Tag Archives: Fortescue Metals Group

Vysarn’s new waterwell drilling business wins FMG Cloudbreak work

Pentium Hydro is in the process of mobilising a drill rig and auxiliary plant to Fortescue Metals Group’s Chichester iron ore operations, in the Pilbara of Western Australia, as part of a purchase order that could see the Vysarn subsidiary pocket A$800,000 ($549,866).

Following the purchase order, Pentium has already started transporting the equipment to Newman, Western Australia, for final inspection. Following signoff of the equipment, it will then head to Cloudbreak with Pentium expecting to commence drilling, subject to a formal agreement being signed, by the end of September.

In addition to this latest contract win at Cloudbreak, part of the Chichester Hub operations which has an annual production capacity of 100 Mt/y, Pentium says the first of two scheduled drill rigs has arrived on site at BHP’s Olympic Dam mine in South Australia (pictured).

This delivery is part of a dry hire agreement signed between Pentium and Easternwell WA, which was previously announced on August 16. The second rig destined for Olympic Dam has been despatched from the company’s yard in Canning Vale, with the company expecting these units to begin operating and produce income during this month. The hire rates for this equipment, while on site, are (in aggregate) A$4,500/shift, with each rig able to operate for a maximum of two shifts per day.

This agreement provided for the equipment to be hired on site for a period of at least three months and no more than six months (unless the scope is reduced by BHP).

As Pentium Managing Director, Sheldon Burt, implied, this latest business is significant considering Vysarn only completed the acquisition of Pentium from Ausdrill at the end of last month.

“We are pleased with the quality of the assets purchased and are confident of our ability to become a major provider of waterwell drilling services to the resource, agriculture and infrastructure industries,” he said.

SIMPEC to power up FMG’s Eliwana iron ore mine

SIMPEC has been given another assignment at Fortescue Metals Group’s Eliwana iron ore mine and rail project in Western Australia, with a circa-A$5 million ($3.4 million) contract to construct the 25 MW diesel power generation facility at the operation set to keep it busy until July 2020.

The contract, which commences this month, was awarded to the WestStar business by Energy Power Systems. It is SIMPEC’s first full vertical installation package comprising of civil, structural, mechanical, piping, electrical and instrumentation works, the company said.

Under the agreement, SIMPEC will supply (partially), install, test and commission the 25 MW facilities for Eliwana, with the delivery executed over three separable portions.

Back in April, SIMPEC was awarded its largest single contract to date, with ATCO Structures and Logistics granting it a circa-A$10 million contract to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana. The contract was scheduled to commence in the middle of the year and take nine months to complete.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.

Why the Pilbara leads the way in haul truck automation

A presentation at last month’s AusIMM Iron Ore 2019 Conference, in Perth, Western Australia, made it clear that the state’s steel raw material miners are leading the way when it comes to applying autonomous haulage systems (AHS) in open-pit mining.

Richard Price, Manager of Projects for Mining Technicians Group Australia (MTGA), has been involved in this technology space for a number of years, having initially witnessed an automation trial involving two trucks at Alcoa’s Willowdale bauxite mine, in Pinjarra, all the way back in 1994.

At the conference, his paper set out the state of play in Pilbara when it comes to AHS, explaining: the first commercial scale trial in iron ore took place at Rio Tinto’s West Angelas operation in 2008, there are two original equipment manufacturer (OEM) AHS operating in the Pilbara – Caterpillar Command for Hauling and the Komatsu FrontRunner – and the three major iron ore miners (Rio Tinto, BHP and Fortescue Metals Group (FMG)) were leaders when it comes to using autonomous trucks.

FMG is the largest operator of autonomous trucks in the Pilbara – making it effectively the largest in the world – with 128 at the end of June (according to the miner’s June quarter results). Rio, meanwhile, had 96 up and running, with BHP having a total of 50, as per publicly released data.

