitalise on morethan $5B of major projects expected to commence inWestern Australia over the next three years.

▲ Ric BurattoGeneral Manager, WA

While civil engineering,building and miningremain core business forThiess, we are lookingtowards broadening ourcapabilities.

WA Focuseson New Opportunities

19 THIESS

Renewed Presenceat North West Shelf

In June 2001, Woodside awardedThiess a $25M contract to constructthe reinforced concrete foundationsfor the Plant Liquification UnitTrain 4 Civil Onplot, includingunderground electrical cabling andassociated earthworks. Woodside’smanaging contractor for the projectis the Kellogg Joint Venture.

This contract extends Thiess’involvement with Woodside on itsNorth West Shelf Onshore Gas Plantto three out of four stages,including civil off-plot works on twoprevious stages and a joint venturewith TKK to build two condensatetanks as part of the Stage IIIexpansion.

Project Manager Brian Pulhamsaid a tight construction schedule,fast tracking of the design and smallsite area combined to make LNG4 avery challenging project.

“Train 4 is more compact thanother trains at the gas plant.This has resulted in a design with ahigh density maze of undergroundcable trenches with up to three

layers of electrical cables, whichposes a significant challenge in termsof maintaining access for otherconstruction work,” Brian said.

In addition to the complex systemof underground cabling, LNG 4comprises several major concretepours, as large as 600m3.

To meet the client’s requirements,Thiess implemented a range ofthermal curing strategies, includingcommencing pours at 1am,insulating formwork and monitoringof concrete temperatures.

Since commencing site works,Thiess has increased its on-sitelabour force to 154 workers andachieved an exemplary safetyrecord, with zero lost time injuries.

“This is an excellent safety resultgiven the project’s complexity, thesmall site area and the number ofpeople working on-site,” Brian said.

“Our performance can beattributed to the company-wideemphasis Thiess is placing on safetyand working closely with Woodsideand KJV to implement a veryproactive health and safetymanagement plan for LNG 4. ■

Installing underground electrical and instrumentation cables that run the length of 3,500football fields in an area the size of six football fields is just one of the challenges facing

Thiess, as part of the LNG Stage IV Expansion (LNG 4) in WA.

THIESS 20

BOS Australia Manager AndyRankine said, while this was achallenging target, it wasachievable in the right environment.

“It is a very exciting time withseveral major resource projects onthe horizon in WA, as well as thecontinuing development of oil andgas,” he said.

“Most importantly, there hasbeen a tremendous fit between BOSand Thiess since we became part ofthe group just over 12 months ago.

“Both company cultures arecentred around deliveringoutstanding outcomes for clientsthrough a strong commitment toinnovation, integrated solutions,quality and safety.”

Through a strategic alliance withStelform, BOS Australia hasdeveloped robotic welding and pipespooling technology capable ofsubstantially reducing constructionschedules for clients.

“This automated technology hasgenerated enormous interest amongclients as it has proven to deliver

extremely efficient and costeffective solutions. Piping andspooling traditionally represents amajor risk on large projects,however, with this new robotictechnology, BOS Australia is capableof alleviating much of that risk,”he said.

“The technology is completelytransportable and can be used on arange of piping materials, includingcarbon and stainless steels. We arealso exploring opportunities to workwith universities and the CSIRO to

further develop its applications to arange of other materials.”

With its origins in WesternAustralia, BOS has been in operationsince 1979 and has successfullycompleted projects valued at morethan $300M for clients such asApache Energy, BHP Petroleum, BP,Woodside, WMC, Minproc, Minenco,Tiwest, Esso, CSBP, WAPET, MonsantoEnviro-Chem and Fluor Daniel.

Key services offered byBOS Australia include design,construction, installation, hook-upand maintenance of oil and gasfacilities; design, fabrication andconstruction of mining and mineralsprocessing facilities; design,construction and operation ofsupport/supply bases for servicingof offshore facilities; sourcing andprocurement of equipment andmaterial; structural steelfabrication and installation; design,fabrication and testing of pressurevessels, heat exchangers, columnsand tanks; and commissioningservices. ■

BOS Sets Sightson New Resource Projects

With a growing interest in leading-edge robotics and strengthening markets in WA,BOS Australia is targeting a turnover of $50M next financial year.

