Tag Archives: Fortescue Metals Group

SIMPEC to help Central Systems with Fortescue Solomon Hub work

SIMPEC is to supply and install the electrical, instrumentation and communication works for the Solomon Central Facilities Workshop Yard at Fortescue Metals Group’s Solomon Hub iron ore operations in the Pilbara of Western Australia.

The contract, awarded by Central Systems, is valued at A$7 million ($5.4 million), according to SIMPEC, WestStar Industrial’s engineering contractor business. Work has commenced immediately.

FMG Solomon Pty Ltd, a subsidiary of Fortescue, is developing the Solomon Central Facilities Workshop Yard, which involves consolidating various workshops, facilities and other non-process infrastructure into a centralised location. Central Systems was awarded the A$57.5 million design and construct contract for the Central Facilities (picture courtesy of Central Systems) back in October, and SIMPEC will be working with the company on site to supply and install the electrical, instrumentation and communication works for these facilities.

This award, SIMPEC’s first from Central Systems, builds on the portfolio of non-process infrastructure work packages successfully undertaken by SIMPEC across Western Australia and Sydney, New South Wales, the company said.

SIMPEC Managing Director, Mark Dimasi, noted: “To be part of this new development in the non-process infrastructure space on a Fortescue Metals Group project is very rewarding for the team. This large project allows SIMPEC to showcase its true electrical and instrumentation capabilities.”

Fortescue’s Solomon Hub is in the Hamersley Ranges and comprises the Firetail and Kings Valley mines, which together have a production capacity of 75 Mt/y. At the hub, higher iron grade, low cost Firetail ore is blended with low phosphorous Chichester ore to create the company’s Fortescue Blend.

Fortescue employs SRG Global for maintenance and shutdown services

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.”

Primero completes WHIMS project at Fortescue’s Christmas Creek iron ore op

Primero Group says it has completed the construction of a Wet High Intensity Magnetic Separation (WHIMS) processing plant at Fortescue Metals Group’s Christmas Creek iron ore mine in Western Australia.

The plant is expected to improve product grade and mass recovery from the desands unit at the Christmas Creek Ore Process Facility #2.

The flowsheet is based on a simple and robust configuration, where wet screen undersize at a nominal -1 mm is treated in open circuit through a low intensity magnetic stage, followed by a vertical WHIMS stage to produce a concentrate stream and a tailings stream, which can be integrated with the existing process and auxiliary equipment. The vertical WHIMS project entails the redirection of the wet screen undersize stream from the existing scrubbing circuit to feed the brownfield magnetic separation plant.

“We can proudly say that despite the impacts of COVID-19 and the fast-tracked nature of the project, the plant was successfully delivered and commissioned in less than 12 months – meeting all safety and project key performance indicators,” the company said.

Primero put the project’s success down partly to the “enhanced opportunity for collaboration early contractor involvement (ECI) provides”.

It added: “A flexible approach to project development that ensures the needs of all project stakeholders can be met prior to detailed design and implementation in a lump sum engineering procurement and construction (EPC) environment. This constructive, relationship-based contracting continued throughout construction, commissioning and now operation – demonstrating the power of the ECI contracting model when coupled with Primero’s unique, vertically integrated EPC capability.”

Aqura Technologies to boost FMG’s network at Kangi accommodation camp

Veris Ltd’s wholly-owned subsidiary Aqura Technologies has been awarded A$1.1 million ($849,165) in works to undertake an upgrade of the in-situ accommodation network at Fortescue Metals Group’s Kangi 1,850 room village in the Pilbara Region of Western Australia.

The scope of the Kangi village engagement is to design and deliver physical upgrades to the GPON network to ensure a high level of reliability of services to village guests, it says.

The enhancement of the existing infrastructure using Aqura’s specialist technical expertise will establish an extremely robust platform for the delivery of entertainment services and wellbeing programs to the large workforce accommodated at the site, the company explained.

Aqura has commenced the design phase and will look to complete the scope of works by July.

“The new contract adds to Aqura’s strong track record in delivering high-performance Content Access Network (CAN) solutions for clients such as BHP, Newmont, OZ Minerals and Abra Mining,” Veris said. “Aqura’s expertise in the delivery of CAN solutions has delivered enhanced user experiences in over 16,000 accommodation rooms completed to date.”

The Kangi camp was constructed – and expanded – by Pindan (photo courtesy of Pindan) as part of FMG’s Solomon iron ore mine development.

Aqura Technologies CEO, Travis Young, said: “We’re pleased to kick off a new engagement with Fortescue who are looking to our in-house team to provide a high-quality foundation for their Kangi Village network.

“The contract award is testament to the strong quality and safety record of Aqura in the design and delivery of high-quality network infrastructure.

