Tag Archives: Eliwana

Zero emission haul truck developments on the IMARC 2023 agenda

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IMARC 2023 is off to a bang, with two of the first keynote interviews – featuring speakers from Fortescue and BHP – kicking off what is expected to be a constant flurry of mining technology news.

During a Mining Keynote Interview, titled, ‘The Reshaping of the Fortescue Business: A Showcase of the Past, Present and Future of the Mining and Resources’ Industry,’ Dino Otranto (pictured on the right), CEO of Fortescue, talked up the mining company’s ‘Real Zero’ terrestrial emissions (Scope 1 and 2) 2030 aim.

Speaking to Jennifer Hewett (pictured on the left), National Affairs Columnist, The Australian Financial Review, Otranto highlighted the recent arrival of the first 240-t-class Liebherr Mining T 264 trucks at its Eliwana iron ore mining site in the Pilbara of Western Australia, which is expected to be converted to Fortescue’s in-house battery solution developed by WAE in the near term.

Looking further out, Otranto said the company’s first zero emission fleet at Eliwana was expected to be “on parity” with the diesel haulage equivalent from a cost and productivity perspective. “In the future, they could be even more productive,” he added.

Fortescue is currently working on a number of “zero emission” solutions across its mining operations – battery-electric and green hydrogen, among them – and Otranto said the company was confident that the electric powertrain is “the future”, with the system that generates the power to supply this being “agnostic”.

“In the future, we will not be beholden by the OEM and a single product,” he said, explaining that the captive energy source tied to where the resources and reserves were located would play a crucial role in the chosen system.

Soon after Otranto left the stage, Hewett was joined by James Agar, Group Procurement Officer at BHP, for another keynote interview, titled ‘The Importance of Supplier and Community Partnerships to Create Value’.

Agar was quick to pick up from where Otranto left off, referencing the company’s own zero-emission haulage plans, which included the expected rollout of a zero emissions truck at its operations next year. The company has previously signalled that a Cat Early Learner battery truck could come arrive for trials at its operations in 2024.

Alongside this, Agar referenced ongoing work with Bridgestone and Michelin related to battery-electric haul truck developments.

“We have realised that if we reduce the rolling resistance of tyres by 1-2%, it can have a big impact on battery life,” he said. “Equally, these trucks are going to be able to travel at faster speeds, so tyre life will be affected. This is another area we are studying.”

Dyno Nobel, Fortescue sign tech alliance focused on drill and blast decarbonisation

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Incitec Pivot Limited’s Dyno Nobel is to extend its supply relationship with Fortescue, with the two parties agreeing to a long-term extension that will see Dyno Nobel continue providing explosives technology and collaborating on key decarbonisation projects to assist Fortescue in reaching its ‘Real Zero’ goal.

A key focus of the new agreement is an innovative technology alliance. As part of this, Dyno Nobel will invest A$5 million ($3.2 million) in new technologies to support Fortescue’s decarbonisation efforts within its drill and blast process. The new agreement will apply across Fortescue’s Pilbara operations: Cloudbreak, Christmas Creek, Solomon and Eliwana. The Iron Bridge project, which Fortescue has a majority stake in, is supplied by Dyno Nobel under a separate contract the two companies announced last year.

Dyno Nobel Asia Pacific President, Greg Hayne, said: “We’re incredibly proud of our relationship with Fortescue who are at the forefront of efforts to decarbonise the mining industry. The agreement will see us ramp up our decarbonisation efforts which will include conversion of our MPU (mobile processing unit) fleet to renewable energy sources and investigating the use of lower carbon footprint, bio-fuel based explosives.

“This is about providing our customers with technology solutions that lower our carbon footprint and, in turn, theirs.”

Fortescue Metals CEO, Dino Otranto, said: “We’re looking forward to continuing our successful partnership with Dyno Nobel, which will deliver blasting services as well as provide new technologies to help us achieve our industry leading target of Real Zero emissions across our Australian iron ore operations.”

