Tag Archives: Iron ore

MACA signs three-year extension with CITIC Pacific at Cape Preston

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MACA Ltd says it has finalised the hire and maintenance contract for CITIC Pacific Mining Management at the Cape Preston Sino Iron magnetite project, 100 km southwest of Karratha in the Pilbara region of Western Australia.

The contract is expected to generate A$200 million ($152 million) in revenue for MACA over a 36-month term commencing in April. MACA’s work-in-hand position as of February 2021 is A$3.4 billion, the company said.

MACA CEO, Mike Sutton, said: “MACA is very pleased to continue working with CITIC Pacific Mining at the Sino Iron magnetite project, and we value the long-standing relationships we have with our clients at this pioneering mega project.

The current CPM contract was novated from Downer to MACA, following the acquisition of the Mining West business, and it’s pleasing to have now secured this three-year extension.”

In February, MACA completed the acquisition of Downer’s Mining West business, bringing with it four contracts at long-life mining assets in Western Australia, including the Cape Preston agreement.

John Holland on track at Fortescue’s Eliwana iron ore project

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Infrastructure and rail company, John Holland, says it has achieved a major milestone at the Eliwana Mine and Rail project by successfully laying the final piece of 143 km of heavy haul rail track in Western Australia’s Pilbara region.

The track works are part of a A$130 million ($90 million) contract with Fortescue Metals Group, which will also see an extension to the existing signalling and train control systems and a traffic capacity upgrade to communication infrastructure.

When completed, the greenfield project will connect the new Eliwana iron ore mine to the existing Fortescue Hammersley Line.

The John Holland team will now focus on final destressing works for 130 km of the track, siding extension works, final grinding and correction. Final ballasting and tamping work for about 60 km of the track is on schedule. All remaining track works are to be completed by June 2021, the company said. The signalling and communication works are well ahead of schedule to be delivered by the end of 2021, it added.

John Holland Rail Delivery Manager, John Ma, said the team had worked hard to ensure the project progressed despite weather and access challenges throughout the course of construction.

“The safe unloading of the last long weld rail off the final rail train on the Eliwana project was a significant moment for us,” he said. “It’s a huge undertaking – more than 240,000 sleepers were laid as well as 400,000 t of ballast dropped with more than 12,000 welds joining the tracks together.

“Working in a remote and often volatile environment has its challenges, but I am proud that the team were able to demonstrate our capability to manage complex logistics and high-production welding facilities while enabling efficient project delivery.”

Remaining track work is scheduled to be completed by late June, while signalling construction will be complete by the end of August. Testing and integration of the track will be finalised in December.

Around 90 km west of Tom Price, the Eliwana mine celebrated the production of its first ore in December 2020. At full capacity, the mine will produce 30 Mt/y.

HYBRIT partners choose Gällivare for fossil-free sponge iron demonstration plant

Comminution of minerals, Environmental, Metallurgy, Mineral processing, Mineral project development, Mining policy, Power supply for mines, Steel and iron ore, Sustainable mining, , , , , , , , , , , , , , ,

SSAB, LKAB and Vattenfall say they are taking a new, decisive leap forward in their work on HYBRIT, with the trio selecting Gällivare, in northern Sweden, as the location of the first production plant for its fossil-free sponge iron exercise.

Industrialisation is intended to start with the first demonstration plant, which will be ready in 2026, for the production of 1.3 Mt of fossil-free sponge iron in Gällivare. The demonstration plant will be integrated with iron pellet making and is part of LKAB’s transition plan.

The goal is to expand sponge iron production to a full industrial scale of 2.7 Mt by 2030 to be able to supply SSAB, among others, with feedstock for fossil-free steel. The choice of Gällivare for the demo plant was based on a joint assessment of industrial synergies, where proximity to iron ore, logistics, an electricity supply and energy optimisation were important factors, the companies said.

There are many advantages to locating the new sponge iron plant in Gällivare, which is also near LKAB’s mining production and processing plants. Using iron ore pellets that are already warm in the process will save huge amounts of energy, according to the companies. On top of this, 30% of weight will be eliminated from transport since hydrogen gas will be used to remove the oxygen in the iron ore. Gällivare also offers good access to fossil-free electricity from Vattenfall.