“We are very mindful of the benefits of this type of investment which fundamentally supports and enhances the positive wellbeing for fly-in fly-out staff who are away from home for extended periods and need reliable infrastructure to support connections to family and friends.”

Fortescue’s Forrest opens up about iron ore miner’s ‘green steel’ ambitions

Fortescue Metals Group Chairman and founder, Dr Andrew Forrest (pictured), has revealed the iron ore miner has plans to build Australia’s first “green steel” pilot plant this year.

A commercial plant, powered entirely by wind and solar, could be constructed in the next few years he said in the first Australian Broadcasting Corporation (ABC) Boyer Lecture for 2021, entitled: ‘Oil vs Water: Confessions of a Carbon Emitter’.

In a wide-ranging talk, he acknowledge that Fortescue was trialling both known methods of making “zero-carbon-steel” without the use of coal in Australia: replacing coal in the furnace with ‘green hydrogen’ and adding carbon separately to strengthen the steel, and “zap[ping] the ore with renewable electricity”.

On the development of such an industry, Forrest said: “We could look at losing our coal industry as a national disaster – yet, I’ve always believed, out of every setback, is the seed of equal or greater opportunity.

“We produce over 40% of the world’s iron ore. And our potential green energy and hydrogen resources are immeasurable.

“If Australia were to capture just 10% of the world’s steel market, we could generate well over 40,000 jobs – more than what’s required to replace every job in the coal industry.”

Fortescue, through its Fortescue Future Industries company, has been signing agreements to leverage hydro-electric power and geothermal energy to become one of the “world’s largest green energy and product businesses”, Forrest said.

“We’re now undertaking feasibility studies that could lead to some 300 GW of power – more than four times what Australia can produce,” he explained.

Forrest also mentioned some of the decarbonisation work Fortescue is currently working on.

Back in December, Fortescue Chief Operating Officer, Greg Lilleyman, announced the company was working on developing an in-house, non-diesel 240 t haul truck prototype that will test both battery-electric and fuel-cell electric drivetrain technology in the Pilbara of Western Australia.

Seemingly referencing this project, Forrest said: “By the end of the decade, our trucks will run on renewable energy. Imagine that: a fleet of vehicles that produces nothing more than steam as exhaust.”

He also said the company was aiming to develop “green iron ore trains” powered by either renewable electricity or “green ammonia”.

Looking at the company’s shipping operations, he said 2021 would see the company “begin to settle designs” that allow its ships to run on “zero-pollution, green ammonia”.

He added: “And we’re willing to share that knowledge, to help our competitors go green too – including Vale, one of the largest mining companies in the world.”

RCR and Primero Group to deliver crushing and conveying system for Fortescue

RCR Mining Technologies and Primero Group are to work together on delivering a primary crushing plant (PCP) and overland conveyor (OLC) for the Queens project at Fortescue Metals Group’s Solomon Hub operations in the Pilbara of Western Australia.

RCR, a wholly owned subsidiary of NRW Holdings, was awarded the A$80 million ($61.8 million) contract by Fortescue, with Primero being sub-contracted a A$30 million package to provide engineering support and construction services for the PCP and OLC.

RCR previously delivered the Hopper 9 Crushing Facility at Fortescue’s Cloudbreak mine, with the latest award “strategically significant for the business as it showcases our engineering-led delivery of innovative solutions”.

Civil construction and earthworks will be undertaken by NRW’s Civil division, while RCR and DIAB Engineering, together with Primero, “bring a very strong design, manufacture and construction capability to this project with an engineering-led philosophy of solutions and innovation”, NRW said.

NRW Holdings is in the middle of trying to take over Primero following a cash and shares bid that values Primero at A$100 million.

Fortescue adds to Billion Opportunities program with Iron Bridge contracts

Fortescue Metals Group has continued its longstanding commitment to Aboriginal procurement and delivery of benefits for its Native Title partners, with over A$13 million ($10.1 million) of new contracts awarded as part of the company’s Iron Bridge Magnetite project.

Two contracts have been awarded to 100%-owned Aboriginal-owned business Jukawalyi Resources Pty Ltd, and the Yulu Joint Venture (a joint venture company between Njamal Resource Enterprises Pty Ltd and Icon SI (Aust) Pty Ltd).

Both companies are owned by members of the Njamal Native Title group, who are the traditional custodians of the land where Iron Bridge is located.

Under the contract, Jukawalyi will provide light vehicles for the Iron Bridge operations. The future sustainability and ongoing success of Jukawalyi will be further supported with Fortescue acting as a guarantor for the purchase of the vehicles, through Fortescue’s guaranteed leasing facility with ANZ, it said.

Yulu JV was awarded a contract to complete a portion of the non-mining process infrastructure work, including designing and constructing the main ore processing facility administration building, laboratory building and associated facilities.

