Thiess News, Volume 1, 2000

Volume 1 2000 

Innovation in the Heart of Melbourne 

10 Years in Indonesia 

New Office Opens in South America

University of Queensland 

joins Thiess in Strategic Learning Partnership 

Thiess’ commitment to helping its people 

become “the best they can be” in their 

respective areas has received new impetus with 

the launch of a “Strategic Learning Partnership” 

(SLP) with the University of Queensland. 

The SLP will combine Thiess’ extensive practical 

experience and enthusiasm for innovation with 

the University’s capacity to deliver the latest 

educational initiatives, through sharing resources 

and facilitating mutual learning. 

To ensure successful implementation, Dr David 

Radcliffe, an Associate Professor in the University’s 

Department of Mechanical Engineering, has been 

located in Thiess’ Corporate Human Resources 

Department this year. 

Dr Radcliffe has previously assisted Thiess with the 

Model Development Projects program and took 

part in an overseas study tour in February 1999 to 

review “Innovation and Best Practice”. 

Thiess Innovation 

Benefits will flow both ways, with the engineering 

industry being the ultimate winner. The strategy 

promotes higher standards of education and 

experience, and a culture which rewards 

innovation and co-operation between academia 

and “the coal face”. 

Thiess’ commitment to education was strongly 

articulated at the Training Summit held in May 

1998, and other outcomes of this approach include 

the Model Development Projects program and the 

Thiess Innovation Program. 

The SLP also demonstrates Thiess’ determination 

to actively engage in responsible corporate 

citizenship, by supporting this premier University. 

The Memorandum of Understanding pledges 

Thiess and the University to the SLP for an initial 

period of five years, subject to annual review. 

2 

Thiess News Volume 1 2000

University of Queensland (continued) 

Key programs that will be implemented through 

the SLP this year are: 

• Learning in Context 

Thiess Mining will host a total of 15 third or 

fourth-year Engineering students at Burton, 

South Walker Creek and Mt Owen Mines for 

periods of three months. The students will gain 

real experience counted towards their degrees, 

while studying with the University via the 

internet. The pilot group of students began on 

the Queensland sites in February. 

• Recognition Pathways 

This programme is specifically designed to 

recognise the practical knowledge and experience 

of Thiess people who have extensive “on-the-job” 

skills but not necessarily a tertiary education. 

Employees will be able to earn credits towards 

Australian Qualifications Framework 

qualifications, such as the Diploma or Advanced 

Diploma in Project Management. This will open 

up new opportunities for career planning and 

recognition. 

• Flexible Learning Opportunities 

Thiess people Australia-wide will be able to 

access distance and flexible learning opportunities 

through UQ’s extensive resource learning 

materials. These include the Engineering and 

Physical Sciences Library - known as the Cybrary 

due to its extensive use of electronic media - 

and learning delivery methodologies such as 

web-based systems. 

A significant future initiative is the planned 

foundation of a Thiess/UQ Chair in Engineering 

Education later this year, subject to formal 

assessment of the proposal’s benefits. 

The SLP will also enhance the existing Thiess 

Innovation Program by providing R&D support, 

as well as assistance in benchmarking and reporting 

on best practice initiatives. 

The main points of contact with the University 

will be the Sir James Foots Institute and the 

Technology Management Centre, both of which 

are within the Faculty of Engineering, though 

other UQ services will provide support and 

resources. 

As an additional link between the organisations, 

Ian Johnson from Thiess Corporate Human 

Resources, and Terry Bulmer and Paul Forghani 

from Technical Services have been appointed 

Adjunct Professors to the Technology 

Management Centre. 

The SLP is being managed through a Project 

Control Group comprising representatives 

from both Thiess and the University. Thiess 

representatives include Ian Johnson, Terry Bulmer, 

and Murray Fox from Queensland Mining. 

Thiess is proud to be part of this landmark 

development in industry-academic exchange. 

Thiess Innovation 

Thiess News Volume 1 2000 3

MPV gets the finishing touches 

VIC/SA/TAS/NZ Business Unit 

Thiess is putting the finishing touches on 

Melbourne’s Multi-Purpose Venue (MPV), 

adding another jewel to the crown of 

Melbourne’s world-class sports and entertainment 

precinct at Melbourne and Olympic Parks. 

“This sporting precinct has no peer anywhere in 

the world,” according to Australian Open Chief 

Executive Paul McNamee. “We’re very lucky, 

especially with its proximity to the city. 

Melbournians have built something that’s unique.” 

Utilising state-of -the-art technology, the MPV 

roof closes twice as quickly as that of the 

neighbouring Rod Laver Arena at Melbourne Park, 

ready to respond to Melbourne’s infamous changes 

in weather. 

As its name suggests, the MPV is truly multipurpose 

and unrivalled in its versatility and 

flexibility. It can be changed to suit almost any 

event - from ice skating to opera, cycling to 

basketball, and of course tennis. This is achieved 

through an innovative seating design using 

removable, raisable and retractable seating designed 

to ensure that spectators are close to the action for 

all types of events. The venue accommodates 

10,000 for tennis, basketball, concerts, opera and 

so forth, and 4,500 for cycling. 

Raisable seating reveals a world-class velodrome 

for local and international cycling events. 

The velodrome has a baltic pine cycling track 

supported on timber trusses. Everyone has an 

opportunity to see the movable roof move through 

its paces, but only those behind the scenes see the 

raisable seats in action. Two sets of winches raise 

the 3,216 seats in less than four minutes to execute 

the conversion to velodrome mode. 