N e w C o n t r a c t s

21 THIESS

Project Manager Chris Molloy saidThiess was selected from a number oftenderers on the strength of itssystem and commitment to Telstraand the success in both minimisingTelstra’s risk and lowering their costof waste disposal.

In September 2001, Telstraoutsourced their propertymanagement requirements to KFPWPty Limited, effectively replacingTelstra Corporate Property Services.

“The changes to the TelstraCorporate structure meant that wewere required to go back a few stepswith the new property managers andrevisit the basics of the system,”Chris said.

Under the National Waste System,Telstra has achieved significantenvironmental and financial results.The system has enabled Telstra toadopt a comprehensive recycling

program, a consistent approach totheir waste disposal methods and, insome areas, savings in excess of 60per cent.

Thiess currently manages over250,000 movements annually ofgeneral, liquid, and hazardous wastesfor KFPW/Telstra, utilising theservices of almost 400 contractorsAustralia wide.

Claudio Senese, General ManagerCorporate Environment Group (Telstra),will present a paper about theThiess/Telstra National Waste System atthe Enviro 2002 Conference being heldin Melbourne from 9-12 April.

In addition to the renewal of theKFPW / Telstra contract, theDepartment of Defence has alsoextended its contract with TWMS foran additional two years.

The TWMS is an electronic solutiondesigned to track all forms of wasteacross the country. The system offersclients a single point of contact wastemanagement service addressing alllogistical, environmental and legislativerequirements. Supported by a networkof waste management professionalsand a full-service call-centre, theTWMS is able to achieve servicedelivery across wide geographical areasmanaging all forms of waste. ■

TWMS Provides Savings to Telstra

The system has enabledTelstra to adopt acomprehensive recyclingprogram, a consistentapproach to their wastedisposal methods and,in some areas, savingsin excess of 60 per cent.

Thiess Services has been awarded an additional three-year contract with theTelstra Corporation for national waste management services provided through the

Thiess Waste Management System (TWMS).

▲ Bevan Campain and Hayden Kelly.

Representatives from theNational Express, the Departmentof Infrastructure, Thiess, localgovernment and community groupsgathered on the platform of theWatergardens Station to witnessVictoria’s Minister for TransportPeter Batchelor officially open theSt Albans to Sydenham ElectrificationProject on 23 January 2002.

Successfully delivered under analliance agreement, the projectinvolved extending metropolitanelectric train services approximately

six kilometres, constructing newinter-modal station facilities atSydenham and Taylors Road, andmodifying the existing St AlbansStation, to provide the communitywith more frequent, convenient andaffordable rail services toMelbourne’s CBD.

Civil Manager Vic/SA/Tas/NZ GregSparkman said the alliance deliverymethod ensured a focus on best forproject decisions and outcomes,which resulted in the project beingdelivered ahead of time and under

budget, with minimal disruption tothe operational rail environmentand the local community.

“The alliance team consisting ofthe Department of Infrastructure,M>Trains and Thiess, workedtogether to develop a high qualityinter-modal transport facility whichwill provide significant benefits tothe rapidly growing community inMelbourne’s western suburbs,”he said.

The project also benefited fromzero lost time injuries which, for aproject of more than 450 daysduration, is a substantialachievement.

Metropolitan train services,operated by M>Train, commencedservices on this new line on January27, stopping at the two newstations: Keilor Plains in St Albansand Watergardens in Sydenham. ■

THIESS 22

O p e n i n g C e l e b r a t i o n s

The recently opened $36M Mandated Projects has beenheralded a vital link in the government’s plan to connectcommunities and foster economic growth in Victoria.

Mandated ProjectsProvide Vital Link

▲ Bob Lew, Peter Strachan, Jason Spears, Greg Sparkman, Don Johnson.

“The alliance deliverymethod ensured a focuson best for projectdecisions and outcomes,which resulted in theproject being deliveredahead of time andunder budget.”

N e w s i n B r i e f

23 THIESS

Thiess CommencesCivil Work on Comalco Alumina Refinery

Thiess has commenced initialcivil works in preparation for theconstruction of the first stageof the Comalco Alumina Refinery inGladstone, Queensland.

