Tag Archives: Elizabeth Gaines

Fortescue integrates WA iron ore supply chain into the Hive

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Fortescue Metals Group has officially opened the Fortescue Hive, the company’s newly expanded Integrated Operations Centre (IOC) which, FMG says, uses the latest technology and brings together the company’s fully owned and integrated supply chain.

Fortescue Founder and Chairman, Dr Andrew Forrest, and Chief Executive Officer, Elizabeth Gaines, celebrated the official opening in Perth with various politicians and members of the iron ore miner’s Board of Directors and core leadership team.

The purpose-built facility includes Fortescue’s planning, operations and mine control teams, together with port, rail, shipping and marketing teams. It allows 330 team members across Fortescue’s complete supply chain to work together, 24 hours a day, seven days a week, to deliver improved safety, reliability, efficiency and commercial outcomes, the company said.

Dr Forrest said: “Mining is one of the most innovative industries in the world. Fortescue has long been a technology leader in the industry and was the first mining operation in Western Australia to control a railway from a remote location when we unveiled our Train Control Centre in Perth in 2009.

“Since then, Fortescue has continued to lead the pack and today we officially launch the Fortescue Hive, our reimagined IOC, which sits at the heart of our integrated supply chain to deliver critical ores to develop the great cities of our region and beyond.”

Earlier this month, Fortescue celebrated an important milestone in the rollout of autonomous haulage technology at its Chichester Hub operations, in the Pilbara of Western Australia, with the conversion of its 100th autonomous truck.

Chief Executive Officer, Elizabeth Gaines, said: “Fortescue has developed the world’s most advanced vertically integrated bulk operations infrastructure. We are very proud to open our enhanced IOC, the Fortescue Hive, which enables us to operate our globally significant mines from the centre of Perth.

“The Fortescue Hive seamlessly links our core exploration, metallurgical, mining and marketing expertise to deliver value to our customers, shareholders and the broader community. Importantly, the Fortescue Hive will underpin our future use of technology, including artificial intelligence and robotics, and will expand to include the generation and integrated distribution network for the Pilbara Energy Connect, our hybrid solar-gas power solution.”

Chief Operating Officer, Greg Lilleyman, said Fortescue’s integrated management of the mine to market supply chain was “unique” in the industry and co-locating its planning, operations, shipping and marketing business functions would further leverage its “exclusive advantage”.

He added: “By ensuring our teams are truly integrated, we can capitalise on market dynamics and respond to the needs of our customers.”

The Fortescue Hive covers an area of 2,500 sq.m and, over 15 weeks, 6.5 t of concrete was removed from the building, while 2.1 tonnes of steel was installed. The fit-out of the facility included 162 workstations and 996 computer monitors, connected by 64 km of underfloor cables.

Fortescue celebrates 100th autonomous haul truck conversion at Chichester Hub

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Fortescue Metals Group has celebrated an important milestone in the rollout of autonomous haulage technology at its Chichester Hub operations, in the Pilbara of Western Australia, with the conversion of its 100th autonomous truck.

The full conversion of 108 haul trucks at the Chichester Hub, which comprises the Christmas Creek and Cloudbreak mines, is expected to be completed in September 2020, it said.

Since the introduction of Autonomous Haulage System (AHS) technology at Fortescue in 2012, 168 trucks have been converted across the company’s Solomon and Chichester Hubs. This has seen Fortescue’s autonomous haul fleet move around 1,400 Mt of material and achieve a greater than 30% increase in productivity levels (compared with previous manned fleets), it said.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue’s AHS deployment represents the largest fleet conversion to autonomous haulage in the industry.

“Our history of embracing leading-edge technology has ensured Fortescue remains at the lowest end of the global cost curve and remains fundamental to driving sustained productivity and efficiency improvements across our business to ensure we continue to deliver enhanced returns for our shareholders and key stakeholders.

“Most importantly, the introduction of AHS technology has improved safety outcomes across our operations and we’re very pleased that the Automated Mining Projects team has also achieved this important milestone in the truck conversion program with zero harm to any team members.”