“FMG has plans to automate all of their trucks, including the first non-OEM trucks on an alternate OEM system,” Price said, with him adding that the company has now automated a number of Komatsu 930E vehicles using the Caterpillar Command for Hauling AHS: a world first.

“Additionally, FMG is also operating multiple Caterpillar OEM trucks onsite, in another world first having three classes of truck on the one system at the same site (789D, 793F and 930E),” he said.

While Komatsu, historically, has more time in the field with commercial autonomous applications – it surpassed 2 billion tons of autonomous haulage in November – than Caterpillar, the Illinois-based OEM has received more global success, being able to point to AHS deployments in the oil sands of Canada, the coal mines of British Columbia and Vale’s iron ore operations in Brazil.

“With regards to the on-board AHS componentry, the Komatsu system is somewhat simpler than the Caterpillar system,” Price said. “The significant difference is that Caterpillar utilises a LiDAR (Velodyne 64-layer), with RADAR, whilst the Komatsu system uses RADAR only. However there are additional differences in the on-board controls – the Caterpillar system is known for having more significant vehicle on-board computing power, versus the Komatsu system which places greater reliance on the wireless network whilst performing most of the calculations on the server side.”

Even with the on-board computing power of Caterpillar’s system, the performance of these trucks only tends to be as good as the communications infrastructure they are tied to.

Presently, only the Komatsu system has announced successful trials of using 4G Long Term Evolution (LTE) network technology as the communications system which commands the trucks, with the Caterpillar system presently reliant on wireless networking technology, “of which all current implementations rely upon (globally)”, Price said.

One of the issues with such technologies is the trucks stop driving, or operating, if they lose communications, with the trucks communicating, via this network, their position to each other and directional heading and speed.

The way the trucks re-start their driving routine is, at present, via manual visual inspection, which can be a process that takes time.

And, according to Price, a significant problematic issue with trucks stopping driving across all the Pilbara sites is the triggering of a false positive object detection.

“These are often referred to as ‘ODs’ on the various sites which utilise AHS,” Price said, with many operators blaming undulations in the road, pot holes, or small rocks for these occurrences.

Again, manual inspection is normally required as part of an operation’s procedure for re-starting the autonomous trucks.

Out in front

Despite these communication and OD problems, Western Australia still leads the way when it comes to automation with the Pilbara hosting around 75% of the circa-370 trucks operating globally.
What is the reason for this? Price highlighted five bullet points in his speech:

  • High cost of operators – annual salaries for truck operations are, in general, over A$100,000 ($68,882);
  • Ease of implementation – “the Pilbara miners generally have open ground, and have had an opportunity to trial the technology in a dedicated work area prior to a site-wide implementation,” Price said, adding that the topography has also made it simpler to install the required communications systems;
  • Scale and longevity of operations – Previously cost-benefit analysis of AHS included an approximate cutoff point of 12 Mt/y total material movement, which equates to six to eight off-highway haul trucks, Price said. All operations exceed this, as well as having long mine lives;
  • The fact that all the sites which have presently deployed AHS are currently fly-in/fly-out mines which transport the staff to site from their point-of-hire, and;
  • Experience of technology and processes in the Pilbara – miners in the region have long-term familiarity with fleet management systems and technology adoption.

Price said: “Western Australia does not necessarily have any unique or special advantage, however, it has made sense for Pilbara iron ore operators to implement AHS for the reasons outlined above.”

The benefits

MTGA’s Price pointed to several quotes from the mining companies themselves to explain the benefits of automation.

Rio Tinto, in 2018, said: “On average, each autonomous truck was estimated to have operated about 700 hours more than conventional haul trucks during 2017 and around 15% lower load and haul unit costs.”

FMG, in the same year, said it was seeing 32% productivity improvements with autonomous trucking.

