When geologists around the world start planning new mine developments, there is a good chance the software used will have been written in Perth by a company such as Gemcom or Micromine.
When geologists around the world start planning new mine developments, there is a good chance the software used will have been written in Perth by a company such as Gemcom or Micromine.
And when mining companies in Africa or Asia develop a new project, they might choose an engineering firm in Perth such as GRD Minproc or Lycopodium.
When miners want to improve the training given to equipment operators, they might use a simulator developed by Osborne Park company Immersive Technologies.
And when they want to extend the working life of their heavy earthmoving tyres, they might consult South Perth firm Otraco.
These examples illustrate some of the ways in which Perth has grown to become a global centre for mining technology and mining services.
Collectively, the mining services industry generates annual export sales approaching an estimated $1 billion.
Most mining services companies generate the bulk of their sales in the domestic market, but the industry has grown to a point where its future prosperity is insulated from the mining industry in WA.
The growth of the industry has resulted in many local firms being acquired by interstate and overseas competitors.
South Africa’s Murray & Roberts has gained control of engineering firm Clough, Canada’s Gemcom bought mining software developer Surpac Minex for $34 million, Sydney company Downer EDI bought mining consultants Snowden (for $14.8 million) and Otraco (for $20.3 million), and Melbourne company Coffey International bought RSG Global Consulting (for $16 million).
The latest mining software firm to change hands was Nick and Jenny Archibald’s Fractal Graphics, which was bought by Brisbane company, Runge, in June.
With the backing of private equity investor AMP Capital Investors, Runge has bought three mining services companies in Australia in the past year.
WA’s biggest exporter of mining services is engineering firm Clough.
Out of total revenue of $761 million in the year to June 2007, Clough said just over $400 million was generated in overseas markets.
Its major overseas projects include the Maari oil field development in New Zealand.
Perth-based engineering firms GRD Minproc and Lycopodium also generate substantial export income by selling their services to overseas clients.
One third of Lycopodium’s annual revenue of $104 million was earned in Africa last year. The proportion was even higher in 2006.
Its current projects include Barrick Gold’s $US400 million Buzwagi gold project in Tanzania.
In GRD’s case, about 15 per cent of its annual revenue of $210 million is derived from overseas projects, in Africa and South America.
Major contracts it has been awarded include Freeport-McMoran’s Tenke copper/gold project in the Congo, Resolute Mining’s Syama gold mine in Mali, and Albidon’s Munali nickel project in Zambia.
Minproc managed the design and construction of Paladin Resources’ Langer Heinrich uranium mine in Namibia, and is also working on eastern European and South American projects.
The GRD group has also started earning international revenue from its waste management business, Global Renewables.
Perth’s importance as an engineering centre extends beyond the contribution of Perth-based companies like Clough, Lycopodium and GRD Minproc, however.
The city is also a major operational centre for companies such as Brisbane-based Ausenco, Sydney-based WorleyParsons and French company Technip Oceania.
Technip Oceania, which is based in Perth and Malaysia, was awarded a $US200 million ($A235 million) contract last September for development of the Kupe gas project in New Zealand.
WorleyParsons’ Perth office is mainly focused on WA projects but has worked on international projects.
Listed drilling contractors Ausdrill and Imdex have extensive international operations, mainly in Africa.
Out of total revenue of $365 million last year, Ausdrill earned $157 million in Africa and $6 million in the UK, mainly from its African Mining Services subsidiary and its supply and logistics arm, Supply Direct.
Imdex generated total revenue of $119 million last year from its two business segments – drilling fluids and chemicals and drilling products and services.
Of this total, more than $40 million was generated from international sales, according to a breakdown in its financial statements.
Imdex’s international growth has been hastened by seven international acquisitions in the past two years.
In the mining software sector, the major players include Vancouver-based Gemcom, Adelaide-based Maptek and UK-based Datamine.
They all have substantial operations in Perth, particularly Gemcom following last year’s acquisition of Perth company Surpac Minex, which had about 130 staff and generated annual sales of $20 million.
Perth competitor Micormine, which has been in business for just more than 20 years, has also become a significant player in the global industry.
Its international growth has had a particular focus on Russia, where it has been active for the past six years and claims to be the largest supplier of software technology to the exploration and mining sector.
Listed Nedlands company ISS Group is another emerging player, developing infrastructure and application software for the oil and gas and mineral processing sectors.
The group has been targeting international opportunities and announced in July that Saudi Aramco, one of the world’s biggest oil producers, had placed an order for its BabelFish product.
Saudi Aramco will use the software to monitor the performance of 380 wells in real time.
Osborne Park company Immersive Technologies has continued its successful international growth.
Exports comprising 95 per cent of its sales, which last year totalled $17.4 million.
It signed a licensing agreement with Japanese company Hitachi Construction Machinery last month, which means that six of the world’s leading mining equipment manufacturers exclusively support and recommend its training simulator technology.
Immersive said more than 110 of its simulators are being used by mine operators, contractors, equipment suppliers and training bodies in 20 countries worldwide.
Another WA success story is Snowden, which experienced a large increase in its international business across all continents last year, according to parent company Downer EDI’s annual report.
It said Snowden’s operations grew significantly in the Americas from its Canadian office, with a new officer established in Belo Horizonte, Brazil.