Workforce skills development has been a key aspect of Fortescue’s automation project, it said, with the company’s training and redeployment program successfully transferring or upskilling team members to new roles across the business.

“Training is at the heart of everything we do at Fortescue and as we continue the integration of autonomous trucks across our sites, this ethos has guided our efforts to ensure no redundancies due to automation and to deliver significant benefits to employees from the opportunities offered by this project,” Gaines said.

Fortescue was the first company in the world to deploy Cat autonomous haulage on a commercial scale at the Solomon Hub. It was also the first in the world to retrofit Command for Hauling (part of Caterpillar’s MineStar technology) on a Cat 789D and Komatsu 930E haul truck.

The iron ore miner’s fleet of 168 autonomous trucks have now travelled in excess of 47 Mkm since AHS was first introduced – the equivalent of 65 return trips to the moon.

And, as part of the Chichester Hub automation project, 549,500 parts have been fitted to date across 100 trucks.

Fortescue aims for net zero operational emissions by 2040

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Fortescue Metals Group has become the latest company to announce plans to achieve net zero operational emissions.

The goal, which the company aims to achieve by 2040, is core to Fortescue’s climate change strategy and is underpinned by a pathway to decarbonisation, it said. This includes the reduction of Scope 1 and 2 emissions from existing operations by 26% from 2020 levels, by 2030, it said.

Other miners such as Vale, BHP and Rio Tinto have all made similar pledges in the last year.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue has a proud history of setting stretch targets and our 2030 emissions reduction commitment, together with our goal to achieve net zero operational emissions by 2040, positions Fortescue as a leader in addressing the global climate change challenge.

“Fortescue supports the Paris Agreement long-term goal of limiting global temperature rise to well below 2°C above pre-industrial levels, and our emissions reduction targets align with this international objective. Our success will be founded on practical initiatives that will allow us to deliver on our targets in an economically sustainable manner.”

Gaines said since October 2019, Fortescue and its partners have announced investments in excess of $800 million in significant energy infrastructure projects to increase its renewable energy supply. These will be a key contributor to its pathway to achieving the emissions reduction targets, she added.

This includes the Chichester Solar Gas Hybrid Project, announced with Alinta Energy in October 2019. Currently under construction, the project will include a 60 MW solar photovoltaic (PV) generation facility at the Chichester Hub, comprising Fortescue’s Christmas Creek and Cloudbreak mining operations. In addition, a circa-60 km transmission line will be built, with completion due mid-2021. This will link the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and 35 MW battery facility.

Another major investment is the $700 million Pilbara Energy Connect (PEC) program. This includes the $250 million Pilbara Transmission project, consisting of 275 km of high voltage transmission lines connecting Fortescue’s mine sites, and the $450 million Pilbara Generation project, comprising 150 MW of gas-fired generation, together with 150 MW of solar PV generation and large-scale battery storage. “The PEC project leverages existing assets and provides Fortescue with a hybrid solar gas energy solution that enables the delivery of stable, low cost power and supports the incorporation of additional large-scale renewable energy in the future,” the company says.

These two initiatives, together, will deliver 25-30% of Fortescue’s stationary energy requirements from solar power, according to Gaines.

Gaines added: “Mining is one of the most innovative industries in the world and Fortescue is harnessing this technology and capability to achieve carbon neutrality with a sense of urgency. In addition to the development of gas technology and renewables for our stationary energy requirements, we are working towards decarbonising our mobile fleet through the next phase of hydrogen and battery-electric energy solutions.”

In terms of hydrogen, Fortescue, in 2018, signed a partnership agreement with the CSIRO to develop its metal membrane technology, which provides the potential for the bulk transportation of hydrogen through ammonia.

Emissions data and performance against targets will be reported annually as part of Fortescue’s annual reporting suite, the company said. Baseline and annual emissions data will be calculated on a financial year basis.

While not included in the existing operations calculation, Iron Bridge – due to commence operation by mid-2022 – is likely to come with emissions reduction targets that align with Fortescue’s goal to achieve net zero operational emissions by 2040, the company said.

