Tag Archives: Fortescue Metals

Fortescue-ChristmasCreek

Fortescue Board approves ‘green pit to product’ hydrogen-based iron ore project

Fortescue Metals Group has approved an investment of up $50 million to construct a Green Iron Trial Commercial Plant at Christmas Creek, with annual production of more than 1,500 t.

The plant, in Western Australia, will use the existing green hydrogen infrastructure at Christmas Creek to lower the overall capital requirement and demonstrate a green pit to product supply chain, the company said. Construction will commence following a work program and is subject to receiving the relevant approvals. First production of green iron is targeted in 2025.

The pilot’s technology options will support both magnetite and hematite ores, with Fortescue recognising the importance of taking steps to support the reduction of its Scope 3 emissions.

Fortescue said: “The project represents a significant milestone in Fortescue’s green iron journey, where the company has been examining various hydrogen-based pathways to produce green iron, while also developing a low-temperature, electrochemical process at its Perth R&D facility.”

The term “green iron”, in this instance, refers to the end product resulting from processing iron ore into iron, without the use of fossil fuels, and instead using renewable energy.

Alongside this investment, the company also confirmed two other green energy projects – namely an 80 MW electrolyser and liquefaction facility in Arizona able to produce up to 11,000 t/y of liquid green hydrogen (the Phoenix Hydrogen Hub) and a 50MW green hydrogen project using Fortescue’s own electrolyser technology (the Gladstone PEM50 project).

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

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

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

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

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

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

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

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

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

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

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

Decmil captures NPI contract at Iron Bridge Magnetite project

Decmil Group says it has been awarded a circa-A$41 million ($30 million) contract to undertake non-mining process infrastructure works at the Iron Bridge Magnetite project in the Pilbara region of Western Australia.

Construction is scheduled to commence in September 2020 and be completed by May 2021.

Under the scope of works, Decmil will design and construct a bulk fuel storage and transfer facility, a mobile maintenance complex, including workshops, warehouses and related satellite office and site services facilities.

The bulk fuel storage and transfer facility will provide a refuelling facility for heavy vehicles, while the mobile maintenance complex includes a heavy vehicle workshop that incorporates locker storage, tool storage and an administration area, Decmil said.

The $2.6 billion Iron Bridge Magnetite project, owned by Fortescue Metals Group subsidiary FMG Iron Bridge Ltd and Formosa Steel IB, is expected to see a new magnetite mine developed to support production of 22 Mt/y of high grade concentrate, according to Fortescue. First concentrate is expected to be produced by mid-2022.

Decmil’s agreement is the latest in a stream of contracts the JV has issued recently, including the award of a wet processing plant build to CPB Contractors, a civils contract awarded to Civmec to build the structural concrete components for the dry plant at the project, and PROK’s contract for the design, manufacture and supply of conveyor pulleys at Iron Bridge.

Decmil CEO, Dickie Dique, said the company was delighted to secure works at one of Australia’s most significant mining projects.

“Crucially, this award at such a major project enhances our credentials to potentially secure more work in a resurgent iron ore and magnetite sector,” Dique said.

Fortescue to evaluate green hydropower opportunities in PNG

Fortescue Metals Group’s Fortescue Future Industries Pty Ltd has signed an agreement with the Papua New Guinea Government and wholly-owned corporation, Kumul Consolidated Holdings Ltd (KCH), that could lead to the development of PNG’s hydropower resources to support ‘green’ industrial operations.

Under the deed, the parties will promptly investigate the feasibility of these green projects for both domestic and export markets, a move Fortescue says is consistent with its record of delivering both capital growth and yield to its shareholders while sharing the benefits of sustainable development and employment with local communities.

KCH is the entity which holds in trust, the Papua New Guinea government’s non-petroleum and non-mining assets.

“Fortescue Future Industries shares Fortescue’s commitment to a green industry future and will work closely with local people and communities to establish training and long-term careers,” the company said. “This is fully aligned with Fortescue’s approach from its inception that the communities in which we operate will benefit from our growth and development.”

Subject to the completion of feasibility studies and approvals, individual projects will be developed by Fortescue Future Industries with ownership and project finance sources to be separately secured without recourse to Fortescue, the company explained.

“Execution of studies and approach to capital investment will be consistent with Fortescue’s track record of developing multi-billion dollar projects in the Pilbara, at an industry leading capital intensity,” it added.

(Pictured above is the Warangoi Hydropower Station in East New Britain, PNG, operated by PNG Power)

Anglo, BHP, FMG and Hatch back green hydrogen developments

Anglo American, BHP, Fortescue Metals and Hatch say they have formed a Green Hydrogen Consortium to look at ways of using green sources of hydrogen to accelerate decarbonisation within their operations globally.

Primarily, the consortium aims to collectively help to eliminate the obstacles to the adoption of green hydrogen technologies and encourage innovative application, they said.

“The goal is to identify opportunities to develop green hydrogen technologies for the resources sector and other heavy industries, and provide a mechanism for suppliers and operators to contribute to and engage with these development activities,” the four firms said.