Vale, meanwhile, previously told Mining.com: “The adoption of autonomous trucks at Brucutu (iron ore mine, in Brazil) is expected to reduce fuel consumption by more than 10%. Maintenance costs, in turn, should fall by another 10% and off-road truck tyres, which cost up to $40,000, are expected to have 25% lower wear. The overall gains translate into a 15% increase in equipment life, reducing investments in new acquisitions and reducing carbon dioxide emissions at the same time.”

Price said: “There are clearly differing metrics being monitored by these three operators at present. However, irrespective of the metrics monitored, AHS obviously has had a significant impact on the operating environment.

“It appears that the increase in utilisation of the autonomous trucks is the most significant benefit that they provide. The decrease in costs is also helpful, but the increase in predictability of the truck fleet is what drives the actual benefit.

“A number of materially measurable but difficult to quantify benefits exist from the rendering of trucks autonomous as well. These include less maintenance, better tyre wear (or increased tyre life), reduced fuel costs (for the same tonnage output) and better overall truck performance.”

For instance, Komatsu has previously said the optimised automatic controls of AHS reduce sudden acceleration and abrupt steering, resulting in a 40% improvement in tyre life compared with conventional operations.

And, of course, there are the numerous safety benefits that come with using automated haul trucks.

The future

While Price believes that mining will continue to become more autonomous, he said the mine of the future was likely to involve the automatic distribution of data files that trucks would work off without human involvement.

“For now, technologies such as LTE for better communications network coverage, the use of drones, long-range cameras or other autonomous ground vehicles to conduct the manual visual inspection and other autonomous equipment will be implemented,” he said.

He added: “It is likely that there will be a continuum of development over the next 20-30 years.

“Mining companies and OEMs will have a lot to learn from automotive vehicle automation. Obviously, there are more cars on the roads than there are off-highway haulage trucks on minesites. Therefore the general costs of automation kits will come down, and there will be an opportunity to conduct operations in a GPS-denied environment.

“Already, the costs of select items such as the LiDAR utilised by the Caterpillar system have halved in price since they were used a decade ago. Solid state LiDARs, as opposed to rotational, are being implemented in the automotive industry already.”

He pointed to MINExpo 2016, in Las Vegas, when Komatsu showcased its cabless, driverless truck as one development to look out for.

“It is predicted that in the longer-term future (ie 20-30 years’ time), cabs will be an additional and expensive option to add onto an off-highway heavy haulage truck,” he said.

“Whilst the future is autonomous, it will be technologically more advanced than the present technologies,” he concluded, adding that, given its head start, one would expect the Pilbara iron ore industry to deploy these technologies first.

MTGA’s Richard Price has also written a business case study on AHS, published by AusIMM – www.ausimmbulletin.com/feature/autonomous-haulage-systems-the-business-case/ – and, in partnership with Whittle Consulting’s Nick Redwood, put together an Autonomous Haulage Systems Financial Model Assessment – www.whittleconsulting.com.au/wp-content/uploads/2017/10/Autonomous-Haulage-Study-Report-Rev-F.pdf

Rio Tinto continues to invest in Pilbara haul truck automation

Rio Tinto, in its half-year results, provided an update on its haul truck automation efforts at its iron ore mines in the Pilbara of Western Australia, saying it expects to hit some significant milestones by the end of 2019.

The company, one of the first adopters of autonomous haulage systems through a commercial trial at its West Angelas operation all the way back in 2008, said it had continued investing in productivity and automation in the first six months of 2019 and expected 50% of its iron ore truck fleet to be fully autonomous by the end of the year.

The company said: “Deployments are complete at seven of our sites, with Hope Downs 1 and Marandoo in transition.”

Last week, Fortescue Metals Group (FMG) said its plan to automate all haul trucks across its Pilbara iron ore network was going to plan, with 128 trucks running in autonomous mode as of the end of June.

Meanwhile, Rio said its AutoHaul project, which sees 2.4 km long trains travel across a network of 1,700 km of track, all monitored remotely from an operations centre in Perth, was now fully operational. These trains have safely travelled more than 4.5 million kilometres autonomously since they were first deployed last year.