State-of-the-art timing systems, score boards and 

sound systems are also essential accessories for such 

a facility. Another essential is food. The main 

kitchen in the basement and smaller kitchens at 

transverse and superbox levels accommodate the 

catering needs of the 1,900 corporate guests in the 

corporate lounges, and the 10 kiosks on the 

ground level serve the general public. 

One less obvious feature is the careful attention 

to the design and location of the entry doors. 

Operating costs for such a facility are an important 

consideration. Each entry and exit point must 

be attended and so doors are significant from 

the perspective of operating costs as well as 

functionality. The MPV has only four sets of five 

doors (20 doors) for public access into the 

stadium, which is less than half the number in 

other comparable facilities in the Australia and 

the USA - achieved without compromise to 

circulation, functionality or safety. 

Scheduled for completion in April, the MPV 

offers another sporting venue of excellence in 

Melbourne’s inner city sporting precinct. 

4 


MelbourneFootbridges 

keep sports lovers moving 

Melbourne continues to consolidate its 

position as Australia’s sporting capital 

and is currently upgrading access to 

Melbourne Park, Melbourne’s Sports and 

Entertainment Precinct and home to the 

Australian Open Tennis Tournament. 

Thiess is responsible for the design and 

construction of three pedestrian bridges, including 

a new 7m wide, 250m long bridge connecting 

the MCG to the Tennis Centre, which will help 

move pedestrian traffic to and from the MCG 

much faster. 

The link between the MCG and the Rod Laver 

Arena at Melbourne Park replaces a smaller bridge 

built only 11 years ago and will substantially 

reduce overcrowding, congestion and delays. 

With attendance numbers for the Australian 

Open reaching all-time highs and the imminent 

completion of the 10,000 seat Multi-Purpose 

Venue, the need for the new bridge was reinforced. 

This project presented the Thiess team with a 

challenge as the existing bridge had to be removed 

and a new facility built while maintaining 

pedestrian access and without disrupting any of 

the infrastructure and activities below. This meant 

maintaining full service of the four lane arterial 

road, ten train lines, tram lines, service roads to 

two car parks and access the tennis precinct. 

The project team worked closely with all 12 

stakeholders to ensure that the construction of 

the bridge went smoothly. 

This was achieved through weekend night shift 

operations to install bridge piers and beams under 

complete occupation of roads, train and tram 

tracks as necessary. There was detailed planning 

and hour-by-hour co-ordination to ensure that the 

transport services were not interrupted in any way. 

One of the stakeholder groups affected by these 

works was the train and track maintenance 

activities of Thiess Infraco. 

As though this was not sufficient challenge, the 

bridge was constructed against the accelerated 

Thiess program of eight months rather than the 

conforming 13-month program. 

The major stakeholders for the project were the 

Office of Major Projects, the Melbourne and 

Olympic Parks Trust and the Melbourne Cricket 

Club. The project team worked closely with this 

group to ensure that the works were complete for 

public use of the footbridge for the Boxing Day 

test match and the 2000 Australian Open. 



The Royce embraces 

luxurious heritage 


Thiess has recently completed “Royce on 

St Kilda Road”, a five-star boutique hotel for 

Kisto. The Royce is an intimate, 71-bed hotel 

on Melbourne’s famously leafy St Kilda Road 

boulevard, only a short tram ride from most places, 

including the arts precinct, Southbank, Crown 

Casino, Melbourne Park, the MCG, Melbourne’s 

famous gardens, shopping and eating in the 

Toorak Road precinct and the city. 

Part of the charm of the Royce is its clever mix of 

old and new. The property is a redevelopment 

of the original Kellow Falkiner’s Rolls Royce 

showroom and is listed by the National Trust. 

The original building has a number of heritage 

features which needed protection or restoration, 

such as the ornate cornice, corbels and frieze, 

lead light windows, balustrade, chandeliers and 

repairs to the historic faience. 

The façade blocks were sourced from the original 

supplier in England, plaster moulds taken from 

the original cornices, corbels and frieze, and the 

balustrades and chandeliers copied from 

photographs of the original building. The Thiess 

project team has fastidiously restored these 

elements to their original grandeur. These elements 

have also been reflected in the guest rooms, which 

feature decorative cornices and friezes and axolotl 

finishes to the doors. 

basement excavated for guest accommodation. 

This is a four-level pre-cast concrete construction. 

The original façade had to remain intact 

throughout these activities, and this involved 

propping of the façade during the demolition, 

excavation and construction activities and close 

monitoring of the façade for cracking. 

Finishes and lighting are features of the Royce and 

a number of interesting and innovative applications 

have been used by the architect to great advantage. 

These include special metallic finishes to the 

architraves, the use of marble and back lighting 

in the bar area, the raised timber floor and the 

epoxy finish to the floor in the ground floor 

public areas. 

All in all, the Royce is a project of which the 

developers, Kisto, the architects, Peck Von 

Hartel Trethowan and the Thiess team can be 

thoroughly proud. 

The original showroom area has been transformed 

into a restaurant, bar and lobby, wherever possible 

retaining the original features. The workshop area 

behind the showroom was demolished and the 

6 


All 

Aboard At Thiess Infraco 

Shaping up for an exciting year 

In August 1999, Thiess diversified into public 

transport maintenance with the privatisation of 

Melbourne’s public transport. 

Thiess, in joint venture with Rail Services Australia 

(RSA), have formed an alliance with National 

Express Australia, which secured three of the five 

public transport franchises. Thiess Infraco provides 

maintenance and renewal services to the Bayside 

Trains and Swanston Trams franchises. Thiess and 

RSA have a close relationship and currently also 

carry out rail maintenance works in NSW. 

