Great Economy, Mate!

For more than half a century, Bechtel has been working on major projects in Australia.

When Bechtel came to Australia in 1954, the island country mostly kept to itself. A still-developing nation known primarily for wool, wheat, coal, and iron ore, Australia’s vast natural resources remained largely a promise to be realized.

“Australia had a bulk commodity economy,” says Lynne Saint, chief financial officer of Bechtel Australia. “Bechtel customers helped make the country a world industrial power by building some of the largest mineral processing facilities in the world.”

In recent decades, Australia has developed an internationally competitive economy, becoming a leader of the global minerals industry. One of the world’s fastest-growing economies during the 1990s, Australia is now in its 15th year of expansion. Averaging 3.7 percent growth annually over that period, Australia’s economy has had one of the best performances in the developed world, according to the Reserve Bank of Australia. Business investment is on the upswing, increasing 18 percent over the past year, with resources leading the way.

“Australia offers a healthy business climate and one of the world’s largest reservoirs of minerals,” says Jim Haynes, president of Bechtel Mining and Metals and managing director of Bechtel Australia. “Bechtel is headed for significant growth in Australia, driven by demand for abundant resources like bauxite, iron ore, coal, copper, gold, and uranium.”

Australia’s emerging internationalism has changed how people live. “We have become a far more mature and sophisticated nation,” says Bechtel’s Murray Guy, engineering manager for Australia and Oceania. Born and educated in Australia, Guy joined Bechtel Australia in 1970. “Today Australia has a higher profile on the world scene. We have a more complex economy; new relationships with China, India, Japan, and Indonesia; and less reliance on Europe.”

Investors, as well as contractors like Bechtel, are attracted by Australia’s

  • Political stability and strong economic growth
  • Abundant natural resources and competitive energy supplies
  • Skilled workforce, including high-quality technical personnel
  • Proximity to Asia Pacific markets
  • Open and efficient regulatory environment
  • Reliable telecommunications and information technology infrastructure
  • Full financial services
  • Friendly attitude and high quality of life.

Recognizing Australia’s hospitable investment climate and minerals industry leadership, Bechtel has developed a major office in Brisbane for its mining and metals business unit.

“The Brisbane office has put us closer to our markets, our customers, and the minerals, which has contributed to steady growth and excellent performance in mining and metals,” says Andy Greig, former Mining and Metals president.

Beginning with a 1954 crude-oil pipeline for Mobil in Victoria, Bechtel has provided project management and engineering expertise for projects that span the vast country, from its heavily populated cities to its remote outback.

Now celebrating its 52nd year in Australia, Bechtel’s business portfolio includes nearly 100 projects. Work covers the planning, design, and construction of mines, mineral processing facilities, refineries, chemical facilities, power stations, and telecommunications facilities.

Many Bechtel projects stand as the first, the largest, or the most significant ever done in Australia. “Major global players came to Australia, and Bechtel helped them transform an isolated country into a global economic force,” says Saint.

Here is a brief rundown of some of Bechtel’s high-profile Australian projects:

Darwin LNG: Bechtel is completing the Darwin liquefied natural gas (LNG) plant in the Northern Territory for ConocoPhillips. Only the second LNG plant to be built in Australia, the facility introduced a new manufacturing technology to the country.

Comalco Alumina Refinery: In 2004, Bechtel completed construction of the first phase of the Comalco Alumina Refinery in Queensland. Built for a subsidiary of Rio Tinto, the largest mining company in the world, the alumina refinery is among the first world-class alumina refineries to be built in Australia.

Pasminco Century Mine: In 1998, Bechtel completed design and construction of one of only a few zinc processing facilities in the world, at Pasminco Century Mine in the northwest Queensland outback. The mine is responsible for 30 percent of Australia’s annual zinc production.

Millmerran Power Station: In 2000, Bechtel completed design and construction of the Millmerran Power Station in Queensland for Millmerran Power Partners. One of the first privately developed power stations in Australia, Millmerran “marks the start of a move to privatization of power generation in Australia,” says Saint.

Olympic Dam Mining and Processing Plant: In 1997, Bechtel completed the expansion of a uranium, copper, and gold mining and processing facility in South Australia for Western Mining Corporation. One of the biggest underground uranium mines in the world, Olympic Dam also represents one of the largest single capital investments in Australia.

Portland Aluminum Smelter: Built in 1986 for Alcoa of Australia, the Portland aluminum smelter in Victoria is the largest aluminum smelter in the southern hemisphere. Placed in a park-like setting, the facility is a major tourist attraction as well as a big contributor to Australia’s economy.

"For Bechtel, the biggest Australian prospects are in our core business, mining and metals, as well as in energy-related projects like the Darwin LNG project, telecommunications—which is off to a good start with a current assignment for Vodafone—and potential opportunities for pipeline work,” says Greig.

Today Bechtel has about 550 employees in Australia. “Bechtel provides a rich training ground for Australian engineers to participate in large, complex projects,” says Guy. The payoff for the company is that Australian engineers are assuming leadership positions throughout Bechtel.

“Australia’s contribution to our global business will be just as important as our actual work in Australia,” says Haynes. “Australians bring a ‘can-do’ spirit to their work that’s invaluable in engineering and construction.”

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