Tag Archives: Fortescue Metals Group

NRW Holdings wins bulk earthworks assignment from Iron Bridge project partners

Mineral project development, Mining services, Steel and iron ore, , , , , , ,

NRW Holdings is about to mobilise a team to carry out bulk earthworks at Fortescue Metals’ majority-owned Iron Bridge magnetite project in Western Australia.

The contractor confirmed it had received a notice of award for the bulk earthworks assignment from the Iron Bridge joint venture (between FMG subsidiary FMG Iron Bridge and Formosa Steel IB) and, while the award remained subject to finalisation, it had been directed to commence mobilisation.

The $2.6 billion Iron Bridge project will see the development of a new magnetite mine (including processing and transport facilities) and associated infrastructure. It will support production of 22 Mt/y (wet) of high grade (67% Fe), magnetite concentrate product, according to the partners. Production is expected by mid-2022. The Iron Bridge site comprises the North Star, Eastern Limb, Glacier Valley and West Star magnetite iron ore deposits and is 145 km south of Port Hedland.

The contract scope for NRW includes the bulk earthworks and drainage for roads, processing plant and infrastructure for the new mine site development. The contract value is around A$70 million ($47 million) and is expected to have a duration of around 45 weeks, NRW said. At its peak, there will be some 200 site based personnel required for the project.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is pleased to be involved in this exciting new project with Fortescue and looks forward to its successful execution.”

Fortescue continues to invest in power options for Iron Bridge development

Environmental, Mineral project development, Power supply for mines, Steel and iron ore, , , , , , , , ,

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.

NRW receives BGC contract win at FMG’s Eliwana project

Mineral project development, Mining equipment, Mining services, Steel and iron ore, , , , , , ,

NRW Holdings’ newly acquired BGC Contracting business has been awarded an infrastructure contract with Fortescue Metals Group at its Eliwana iron ore mine and rail project, in the Pilbara region of Western Australia.

The new contract, which came just two weeks after NRW announced the completion of the BGC acquisition, will support the development of 143 km of rail for the Eliwana project, according to the contractor.

The scope includes the construction of circa-65 km of rail formation, including earthworks, roadworks, drainage works and construction of bridges and pre-cast structures. The contract is valued at close to A$138 million ($96 million) with mobilisation expected to commence soon (completion is scheduled for late 2020). At its peak, the project will employ an expected workforce of 400, utilising over 140 pieces of major plant in the process.

Jules Pemberton, NRW’s CEO and Managing Director, said: “Following the successful acquisition of the BGC Contracting business, NRW’s operational delivery capabilities in the Pilbara are further enhanced, through the addition of the highly skilled BGC workforce into the group, together with the strong technical skillset to safely and successfully deliver the large bridges and concrete structures required on the project.”

In addition to the building of 143 km of rail, Eliwana will include a 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.

JSW Australia enlists help of BBurg for customised drill rig development

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Drill contractor JSW Australia says it has formed a strategic alliance with German drill rig manufacturer BBurg to develop customised drill rigs specifically suited to local conditions.

The partnership with BBurg also supports the ongoing evolution of the JSW fleet, the company said.

The first product of the new alliance is the HD2500RC, a leading technology rig developed to tackle challenging terrain at the Fortescue Metals Group Solomon Hub site in the Pilbara of Western Australia (pictured), JSW said. The first rig is expected to be deployed on site early next year with a second planned for delivery later in the first half of 2020.

JSW CEO, Jeff Branson, said: “The terrain at Solomon makes the preparation of drill pads difficult and expensive, which created an opportunity for a high powered, small footprint drill rig. With many years of experience working at the Solomon site and having experienced the challenges posed by the terrain, we shared ideas and concepts with BBurg, which provided the foundation for the development of the new rig.”

Branson added: “BBurg’s knowledge and experience in the development of top hammer and down-the-hole machines for mining applications has enabled us to custom-build a rig that is ideally suited to the site conditions, and we are excited about putting it to work on site.”

The HD2500RC has the following key features:

  • Low footprint with width of 3.5 m;
  • High power with capacity to push 32.3 cu.m/min of air at 500 psi down the hole;
  • Rod handler to increase productivity and improve safety;
  • 330 m of rod capacity on board; and
  • Full wireless remote control.

The alliance with BBurg is part of a broader JSW strategy to ensure that its fleet is continually upgraded and improved to meet the changing needs of the market, the company said.

“BBurg’s customer-driven engineering approach, which tailors rigs to specific applications, resonated with us as it supports our ability to provide customised drilling services to our clients,” he said.

“The HD2500RC is the first of several new rigs that we will be introducing in the near future.

“Our fleet is reviewed and upgraded regularly, and we are excited about the new rigs that will be added, making the latest technology available to our clients and supporting the achievement of their objectives.”

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.