Thiess Infraco is providing the infrastructure 

maintenance and management for Bayside Trains 

and Swanston Trams for National Express Australia 

under alliance contracts for 15 and 12 years 

respectively. Thiess estimates that these contracts 

are worth $70 million per annum over 15 years 

and add a further earnings stream to the company’s 

existing portfolio of long-term agreements in 

mining, water and waste management. 

The alliance involves maintenance of some 787km 

of track, 17km of underground loop, 118 train 

stations, 358 bridges and culverts, 404 tram points 

and 19 substations. The Thiess Infraco workforce 

of 370 is largely invisible as the maintenance 

activities occur mainly after the last train and tram 

at midnight and before the first services at five the 

following morning. 

Thiess Infraco recruited the existing public 

transport maintenance staff, and in less than six 

months of operations, the team has been most 

responsive to revised work practices and improved 

efficiencies through the use of technology. This has 

given staff greater independence and accountability, 

and enhanced opportunities for training and 

advancement. In turn, this has had a dramatic 

effect on staff morale. 

The significant achievements are in the merging of 

the tram and the train cultures, which for 130 

years have operated totally independently, and the 

improvements in the occupational health and 

safety record. 



Latrobe Valley 

at the coal face 


Thiess has a long history in the Latrobe Valley, 

dating back to 1978 when the company was 

awarded the first of the earthworks contracts 

on the massive Loy Yang Power Station project. 

In 1992 Thiess formed an association with Roche 

Bros. and Linfox to create the joint venture 

operation RTL. With the move of Government 

utilities towards corporatisation, RTL was awarded 

the first of the major outsourcing contracts by the 

State Electricity Commission of Victoria. 

This contract was to provide mobile plant and 

earthmoving services for the Yallourn, Hazelwood 

and Loy Yang open cut brown coal mines. 

The process of corporatisation and privatisation 

continued and now the three coal-fired power 

stations that are such a landmark in the Latrobe 

Valley are privately owned and operated by 

Yallourn Energy, Hazelwood Power and 

Loy Yang Power. 

Many things have changed in the Valley over 

the past decade, but one of the consistent players 

throughout this period has been RTL. Over this 

period activities have expanded to include 

specialised heavy haulage with the launch of 

RTL Transport in August last year. To date RTL 

has carried out work to the value of $170 million 

in the Valley. 

There are some exciting opportunities emerging for 

RTL in the Latrobe Valley this year. Both Yallourn 

Energy and Hazelwood Power will be embarking 

shortly on major infrastructure development work 

to secure their future coal supplies. Yallourn Energy 

plans to develop its Maryvale Coal Field, which 

involves a 6km diversion of the Morwell River and 

the removal by contract of some 30 million cubic 

metres of overburden. Hazelwood Power continues 

to work with RTL on mobile plant, overburden 

removal programs and future planning. Loy Yang 

Power has also recently extended its contract with 

RTL for a further four years. 

With this level of infrastructure and earthmoving 

works pending, RTL is keen to continue and 

further develop its strong relationship with the 

three power companies in the Latrobe Valley. 

RTL is a very proud and capable operation with an 

enviable occupational health and safety record and 

continues to consolidate its sound reputation. 

8 


Thiess secures 

Thiess recently entered into a $16M contract 

with AuIron Energy Limited on behalf of 

SASE Pty Ltd (90% owned by AuIron) to 

build and operate the SASE pig iron project 

demonstration plant at Whyalla, South Australia. 

This project involves the construction of a 

demonstration plant to determine the viability of a 

commercial plant to process iron ore into pig iron, 

the first stage in producing steel. Detailed design 

work has commenced on this project and the 

construction program is expected to be completed 

in July 2000, with commissioning in the second 

half of 2000. The demonstration plant will run for 

four to six months, testing the process parameters, 

before a decision will be made whether to proceed 

with a full-scale commercial plant. 

SASE 

pig iron project at Whyalla 

Thiess’ involvement with AuIron began in 

November 1999, when Thiess signed an exclusive 

agreement for all of AuIron’s projects in South 

Australia. Since that time, Thiess has been working 

closely with AuIron and SASE to plan the most 

effective and rapid development program for this 

project. 

The South Australian Government is a strong 

supporter, and has provided a $1M grant for the 

project’s development. The success of the SASE pig 

iron project demonstration plant has the potential 

to create many new construction and operating 

jobs in the northern region of South Australia. 


Thiess and 

Thiess Environmental Services is spearheading 

the implementation of a new Water Industry 

Traineeship, the Certificate II in Water 

Industry Operations in the field of Water and 

Sewerage Maintenance and Construction. 

With the assistance of VicWater and the support of 

other major contractors and water authorities, 

TES has established a pilot group which 

commenced the Traineeship in February this year 

through the Chisholm Institute of TAFE. 

VicWater 

establish new Traineeship 

The program comprises on-site training in 

addition to 400hrs of formal training, carried 

out in ten one-week blocks, and including generic 

skills such as Occupational Health and Safety, 

Environmental Principles, and Dealing with 

Customers and Clients, as well as technical 

industry skills. 

TES’ objectives are to start underpinning the 

ageing industry workforce and to inject a new 

skills base into the water industry. 


Partnering pays dividends 

for South East Water 

Victorian Water Industry 

New technology, relationships and exceptional 

service levels are a winning combination for 

Thiess Environmental Services (TES) in its 

water utilities maintenance business in Victoria. 

Beginning as a three-year contract for the provision 

of maintenance services for Melbourne’s South East 

Water Limited in 1993, the contract was extended 

for a further five years in 1996 based on TES’ 

innovative approach and commitment to become 

involved in new technologies. Negotiations are 

currently underway for a further extension to 

the contract. 