The agreement will provide Fortescue with the opportunity to benefit from Dyno Nobel’s commercialisation of a reduced GHG emissions DIFFERENTIAL ENERGY® solution, an explosives method that tailors the energy delivered to different rock layers within a blast hole and across a blast. The efficiencies generated through the use of DIFFERENTIAL ENERGY reduce both overall mining costs and emission volumes for customers, according to Dyno Nobel, with the reduced emissions solution able to reduce Scope 1 emissions by up to 25% in normal blasting circumstances.

Hayne said that since Dyno Nobel’s DIFFERENTIAL ENERGY technology was introduced to the Australian market in 2018 it has provided customers with production and environmental benefits.

“Fortescue has already seen the technology deliver value at their Iron Bridge operations, one of the first sites in Australia to fully benefit from DIFFERENTIAL ENERGY and the results have been very positive. We are now pleased to be increasing these advantages via a reduced emissions offering. It is just another example of our technology innovation happening on the ground.”

He said Dyno Nobel’s technology development aligned with Fortescue’s vision.

“We are looking forward to continuing our successful partnership with Fortescue which has evolved into finding innovative and sustainable solutions for the future by working together,” he said.

John Holland on track at Fortescue’s Eliwana iron ore project

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Infrastructure and rail company, John Holland, says it has achieved a major milestone at the Eliwana Mine and Rail project by successfully laying the final piece of 143 km of heavy haul rail track in Western Australia’s Pilbara region.

The track works are part of a A$130 million ($90 million) contract with Fortescue Metals Group, which will also see an extension to the existing signalling and train control systems and a traffic capacity upgrade to communication infrastructure.

When completed, the greenfield project will connect the new Eliwana iron ore mine to the existing Fortescue Hammersley Line.

The John Holland team will now focus on final destressing works for 130 km of the track, siding extension works, final grinding and correction. Final ballasting and tamping work for about 60 km of the track is on schedule. All remaining track works are to be completed by June 2021, the company said. The signalling and communication works are well ahead of schedule to be delivered by the end of 2021, it added.

John Holland Rail Delivery Manager, John Ma, said the team had worked hard to ensure the project progressed despite weather and access challenges throughout the course of construction.

“The safe unloading of the last long weld rail off the final rail train on the Eliwana project was a significant moment for us,” he said. “It’s a huge undertaking – more than 240,000 sleepers were laid as well as 400,000 t of ballast dropped with more than 12,000 welds joining the tracks together.

“Working in a remote and often volatile environment has its challenges, but I am proud that the team were able to demonstrate our capability to manage complex logistics and high-production welding facilities while enabling efficient project delivery.”

Remaining track work is scheduled to be completed by late June, while signalling construction will be complete by the end of August. Testing and integration of the track will be finalised in December.

Around 90 km west of Tom Price, the Eliwana mine celebrated the production of its first ore in December 2020. At full capacity, the mine will produce 30 Mt/y.

Fortescue rewards Monadelphous and Pentium Hydro with more Pilbara work

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Fortescue Metals Group has handed out new work to Monadelphous Group and Pentium Hydro at its iron ore operations in the Pilbara of Western Australia.

Engineering company Monadelphous has secured a new five-year crane services contract, valued at around A$150 million ($117 million), with the miner.

The contract is for the provision of crane services supporting general repairs, maintenance and shutdown activities at Fortescue’s Solomon (pictured) and Eliwana operations.

Monadelphous has provided crane services to Fortescue’s Solomon operations since 2017 and, last year, expanded those services to Fortescue’s Eliwana operations.

Vysarn Ltd subsidiary Pentium Hydro, meanwhile, advises that it has amended, via a Deed of Amendment, the agreement for hydrogeological borefield drilling and construction services with Fortescue’s wholly owned Chichester Metals Pty Ltd and FMG Solomon Pty Ltd subsidiaries, previously announced in November 2019.

This amendment will see the term of its contract increased to 36 months, with the option of a two-year extension exercisable by Fortescue. The scope of work has also been amended to include the provision of dual tube flooded reverse drilling services, with an additional drill rig expected to be deployed by April.

At the same time, the companies have amended the revenue model for the contract.

Revenue from works in the original contract was based on key performance indicators for a number of production and monitoring bores and was subject to metres drilled and drill rates. Revenue from works will now be based on a combination of day rates and a schedule of hourly rates, Vysarn said.

