Tag Archives: Fortescue

SRG Global’s Bugarrba Aboriginal JV to carry out scaffold service work at Iron Bridge

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

SRG Global Ltd says its Aboriginal Joint Venture, Bugarrba, has been awarded a five-year term contract with Iron Bridge Operations in the Pilbara of Western Australia.

The five-year term contract with Iron Bridge, an unincorporated joint venture between Fortescue Metals Group (Fortescue) subsidiary FMG Iron Bridge and Formosa Steel IB, is a master agreement for maintenance and shutdown services to provide engineered scaffold services across
its new magnetite project in Western Australia.

The contract, valued at circa-A$40 million ($26 million) is expected to commence early in 2023.

Bugarrba is a joint venture with members of the Njamal People and SRG Global. The traditional land of the Njamal people covers 42,000 sq.km within the Pilbara, with its name meaning ‘Country’ in the Njamal language. Bugarrba’s vision is to provide meaningful and sustainable employment opportunities to its people and Aboriginal people more broadly.

Terry Wilson, Bugarrba Board Member, said: “Bugarrba are excited to secure another important contract for the Njamal people and are looking forward to working with Iron Bridge Operations located on the traditional lands of the Njamal people.”

David Macgeorge, SRG Global Managing Director, added: “SRG is tremendously proud of our Bugarrba joint venture, seeing its continued success and contribution to Aboriginal people, and working with Iron Bridge Operations, on what is such an innovative project for Western Australia.”

The Iron Bridge project is set to deliver 22 Mt/y of high-grade magnetite concentrate product, with first production scheduled for the upcoming March quarter.

Thiess targets WA hard-rock mining sector expansion with MACA offer

Automation, Base metals, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron ore, , , , , , , , ,

Thiess looks like gaining further market share in the key hard-rock mining market of Western Australia after having a bid accepted for fellow mining contractor MACA.

The all-cash offer to acquire 100% of the shares of the company at A$1.0251/share represents a 42.2% premium to the MACA one month volume weighted average price as of July 25, 2022.

MACA’s Board has unanimously recommended that its shareholders accept the offer in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the offer is favourable to MACA shareholders.

Thiess says it intends to operate MACA in materially the same manner supported by MACA’s workforce, brand and assets, and to continue its highly regarded community partnerships.

The proposed acquisition of MACA by the Thiess is consistent with its diversification strategy, with a particular emphasis on increasing its presence within metals and minerals hard-rock mining operations in Western Australia, it says.

To this point, the company’s Western Australian hard-rock mining exposure has consisted mostly of work with BHP’s Western Australian nickel assets, in addition to a recent contract award at the Covalent Lithium Joint Venture project.

MACA has exposure to the state’s iron ore sector thanks to contracts with Fortescue and BHP; the burgeoning gold segment through contracts with Regis Resources, Ramelius Resources, Capricorn Metals and Red 5; and nickel and lithium exposure from the Ravensthorpe mine and Pilgangoora project, respectively.

Thiess also said in its Bidder Statement that it sees “a significant opportunity to combine the operational capability of both companies to continue enhancing service quality, particularly in relation to technical solutions such as deploying autonomous machinery or reducing the carbon emissions of mining services on project sites”.

Back in March, MACA announced a partnership with SafeAI to form an MoU to retrofit a mixed fleet of 100 mining trucks across multiple locations with autonomous mining technologies.

Michael Wright, Executive Chair and Chief Executive Officer of Thiess, said: “We believe our offer is an attractive opportunity for MACA shareholders as it provides certainty of cash, a strong premium and an ability to achieve liquidity for their entire MACA shareholding. We are pleased to have the support of the MACA Board for our Offer.

“The proposed acquisition of MACA is an important part of Thiess’ strategy to diversify its operations across commodities, services and geographies. Thiess has a high regard for MACA’s service quality, and we believe our industry experience positions us well to enhance MACA’s value proposition to clients and employees. We recognise and intend to maintain and grow MACA’s strong brand and presence in the Western Australian market. Thiess also looks forward to supporting MACA to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.”

