09-07-09 edn

Round two for Murchison, Chameleon

 ANOTHER legal showdown is looming between Murchison Metals and Sydney-based Chameleon Mining, which is claiming it is entitled to half of the iron ore miner's Jack Hills tenements, valued at $1.5 billion. Under a separate settlement deal, Murchison agreed to issue 3.5 million shares, a cash payment of $350,000 and payment of legal costs. Chameleon, which has accepted that offer, said the total value of the settlement is more than $7 million.

Palmer eyes BHP's WA nickel assets

 BHP Billiton will book heavy writedowns on the sale of its Yabulu nickel refinery in Queensland to iron ore billionaire Clive Palmer, who is eyeing the mining giant's other nickel assets including the mothballed Ravensthorpe mine.

Overseas firms picked for Perdaman work

 OIL and gas major Shell is one of three international companies selected to supply technology to Perdaman Chemicals and Fertilisers' proposed $3.5 billion Collie urea project. Shell will provide the plant's core coal gasification and gas treatment. It will be joined by Danish company Haldor Topsoe A/S, which will provide ammonia synthesis technology and Netherlands company Stamicarbon BV, providing the urea melt technology and fluid bed granulation technology.

Rudd sneaks in crucial IR change

 KEVIN Rudd's (pictured) government has sneaked in an 11th hour change to its unfair dismissal code, which will force small businesses to pay 'go-away' money to aggrieved employees, the federal opposition claims. The change relates to the previously worded "a small business employer may be required to provide evidence of compliance" to "a small business employer will be required to provide evidence of compliance" where an employee makes a claim for unfair dismissal. (See story, page 8.)

Reserve Bank leaves rates at 3%

 The Reserve Bank of Australia has opted to leave the cash rate unchanged for a third straight month, but is keeping the door open for a cut later this year.

Appointments 20

O'Leary and Bult swap roles

Two of Wesfarmers' most senior executives have virtually swapped roles, with the appointment of Tom O'Leary (left) as managing director of the group's energy division, and Tim Bult becoming executive general manager of group business development. Mr O'Leary has headed business development since 2006, leading acquisitions and divestments as well as being involved in recent major equity raisings. At around the same time, Mr Bult took the reins at the energy division.

FerrAus looks to BHP for CEO

Former BHP Billiton senior executive Mike Amundsen has been appointed managing director and CEO of junior iron ore player FerrAus, which will relocate its headquarters to Perth. Mr Amundsen's experience includes vice-president business development with BHP primarily in the iron ore and coal business groups as well as in senior roles across finance and marketing. He was a board member of Samarco and played a lead role in the recent US$1.2 billion expansion of that company.

Euroz directors

Anthony Brittain, Rob Black and Gavin Allen have been appointed as executive directors of Euroz Securities. Ben Laird, Phil Cosh, Lucas Robinson and Steve Grove have been promoted to associate director level.

Wedlock takes over at Gindalbie

Geoff Wedlock has been appointed chairman of Gindalbie Metals and Sundance Resources, succeeding George Jones. His previous positions include executive vice-president and CEO of BHP Iron Ore and managing director of the iron ore producer Portman.

Directors' Interests 19

Kim Robinson has pocketed more than $6.4 million from the sale of his entire shareholding in Carbon Energy and the sale of 6.8 million Kagara shares.

Mr Robinson made the sales in order to participate in Kagara's retail entitlement offer, which recently closed having raised more than $40 million.

The offer was part of a bigger capital raising effort, which raised more than $150 million.

Another director to show his financial support for his company is Hydrotech International's Phillip Gray. He subscribed to $2.5 million worth of shares to boost his interest to around 10 per cent.

'Engauged' at Alcoa

THE Production On-Line Liquor Analyser and an On-Line Mud Level Instrument might at first sound like the fantasies of some science undergraduate's imagination, but The Note has it on good authority they are not only real, they are invented in Western Australia and save their users lots of money.

In fact, they are so real that Kwinana-based inventor Vince Dooley (pictured) of Alcoa's global refining research and development group has received plaudits from the International Society of Automation, winning its recent UOP Technology Award.

While the engineer is no doubt chuffed with the award, The Note is pretty sure that true recognition of greatness lies in the fact that the instruments are collectively referred to as Dooley Gauges.

Now that is immortalisation.

Fair Work, fair game

BUSINESS might be groaning about the latest wave of industrial relations changes, but The Note was happy to see someone had found a commercial opportunity from it.

No, we are not talking about the IR consultants and lawyers, who are back in business in a big way.