Fortescue breaks ground at $1.275 billion Eliwana iron ore development

Fortescue Metals Group says it has officially broken ground on the Eliwana iron ore mine and rail project in the Pilbara of Western Australia.

FMG Founder and Chairman, Andrew Forrest, was today joined by Mark McGowan, Premier of Western Australia, FMG CEO, Elizabeth Gaines, and the company’s core leadership team, for the official sod turning.

The $1.275 billion project includes the construction of 143 km of rail, a new 30 Mt/y dry ore processing facility (OPF) and infrastructure. First ore on train is expected in December 2020, the company says.

FMG says contracts to the value of A$330 million ($232 million) to date have been awarded to more than 250 Australian business entities as part of the Eliwana development, of which 80% are Western Australia-owned businesses. As further approvals are progressed, it is expected over A$500 million in additional contracts will be awarded by the end of 2019, FMG said.

Contract recipients include BGC Contracting for bulk earthworks and roads, NRW Holdings, also for bulk earthworks, and SIMPEC for electrical, communications and dry fire systems testing.

“Eliwana underpins the sustainable production of West Pilbara Fines and provides the flexibility for Fortescue to deliver products at greater than 60% Fe grade,” FMG said. “The development will utilise the latest technology, autonomous trucks and design efficiency, further cementing Fortescue’s world leading use of innovation across its mining operations.”

Forrest said: “This is a proud day for Fortescue as we celebrate the largest project since the Kings Valley mine in 2014.

“Since Fortescue was founded 16 years ago, we have held community and family at our core and continued to deliver on our commitment to be the safest, lowest cost company. Eliwana is the next great step into the Western Hub, enhancing our profitability and extending our mine life.”

The project will generate up to 1,900 jobs during construction and 500 full-time site positions once operational, according to Forrest.

Gaines said: “The Eliwana project will build on Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara. Eliwana is core to the next phase of development in Fortescue’s world class, innovative operations. The project will see us maintain our low-cost status, provide us with greater flexibility to deliver on our integrated operations and marketing strategy and, when combined with the Iron Bridge Magnetite development, it will increase Fortescue’s average product grade and provide the ability to deliver the majority of our products at greater than 60% Fe, consistent with our long term goal.”

Fortescue autonomy firsts continue with start-up of AHS-equipped Cat 789Ds

Fortescue Metals Group has completed another significant step to becoming the first iron ore operation in the world to have a fully autonomous haulage fleet with the first Cat 789D model trucks fitted with Autonomous Haulage Technology (AHS) now in operation at its Cloudbreak operation in Western Australia.

Building on Fortescue’s autonomy capability, which began in 2012 when the company was the first in the world to deploy Cat autonomous haulage on a commercial scale, the planned roll out of 38 autonomous trucks at Cloudbreak has commenced. The conversion of Fortescue’s fleet to autonomy across all its mine sites in the Pilbara will see 175 trucks fitted with AHS by mid-2020.

Fortescue’s fleet of autonomous trucks has safely travelled over 28 million kilometres and has moved over 860 Mt of material, delivering a 30% improvement in productivity, according to the company.

In a global first, Fortescue retrofitted Cat Command for Hauling, part of Caterpillar’s MineStar technology, on Komatsu 930E haul trucks at Christmas Creek. The 930Es have been operating alongside the Cat 789Ds since November, “demonstrating the company’s capability to manage and operate the first multi-class truck size autonomous haulage site in the industry”, the company said.

Chief Executive Officer, Elizabeth Gaines, said: “Currently, Fortescue’s pioneering AHS deployment is the largest mining technology program in the industry.

“Our approach to autonomy is to be open and transparent with our plans and to work closely with our team members to offer opportunities for re-training and re-deployment. Around 3,000 Fortescue team members have been trained to work with autonomous haulage, including over 200 people trained as Mine Controllers and AHS system professionals. This ensures Fortescue remains transformational and leads to higher skilled workers and jobs.”