As part of the works, Thiess willcarry out 900,000m3 of bulk anddetailed earthworks, storm andsewerage services installation,as well as upgrading existing roadinfrastructure to allow easy site access.

Civil Manager Qld/NT/PNG PeterLyons said Thiess was pleased tobe able to further contribute todevelopment of the Gladstoneregion.

“This contract is our sixthPerformance Incentive Contractwith Bechtel and we envisage thatthe works will be extended toinclude some 60,000m3 of structuralconcrete, as well as other parts ofthe infrastructure,” he said.

“We are currently undertaking anumber of key projects in theregion, including the AwoongaAlliance Project and the QALCalciners Project.

“Thiess is proud of itsinvolvement in the Gladstoneregion and we look forward todelivering these landmark projectsto our clients and the localcommunity over the next 18months.”

Situated at Yarwun, 10kmnorthwest of Gladstone, therefinery is expected to produceabout 1.4 million tonnes of aluminaannually. ■

“Thiess is proud of itsinvolvement in theGladstone region and we look forward todelivering theselandmark projects toour clients and the localcommunity over thenext 18 months.”

Thiess Services began waste services to the City ofWhitehorse in January 2002 marking the first domesticwaste management contract in Victoria under the ThiessServices name.

Covering an area of 64 square kilometres, ThiessServices is responsible for domestic waste services andlitter bin collections servicing 60,000 residences.

Manager Collection and Recycling Vic/SA Tyrone

Landsman said Thiess Services was pleased to beselected on the City of Whitehorse contract.

To ensure the highest level of service, Thiess Servicesuses Owner-Drivers to carry out the day-to-day wasteservice requirements. This has resulted in an improvedlevel of customer service and a greater attention todetail in areas such as vehicle and equipmentmaintenance. ■

Thiess ServicesSecures First Waste Contract in Victoria

Thiess Wins First Contract on $2.7B Nickel Project

N e w s i n B r i e f

Thiess has secured the first contract on the $2.7BGoro Nickel project in New Caledonia for the world’ssecond largest nickel producer, Inco Limited.

In partnership with international construction groupCOLAS, Thiess will carry out initial earthworks inpreparation for construction of Inco’s fully integrated,low-cost nickel/cobalt mining and production facility.

Thiess Executive General Manager Qld/NT/PNGMurray Fox said the $10M early works project was apositive step into a new market.

“We are looking forward to developing our business inNew Caledonia and to continuing our relationship withInco,” he said. ■

Thiess has been awarded the$17M construction contract forthe Springwood Bus Station and

surrounding civil works, as part ofQueensland Transport’s South EastTransit Project (SETP) in Brisbane.

The bus station is designed toprovide a vital connector for cross-town services in the Logan area, aswell as a link with the South EastTransit Busway.

Qld/NT/PNG Civil Manager PeterLyons said the award of theSpringwood Bus Station strengthenedthe company’s association with theSETP and Queensland Transport.

“Thiess has contributed to theSETP through constructing twoprevious sections – the Garden CityInterchange in Upper Mt Gravattand Section Two of the Busway,from Water Street in SouthBrisbane to O’Keefe Street inBuranda,” he said.

“Thiess is proud to contribute tothe development of the SETP andbe part of this successful, majorinfrastructure project.” ■

“Thiess is proud tocontribute to thedevelopment of theSETP and be part ofthis successful, majorinfrastructure project.”

Plant arriving at Goro, New Caledonia.▲

Thiess ContinuesWork on SETP

Staff DevelopmentsAlan Michener has been appointed Group Manager Health and Safety. Alan joins

the Thiess team with many years experience in health and safety management,including 12 years with Orica Explosives as Safety, Health and Environment Managerresponsible for operations in Australia and Asia Pacific. Prior to this, he spent twoyears as Safety and Training Manager in the New Business Group of ICI. Alan willfocus on improving Thiess’ safety performance through cultural and behaviouralinitiatives aimed at creating a company-wide ownership of safety. ■

Upcoming editions of THIESS Quarterly News> June 2002> September 2002> December 2002