Fortescue employs SRG Global for maintenance and shutdown services

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SRG Global has been awarded a five-year term contract from Fortescue Metals Group to initially provide rope access and electrical maintenance requirements across the company’s mine, rail and port locations throughout Western Australia.

The A$150 million ($117 million) term contract, which has already commenced, is a Master Agreement for Maintenance and Shutdown Services, the company said.

Locations for SRG’s work include the Christmas Creek (pictured), Cloudbreak, Firetail, Kings Valley and Eliwana mine sites, along with its supporting rail and port infrastructure.

SRG Global Managing Director, David Macgeorge, said: “We are delighted to be selected as a key partner to FMG and to provide critical maintenance and shutdown services across their Pilbara operations for the next five years. This is another significant step forward in our strategy to build a portfolio of annuity earnings, with quality clients, to deliver long-term sustainable growth.”

MACA expands WA presence with Mining West acquisition

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MACA Ltd has completed the acquisition of the Mining West business from Downer EDI Ltd, bringing with it four contracts at long-life mining assets in Western Australia.

The Mining West business currently comprises four contracts at Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (Citic Pacific) and Gruyere (Gold Fields, Gold Road Resources), with each of the four novating successfully to MACA, taking effect from completion, MACA said.

Additionally, in excess of 96% of the Mining West workforce has accepted employment with MACA, the ASX-listed contractor said.

MACA’s CEO and Managing Director, Mike Sutton, said: “Acquisition of the Mining West business will provide MACA with a very meaningful addition of a large-scale mining fleet that is currently engaged across four long-life projects, all with quality customers that are well known to me and other key members of MACA’s management team.”

This fleet comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.

“With the inclusion of Mining West, MACA now has total contracted work in hand of A$3.3 billion ($2.5 billion) at December 31, 2020, that provides a robust revenue base well past financial year 2025. MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”

Downer says it will receive over A$200 million in cash proceeds as a result of the sale.

MACA increases open-pit scale by acquiring Downer EDI’s Mining West business

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MACA has entered into a binding agreement to acquire Downer EDI Limited’s Mining West business in a deal that could involve a consideration of A$175 million ($132 million).

Just last week, MACA said it was considering the potential purchase of Downer EDI Limited’s Mining West division as part of a stated plan to explore and pursue growth opportunities that will deliver “value to shareholders on an ongoing basis”.

The Mining West business currently comprises four large contracts at the long-life assets of Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (CITIC Pacific) and Gruyere (Gold Fields, Gold Road Resources).

MACA’s CEO and Managing Director, Mike Sutton, said the acquisition provided MACA with a very meaningful addition of a large-scale mining fleet currently engaged across these projects. This comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.

The fleet being acquired is currently fully utilised, or in the process of being deployed to projects, with the equipment having mixed life (with machines being on average mid-life). MACA says its due diligence has confirmed the machines are in good working order, having been well maintained by Mining West’s internal plant department.

With the inclusion of Mining West, MACA now has total contracted work in hand of over A$3.4 billion, which provides a robust revenue base well past its 2025 financial year, Sutton added.

Fortescue puts first tonnes through Eliwana iron ore processing facility

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Fortescue Metals Group is celebrating first ore through the ore processing facility at its Eliwana mine and rail project in the Pilbara of Western Australia.

Fortescue Chief Executive Officer, Elizabeth Gaines, and Deputy Chairman, Mark Barnaba, celebrated the official event on site at Eliwana with Bill Johnston, Western Australia Minister for Mines and Petroleum; Energy; Industrial Relations, representatives of Fortescue’s native title partners, the Puutu Kunti Kurrama and Pinikura People, and members of the Fortescue Board of Directors and the core leadership team.

Gaines said: “Eliwana is the next important stage of development of Fortescue’s world-class, integrated operations. Exploration commenced in this area in 2006, and we have now delivered a new 30 Mt per annum dry ore processing facility and infrastructure, along with 143 km of rail which is in the final stages of construction.