Instead we are talking about cyber squatting, the concept of taking ownership of an internet domain name that would usually belong to someone else.

A search for Fair Work Australia shows someone has trumped the Australian government on at least one logical variation of its domain name, and structured it to sit at the top of relevant search engine lists.

Just take a gander at www.fairworkaust.com, which purports to be an independent resource for employers and employees. According to our research, this is a strategy called namejacking.

And, just one week since the introduction of the new IR system, the site is for sale.

Maybe that would be an attractive option for some businessperson suffering IR fatigue? The Note doubts there are any employees to worry about in the virtual business world.

AMCI weighs up iron ore options

PRIVATE coal and iron ore group AMCI Holdings is weighing up its options to exit from the $4 billion West Pilbara Iron Ore Project managed by Aquila Resources.

Indicative offers for AMCI's 50 per cent stake in the Australian Premium Iron joint venture with Aquila, which owns the massive iron ore project, were due last week.

It is understood that investment bank UBS, which is managing the offer process, is now in talks with AMCI about whether to negotiate further with prospective buyers or simply retain the interest.

Interest in AMCI's stake is believed to have been reasonable, most notably from China, but was affected by the market downturn, project risk and AMCI's tense relationship with Aquila.

AMCI, which is controlled by German-born coal baron Hans Mende, has been at loggerheads with Aquila over a range of legal issues since 2007.

Aquila also holds pre-emptive rights over AMCI's holding in the API joint venture, giving it the right to acquire the interest on the same terms as any third-party buyer.

Macquarie deals worth $339m

MACQUARIE Capital Advisers has claimed top ranking for equity capital raisings for Western Australian companies in the June quarter.

Following last week's corporate finance review in WA Business News, Macquarie has reported that it was either joint or sole lead manager on five transactions that raised $339 million for WA clients.

Division director Martin Alciaturi said that ranked Macquarie as the top firm in WA for the quarter.

Last week's report found that Euroz was the top firm among Perth-based stockbrokers, with 12 transactions raising a total of $249 million.

Other Perth-based firms to feature prominently were Hartleys, Patersons Securities and Argonaut.

Macquarie's biggest transaction was Kagara's $200 million placement, jointly lead by Sydney-based Southern Cross Equities.

It participated in two raisings for mining company Mirabela, which is developing an iron ore project in Brazil.

Macquarie jointly led $39 million and $11 million raisings with Argonaut. Separately, Mirabela raised C$120 million in the Toronto market, which in recent years has been the world's number one equity market for resources projects.

Other Macquarie deals were Macmahon's $60 million raising and Northern Iron's $29 million raising, with the latter deal jointly led with RBC Capital Markets and Euroz.

Bishops See wins top award

BROOKFIELD Multiplex was the big winner at the recent Master Builders-BankWest Excellence in Construction Awards.

Multiplex took home the top award for its Bishops See Stage 1 building in the CBD, which also was named best commercial building in the over $20 million category.

Multiplex also received awards for: best public use building, for its District Court project; best industrial building over $20 million, for its IKEA Superstore; and best multi-unit development, for its Esplanade apartments.

Bishops See Stage 1, which was the first five-star green-star rated building in Western Australia, incorporates a number of green innovations into its design, including being WA's first commercial office development to have a greywater system installed.

Building Solutions Australia won the John Roberts best new builder award, and was also a finalist in the best industrial building under $20 million category.

Master Builders (WA) director Michael McLean said the record number of entries covering work valued at more than $1.5 billion reflected the healthy state of the commercial construction market across the state.

"With a record number of entries, and a record value of worth entered, this kind of support further proves that the construction industry in WA is going from strength to strength," he said.

Amcom Telecom

Tian Kotze has resigned as company secretary.

Aurium Resources

Thomas Percy and Peter Remta have resigned as directors.

Blackthorn Resources

Bill Cash is to retire as an executive director.

Carbon Conscious

Dan Stevens and Ric Collins have resigned as executive directors and Mike Shields will be reinstated to the position of non-executive director.

Cityview Corporation

Bernard Brady has been appointed non-executive director of the company. Wayne Reid has resigned as director.

Consolidated Tin Mines

Peter O'Connor has resigned from the board. Ralph De Lacey has been appointed as executive chairman in the interim.

Elixir Petroleum

Trevor Benson has resigned as non-executive director.

Fairstar Resources

Vaz Hovanessian has resigned as chairman but will continue to serve as director. Ken Allen has been appointed chairman.

Gage Roads Brewing Co

Steven Greentree has been appointed non-executive director.

