Pacific Industrial Strikes Gold With XLERPLATE®

20 November 2003

The Telfer Gold Mine

Western Australian manufacturing company Pacific Industrial has landed a golden opportunity in the mining industry, winning a contract for the manufacture, supply and installation of over 3000 tonnes of steel and equipment for the Telfer Gold Mine.

Located 400 kilometres east of Port Headland, Western Australia on the edge of the Great Sandy Desert, Telfer is a gold and copper mine, owned by leading mining company, Newcrest. If fully developed it will be the second biggest gold mine in the world - twice the size of its next biggest competitor. When operational, it is expected to produce 800,000 ounces of gold annually, as well as 30,000 tonnes of copper, from both open pit and underground ore sources.

The mine was suspended 3 years ago due to high operating costs, and A$170 million has been spent since that time to re-evaluate the mineralised system. Newcrest is spending A$1.2 billion to redevelop the mine, which is expected to be operational mid 2004.

Pacific Industrial Company has been awarded the contract for the supply of the treatment plant structural steel, plate work, ducting and shop fabricated tanks, as well as the part supply and structural, mechanical, piping installation (SMP) of the Crushing Area, where ore from the mine will be crushed and ground, ready for processing. These contracts are valued at approximately A$20 million net.

Pacific Industrial's past experience and sound reputation won them the project. "Telfer is a good-size job for us," says Pacific Industrial's Business Development Manager, George Petley. "We have been involved with every major resource project in Western Australia in the last 30 years."

Pacific Industrial is supplying in excess of 1500 tonnes of steel for the Telfer Gold mine, which includes over 1000 tonnes of 350 and 350 grade XLERPLATE® steel, supplied by BlueScope Steel. "XLERPLATE® steel is simply the best quality material for the welding, rolling, and forming processes used in the fabrication of the equipment," says George Petley.

Production of the mine equipment is proceeding very quickly. George Petley emphasises the importance of having a reliable supplier to meet project deadlines, "It's critical to our business. Without a good supplier - you cannot deliver the goods as required to the client. We would fall behind in production and would not meet the end dates. They have to be able to deliver a quality product at the right time. It is no good sending a good product if it's too late."

"BlueScope Steel has provided us with very reliable lead times, and the service is second-to-none. We are in communication with them daily. The quality of the product is world class," he adds.