The Iron Bridge, operated under an unincorporated joint venture between Fortescue subsidiary, FMG Magnetite Pty Ltd, and Formosa Steel IB, covers the development of a new magnetite mine, including processing and transport facilities. The $2.6 billion development is expected to produce 22 Mt/y (wet) of high grade, magnetite concentrate, with first ore in 2022.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue is proud of our strong relationships with Native Title groups across the Pilbara, which is delivering significant benefits including jobs, training and business development opportunities for Aboriginal people, their families and their communities.

“Empowering businesses like Jukawalyi and Yulu JV to make long-term, beneficial business decisions is at the heart of our Billion Opportunities initiative. These contracts will provide the opportunity to build local capability and asset ownership for these local Aboriginal businesses.”

Jukawalyi Managing Director, Joanne Taylor, said: “As a small family-owned business based in Port Hedland, the ability to access finance in addition to the contract with Fortescue is transformative, providing us with the ability to take our business to the next level.”

Yulu JV owner, Troy Eaton, said: “We are proud to secure this work for such an important project. With the Pilbara positioned for ongoing development, the securing of this project leaves us well-positioned to capture future opportunities for both Yulu JV and the Njamal People.”

Since its inception in 2011, Fortescue’s Billion Opportunities program has awarded over A$2.7 billion in contracts and sub-contracts to Aboriginal businesses and joint venture partners.

Civmec tops up Iron Bridge work with new on-site contract

Civmec Ltd has confirmed approximately A$140 million ($105 million) in new contracts, with one of these a new agreement to deliver on-site structural, mechanical, piping and electrical works for the Iron Bridge magnetite project, in Western Australia.

The Iron Bridge contract will be delivered through the Minerals and Metals Division, while the other heavy engineering manufacturing projects will be delivered from Civmec’s expanded fabrication facilities.

It includes the installation of the crushing circuit, primary grinding, dry separation, air classification and dry tailings units for the dry plant at the project. Mobilisation will commence in early 2021 and, at peak, the project will employ around 400 people on site.

Iron Bridge is a joint venture between Fortescue Metals Group’s subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd (IBJV).

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are delighted to extend our relationship with IBJV with further work awarded on the Iron Bridge magnetite project. We are currently delivering site civil concrete works and have commenced work for the supply of 4,700 t of steel structures and modules for the same project, so this latest award is a very rewarding outcome and aligns well with our multi-discipline capability business model.”

Back in July, Civmec said the Metals and Minerals division had been awarded a standalone civil contract to build the structural concrete components for the dry plant at the IBJV.

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

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 teams with Kawasaki and Iwatani on liquid hydrogen mission

Fortescue Metals Group has signed a memorandum of understanding (MoU) with Kawasaki Heavy Industries and Iwatani Corporation to develop a business model for the supply of liquid hydrogen into Japan.

Under the MoU, the three parties will establish the Global LH2 Consortium to facilitate collaboration for the establishment of large scale, liquid hydrogen production and supply capabilities, Fortescue says.

The consortium will focus on joint activities associated with the development of renewable hydrogen projects in Australia and overseas, with a view to establishing liquid hydrogen supply chains and the distribution and offtake of liquid hydrogen within Japan.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “The world’s transition to a clean energy future represents a major growth opportunity and this partnership with Kawasaki and Iwatani will help position Fortescue at the forefront of the establishment of a global renewable hydrogen industry.

“Japan has been identified as one of the priority north Asian markets for hydrogen exports. By leveraging our value chain and market access as well as the skills and capability of our people to rapidly develop complex projects, we believe Fortescue is well placed to meet the future demand of green hydrogen.”

Kawasaki Executive Officer, Dr Eiichi Harada, said: “Kawasaki is a world leader in the production, storage, shipping and handling of liquid hydrogen. In order to contribute to securing a stable energy supply and the preservation of the global environment, Kawasaki is excited to enter into a relationship and business partnership with Fortescue and Iwatani for the establishment of the Global LH2 Consortium.”

Iwatani Board Member, Manabu Tsuyoshi, said: “Iwatani is the number one hydrogen supplier and only liquefied hydrogen supplier in Japan. Since we started in the hydrogen business in 1941, we have built a nationwide hydrogen network from manufacturing to transportation, storage, supply and safety. In order to expand our hydrogen supply capabilities and to develop new business models, Iwatani is pleased to partner with Fortescue and Kawasaki to establish future global hydrogen supply chains.”

Kawasaki and Iwatani are also involved in the Hydrogen Energy Supply Chain project at Port Hastings, which is looking at the feasibility of turning brown coal from the Latrobe Valley, in Victoria, Australia, into hydrogen for liquefaction and export to Japan.