Gindalbie Metals

Yu Wanyuan and Chen Ping have been appointed non-executive directors.

Kings Minerals

Gregory Josephson has resigned as director.

Macro Corporation

Saur Silalahi has resigned as non-executive director.

Mission NewEnergy

Tan Mohd Nor has been appointed as an independent non-executive director. Arun Bhatnagar has been appointed as an independent non-executive director.

Monto Minerals

Daniel Huff has resigned as company secretary, to be replaced by Gary Steinepreis.

Mundo Minerals

Michael Schmulian has resigned as executive director.

Norwest Energy

Michael Fry has been appointed director.

NKWE Platinum

Anton Weber has resigned as director.

Oilex

Ben Clube has been appointed finance director. Ron Miller has been appointed non-executive director.

Oropa

Tony Martin has been appointed CEO. Bruce Tomich has resigned from the board.

Padbury Mining

Peter Remta has resigned as director.

QRSciences Holdings

Douglas Potter has been appointed to the board.

Rural Aus

Paul McKenzie has been appointed chairman. George Gear has retired as director and chairman.

Repcol

William Ryan has been appointed non-executive director of the company.

Strategic Minerals Corporation

Roland Bartsch has resigned as director.

Style

Greg Johnson has resigned as non-executive director.

Warwick Resources

Mark Hancock has been appointed non-executive director. Tony Walsh has resigned as non-executive director.

Change of address

Base Iron

Mezzanine Floor

35 Havelock Street

West Perth

WA

Practising your EQ

FINDING ways to increase profitability has become a critical task for managers in the past 12 months.

CEOs have watched their profit figures dive and management teams have closeted themselves away to consider ways of saving money. If the ship is sinking you analyse where the leak is and you bail out the water. You don't consider people's feelings. Right? Maybe not.

A growing amount of evidence shows that 'emotional intelligence' (EQ) is a more profitable way to run a business. Daniel Goleman popularised this term in 1995 after completing research showing that EQ leads to many positive aspects in life, such as better interpersonal relations, job satisfaction and improved leadership skills. However, many senior managers may not see a link between a successful company and emotional intelligence.

The dimensions of EQ are awareness and control of your own emotions and awareness and the ability to influence the emotions of others. The ability to motivate and rebuild your own emotions is also a factor.

A study in a recent issue of the Leadership and Organisation Development Journal examined the emotional intelligence of 180 CEOs, owners, presidents and managing directors who were part of the Young Presidents and Innovative Alliance associations. The profits from the executives of these companies were compared to each individual's EQ levels scored on the BarOn EQ-i measure. It showed that executives who had higher EQ levels were more likely to yield higher profits.

Objective measures of profitability of the companies were determined by comparing pre-tax operating profits for the past three years, the previous year's profit, and the average yearly pre-tax profits for the industry as a whole.

Earlier studies in the same journal showed the 38 supervisors in a large manufacturing organisation with higher EQ levels were rated by their subordinates as more effective leaders.

Another study showed that sales people with higher EQ generate greater sales.

On the reverse side of the equation, it is easy to see that people who have low EQ skills can wreck havoc and cost the company money. Getting angry or impatient with staff, suppliers or customers for example, can cause damage.

I met one CEO who was highly intellectually intelligent. He knew his industry better than any of his managers and was a great strategic thinker. I was in a meeting with his executive team when he tore into his marketing manager, stating that it was a "stupid-ass idea". I later asked the CEO why he was so angry at his manager in front of everyone and he said: "If he can't stand the heat, he should get out of the kitchen."

The marketing manager left three months later. Low EQ skills cost this organisation time and money.

So, how can we build EQ skills in our managers and staff?

Measuring the EQ of your managers is a good place to start. Ability measures such as the BarOn EQ-I, the self-report questionnaires developed by Swinburne University and 360-degree EQ surveys (where the manager self rates their skills, and their colleagues, manager and subordinates provide their ratings) are all useful tools.

Executive coaches who provide guidance to managers on how to understand and manage emotions, is another way to build EQ skills. There are a number of workshops publically available that can be tailored to your organisation.

Paying attention to the body language and changing work behaviours are ways to read another person's emotions. Picking up the emotions and concerns of your customers, your stakeholders, and your staff could not only lead to a happy workplace but a more profitable one - and a happier home life as well.

SBDC brings voice to regions

KUNUNURRA small business sought reassurance from the state government last week that it is addressing the issue of red tape.

About 14 small business operators raised a raft of issues with Commerce Minister Troy Buswell during the Small Business Development Corporation's Business Link Forum series, which follows ministerial visits to rural areas to give the local business community a voice.