The member companies of the Green Hydrogen Consortium stated that they are technology agnostic and are considering a range of options to progress decarbonisation of their operational greenhouse gas emissions, according to a fact sheet issued by the consortium.

“Given the range of applications for green hydrogen and the cost challenges associated with it, the consortium was formed to work together to seek to de-risk its application and enable acceleration of cost reductions,” the partners said. The consortium is expected to be in place for three years.

While Anglo American is currently developing the world’s largest hydrogen-powered mine haul truck for testing at the Mogalakwena platinum group metals site, in South Africa, Fortescue already has a partnership in place with CSIRO, Australia’s national science agency, on the development of hydrogen technologies.

Some of the proposed activities of the consortium include undertaking research, technology and supply chain development, and piloting green hydrogen technologies to seek to de-risk and accelerate the technologies, the partners said.

“The companies involved in the consortium are committed to reducing their respective operational greenhouse gas emissions and to working collaboratively with others – including customers and suppliers – to find technological or other innovative solutions for the emissions associated with the use of their products and in their supply chains,” they said.

Hatch, the lone engineering company in the consortium, has been appointed as the Project Management and Governance Facilitator of the consortium.

Fortescue completes tug fleet and towage infrastructure at Herb Elliott Port

Fortescue Metals Group has celebrated the completion of its fleet of tugs and towage infrastructure at the company’s Herb Elliott Port, in Port Hedland, Western Australia.

Founder and Chairman, Andrew Forrest (pictured on the left), together with Chief Executive Officer, Elizabeth Gaines (pictured on the right), and the core leadership team, were joined by local politicians and members of the Port Hedland community to celebrate the milestone ahead of tug operations commencing in July.

Fortescue has procured and constructed six tugs and leased a further three tugs, including six Advanced Rotor Tugs 85-32W, which were constructed by Damen Shipyards at the Song Cam and Damen Song Cam shipyards, in Vietnam, it said. The tugs will be based at the new nine berth tug and harbour facility, located in the vicinity of Fortescue’s berths one to three at Anderson Point.

Forrest said: “As Australia’s economic and industrial gateway to Asia, the port of Port Hedland is the largest bulk export port in the world. It is an economic powerhouse of our country generating countless jobs and businesses directly across the nation and supporting the standard of living of us all.

“Since Fortescue was founded, we have set ourselves the toughest stretch targets we could. We aimed to develop the world’s most advanced vertically integrated bulk operations infrastructure, and to seamlessly link this with our core exploration, metallurgical and mining operations.

“Our aim was to develop an integrated world leading system to deliver critical ores that would build the economies of nations. The strategic decisions made by the Board to build our fleet of ore carriers and Fortescue owned and operated towage capability mark the critical completion of this part of Fortescue’s journey.”

Gaines added: “Fortescue operates the most efficient bulk port operation in Australia and the towage fleet represents the final element in our supply chain, with our innovative new tug fleet able to provide safe and reliable towage services and additional towage capacity for all Port Hedland users. The tug fleet and new facilities will maximise the efficiencies of our operation and provide long-term sustainable towage services crucial to meeting the demands of our customers.

“I would like to thank the entire Fortescue team for their work to bring us to the point of operational readiness, as well as the Pilbara Ports Authority, Damen Song Cam Shipyard, who constructed the vessels, and KOTUG and Westug Pty Ltd, who will manage the towage operations.”

Mine automation starting to take hold, RFC Ambrian says

In its second report in a series on innovation and new technology in the mining industry, RFC Ambrian has tackled the subject of autonomous mining equipment, which, the authors say, has reached an “important level of maturity”.

The report considered both surface and underground equipment, but most notably surface mine haulage trucks where there has been an area of significant focus for major mining companies.

As the authors said: “This has reached an important level of maturity, although it is still evolving and its penetration across the industry is still in its infancy.”

AHS

The Autonomous Haulage Systems (AHS) have evolved from improvements in GPS for positioning and navigation, developments in sensors and detection –particularly radar and LiDAR, improved computing power and on-board monitoring, faster and more reliable networks and internet connection, and the development of effective and accurate algorithms and software, the authors said.

“AHS has appeared , first, at large mine operations where the benefits have the largest impacts, due to the high component of fixed costs in an AHS operation, and in developed countries where there is a shortage of skilled workers and labour costs are higher,” they said.

Outlining the potential benefits of AHS is straightforward, but finding hard data to support it is more difficult, according to the authors.

“Companies have made suggestions about the scale of improvement, but they are light on detail, definitions are not clear, and the data varies between companies,” the authors said.

Suggested improvements in productivity have come from Caterpillar (15-20%), Fortescue Metals Group (30%), Komatsu (15%), and Rio Tinto (15%), according to the authors.

“These improvements are still meaningful, and corporate companies would argue that every mine is different and that the mining companies and original equipment manufacturers (OEMs) that have so far implemented AHS have the right to guard this proprietary information and hold on to the competitive advantage,” the authors said.