The rollout of AHS at Cloudbreak also required the transfer of 160 pieces of machinery to the Cat MineStar Command remote operations server. Cloudbreak is now the first remote mining operation in the world to use the Cat MineStar Command system in production mode, FMG said.

“Our remote operations centre located in Perth is a critical part of our integrated supply chain and key to increasing productivity and efficiency across our operations,” Gaines said.

Denise Johnson, Group President for Caterpillar’s Resource Industries, said: “Caterpillar and Fortescue have a history of industry-leading collaboration in the area of autonomy and automation. Cloudbreak takes this relationship to the next level and demonstrates another great example of Fortescue’s commitment to safety, site productivity and sustainable mining.”

Fortescue’s Cloudbreak mine site is also home to the 5-km relocatable conveyor, previously supplied by RCR Tomlinson, which includes two semi-mobile primary crushing stations and feeds directly into the Cloudbreak ore processing facility (OPF). “Another example of Fortescue’s innovative operations, the infrastructure can be positioned approximate to pits and relocated, extended or shortened once an area is mined,” the company said.

Within two weeks of operation, the conveyor was at full capacity, carrying 5,000 t/h of ore at approximately 25 km/h. The conveyor has replaced the equivalent of 12 manned trucks, FMG said.

“Together with the 11 autonomous drills currently operating across sites and the relocatable conveyor at Cloudbreak, our autonomous operations continue to deliver significant benefits to the business,” Gaines said.

SIMPEC wins more work from MSP Engineering, Iluka Resources

SIMPEC says it has been awarded more than A$5 million ($3.46 million) in scope extensions to its current contracts in Western Australia.

WestStar Industrial’s engineering contractor business said the bulk of this work is either underway or will commence imminently and was built on the original awards from MSP Engineering (for the Tianqi Lithium Kwinana processing plant, pictured) and Iluka Resources (for the Cataby mineral sands project).

This news comes hot on the heels of SIMPEC announcing major contract awards, the most recent being the A$10 million win from ATCO to supply and install the electrical, communications and dry fire systems for an 800-room mine camp at Fortescue Metals Group’s Eliwana iron ore mine site in the Pilbara, Western Australia.

SIMPEC said its team has grown substantially over the past six months with nearly 150 personnel and contractors now working across all of its current contracts.

SIMPEC Managing Director, Mark Dimasi, said: “These scope extensions are a direct result of our strong performance on site. With safety at the forefront of everything we do, SIMPEC is performing very well across all projects and working very closely with our clients.”

BGC Contracting, SIMPEC awarded contracts for FMG’s Eliwana iron ore project

Australia mining and construction firm, BGC Contracting has been awarded a A$24 million ($16.9 million) contract to deliver bulk earthworks and roads at Fortescue Metals Group’s A$1.7 billion Eliwana iron ore project, 90 km west-northwest of Tom Price, in the Pilbara of Western Australia.

The six-month project is underway and BGC Contracting will deliver infrastructure including the construction of the permanent accommodation village earthworks and access road, a RFDS airstrip and a 16 km-long construction access road, the company said. BGC is carrying out all earthworks and civil works necessary to develop initial road facilities, which will also facilitate connection to near-future construction packages to rail and other infrastructure.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.

BGC Contracting CEO, Greg Heylen, said the Eliwana contract is a major achievement for the company’s diversification strategy and allows BGC to extend its expertise in the mining construction sector.

“When you partner with BGC Contracting, you don’t just partner with one of Australia’s largest contractors; you partner up with every person that works on the job. You get their collective experience, their knowledge, and their work ethic. You get 110%,” he said.

“There has been a real increase in resource sector and construction opportunities, particularly in Western Australia and Queensland, and we look forward to this next phase in our growth strategy.”