Under the contract, TES maintains 7,500km of 

water mains, 6,700km of sewerage mains, and 

employs 70 field staff with a further 25 

administration and supervisory staff. 

A key initiative developed by TES is the Model 

Development Program (MDP). This system 

incorporates the electronic collection and transfer 

of real-time field data from the South East Water 

infrastructure network. In addition to the 

development of software for the system and the 

installation of computerised equipment housed 

in field unit vehicles, the MDP includes a 

comprehensive computer-based training program 

for the division’s field staff. 

Recently TES was instrumental in introducing a 

unique pipeline inspection system utilising a 

mobile camera system enabling 360º zooming 

and panning camera inspection of underground 

pipelines for analysis. Given the limited numbers 

of these units in Australia, TES can see the 

long-term benefits of providing this technology 

to its clients. 

The high-resolution, explosion-proof camera is 

attached through 300m of reinforced cable and 

automatic cable drum to a monitor in the nearby 

closed circuit television van, which is outfitted 

with state-of-the-art technology. The information 

collected on the camera is then transferred and 

stored using a flexidata software package. Clients 

have access to this information in the form of 

detailed reports, graphics, tables and images which 

are recorded either on VHS video, CD Rom or 

Digital Video Disk (DVD) for ease of reference 

and access. 

The unique pipeline inspection system has been 

designed to provide clients with a thorough 

knowledge and level of detail not previously 

available. TES has been very pleased with the 

development of the system to date, and can see 

potential future use of the system in other areas 

of the business. 

Yet another commitment TES has made in 

strengthening relationships is the involvement with 

South East Water in developing a world-first in the 

certification of a Hazard Analysis and Management 

System for the quality of water. 

The HACCP (Hazard Analysis and Critical 

Control Point) system is a standard approach for 

identifying, evaluating and controlling hazards 

that present a significant food safety risk to the 

community. Initially developed in the 1960s to 

help prevent food poisoning in astronauts, the 

system has been further developed and advanced 

to be implemented across South East Water’s 

operations. Representatives from TES were integral 

in developing the system with South East Water 

and Melbourne Water. 

10 


Foxleigh A New Approach 

to Coal Mine Development 

Construction of the newest addition to the 

Bowen Basin coal mining fraternity, 

the $100M/year Foxleigh project, has 

commenced, following the Government grant 

in November last year of a 35-year mine lease. 

Owned by the Foxleigh Joint Venture, and to be 

operated by Thiess under a Life-of-Mine contract, 

coal production commenced in January this year, 

less than two years after the first exploration holes 

were drilled. 

To date, more than 50,000 tonnes of ROM coal 

have been hauled from the mine to the adjacent 

German Creek coal preparation and handling 

plant, to successfully meet the Joint Venture’s initial 

export shipment schedule. The tight deadline was 

achieved through construction of over 16km of 

haul road in less than 50 days. 

Initially, Foxleigh will produce some 2 million 

tonnes of coal per annum. However, considerable 

potential exists to raise this figure to 3 million 

tonnes or greater. 

Due to the high quality of the Foxleigh product, 

a new growth sector of the export coal market will 

be targeted. One of only a handful of mines of its 

kind in Australia, Foxleigh’s very low ash coal is 

ideally suited to the pulverised coal injection (PCI) 

process commonly used in steel making. 

Export markets will include Japan, Europe 

and South America. 

A key initiative of Foxleigh’s operation will be the 

relationship between Thiess and Joint Venture 

partner, the Aboriginal and Torres Strait Islander 

Commercial Development Corporation (CDC). 

The two organisations have joined forces to 

maximise training and employment opportunities 

for local Aborigines and will put to good use the 

$1.6M allocated by the Joint Venture for 

training programs. 

CDC Chairman Joseph Elu said he was impressed 

with Thiess and the Joint Venture partners’ 

commitment to securing tangible outcomes 

for Aboriginal people in the area. 

“Not only will this investment provide a 

commercial return for the CDC, it will also 

provide a unique opportunity to maximise 

Aboriginal employment and training,” he said. 

In total, the project will support some 100 direct 

employees who will reside in the local area, and 30 

Middlemount houses have already been committed 

to the project. 

The Foxleigh Joint Venture comprises Queensland 

company CAML Resources (60%); Itochu Coal 

Resources Australia investment vehicle ICRA 

Foxleigh Pty Ltd (20.6%); CDC investment 

vehicle Bowen Basin Investments (16.4%); 

and CAML investment vehicle Lake Lindsay 

Investments (3%). 

Queensland at work 


Thiess commits to 

Mining 

opportunities in South America 

South American Mining Industry 

Thiess made the decision in 1998 to begin 

exploring business opportunities in the rapidly 

expanding South American mining industry, 

where a number of Thiess’ existing clients currently 

have business interests. 

An initial investigation led by Taff Greenwood, 

Executive Manager - Mining Development, was 

undertaken to identify the countries which Thiess 

considered had the best prospects for future 

business development. This led to subsidiary 

companies being established in Argentina, 

Chile and Peru, with the latter selected as the 

base for Thiess’ South American operations. 

Peru is a mineral-rich country producing metals 

such as copper, gold, silver, zinc, lead, iron ore and 

tin. Despite the downward pressure on commodity 

prices, the mining industry is rapidly expanding, 

with 84 domestic and foreign mining companies 

currently active in the country. Mine production 

increased some 10% in 1999, giving an increase 

in export earnings of approximately US$3 billion, 

with forecasts indicating that US$10 billion will 

be invested in Peruvian mining over the next 

four years. 