Autonomy in other surface equipment

The authors said they are also now seeing this same technology used to automate other operations in the surface mine. This includes drill rigs, dozers, loaders and ancillary equipment.

“Much of this equipment is currently, at best, semi-autonomous, although a few mines have implemented fully-autonomous drill rigs and dozers,” they noted.

“Moving this equipment to full autonomy offers significant production improvements, although the scale of actual savings is not likely to be as great as those achieved with AHS,” the authors said.

“However, we have not yet seen quantified the downstream benefits of the resultant improved drilling and blasting.

“The automation of earth moving machines provides another step to increased productivity within the mine. However, loaders face additional challenges as a result of the variability of the loading face and the risk of collisions with the haulage trucks.”

Due to the complex nature of the bucket-media interaction, developing automatic loading functions that are better than or equal to expert manual drivers with regard to performance is a highly difficult task, according to the authors.

“As a result, fully-autonomous loading is not yet commercially available. Some observers suggest that the implementation of fully-autonomous surface loading is still some five years away, while others believe that full automation is unlikely.”

Underground mining

When it comes to underground mining, the authors of the report said, as with surface mining, full autonomy remains the goal.

“Mining companies and contractors are constantly looking to use technological developments to better utilise their investment in equipment and human resources and improve safety,” the authors said. “Particular features of traditional underground mines are: long unproductive periods caused by re-entry times required for operators after blasting; and higher health and safety risks due to geotechnical and environmental challenges.

“The use of autonomy underground aims to increase the productivity of the equipment and improve the safety of the operators.”

While the aims remain the same, full autonomy in the underground mine is not as advanced as in the surface mine, according to the authors.

“Haul trucks are used less frequently in underground mines, although a few mines are using haul trucks with AHS. More underground mines perform a short cycle of loading, hauling and dumping from a draw point to a tipping point with LHD equipment.

“Implementation of autonomous systems underground for LHDs is occurring, however, as with surface loading, one of the major hurdles to automating LHDs is replacing human judgement required for filling the bucket.”

This has seen full autonomy being used for the hauling and dumping cycle, but semi-autonomy usually used for loading, according to the authors. “Successful trials of fully- autonomous LHDs have been achieved and Sandvik i-series now offers an automated bucket filling assistant as a standard function,” they said.

Underground drilling operations, meanwhile, are achieving increased levels of autonomy but are also presently only semi-autonomous.

Robotic rail operations

The authors then looked at autonomous rail haulage systems, a segment of the market that has gained in prominence in the past few years thanks to initiatives such as Rio Tinto’s AutoHaul in the Pilbara of Western Australia.

The authors said: “There has been some form of automation on worldwide metro systems for many years, but one area where autonomous technology has yet to gain a foothold is rail freight. Trials are underway in Holland and Germany but implementing autonomous train driving on a complex rail network, with passenger trains and freight trains, is more difficult than on a metro system.”

The one exception to this is in the mining sector and AutoHaul, they said, where Rio has completed commissioning of the world’s first fully-autonomous, long distance, heavy-haul rail network which is now in full operation.

Pace of implementation

Despite the acclaimed success and the relative level of maturity of the technology, the wider implementation of AHS does not appear to be happening very fast, the authors argue.

“The systems of both the two main suppliers (Caterpillar and Komatsu) are well proven and have delivered positive results, although, according to consultants, both systems also have examples of less-than-expected performance.

“Nevertheless, the technical issues appear relatively minor and there is interest right across the industry but, in spite of the potentially significant benefits, more mines are not now using AHS.”

There are a number of likely reasons for this, the authors said, explaining that one of the most important is a lack of skilled personnel.

“We believe there is a lack of in-depth knowledge of the technology and limited personnel with the requisite experience, skills, and training throughout the industry’s hierarchy,” they said.

“Further, there is a shortage of skilled autonomous operators, developers, and consultants, some of who are moving to the autonomous auto market.”

Important factors in the success of AHS appear to be the level of management commitment, planning, and focus in the implementation, with the best results reported from well-operated mining sites, the authors said.

“Another factor is likely to be limitations on equipment supply from OEMs for new equipment and truck conversions, either due to manufacturing backlogs or maybe market caution, limiting investment. This is allowing the OEMs to be more selective in their customers.”

The authors cautioned: “However, if the existing suppliers do not develop additional capacity quick enough this could create opportunities for additional entrants in to the market.”

Capital availability in the mining industry could also be an issue holding back AHS advancement, they said, although it is less tight than it has been in recent years.

“Certainly, some lower-margin operations might struggle to finance the capital, although the uplift in relative profitability could be transformational, with relatively quick paybacks,” they said.
And the historical conservatism of the mining industry is also likely to be a factor, the authors said.

“There is still a natural reluctance within the industry to adopt new or unproven technology due to the high capital cost involved and the potential operational and reputational risks involved.

“This will be compounded if the organisation has limited experience and limited access to the technology.”

You can read the full report here.