The day after BGC announced this contract award, WestStar business SIMPEC said it had been awarded a circa A$10 million contract by ATCO Structures and Logistics to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana.

The contract, SIMPEC’s largest single contract award to date, was scheduled to commence in mid-2019 and was expected to take nine months to complete.

SIMPEC Managing Director, Mark Dimasi, said: “To see the fruits of the concerted effort during the Fortescue Eliwana tender phase is very rewarding for the team. This Tier One project award is a significant achievement for SIMPEC allowing the company to construct alongside some of Australia’s biggest construction companies.”

FMG looks for magnetite iron ore upside with Iron Bridge investment

Fortescue Metals Group has approved the $2.6 billion Iron Bridge Magnetite project in Western Australia, which, the company says, will deliver 22 Mt/y of high-grade 67% Fe concentrate production by mid-2022.

FMG and its joint venture partner Formosa Steel IB approved the development of Stage 2 of the project, following a $500 million investment in the Stage 1 construction of large-scale pilot and demonstration plants, which, FMG said, validated key equipment and magnetite production processes for Stage 2.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said: “The Iron Bridge project holds Australia’s largest JORC compliant magnetite resource supporting a long mine life. The successful delivery of the project by the joint venture partners is underpinned by Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara.

“We are confident this project will deliver growth in earnings and cashflow, resulting in enhanced returns to our shareholders and our joint venture partners through all market cycles.

“The project is well progressed and ready for detailed design and execution with the majority of key approvals already in place. The innovative design, including the use of a dry crushing and grinding circuit, will deliver an industry-leading energy efficient operation with globally competitive capital intensity and operating costs.

“In developing the Iron Bridge Project, Fortescue has demonstrated and refined each step of the ore processing system and conducted full-scale trials. Our focus has been to create the most energy and cost-efficient ore processing facility, tailored to the specific ore we will mine. We are now ready to build this plant and develop this mine, and are confident that our early work will support rapid progress to full production.”

FMG sets up Future of Mobility Centre in WA, starts autonomous light vehicle trial

Fortescue Metals Group has announced the establishment of a research and development centre based in Karratha, Western Australia, to explore opportunities for the application of autonomous mobility technology in an urban environment.

On top of this, it said it had commenced an autonomous light vehicle trial at its Christmas Creek iron ore operation in the Pilbara of WA.

In partnership with the local community, City of Karratha and technology and research partners, the Fortescue Future of Mobility Centre will “leverage the company’s success in using autonomous technology across its operations”, FMG said.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said that innovation and emerging technologies, like autonomy, present an opportunity to work closely with the community to bring about mutual benefits.

“We are at the forefront of this technology with our mine operations set to become the first in the world to be fully autonomous and our fleet having safely travelled over 26 million kilometres since the first autonomous truck was introduced in 2012,” Gaines said.

“We are now building on our autonomous capability with the commencement of an autonomous light vehicle trial, at our Christmas Creek mine.

“The emergence of autonomy is one aspect in which our world is changing rapidly, and we intend to be part of the opportunities that it will represent for the mining industry, local communities such as Karratha, and beyond.”

By establishing the Fortescue Future of Mobility Centre in Karratha, FMG will have the ability to develop, test and trial this technology, Gaines said. This will further contribute to “Western Australia’s position as a world leading autonomous hub”, she added.

“We’ll be exploring all facets of the future of mobility including software, hardware and various forms of mobility solutions, to see where the opportunities lie,” she said.

City of Karratha Mayor, Peter Long, said: “I am delighted that of all the potential locations around Australia, Fortescue has selected Karratha as its base to develop this exciting and innovative new technology.”

Dr Fang Chen, Executive Director Data Science at The University of Technology Sydney, which will be a leading research provider to Fortescue’s work in autonomous technology, said: “Research into new technology and infrastructure will accelerate innovative mobility solutions to accommodate growth and future demands.”