“Eliwana will see us maintain our low-cost status and provide us with greater flexibility across our product mix. Construction of the mine, village and infrastructure was completed safely over a 12-month period, in line with budget and schedule.”

Eliwana will help Fortescue maintain its overall production rate of a minimum 170 Mt/y over 20 years, the company has said.

Primero banks new work with Fortescue, Rio Tinto and Hazer Group

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Primero Group says it has recently booked new business totalling some A$55 million ($39 million) with Fortescue Metals Group, Rio Tinto and the Hazer Group as it continues to build out its 2021 financial year contracted order book.

First, it has been awarded the engineering, procurement and construction contract for the Non-Process Infrastructure (NPI) at Fortescue’s Eliwana mine and rail project, in the Pilbara.

Works commenced in late July based on a limited notice to proceed, with the full contract now awarded to Primero following a successful Early Contractor Involvement (ECI) process. The contract includes the complete engineering design, procurement and construction of heavy vehicle workshops and washdown and refuelling infrastructure required for the new Eliwana mine, with works expected to be completed in the 2021 financial year.

Once completed, the $1.275 billion Eliwana project, which includes the building of a 30 Mt/y iron ore processing facility, will maintain Fortescue’s overall production rate of a minimum 170 Mt/y over 20 years.

With Rio Tinto, Primero has been awarded two multi-year Master Service Agreements for NPI and Structural, Mechanical, Piping services across the miner’s Pilbara operational and project locations. The two contracts have an initial term of three years, with an option for a two-year extension. They cover sustaining capital and maintenance projects required over that period across all Rio Tinto Iron Ore Pilbara sites, it said.

The services cover design, procurement and construction activities for engagement under negotiated commercial terms in a “panel style agreement”, according to Primero.

Primero has also been awarded an EPC contract for Hazer Group’s hydrogen/graphene commercial demonstration plant in Western Australia at the Woodman Point Water Treatment Facility.

Hazer is undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process. This process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst, according to the company.

“The full project award has followed a successful ECI process that has extended over the past 12 months,” Primero said. “This process was targeted at developing the technology engineering to the point where a commercial contract could be executed to deliver the project. The project is the first of its kind in the new global renewables energy market and is patented groundbreaking technology in the hydrogen space.”

Alongside this, Primero said it had been awarded the detailed design contract for a 130 km water delivery pipeline and associated pumping stations for the Covalent Lithium Mt Holland project feasibility study in Western Australia.

Primero said its committed order book for the 2021 financial year now stands at around A$285 million.

Fortescue engages John Holland for rail work at Eliwana iron ore project

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Australia-based infrastructure and rail company, John Holland, has secured a A$130 million ($90 million) contract with Fortescue Metals Group to construct 143 km of railway tracks and signalling at its Eliwana iron ore project in the Pilbara of Western Australia.

The track construction works will connect the new Eliwana Rail Line to the existing Fortescue Hamersley Line to Port Hedland, with the engagement seeing John Holland manage a newly upgraded rail welding facility in Port Hedland as well as the design, construct and integration of the signalling and train control systems.

The company will also procure and manufacture the signalling system wayside equipment from its Canning Vale fabrication warehouse and complete all civil and electrical installations of the wayside signalling systems on site, it said.

In line with this contract award and others in Western Australia, John Holland says it is looking to recruit 400 new workers across its Western Australian projects.

It currently employs more than 5,000 people across its construction, tunnelling, rail and building projects in Australia, and strengthened its rail, engineering and construction capacity after it acquired RCR O’Donnell Griffin’s rail business – saving 400 jobs in the process.

John Holland Operations Manager, Rob Hennessy, said the Western Australia team was very proud to bring this solution to market for Fortescue.

“It has been a goal of the WA rail team to bid for more integrated projects in the WA market and we are pleased to partner with Fortescue and play a significant part in a world-class iron ore project,” he said.

“John Holland is a major Australian employer and continues to honour its 70-year history of contribution to the local community.”

Once completed, the $1.275 billion Eliwana project, which also includes the building of a 30 Mt/y ore processing facility, will maintain Fortescue’s overall production rate of a minimum 170 Mt/y over 20 years, the company said.