Tag Archives: freight

BHP to cut iron ore freight emissions with world first LNG-fuelled bulk carrier contract

Bulk handling, Environmental, Mining services, Steel and iron ore, Sustainable mining, , , , , , , , ,

BHP has awarded what it says is the world’s first LNG-fuelled Newcastlemax bulk carrier tender, with the aim of reducing greenhouse gas emissions by more than 30% per voyage.

Eastern Pacific Shipping (EPS) has been awarded the five-year time charter contract for five 209,000 DWT LNG-fuelled Newcastlemax bulk carriers to carry iron ore between Western Australia and China from 2022, BHP said. The LNG bunkering supply contract is expected to be awarded in October.

BHP Chief Commercial Officer, Vandita Pant, said the LNG-fuelled vessels would virtually eliminate SOx (sulphur oxide) emissions and significantly reduce CO2 and NOx (nitrogen oxide) emissions.

“As one of the largest dry bulk charterers in the world, BHP recognises the role we play in working with our suppliers and customers to drive actionable reductions in GHG emissions across the maritime supply chain,” Pant said.

“The tender marks a progressive shift for BHP and the broader mining and shipping industry and is a significant step toward lowering GHG emissions in the 1.5 billion tonne iron ore seaborne market.

“We expect the introduction of LNG-fuelled vessels will result in more than 30% lower CO2-e emissions on a per voyage basis compared to conventional fuel along the Western Australia to China route.”

BHP released the LNG-fuelled bulk carrier tender in July 2019 and says it completed a rigorous due diligence process to identify and short list tenderers. Safety, technical and economic factors, as well as a clear demonstration to make a sustainable positive change for the industry, were among the criteria.

Pant said EPS offered a competitive bid and an efficient vessel design with superior fuel efficiency and GHG emissions reductions. The EPS management team displayed a significant alignment of values with BHP, she added.

Pant said: “The LNG bunkering time charter contract, with a total cost of ownership less than a conventionally fuelled Newcastlemax, will enable BHP to manage the fuel supply risk, build LNG operations capability internally and capture operating expenditure benefits through optimisation of voyage operations and fuel utilisation.

“As an established provider of marine transportation to the energy market for 60 years, EPS shares BHP’s commitment to lowering emissions in the maritime supply chain and we look forward to working with them to align with the GHG goals of the International Maritime Organisation (IMO).”

EPS CEO, Cyril Ducau, said: “With aligned values and sustainability agendas, we are thrilled to work with BHP on this project. BHP’s commitment to making a positive change for the industry resonated with our decarbonisation mission and our culture of environmental protection. When these vessels deliver in 2022, they will be the cleanest and most efficient in the entire dry bulk shipping fleet and will be IMO 2030 compliant, eight years ahead of schedule.”

TNG signs up Genesee & Wyoming Australia for Mount Peake freight job

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

TNG Ltd says it has entered into a binding heads of agreement (HoA) with Genesee & Wyoming Australia (GWA), the third-largest rail operator in Australia, for the provision of rail haulage services for its flagship, 100%-owned Mount Peake vanadium-titanium-iron project, in the Northern Territory.

Genesee & Wyoming is a global railroad owner and operator with extensive experience in the transport of bulk commodities for the resources industry, and is the majority owner of the rail line to Darwin that runs approximately 1,100 km from the Mount Peake mine site, according to TNG.

Rail haulage will underpin the logistics chain transporting the magnetite concentrate to be produced by the proposed beneficiation plant at the Mount Peake mine site to the proposed TIVAN® processing facility in Darwin, where TNG intends to produce high-purity vanadium pentoxide, titanium pigment and iron ore fines.

The scope of services includes the loading of magnetite concentrate onto rail at the Adnera rail siding (proposed to be located 85 km from the mine site), rail haulage from Adnera to the TIVAN facility, in Darwin, on the Tarcoola-to-Darwin rail line, and the unloading of magnetite concentrate at the TIVAN facility.

GWA will also load and transport TNG’s final products from the TIVAN facility to the Darwin Port, providing all necessary rail transport plant and equipment, including locomotives, wagons, crew vans and fuelling equipment.

“Following execution of the HoA, TNG and GWA will work together on an exclusive basis, and commit the necessary resources, to develop an optimised rail haulage strategy for Mount Peake, and negotiate and finalise a rail haulage agreement,” TNG said.

TNG’s Managing Director and CEO, Paul Burton, said: “GWA’s presence and expertise in logistics and transportation further strengthens TNG’s global network of high-quality partners assigned for the development and operation of Mount Peake.” This includes the likes of McMahon Services and SMS Group.

An updated definitive feasibility study on Mount Peake from 2017 envisaged pre-production capex of A$853 million ($617 million) for a 3 Mt/y project ramping up to 6 Mt/y in year five. This would see 24.3 Mt of magnetic concentrate turned into 10.6 Mt iron oxide and 243,000 t of vanadium oxide.

Pacific National signs up Matrix to help increase freight load capacity

Bulk handling, Energy minerals, Mining services, Steel and iron ore, , ,

ASX-listed Matrix Composites & Engineering Ltd has agreed to build four prototype transport systems that could significantly increase the freight load capacity of bulk transportation, according to the company’s CEO Aaron Begley.

The A$2.4 million ($1.8 million) contract, for the largest combined rail freight company in Australia, Pacific National, will see Matrix use composite materials that have lightweight, rigid and fabrication advantages over traditional steel materials.

It follows on from a January letter of intent between the two companies that originally envisaged a $2 million contract for up to 10 prototype systems.

Pacific National has expertise in coal, in particular, with nearly 6,000 specialised coal wagons, 600 locomotives and 10,000 people in teams throughout Australia.

Matrix will start manufacturing the prototypes at its Henderson facility in Western Australia, with the initial stage expected to be completed in the second half of 2019. A second stage to manufacture 110 units is also planned, subject to a successful functional commercialisation assessment of the prototypes.

Begley said the contract is suited to Matrix’s expertise: “This contract is perfectly in line with our strategy to combine Matrix’s proven capabilities in advanced materials, with our state of the art composite manufacturing facility to develop lightweight composite structures for the large and growing transportation market here in Australia and overseas.”

Under the contract, Matrix has been awarded a 20-year licence to market the product to other potential customers in Australia and to extend this internationally.

The company said other opportunities for lightweight transportation structures are also being pursued with discussions having commenced with major bulk transport and freight transport companies for fleet upgrades.