To assist with the establishment and development 

of Thiess’ business in the region, local 

representatives Carlos Ballón and Leonard Harris 

were employed. 

Carlos is a mining engineer educated at the 

Colorado School of Mines. The Ballón family is 

highly respected amongst the Peruvian mining 

community and has been at the forefront of 

development of the mining industry in Peru. 

Leonard Harris, an Australian by birth, has a long 

association with Peru, first arriving in the country 

in 1955. Len has held various positions in the 

industry, including an extended career with 

Newmont, during which he, as General Manager, 

was responsible for the establishment of Minera 

Yanacocha, now rated as South America’s number 

one gold mine, producing in excess of 1.65 million 

ounces of gold per annum. 

Both Carlos and Len bring a tremendous amount 

of local knowledge and experience to Thiess. 

Thiess has identified a number of potential 

opportunities in the region and has participated in 

various budget pricing exercises and competitive 

tenders. Recently Thiess teamed up with a 

Peruvian contractor, Grańa y Montero, to 

participate in a joint bid for a mining contract at 

Minera Yanacocha. In late February a tender was 

submitted for a long term contract mining 

opportunity at the new San Cristobal silver/zinc 

project in Bolivia. 

In addition to the tenders which have been 

undertaken thus far, at the request of two of its 

existing clients, Thiess has undertaken mining 

audits at major open pit operations in Argentina 

and Peru. 

L to R: Steve Dixon, 

Taff Greenwood, 

Carlos Ballón, 

David Stewart and 

Len Harris at the 

official opening 

of the Lima office 

12 


These exercises, led by David Medland, 

Chief Mining Estimator, involved the company 

sending a team of Australian-based employees 

to the sites to observe existing operations. 

Detailed reports were compiled, concluding with 

recommendations in those areas where Thiess 

considered increased efficiency could be achieved. 

The audits have enabled us to share our experience 

in the operation of such mines and at the same 

time to gain an understanding of the local markets 

and conditions in which we look forward to 

operating in the future. 

has assumed the role of Plant Manager for the 

region. In December 1999, David Stewart, 

General Manager International, made his inaugural 

visit to the continent, at which time Thiess hosted 

a cocktail function attended by approximately 80 

guests to celebrate the opening of Thiess’ first office 

on the South American continent. 

In February 2000, Bob McTavish relocated from 

Indonesia to Lima to take up the role of General 

Manager for Thiess’ South American operations. 

A number of Thiess’ Brisbane-based employees 

have visited South America and have been 

actively involved with our entry into the region. 

Such individuals include Taff Greenwood, 

David Medland, Pat Meehan, Karl van den Brenk, 

Trevor Howie, Hernan Retamal, Tony Carr, 

Bruce Kenny and Matt Petty. 

Thiess’ first Peruvian employee is Laura Jimenez, 

who joined the company in an administration 

role in August 1999. 

South American Mining Industry 

Top Left: David Stewart 

and sculpture in Thiess’ 

Lima office building foyer 

Left: Thiess’ Office 

in Lima 

In September 1999 Thiess assisted one mine owner 

by carrying out modifications to an Ingersoll Rand 

drill rig to enable it to drill to a greater depth. 

This project saw Thiess design and manage the 

modification program. The operation was overseen 

by Tony Carr from Thiess’ Corporate Plant 

Department, who spent six weeks at the site and 

experienced the challenges of living and working at 

high altitude. 

Over the past 12 months Thiess has taken steps to 

cement its presence in Peru with the mobilising 

of Ross Hatten, Commercial Manager and Steve 

Dixon, Project Manager. In addition, Tony Carr 

Bob McTavish 

Laura 

Jimenez 


10 Years in Indonesia 

PT Thiess Contractors Indonesia 

It is now more than 10 years since Thiess 

re-established itself in Indonesia, initially 

targeting rig support projects, and in 1989 

being awarded major contracts by PT Arutmin 

and PT Kaltim Prima Coal, both of whom 

remain key Thiess clients in 2000. 

Over the past 10 years, the company has been 

involved in a variety of projects, including contract 

mining, plant hire, civil works, various processing 

plants, telecommunication, roadworks, wharfs, 

warehouses, offshore pipeline, golf courses, dams 

and many others, spread across the archipelago of 

Indonesia. 

More than 100 projects have been undertaken by 

Thiess in this period, with a peak workforce of 

more than 5,000 in 1999. Even with the current 

economic downturn in Indonesia, Thiess’ 

workforce remains at 2,500, spread across seven 

current project sites. In December 1999, 72 staff 

received 10-year service awards, with a further 

264 receiving 5-year awards. 

Apart from its Jakarta head office, with a staff of 

around 100, Thiess also maintains a major regional 

support base in Balikpapan which, inclusive of the 

associated workshop and training facility, has a staff 

of about 150. The company also maintains small 

project support offices in Ujung Pandang and 

Mataram (Lombok). 

The past 10 years have seen significant change in 

Indonesia. The coal industry in particular has 

expanded to now be a major international exporter. 

Other mining and oil and gas industries have also 

experienced significant growth during this period. 

The most significant events, however, began to 

unfold in August 1997 when the economic crisis 

first loomed over Indonesia, followed by the 

political changes in 1998, events in East Timor, 

and the presidential election in 1999. Throughout 

all of this Thiess’ business has survived. 

There have been changes, with a greater proportion 

of contract mining rather than civil engineering, 

and a commensurate increase in investment to 

provide the necessary equipment. In addition, 

through its Process Engineering division, Thiess is 

actively pursuing opportunities in oil and gas, 

with current tenders in preparation for major 

international companies. 