FMG enlists Pentium Hydro for more boring at Pilbara iron ore ops

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Vysarn’s wholly owned subsidiary, Pentium Hydro, has won further work with Fortescue Metals Group following an initial order for the iron ore miner’s Chichester operations in the Pilbara of Western Australia.

The two companies have entered into an agreement for hydrogeological borefield drilling and construction services for both the Chichester and Solomon operations.

The contract will see Pentium pocket estimated revenue, based on the initial scope of work, of A$13.3 million ($9 million) for a two-year fixed scope contract with a one-year extension option.

The scope of work as defined under the contract is to provide the drilling and installation of production, injection and monitoring bores to support mining and exploration activities across multiple locations, within the Pilbara region. As defined in the contract these sites are inclusive of Cloudbreak, Christmas Creek, Solomon and Eliwana.

Pentium completed the mobilisation of the first Dual Rotary (DR) drill rig and associated auxiliary plant at Chichester in October 2019 under a previously agreed initial purchase order from FMG.

Pentium anticipates the mobilisation of the second DR rig under the new contract during the month of January.

It said: “Revenue from these works is based on contract key performance indicators for the number of production and monitoring bores and is also subject to metres drilled and drill rates.”

In addition to this work with FMG, Pentium Hydro also has rigs and equipment out at BHP’s Olympic Dam mine, Roy Hill’s iron ore operation and AngloGold Ashanti/Independence Group’s Tropicana gold mine.

FMG’s Wallace warns miners of cyber security risks amid data rush

Automation, IoT, Mining equipment, Mining events, Mining services, Steel and iron ore, , , , ,

Gathering data presents enormous opportunities but also significant challenges, according to Fortescue Metals Group’s Head of Cyber Security, Mark Wallace.

Addressing delegates at the 6th International Mining and References Conference in Melbourne, Wallace said much of the industry is sitting on a “gold mine of data”, labelling it “the new strategic asset we need to focus our time on”.

Wallace said the iron ore miner is well positioned as a digital leader, describing the enormous data pulled from its fleet of 200 autonomous haul trucks as an example.

“Each truck has 250 sensors, generating about 91 billion events a month across our fleet. That works out to about 40 TB of data that we have to store, process, pull out the useful bits that we actually want to use and then work out how we’re going to retain this sort of information and control the quality over time,” Wallace said.

That data is already being used to incentivise equipment manufacturers, improve productivity and track performance across its assets, according to Wallace, but he told delegates the company is always looking for new ways to realise its value.

“We’ve found that there’s a new language across our business…Digital twins, robotics, AI, all these words are now spread across our organisation. And there really is a growing understanding across teams that they are now really reliant on data. The value of data has become really, really central.”

But the risks, Wallace said, are ever present, especially as the proliferation of electronic devices continues on its path of rapid growth.

He said the days of simply securing precious information behind a firewall are long gone and the widespread use of tablets, mobile phones, cloud technology and third-party contractors has blurred the lines when it comes to setting up security perimeters.

“The big issue from a mining point of view is what happens if one of these IoT devices actually goes rogue? How do we actually trust the data that is coming off those IoT devices?” Wallace said.

“How do we know that some rogue entity hasn’t just put that IoT sensor out there and is providing you with false information with the intention of damaging your plant or some sort of fraud that’s related to it.”

At the World Economic Forum earlier this year, cyber security-related issues were listed in the top three risks of doing business globally.

Wallace warned Australian companies are under constant threat, with attacks coming from a broader range of sources.

“We are seeing in Australia that there is a real focus in targeting critical infrastructure. These risks are real and we need to keep them in mind,” he said.

“There’s certainly a lot more hacktivists who are trying to disrupt our business. There is nation state-type attack and there’s a lot of financially motivated attacks.”

In closing, Wallace advised that when it comes to preserving its digital assets, the industry should focus on the crown jewels.

“We’ve got hundreds of different data assets that we use for different purposes but which of these assets is actually really important?” he said.

“Identify the crown jewels and focus most of your effort in those areas.

“Most companies that I talk to have 10 cyber incidents every month that they respond to so it’s not a matter of if but when. To respond to that, the real skill here is building resilience – so building that muscle memory within the organisation so that when something does happen, you can minimise the damage and move right along. “

Downer to power up FMG and Alinta’s Chichester Solar Gas Hybrid project

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Downer is to help turn Fortescue Metals Group’s Chichester Hub iron ore operations into a solar power leader following the award of circa-A$165 million ($113 million) in contracts by Alinta Energy.

These agreements will see the company build Alinta’s 60 MW Chichester solar farm and supporting power infrastructure in the Pilbara region in the north of Western Australia as part of the Chichester Solar Gas Hybrid project, which FMG announced details of last week. It is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG.

The project will see the construction of a new solar photovoltaic generation facility at Chichester Hub iron, as well as a circa-60-km transmission line linking Fortescue’s Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and 35 MW battery facility.