Aboriginal-owned firm strengthens Fortescue ties with Eliwana contract

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Mallard Deemey Pty Ltd, a 100% Aboriginal-owned business, is to construct and install a laboratory, storage, and administrative facilities at the Eliwana asset in Western Australia following a contract award from project owner Fortescue Metals Group.

The award continues to build on Fortescue’s commitment to Aboriginal procurement with its Billion Opportunities program. Since inception in 2011, this program has awarded contracts and sub-contracts worth over A$2.5 billion ($1.7 billion) to more than 120 Aboriginal businesses and joint venture partners, the iron ore miner said.

Eliwana is due to include a 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence at the end of 2020 with a life of mine strip ratio of 1.1.

The contract for Mallard Deemey, jointly owned and operated by Puutu Kunti Kurrama and Pinikura member Donna Meyer and Yamatji member Robby Mallard, is valued at over A$11 million. It will lead to the creation of over 100 jobs, with a significant number of employees expected to come from the Pilbara and Carnarvon as well as Perth, Fortescue said.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Supporting and investing in sustainable Aboriginal businesses is at the heart of our approach to ensuring Aboriginal communities benefit from the growth and development of our business.

“Our Billion Opportunities Aboriginal procurement program has provided a platform to demonstrate the skills and capability of Aboriginal businesses and the chance for Aboriginal people to build a future for their communities through economic opportunity.”

Mallard Deemey Director, Donna Meyer, said the contracts clearly showed the capability of Aboriginal businesses, challenging assumptions they could only work on projects of this size as subcontractors and where time schedules were less stringent.

“These contracts are a demonstration of Mallard Deemey’s strong capabilities and will also enable us to commit to our continued training and employment of local Aboriginal people, positioning our business very well for the future,” she said.

With Fortescue’s support, Mallard Deemey was previously engaged as a subcontractor for the deconstruction of the Wheatstone camp in Onslow, ahead of its relocation to Eliwana. Over 40% of the workforce who worked on the Onslow project were Aboriginal employees.

Cundaline Resources to work on Iron Bridge magnetite project

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Fortescue Metals Group has awarded 100% Aboriginal owned company, Cundaline Resources Pty, with the contract for the West Canning Basin earthworks at its majority owned Iron Bridge magnetite project, in Western Australia.

The award, which continues FMG’s longstanding commitment to supporting local and Aboriginal businesses, will see the group carry out the earthworks, access preparation and rehabilitation services associated with the hydrogeology drilling program for the Iron Bridge project.

The Iron Bridge project will deliver 22 Mt/y (wet) of high grade 67% Fe magnetite concentrate product, according to FMG, with the first stage completed successfully by building and operating a full-scale pilot plant at the North Star mine site. This pilot project included the use of a dry crushing and grinding circuit, which FMG plans to leverage in stage two.

The second stage of the project comprises the construction of a large-scale process plant, and port infrastructure to support the production of 22 Mt/y (wet) of iron ore.

In FMG’s March quarter results, released late last month, the company said the $2.6 billion project was progressing on schedule and budget, with first concentrate production planned in the first half of calendar year 2022.

Key milestones in the three-month period included detailed engineering passing the halfway mark, procurement of major long lead process equipment committed and the first blast at the ore processing facility site, enabling bulk earthworks to commence.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said Fortescue’s Aboriginal procurement initiative, Billion Opportunities, has awarded over A$2.5 billion ($1.6 billion) in contracts and sub-contracts to Aboriginal businesses and joint venture partners since the program began in 2011.

“We are committed to building on this proud track record through our growth projects, Eliwana and Iron Bridge, which have already awarded over A$60 million in contracts to Aboriginal businesses,” she said.

“Importantly, Billion Opportunities is focused on building the capability and capacity of Aboriginal businesses, and it is very pleasing to see Cundaline, a business which commenced operations as a labour hire company, now expand into earthworks and mechanical maintenance contracting areas.”

Cundaline’s Managing Director, Brenden Taylor, said: “The West Canning Basin Earthworks contract is a milestone project and the first of a number of potential opportunities on the Iron Bridge magnetite project for Cundaline.