Wabtec to provide Fortescue locomotives with another 20 years of life

Equipment maintenance, Mining equipment, Mining services, Steel and iron ore, , , , , , ,

Wabtec Corporation has announced an agreement to modernise locomotives for Fortescue Metals Group, representing Wabtec’s delivery of the first fleet of modernised locomotives for an Australia-based customer.

The fleet will be transformed into AC44C6M locomotives to meet the performance requirements of Fortescue while delivering operational and environmental efficiencies, it explained.

“While we have completed more than 1,000 modernisations for customers globally, it’s a first for Australia and demonstrates Fortescue’s commitment to drive more sustainable rail operations,” Wendy McMillan, Senior Regional Vice President, South East Asia, Australia and New Zealand, said.

“By repurposing and rebuilding our locomotives, we give these heavy-haul trains another 20 years of life, while reducing the fuel consumption and maintenance, and repair and overhaul expenses by up to 20%. For Fortescue, the modernised trains will deliver up to a 55% increase in tractive effort and more than 40% increase in reliability.”

The modernised locomotives will benefit from improved performance and increased reliability with new features including a UX engine, new electrical cabinets, a new design high-efficiency radiator and radiator cab, an upgraded control system to remove obsolescence, and AC traction with individual axle control, Wabtec explained.

General Manager Hedland Operations, Mark Komene, said: “The procurement of the modernised locomotives is an important element of Fortescue’s locomotive fleet strategy. This newly modernised fleet will enable substantial long-term capital and operating costs savings, provide the latest traction and control technology, and enable future upgrades to alternative energy sources such as battery electric in support of Fortescue’s industry-leading target to be carbon neutral by 2030.”

The new AC44C6M locomotives will be rebuilt at Wabtec’s Fort Worth facility in Texas, USA, before making the journey to Western Australia over the next two years for deployment at Fortescue’s mining operations.

Wabtec’s modernisation program is a key component of the company’s effort to advance a circular economy. It updates ageing locomotives with customised solutions that range from simple changes including control system upgrades to complex restorations, such as the comprehensive transformation of an aged DC locomotive into an AC locomotive outfitted with state-of-the-art digital technology.

Fortescue, meanwhile, has progressively been looking to decarbonise its locomotive fleet, making plans to purchase two new battery-electric locomotives from Progress Rail, a Caterpillar Company, to transport its iron ore to port in Western Australia. This comes on top of trials at Fortescue Future Industries development facility in Western Australia of a locomotive operating solely on green ammonia and other green renewable fuels and technologies.

Schlam delivers 1,500th Hercules dump body in Australia

Coal technology, Mine operation news, Mining equipment, Steel and iron ore, , , , , , , , , ,

Schlam has now reached the milestone of manufacturing its 1,500th Hercules dump body in Australia, with the dump body in question delivered to Glencore’s Mt Owen complex in the Hunter Valley of New South Wales.

Now in its 14th incarnation, the Schlam Hercules has become the dump body of choice for many of the most significant Tier 1 operators, OEM truck builders and mining contractors in Australia, Schlam says.

Schlam Chief Executive Officer, Matt Thomas, said it was a team effort to reach this milestone.

“Our manufacturing division – Schlam Payload Solutions – is filled with some of the most dedicated and hardworking individuals I’ve ever met. And, when they work together, anything is possible.

“The pandemic and supply chain concerns have pressured our team, however, they have managed these challenges superbly while maintaining our commitment to quality and customer service.”

The first Hercules was manufactured in Australia in 2003, and it took 17 years to reach the 1,000th milestone. It took the company just 22 months to then reach the 1,500th mark.

Thomas says that long-term national supply contracts with BHP, Fortescue, Glencore, Northern Star Resources, Newmont and other significant miners mean that the Hercules is set to continue along this upward growth path.