Work awarded includes the engineering, procurement and construction of the Chichester solar farm, around 60 km of transmission line, two new substations and the upgrade of another, Downer said.

Grant Fenn, CEO of Downer, said the award is another endorsement of Downer’s experience and leadership in delivering renewable energy projects.

“We are looking forward to delivering the project in partnership with Alinta Energy and we are expecting an efficient integration of the solar farm and supporting power infrastructure into Alinta Energy’s existing network in the Pilbara,” Fenn said.

Downer is one of Australia’s largest and most experienced providers in the renewable energy market and power systems sectors, according to the company, delivering services to customers requiring both utility and commercial scale sustainable energy solutions.

The project is expected to be completed in the first half of 2021, Downer said.

FMG to lead from the front in Pilbara renewable energy pursuit

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Fortescue Metals Group (FMG) has signed an agreement with Alinta Energy that will see up to 100% of daytime stationary energy requirements at its Chichester Hub iron ore operations, in the Pilbara of Western Australia, powered by renewable energy.

The Chichester Solar Gas Hybrid project will see the construction of a 60 MW solar photovoltaic generation facility at the Chichester Hub, comprising Fortescue’s Christmas Creek and Cloudbreak iron ore mining operations.

In addition, an approximately 60-km transmission line linking the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and a 35 MW battery facility will be constructed, with completion due mid-2021.

FMG said: “Once completed, up to 100% of daytime stationary energy requirements at the Chichester Hub will be provided by solar generation, with the remaining power requirements to be met through the integrated battery storage and gas power station facilities.”

The project is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Reliable and competitive energy generation remains an important consideration for the mining sector in Western Australia and as a significant consumer of energy, we continue to identify opportunities that have the potential to lower our costs while also improving our carbon footprint.

“This landmark project is a first on this scale for the Pilbara and will reduce carbon emissions from stationary generation by around 40% at Fortescue’s Christmas Creek and Cloudbreak mining operations, while driving long-term sustainable cost reductions to maintain Fortescue’s global cost leadership position.”

Gaines added that the agreement with Alinta Energy represented a further step in the creation of Fortescue’s Pilbara Energy Connect project, which builds on the company’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 to develop and commercialise hydrogen technologies.

As part of the agreement, FMG will invest an estimated $250 million in energy transmission infrastructure to complete the integration of Fortescue’s iron ore operations in the Pilbara into an efficient energy network.

Alinta Energy Managing Director and Chief Executive Officer, Jeff Dimery, said: “We’d like to thank Fortescue and our Chichester Hub project partners for helping to make the company’s long-held vision for a cleaner and more connected energy supply for the Pilbara a reality.

“There’s a lot to be proud of in this project. Working together, we are on the cusp of demonstrating that renewables can drive Australia’s economic powerhouses forward–even for remote and complex industrial applications.”

Alinta Energy will receive federal funding of A$24.2 million ($16.5 million) from the Australian Renewable Energy Agency (ARENA) and A$90 million from the Northern Australia Infrastructure Facility (NAIF), upon satisfaction of standard conditions.

The NAIF loan remains subject to ratification from the Western Australian Government.

NAIF Chief Executive Officer, Laurie Walker said: “NAIF’s A$90 million loan for this project will help provide low emission renewable energy generation for large off-grid customers and paves the way towards the creation of a more interconnected regional energy grid in the Pilbara.

“The project innovatively combines solar and gas fired power to compensate for the variability of solar sourced energy. This investment by NAIF offers the opportunity to make a long-term difference to the Pilbara.”

ARENA Chief Executive Officer, Darren Miller, said: “The project could unlock further investment in renewable energy in the mining sector and other remote and energy intensive operations.

“Alinta’s project will demonstrate how renewable energy solutions can deliver critical energy requirements for major mining operations and help reduce emissions. This will also show how interconnection of loads and different generation and storage -including solar, gas and battery storage -can provide secure and reliable electricity.”

MACA on the road again at Iron Bridge magnetite project

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MACA says it has been awarded a bulk earthworks contract at the Iron Bridge magnetite project, a joint venture development in the Pilbara of Western Australia between Fortescue Metals and Formosa Steel IB.

The contract is for access roads and infrastructure at the $2.6 billion project, 145 km south of Port Hedland.

MACA said this work is expected to generate revenue of A$26 million ($17.6 million) for the company, with the scope including general earthworks for camp expansion, construction of 26 km of mine access road, construction of the explosive facility and access road, and a further 23 km of road upgrade works.

MACA, which has already started work on the contract, becomes the latest mining equipment, technology and services contract to find work at Iron Bridge, which is expected to deliver 22 Mt/y of high-grade 67% Fe concentrate production following start up in 2022.

Just last month, Weir Minerals was awarded its largest ever individual mining order from the project.