“We have worked hard to transition our company from a labour hire specialist to a contracting entity managing and delivering our own projects. I am particularly proud of my team for their professionalism and ‘can do’ attitude and not giving up during the tough times.

“Along this journey we have worked together with other Aboriginal businesses and I especially want to acknowledge Fortescue, through the Billion Opportunities initiative, for making a real difference for a local and Aboriginal business like Cundaline to continue to grow our capacity and capability into the future.”

FMG strengthens Western Australia hydrogen ties with ATCO agreement

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ATCO and Fortescue Metals Group say they have signed an agreement to explore the potential to deploy hydrogen vehicle fuelling infrastructure in Western Australia.

FMG, only last month, agreed to team up with Anglo American, BHP and Hatch to form a Green Hydrogen Consortium looking at ways of using green sources of hydrogen to accelerate decarbonisation within their operations globally.

It also already has a partnership in place with Australia’s CSIRO on hydrogen technologies to support the development of new industries, create jobs and pave the way for low emissions export opportunities for Australia.

ATCO, meanwhile, says it has led the development of renewable hydrogen in Australia, and was the first company to generate hydrogen through electrolysis, powered only by solar.

ATCO and FMG will now collaborate to facilitate the construction and operation of a combined hydrogen production and refuelling facility at ATCO’s existing facility in Jandakot, Perth, with the possibility of wider deployment across the state.

The initial refuelling facility will provide ATCO, Fortescue and agreed third parties with the opportunity to refuel vehicles capable of utilising hydrogen as the primary fuel source, Atco says. This includes a fleet of Toyota Mirai fuel cell electric vehicles that have been made available by Toyota Motor Corp Australia.

“The project will serve as a showcase for hydrogen mobility in the state and support the transition to the next generation of zero-emission transport,” ATCO said.

ATCO’s Managing Director in Australia, Pat Creaghan, said ATCO is committed to expediting the global transition to a net-zero emissions balance in the future and sees a significant opportunity for hydrogen to play a role in that future.

“ATCO’s Clean Energy Innovation Hub has been generating and testing the use of renewable hydrogen for more than six months in gas blending and power applications. The hub provides a fantastic base from which to partner with Fortescue to contribute to Western Australia’s burgeoning renewable hydrogen industry.”

Building on the knowledge gained through the development and implementation of this hub, ATCO says it is currently conducting a feasibility study – with A$375,000 ($226,148) in funding from WA’s Renewable Hydrogen Fund – into the development of a commercial scale renewable hydrogen production plant.

Fortescue Chief Executive Officer, Elizabeth Gaines, said the miner was committed to working with other organisations to position Australia as a leader in the global hydrogen economy.

“As the world moves towards a lower carbon future, hydrogen has the potential to play a key role in the future energy mix and we want to ensure we remain at the forefront of Australia’s renewable hydrogen industry,” Gaines said.

“Identifying and establishing partnerships is critical to unlocking the future potential of hydrogen and we look forward to working with ATCO to capitalise on the economic opportunities associated with hydrogen and support the development of a competitive hydrogen industry.”

ATCO and Fortescue have sought funding under the State Government’s Renewable Hydrogen Fund to support the development of this infrastructure, and are awaiting the outcome of this submission.

Fortescue and REMA TIP TOP establish Aboriginal traineeships

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Fortescue Metals Group has teamed up with longstanding contracting partner REMA TIP TOP to identify opportunities within its supply chain to increase employment and development opportunities for Aboriginal team members.

This move demonstrates “the company’s ongoing commitment to provide training and employment opportunities for its Aboriginal workforce”, FMG said.

REMA has been providing belt and conveyor maintenance services at Fortescue’s operations for over 10 years, and has now signed an agreement with 100% Aboriginal-owned workforce organisation Karlayura Group to offer belt splicing traineeships.

The program will allow Aboriginal participants to gain on-the-job experience in the installation, maintenance and repair of conveyor belt systems across Fortescue’s operational sites and provide them with sustainable career opportunities, FMG said.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “At Fortescue, we believe that providing economic opportunities through access to employment, training and business development pathways is key to sustainable futures for Aboriginal people.