The Thiess Indonesia 

project team celebrates 

the completion of 

Balambano Dam 

14 


Training Centre 

harnesses local skills 

Thiess Contractors Indonesia recognised some 

years ago that skilled national Indonesian 

tradesmen were a scarce resource. 

A commitment was made to build a Training 

Centre and commence training apprentices. 

Today a new, rebuilt, re-invigorated Training 

Centre exists in Balikpapan. The upgraded facility 

has, in part, been developed as part of the Thiess 

Model Development Project (MDP). 

The centre now provides direct support to 

Thiess Indonesia projects, either in the form of 

training at the workplace by Training Centre staff 

or in the provision of resource material for those 

sites using a network of qualified Indonesian 

Workplace Trainers and Assessors. Site learning 

resources include Mobile Learning Centres (MLC), 

which contain two multimedia workstations 

together with a large selection of multimedia 

and hard copy learning resources. 

Currently 58 apprentices are under training. 

They will receive Australian Trade Qualifications 

from the State Training Council of Queensland at 

the completion of a 3+2 year program. Over the 

past six months, 274 people have attended training 

sessions/modules. 

The teaching staff comprises three mechanical 

teachers, one IT systems teacher, and one English 

as a second language (ESL) training officer. They 

are supported by two clerks/secretaries and one 

technical support tradesman. Courses vary in 

duration from one day to two weeks for some of 

the mechanical trade subjects. The centre has its 

own fully equipped workshop where practical 

training is conducted. 


The centre has an IT training facility with nine 

fully networked computers. This caters for 

Thiess proprietary software training, interactive 

multimedia training (excavators/dozers/hydraulics/ 

electrical /automotive trade subjects, etc.) and 

various application software programs. This facility 

is open to all trainees after normal work hours. 

Apprentices are required to attend compulsory 

after-hours study classes three times each week. 

NewOffice 

for Thiess Indonesia 

T Thiess Contractors Indonesia has moved to 

Pbigger and better premises of its own. 

In September 1999, Thiess Indonesia entered into 

a long lease agreement for an existing building sited 

on a 8.700m 2 block adjacent to the toll road in 

Pondok Indah, South Jakarta. 

Possession of the site took place on 1 October 

1999, with Thiess Indonesia’s building team 

completely gutting the building and renovating it. 

Out buildings 

Store room, training room, project support office, 

canteen, 80 car parks, recreation area. 

Thiess Indonesia has incorporated into the 

building the most up-to-date telecommunications 

system to improve communication capabilities 

between Indonesia/Australia and sites. 

The renovation work was completed in 15 weeks, 

with the move occurring on 5 February 2000. 

The new office consists of : 

Main building: 

Two storeys with total floor area of 1,700 m 2 . 


Rising 

Confidence 

boosts Process prospects 


The Process Engineering group has now 

been operating in Indonesia since 1992. 

During this period, 10 Process Engineering 

projects have been completed, ranging in value 

from US$0.5M to US$40M. 

Key projects completed by Process Engineering 

in Indonesia include: 

• Bontang Coal Handling Facility for PT 

Indominco; 

• Kelanis Coal Handling Facility upgrade, under 

two separate contracts for PT Adaro Indonesia; 

• two coal port facilities and two work plants for 

PT Arutmin Indonesia; 

• Pangkalan Brandan Gas Plant in Sumatra for 

PT Moeladi; 

• design and construct pumps and pipelines for 

PT Newmont to handle contaminated water 

from its Batu Hijau minesite in Sumbawa; and 

• various projects including structural steel 

fabrication and erection, construction of a sulfur 

plant and miscellaneous services for PT Inco 

in Soroako. 

The Process Engineering group operates as an 

integral part of Thiess Indonesia, enabling Thiess 

to provide a total capability “one-stop shop” service 

to clients, covering engineering, procurement, 

construction, operation and maintenance in civil, 

structural, mechanical, electrical and building 

disciplines. The Process Engineering group operates 

in accordance with the Thiess Management System 

to ISO 9000 standards. 

The Asian economic crisis saw a downturn in 

opportunities for Process Engineering in Indonesia 

over the past year. However, the new millennium 

has heralded an increase in confidence in Indonesia 

and Thiess Indonesia is now bidding on a number 

of larger oil and gas projects in addition to the 

traditional mining-related projects. 

The most recent award received by Process 

Engineering in Indonesia was for the design, 

construction and operation, over a five-year period, 

of a coal handling port facility for PT Berau Coal 

in the north of East Kalimantan. 

16 


Building on PT 

The hydro-power station associated with 

Balambano Dam started generating electricity 

on 22 November last year. This was the final 

critical phase of PT Inco’s major expansion 

program at its Soroako nickel plant. 

The Astaldi Thiess Joint Operation (ATJO) team 

is in the final stages of completing the diversion 

tunnel plug (450m 3 concrete, 350m along a tunnel 

12m below water) and then demobilising, 

with overall completion programmed for 

mid-March 2000. 

Thiess Indonesia has been a major contractor on 

various elements of the Inco expansion project, 

commencing on site in July 1997. Since then, 

Thiess has completed nine separate contracts with 

a combined value of approximately $130M. 

These include: 

• civil works; 

• piping; 

• major structural steel; 

• workshop construction; 

• sulphur filter station; 

• miscellaneous services; and 

• Balambano Dam. 

The Thiess presence on site is expected to continue 

for at least a further three years with the signing in 

Inco 

relationship 

February of an Memorandum of Understanding 

between Inco and Thiess aimed at Inco 

outsourcing various support services to Thiess. 