“We are creating efficiencies in our manufacturing processes through robotics, automation and ‘LEAN thinking’ to support this growth while maintaining quality,” he said.

“We’re also growing our sales and aftersales teams, ensuring that customer service is exceptional at every step of their experience with Schlam. We pride ourselves on following our products into the field and believe this has been a critical element in our growth.

“I thank the whole team – no matter where they work in the company – for helping us reach this milestone, and I look forward to many more to come.”

Fortescue making plans to test ‘green’ locomotives at rail operations in 2022

Environmental, Mine operation news, Mineral project development, Power supply for mines, Steel and iron ore, Sustainable mining, , , , , , ,

The decarbonisation of Fortescue Metals Group’s (Fortescue) locomotive fleet is ramping up with the arrival of two additional locomotives at Fortescue Future Industries’ (FFI) research and development facility in Perth, Western Australia.

The two four-stroke locomotives will undergo further testing on the new fuel system, joining the first two-stroke locomotive which underwent testing earlier this year.

Fortescue Chief Executive Officer, Elizabeth Gaines, said the arrival of the additional locomotives allowed FFI’s Green Team to expand their development as they focus on delivering a locomotive operating solely on green ammonia and other green renewable fuels and technologies.

“This is part of Fortescue’s ambitious target to be carbon neutral by 2030 for Scope 1 and 2 emissions,” she said. “Our target is underpinned by a pathway to decarbonisation as we focus on investing in renewable energy and eliminating the use of diesel across our mining fleets. Fortescue’s fleet of locomotives is a critical element in decarbonising our operations and, through FFI, we are investing in cutting-edge technologies to power the green mining fleet of the future.”

FFI’s Green Team have been trialling technology in hydrogen, ammonia and battery power for trains, ship engines, haul trucks and drill rigs.

Earlier this year, the team achieved the successful combustion of blended ammonia fuel in a two-stroke locomotive, marking a significant milestone in Fortescue delivering on its decarbonisation targets.

FFI Chief Executive Officer, Julie Shuttleworth, said: “FFI is a key enabler of Fortescue’s decarbonisation strategy, and it is pleasing to see such rapid progress being made by our Green Team. We are investing in research and development to transform Fortescue’s trains, trucks and ships on the road, rail and sea with zero pollution fuels as soon as possible.”

Planning is underway to deploy a demonstration locomotive in Fortescue’s rail operations in 2022.

JSW, BBURG HD2500RC drill rig impresses at Fortescue’s Solomon iron ore mine

Automation, Mineral exploration, Mining equipment, Mining services, Steel and iron ore, , , , , , , , , , , , ,

JSW Australia’s ambition to leverage the latest drilling and automation technology is coming to fruition with the deployment of a new high powered, small footprint drill rig to Fortescue Metals Group’s Solomon iron ore mine in the Pilbara of Western Australia.

The planned arrival of the HD2500RC was announced around a year ago.

Leveraging IDAT (Intelligent Drilling Applications & Technology) technology, developed by German manufacturer BBURG and customised in conjunction with IDAT, the rig underwent site commissioning in July and its initial production performance to date has been impressive, according to JSW.

The HD2500RC was designed especially for the challenging terrain at Solomon where the preparation of drill pads is difficult and expensive, the company says.

“With JSW’s years of experience on-site and first-hand knowledge of the challenges, along with IDAT’s technology expertise and BBURG’s engineering capability, we had a powerful collaboration for the development of the new rig,” JSW CEO, Warren Fair, says.

He said overall the rig was proving to be more productive, safer and quieter than the existing technology on site.

The HD2500RC joins other new technologies in JSW’s fleet including the Equus green drills developed specifically for bauxite mines and new drilling technology for magnetite mines being developed by IDAT in partnership with German manufacturer Bauer.

Fair concluded: “IDAT brings the technology, JSW brings the operational know-how. So far, it’s proving to be a winning formula.”