“We are pleased to be working with our contracting partners to develop programs that support Aboriginal employment, and it is inspiring to see the positive contribution they make to communities.”

REMA Chief Executive Officer Asia Pacific, Benedikt Schneider, said: “Working together with the Karlayura Group, we have created new opportunities for local Indigenous communities through the establishment of belt splicing traineeships.

“Our focus is always on training and development to provide career pathways – not just jobs – and I’m proud to continue partnering with Fortescue to help close the gap by creating meaningful and sustainable employment opportunities for Indigenous Australians.”

Karlayura Group General Manager, Regina Glover, said: “Karlayura has a strong history of building partnerships with various companies within the mining and construction industry. We’re forever grateful for the opportunities we get from REMA and Fortescue as we continue our journey of creating successful outcomes across Australia.”

FMG extends waste management services contract with PTK Environmental Services

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Fortescue Metals Group has announced the extension of its waste management services contract to PTK Environmental Services (PTK), an Aboriginal business owned and operated by Palyku member Tammy O’Connor, for a further five years.

The extension of the contract with PTK brings the total value of contracts and subcontracts awarded to Aboriginal businesses and joint ventures under Fortescue’s Billion Opportunities procurement initiative to over A$2.5 billion ($1.7 billion) since the program began in 2011, FMG said.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said: “Our Billion Opportunities program is a critical element of our commitment to provide economic and employment opportunities for Aboriginal people.

“We are incredibly proud to partner with over 120 Aboriginal businesses and joint venture partners and to support the growth and development of driven business leaders like Tammy O’Connor, to build capability and capacity and contribute to the ongoing sustainability of Aboriginal companies.

“We have worked with Tammy and PTK for a number of years and building on the initial services contract awarded in 2017. We are delighted to extend the contract for these significant waste management services for a further five years.”

PTK Director and Shareholder, Tammy O’Connor (pictured, middle), said: “We pride ourselves on the safe, high quality services we provide and it is great to have this recognised by Fortescue with the extension of our contract. The flow-on effect of our work with Fortescue has huge benefits for the community by providing real opportunities for people to get jobs and support their families.”

Fortescue’s Chief Operating Officer, Greg Lilleyman (pictured left), said reducing waste through the prevention, reduction, recycling and reuse of materials produced during operations is a priority for Fortescue.

“Last financial year, Fortescue recycled 91% of non-mineral waste, such as food, packaging and office consumables, from across our sites,” he said. “We look forward to working with Tammy and the PTK team as we continue to reduce and manage our waste.”

During the half year, Fortescue’s Billion Opportunities program supported Aboriginal companies with over A$258 million in new contracts awarded to 16 Aboriginal businesses, FMG said.

Fortescue continues to invest in power options for Iron Bridge development

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Fortescue Metals Group is to invest $450 million as part of a program that will see hybrid solar gas energy delivered to the under-construction Iron Bridge magnetite project in the Pilbara of Western Australia.

The Pilbara Generation project – as it is called – is the next stage of its Pilbara Energy Connect program, the company said. This complements the $250 million Pilbara Transmission project, announced in October 2019, and will provide low cost power to the energy efficient Iron Bridge project.

The $2.6 billion Iron Bridge Magnetite project is expected to deliver 22 Mt/y of high-grade 67% Fe concentrate production by mid-2022.

The Pilbara Transmission project consists of 275 km of high voltage transmission lines connecting Fortescue’s mine sites, while the Pilbara Generation project will include 150 MW of gas-fired generation, together with 150 MW of solar photovoltaic generation. This will be supplemented by large scale battery storage and will be constructed, owned and operated by Fortescue, the company said.

Together, the transmission and generation projects, totalling $700 million of investment, form the Pilbara Energy Connect program of works providing Fortescue with a hybrid solar gas energy solution that will enable low cost power to be delivered to Iron Bridge. “This allows Fortescue to leverage its existing energy infrastructure including the Fortescue River Gas Pipeline and generation capacity at the Solomon power station and support the incorporation of large scale renewable energy,” the company said.