These services include silica mining; road 

maintenance; quarry, crusher and batch plant 

operations; logistics between the port and the 

plant; miscellaneous plant maintenance and minor 

construction activities. The contract includes 

management and operational responsibility for 

current Inco employees and plant in addition to 

the introduction of some additional Thiess plant 

and staff. The HR factors of such a change are 

perceived by all as one of the major challenges, 

however, with Thiess’ excellent track record in 

Indonesia, the resources are on hand to ensure a 

smooth transition. 


Mining 

The transition to the new millennium sees 

Thiess Indonesia as a continuing major 

player in Contract Mining and associated 

works in Kalimantan. 

Thiess continues to move overburden and haul 

coal at PT Kideco Jaya Agung’s Coal Mine, a 

contract relationship which began in 1993. 

On this site further significant additions to the 

mining fleet now give Thiess the capability to 

move more than 30 million BCM per annum, 

and the introduction of drilling and blasting 

early in the year, using Quantum Explosives, 

will result in better excavator productivity 

and utilisation. 

Thiess also continues to carry out overburden 

and coal mining activities at PT Kaltim Prima 

Coal’s Sangatta Operation, where we are currently 

contracted to win and deliver over 1.5 million 

tonnes of quality coal. Additional development 

Prospers 

in Kalimantan 

work, including construction of a major access 

road into a new pit, has recently been awarded. 

Thiess also has an ongoing coal augering 

operation at KPC. 

Operations at BHP’s PT Arutmin Satui Mine 

began in 1998 and Thiess continues to assist in 

the development and expansion of the mine 

operations by supplying a 12 million BCM 

per annum overburden removal and associated 

coal haulage service. 

In January Thiess completed a 12-month 

contract at PT Arutmin’s Senakin mine site to 

develop a new pit known as Sepapah. The 

development included the initial overburden 

removal, mining and coal haulage for 1,250,000 

tonnes of coal. Having exhausted the original 

mine area at Senakin (where Thiess commenced 

operations in 1989), PT Arutmin has now 

moved its own equipment into the Sepapah pit. 



Batu Hijau 

involvement continues 

The Batu Hijau project has already achieved a 

number of milestones, not least of all PT 

Newmont’s first shipment of concentrate 

departed on schedule in December 1999. 

The project is the largest greenfield copper and 

gold mining facility ever built in the world, 

and was completed within a three-year period, 

with Thiess the pioneering contractor to undertake 

camp construction and site preparation works 

in February 1997. 

Thiess has maintained a continuous presence 

at the site since then. Projects undertaken during 

the construction phase included: 

• Portside Camp; 

• Civils #2; 

• Civils #4 (JV); 

• Townsite Construction Camp; 

• Civil Works; 

• Offshore Pipeline and Sea Water Intake (JV); 

• Sanitary Landfill; 

• Temporary Mine Maintenance Facility NTT; 

• Mine Magazine Access Road; 

• Spare Parts Warehouse; 

• Non Process building Fitout - FDI; 

• Construction and Mining Services; 

• Water Control Facility; 

• NNT - Int’ School Fit Out; 

• Temporary Pumping Facilities; 

• Design and Engineering Service F/Maine Waste; 

and 

• COC Milk of Lime Loop Piping. 

Current work includes: 

• dams, roads, major earth fills for ROM crusher 

feed haul roads, remedial work to failing cut and 

fill slopes along with numerous minor works; 

• wet waste HDPE lined landfill site; 

• building remodelling and fitouts; 

• alterations to the concentrator process piping 

work; 

• the supply and installation of a mine water 

management system to use as process feed water; 

and 

• the engineering design and planning of Phase 2 

of the Mine Water Management works in 

conjunction with Beca Simons Ltd. 

The current wet season and the transitions from 

construction to operations have seen a marked 

decline in Thiess’ activities. For the upcoming dry 

season the company has already been short-listed 

for the Water Treatment Plant and Associated 

Works of the next phase of the Santong Valley 

development program. Thiess Indonesia also 

maintains small Process Engineering and Building 

crews on site who undertake miscellaneous works 

at Newmont’s request. 

While the earthworks operations will not play 

as significant a role as in previous years, 

Thiess Indonesia’s Process Engineering group is 

making its mark on the work front here and are 

well positioned to develop these disciplines. 

At Batu Hijau, Thiess has an unequalled safety, 

quality and work record. It is the experience and 

commitment of its workforce, at all levels, which 

maintains the company’s presence and lead here. 

18 


Aurion sets a new standard 

in HR Management 

Thiess has inaugurated a new and innovative 

era in its Human Resources management 

with the implementation of the latest 

in electronic HR management systems. 

The Aurion system will provide every Thiess site 

across Australia connected to the wide-area network 

with an interactive and real-time information 

system with access via a web-based browser. 

The system will manage all data such as employee 

CVs, training, safety, skills/competencies, reporting 

and payroll. 

Staff will have tailored access to the system, making 

available a self-service system in which HR data 

can be retrieved or input. 

“Maintaining and processing all of Thiess’ human 

resources and payroll information on one system 

will also provide significant financial benefits for 

Thiess’ growing business.” 

The Aurion Corporation worked closely with 

Thiess during an extensive evaluation process to 

ensure that the system fully encompassed all of 

Thiess’ needs. 

“We view our customers as our partners in a 

continuous journey of addressing business needs 

through innovative technology use,” the Managing 

Director of Aurion, Mr Silvano Basso, said. 

The system will be progressively implemented 

throughout Thiess over the next 12 to 18 months. 