Fortescue puts first tonnes through Eliwana iron ore processing facility

Comminution of minerals, Mine operation news, Mineral project development, Steel and iron ore, , , , , , , ,

Fortescue Metals Group is celebrating first ore through the ore processing facility at its Eliwana mine and rail project in the Pilbara of Western Australia.

Fortescue Chief Executive Officer, Elizabeth Gaines, and Deputy Chairman, Mark Barnaba, celebrated the official event on site at Eliwana with Bill Johnston, Western Australia Minister for Mines and Petroleum; Energy; Industrial Relations, representatives of Fortescue’s native title partners, the Puutu Kunti Kurrama and Pinikura People, and members of the Fortescue Board of Directors and the core leadership team.

Gaines said: “Eliwana is the next important stage of development of Fortescue’s world-class, integrated operations. Exploration commenced in this area in 2006, and we have now delivered a new 30 Mt per annum dry ore processing facility and infrastructure, along with 143 km of rail which is in the final stages of construction.

“Eliwana will see us maintain our low-cost status and provide us with greater flexibility across our product mix. Construction of the mine, village and infrastructure was completed safely over a 12-month period, in line with budget and schedule.”

Eliwana will help Fortescue maintain its overall production rate of a minimum 170 Mt/y over 20 years, the company has said.

RDG subsidiaries win A$26 million of work from Fortescue, Tianye SXO Gold Mining

Mine operation news, Mining services, Precious metals, Steel and iron ore, , , , , , , , , ,

Resource Development Group’s wholly-owned subsidiary, Central Systems Pty Ltd, is to design and construct an overpass at Fortescue Metals Group’s Cloudbreak mine site as part of an agreement with the miner’s Chichester Metals subsidiary.

The overpass is due for completion in late November, RDG said.

Cloudbreak is one of two mines (Christmas Creek being the other) within the Chichester Hub in the Chichester Ranges of Western Australia. The hub has an annual production capacity of 100 Mt/y of iron ore from three ore processing facilities (OPF).

Cloudbreak also hosts a 5 km relocatable conveyor (pictured), which includes two semi-mobile primary crushing stations and feeds directly into the Cloudbreak OPF.

Separately, RDG’s 80%‐owned subsidiary, Crushing Service Solutions, has been awarded a crushing and screening services contract with Tianye SXO Gold Mining Pty Ltd to provide these services in order to feed the Minjar gold plant near Southern Cross in Western Australia.

This contract will have a duration of approximately 12 months, RDG said.

The aggregate amount of these contract awards is A$26 million ($17.9 million), according to RDG.

Fortescue aims for net zero operational emissions by 2040

Environmental, Mine operation news, Mining services, Power supply for mines, Sustainable mining, , , , , , , , ,

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

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

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

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

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

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

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

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

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

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

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

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

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

FMG backs Western Australia Aboriginal businesses in latest contract awards

Bulk handling, Equipment maintenance, Mine operation news, Mining equipment, Mining services, Steel and iron ore, , , ,

Fortescue Metals Group has awarded more than A$6 million ($4.4 million) worth of contracts to two Western Australia Aboriginal businesses, as part of the iron ore company’s Billion Opportunities programme.

Aboriginal-Noongar owned business Kooya Australia Fleet Solutions, Australia’s largest indigenous fleet management and rental company, has been awarded a three-year contract for the supply of light and commercial leased vehicles across Fortescue’s operational sites, while majority owned Aboriginal business Thuroona Services has been given a contract for maintenance work at Fortescue’s rail operations.

Since the inception of Fortescue’s Billion Opportunities in 2011, 270 contracts and sub-contracts valued at A$2 billion have been awarded to 110 Aboriginal-owned business and joint ventures, Fortescue said.

Fortescue Chief Financial Officer Ian Wells said the contracts signified the company’s continued commitment to supporting local content as part of its procurement process.

“By partnering with Aboriginal businesses to build their capability and capacity, we are opening the doors to future work with other organisations which is fundamental to their economic sustainability and prosperity,” he said.