SBDC managing director Stephen Moir said it was important to recognise that, while some concerns were common to all businesses, others differed from region to region and from industry to industry.

"We are keen to find out what the business community in Kununurra needs and what can be done to help the sector grow," Mr Moir said.

"We realise that problems affecting businesses elsewhere in the state may be vastly different to those in the far north-west.

"The state government is currently addressing the issue of red tape through a range of red tape reduction initiatives, but we are happy to address any further red tape issues that may be specifically affecting businesses in this region."

While red tape reduction featured heavily in the discussions, Kununurra business owners also discussed the Royalties for Regions program, payroll tax, planning processes and the Ord Stage II Development project.

The long-awaited expansion of the Ord Irrigation Area began in far north Western Australia in February, with about $400 million of state and federal money set to be spent in the region over the next four years, improving facilities in Kununurra and opening up an extra 14,000 hectares of irrigation land.

"The state government has committed $220 million over the next four years to the Ord Stage II Development project under Royalties for Regions and we expect this will provide many opportunities for the local business community," Mr Moir said.

Adam Orlando

Time to decide

TIME is money. You've heard that expression 1,000 times or more. And as many times as you've heard it, you have universally ignored it.

Every year, I get thousands of requests for a course in 'time management'. And every year I give the same answer: Why are you asking me what to do with your time? Don't you know what to do?

Is it time management or wasted time?

Is it time management or procrastination?

Is it time management or lack of productivity?

Is it time management or lack of achievement?

Is it time management or poor time choices?

You tell me. I'm concentrating on my time challenges, not yours.

I am writing a book on the subject of time management. The title is: You already know what to do, you're just not doing it.

I love the expressions that have been created over the years ...

Just in time.

Save time.

No time like the present.

There was a time when.

Time commitment.

Time management.

And loads of other irrelevant jargon.

So, if time is money, as suggested earlier, what are you doing with yours? Are you spending it, or investing it? And how are your time investments working for you? Are you frustrated because there are 'not enough hours in the day?' I am. Groucho Marx had it right. He wanted a 36-hour day. That way he could work 24 hours, and still get a good night's sleep.

Spending time or investing time is a choice. Here are some examples of choices. See which ones apply to you.

- Spend watching TV - invest reading a book.

- Spend drinking in a bar - invest writing or preparing for a sales call.

- Spend reading a newspaper about the local news - invest talking to your kids.

Note: Invested time with your family pays the best dividend: Love.

Is it time management? No. It's time allocation. It's how you choose to use your time right now. How are you spending or investing your 16-18 hours a day?

New pressures are being placed on the immediacy of your time - and for many it's hours, not minutes a day. And these are time uses that have crept into the work fabric, and are firmly planted in your life - and mine.

- Blackberry. People (not you of course) are addicted. They can't sit down without looking at it, and responding to it.

- Email. How many a day? 10? 100? More?

- Texting. The newest of the communication modes. Instant, unavoidable.

- Mobile phone. You spend hours on your mobile device with text, search, and email. Then you start talking. "I don't spend that much time on the phone." Really? 1,000 minutes a month is almost 17 hours. And most people spend more. I'm not saying it's all bad time. I am saying it's 17 hours - you measure its value.

And new time pulls are creating re-allocation of your allotted time. The biggest being social media. Facebook, Twitter, LinkedIn, Flickr, and Wikipedia demand business and personal attention and time allocation. Time you and I never had to allocate before. Add blogs, e-zines, emails, and websites, and you have hundreds of new hours demanding, no commanding, both attention and time. Your time. My time.

Wanna add your new allocation of time up? Two hours a day is 10 hours a week, if you only play five days. Doubtful. That's 500 hours a year. My number would be closer to 1,000 - how about you?

You're probably 1,000 just on your Blackberry.

Here's the opportunity, or the rub - depending on how you look at it. In all this allocation or re-allocation of time, make certain you're addressing the real goals of the process. Here's what you must concentrate on achieving during these new allocated hours.

- Making connections.

- Helping customers.

- Providing value.

- Service in an instant.

- Building relationships.

- Earning referrals.

- Following up with hot accounts.

- And, oh yes, making sales.

Cold calling? You have no time to waste on hit or miss. 99.9 per cent miss. Referrals are 75 per cent hit. Start there. You might want to carve out some hours for reading, family, and having fun. I do.

Want my best time allocation secret? Go to www.gitomer.com and enter ALLOCATION in the GitBit box.