Thiess Milestones 

Below: Ian Irwin and 

Silvano Basso 

Thiess Managing Director Martin Albrecht sees the 

system’s implementation as part of the company’s 

ongoing strategic IT focus. 

“The Aurion system provides the latest 

technologies to streamline a range of manual and 

automated processes currently operating within our 

organisation into the one, concise system,” he said. 

“Remote site access is crucial to the effective 

management of our people. The nature of Thiess’ 

diverse business has staff, equipment and resources 

constantly moving between projects. Those projects 

demand that Thiess is able to accurately match 

skills and placement. 

East ArmWharf 

officially opens in Darwin 

The recent official opening of the new East 

Arm Port facility successfully culminates 

Thiess’ involvement with the complex and 

challenging Darwin project. 

In a joint venture, Thiess was responsible for the 

design and construction of the port facility, which 

comprised a 490m long, fully landscaped wharf. 

The project also included the dredging of 500,000 

cubic metres of fill for the construction of 

approach channels, swing basin and berthing 

pockets. 

The state-of-the-art, $97M port facility will not 

only provide a highly efficient transhipment hub 

for regional trade, it will also position Darwin 

as a vital port in the dynamic trade route linking 

Australian and South East Asian markets. 

Thiess’ involvement with East Arm Wharf 

continues the company’s long tradition with 

development in the Northern Territory. 

Thiess has been based in the Darwin 

suburb of Winnellie for over 30 years and has 

contributed to such prestigious projects as 

the Cullen Bay residential development and 

the construction of new facilities at RAAF 

Base Tindal. 


StaffDevelopments 

Robert Flew appointed to Thiess Board 

Thiess was pleased to announce the 

appointment of Mr Robert Flew to its 

Board of Directors late last year. 

Managing Director Martin Albrecht 

welcomed Mr Flew, saying: “Robert will 

bring to the Thiess Board a wealth of 

industry experience gained from a long and 

distinguished career spanning some 36 years 

with BHP - across steel, petroleum and 

mining - both internationally and in 

Australia.” 

Mr Flew is no stranger to Thiess, as he was 

Chief Executive of BHP Australia Coal 

when the two companies formed their 

strategic alliance to develop the Mt Owen 

Coal project during the mid-1990s. 

“Robert’s knowledge of, and compatibility 

with, with Thiess culture and organisation 

will be highly valued,” Mr Albrecht said. 

The appointment follows the retirement of 

Mr Gavin McDonald in October last year, 

after almost nine years of dedicated service 

to the Thiess organisation. 

Ric Buratto 

With the announcement of Joe Trio’s 

retirement as Thiess’ WA Business Unit 

General Manager, Ric Buratto has joined 

Thiess to take up the role. 

With experience in contract mining, 

civil and multi-discipline construction, 

maintenance and outsourcing projects, 

Ric has the credentials to achieve his 

objective of promoting the WA Business 

Unit’s progress. 

Ric comes to Thiess from Macmahon 

Contractors, where he was General 

Manager, based in Adelaide and Perth, 

responsible for all open pit mining and civil 

operations for Australia and New Zealand. 

He also held General Manager roles with 

United Construction and Baulderstone. 

Ric plans to bring this wide experience to 

bear in establishing Thiess as a company 

that can offer to a broader range of clients a 

diverse set of services, particularly focusing 

on process capabilities. 

Dave Clark - Don Johnson 

After 10 successful years in the role, 

VIC/SA/TAS/NZ General Manager Dave 

Clark has announced his intention to take 

long-service leave from December this year. 

Dave will return in the first quarter of 2001 

to take up another senior management role 

in the company. 

Don Johnson will move to Melbourne in 

May 2000, initially in the role of Manager 

VIC/SA/TAS/NZ before taking over full 

responsibility for the region in December 

2000. Don previously worked in the 

VIC/SA/TAS/NZ Business Unit in the role 

of Manager - Engineering before relocating 

to Queensland Civil Operations in 1997. 

Ian Irwin 

Ian Irwin has been appointed as Group 

Manager, Human Resources, reporting to 

Managing Director Martin Albrecht. 

Previously with Thiess’ Process Engineering 

Division as Manager, Oil and Gas, Ian has 

an extensive industry background, covering 

a range of senior management roles. 

This has included the full spread of HR 

responsibilities, such as negotiating with 

unions, recruitment, training, occupational 

health and safety, environment, and the 

design and implementation of cultural 

change initiatives. 

Robert Flew 

Ric Buratto 

Dave Clark 

David Stewart 

David Saxelby 

New Associate Directors appointed 

Thiess is proud to announce the 

appointment of David Stewart and 

David Saxelby as Associate Directors. 

In recent years, David Stewart (General 

Manager, International) has given 

outstanding leadership to the successful 

development of Thiess’ business in 

Indonesia. More recently, he is also 

accountable for developing the company’s 

emerging presence in South America to 

address significant opportunities in this 

region. 

David Saxelby (General Manager, 

NSW/ACT) has been responsible for the 

significant growth of Thiess’ operations in 

this business unit. 

The Thiess Organisation continues to grow 

through acquisitions, diversification of 

markets and geographical spread. These 

appointments are strategically important to 

the company’s further growth and 

development. 

Don Johnson 

Ian Irwin 

▼ 

▼ 

▼ 

THIESS NEWS is published by Thiess Contractors Pty Limited, A.C.N. 010 221 486 

Marketing Services Section of the Technical Services Department. Sharon McHugh, Editor. 

Phone, Fax or Email your comments and feedback to: Ph: (07) 3002 9664 Fax: (07) 3002 9690 

EMail: smchugh@thiess.com.au 

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

Thiess News, Volume 1, 2000

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