The Pilbara Energy Connect project builds on the Chichester Solar Gas Hybrid project which was announced last year. This landmark agreement with Alinta Energy will see up to 100% of daytime stationary energy requirements of the Chichester Hub iron ore operations powered by renewable energy.

Alinta will build, own and operate the 60 MW solar PV generation facility at the Chichester Hub and 60 km transmission line linking the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station. On completion, this will integrate with the Pilbara Energy Connect program, via the Pilbara Transmission project.

Chief Executive Officer, Elizabeth Gaines, said: “Mining is a 24/7 operation and efficient, reliable, competitive energy generation remains an important consideration for the mining sector in Western Australia. The lack of an integrated transmission network in the Pilbara has been a key barrier to entry for large scale renewables and Fortescue’s investment will address this issue.

“Fortescue’s commitment of $700million in electricity generation and transmission infrastructure will complete the integration of Fortescue’s stationary energy requirements in the Pilbara into an efficient network, while lowering the overall cost of electricity to existing and future sites.

“By installing 150 MW of solar PV as part of the Pilbara Generation project, the modelling indicates we will avoid up to 285,000 t of CO2/y in emissions, as compared to generating electricity solely from gas.

“Importantly, Pilbara Energy Connect allows for large scale renewable generation such as solar or wind to be connected at any point on the integrated network, positioning Fortescue to readily increase our use of renewable energy in the future.”

Pilbara Energy Connect builds on Fortescue’s previous energy initiatives, including the construction of the Fortescue River Gas Pipeline, the conversion of the Solomon Power Station from diesel to gas generation, as well as a partnership agreement with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to develop and commercialise hydrogen technology.

FMG, Sodexo and Aboriginal businesses enter into ‘innovative contract model’

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Fortescue Metals Group has entered into an “innovative contract model” that will see Aboriginal businesses carry out catering, accommodation management and lifestyle and recreation services for the Cloudbreak and Karntama villages in the Chichester Hub and Hamilton Village, in Port Hedland, Western Australia.

The Village Facilities Management agreements will be facilitated thorough a pact between Sodexo Remote Sites Australia, a food services and facilities management company, and three Aboriginal businesses owned by Pilbara Native Title groups, FMG said.

With a collective award value of A$165 million ($113 million) over three years, the contracts involve three individual unincorporated joint ventures agreements with Sodexo and 100% owned Aboriginal businesses Palyku Enterprises Pty Ltd, Karlka Facilities Management Pty Ltd and Kariyarra Hospitality Services Pty Ltd.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue’s Aboriginal procurement initiative and approach to providing opportunities to Aboriginal people has empowered our Native Title partners by building the capability and capacity of Aboriginal businesses.

“These contracts are awarded on merit. Each of our business partners have competitively demonstrated their commercial ability to deliver the contracted services and by working within a joint venture, the Aboriginal businesses have the support and opportunity to increase their active participation and build long term sustainability.”

Across the three Fortescue sites, Sodexo will provide a range of village services, including accommodation services management to approximately 3,000 workers in a typical week, catering services – serving up to 8,500 meals daily, industrial cleaning, retail, health and wellbeing, transport and airport management services, as well as trade-based maintenance services delivery at Hamilton, Sodexo said.

The announcement is an important milestone for Sodexo after acquiring Morris Corp two years ago, which expanded Sodexo’s portfolio of facilities management operations in Australia, the company said. Morris had been Fortescue’s contractor since 2009.

Sodexo Chief Executive Officer of Energy and Resources Asia-Pacific, Darren Hedley, said: “Our ongoing work with Fortescue showed both companies were aligned in improving quality of village life, and valued strong engagement with communities.

“We’re looking forward to working with our joint venture partners, Kariyarra Group, Palyku Group and Karlka Group, and Fortescue as we continue to identify opportunities for constant improvements across the sites to deliver the best outcomes for Fortescue, with a priority being maintaining safety and quality operations for its growing workforce.”

Fortescue says it has awarded A$2.4 billion in contracts to over 115 Aboriginal businesses and joint venture partners since 2011 through its Billion Opportunities initiative.