Martin Lindqvist, President and CEO at SSAB (centre), said: “We are world leaders in the work to transform the steel industry and are now stepping up the pace. We are doing this for the climate, customers, competitiveness and for employment. That we are now raising ambitions for a completely fossil-free value chain is unique and a message of strength from SSAB and our HYBRIT partners. We are seeing a clear increase in demand for fossil-free steel and it is right to speed up our ground-breaking cooperation.”

Jan Moström, President and CEO at LKAB (left), said the companies are leading the transformation of the iron and steel industry.

“The whole process starts with top quality iron ore in the mine and our transition plan gives strong economies of scale that pave the way for the competitive production of fossil-free steel by our customers,” he said. “This is the greatest thing we can do together for the climate. Once we are ready, we will reduce the global emissions of our customers by 35 Mt a year, which is equivalent to triple the effect of parking all passenger cars in Sweden for good.”

At the same time as announcing the Gällivare demo plant, SSAB and LKAB have agreed to deepen their partnership to create the “most effective fossil-free steel value chain from mine to steel, to customer”, they said.

“We will support and enable each other’s transformation, with Vattenfall an enabler of the huge need for electricity and hydrogen gas,” they said. “On the back of an acceleration of HYBRIT, together with LKAB’s strategy and deeper partnership, SSAB will now explore the prerequisites to convert to fossil-free steel production in Luleå faster than planned.”

The plan to convert its Oxelösund steel works in 2025 remains unchanged, as does its goal to be the first to market, in 2026, with fossil-free steel, SSAB clarified.

Anna Borg (right), President and CEO at Vattenfall, added: “Sweden and HYBRIT have a world-leading position in making fossil-free iron- and steelmaking a reality and the initiative will now be further scaled up. That fossil-free electricity and ground-breaking processes will in principle help to eliminate climate-affecting emissions completely from iron- and steelmaking is a flagship example of Vattenfall’s strategy to enable a fossil-free life within a generation. It is now extra important that the permit processes can deliver at the same pace as fossil-free steelmaking.”

Hybrit Development AB, which is owned by SSAB, LKAB and Vattenfall, is developing the technology to make steel using hydrogen gas instead of coal, which will minimise climate harmful carbon dioxide emissions from production. The HYBRIT pilot plant will be able to make fossil-free sponge iron to make fossil-free steel for prototypes to customers already in 2021.

The partners claim the initiative has the potential to reduce carbon dioxide emissions by 10% in Sweden and 7% in Finland, as well as contribute to cutting steel industry emissions in Europe and globally.

MinRes delivers first ore at Wonmunna iron ore project

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Less than five months after breaking ground at the Wonmunna iron ore project in Western Australia, Mineral Resources Ltd has delivered first ore.

The Wonmunna operation, 80 km northwest of Newman and 360 km south of Port Hedland, was purchased from the Australian Aboriginal Mining Corporation (AAMC) in September 2020. In line with the undisclosed terms of the transaction, AAMC shareholders will receive a royalty in respect of the first 40 Mt extracted and removed from the area.

The project is set to ramp-up to its nameplate capacity of 5 Mt/y in the June quarter of 2021, but MinRes says there is potential to expand Wonmunna’s output to the designed capacity of 10 Mt/y upon the successful grant of additional approvals, at little extra capital costs.

Ore from the project will be used to underpin MinRes’ Utah Point Hub iron ore blend, which includes tonnes from its Iron Valley site. The addition of Wonmunna will help boost output from the Utah point export facility towards 14 Mt/y by the end of the December 2021 quarter, it says.

“Wonmunna’s rapid and safe development is testimony to the MRL team’s ability to deliver what others thought impossible,” the company said. “This is a great outcome not just for MRL but also for AAMC’s shareholders, who will shortly receive their first royalty cheque from Wonmunna, and the people of Western Australia as the project has created 500 jobs across the mine site and transport network.”

Fortescue rewards Monadelphous and Pentium Hydro with more Pilbara work

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Fortescue Metals Group has handed out new work to Monadelphous Group and Pentium Hydro at its iron ore operations in the Pilbara of Western Australia.

Engineering company Monadelphous has secured a new five-year crane services contract, valued at around A$150 million ($117 million), with the miner.

The contract is for the provision of crane services supporting general repairs, maintenance and shutdown activities at Fortescue’s Solomon (pictured) and Eliwana operations.

Monadelphous has provided crane services to Fortescue’s Solomon operations since 2017 and, last year, expanded those services to Fortescue’s Eliwana operations.

Vysarn Ltd subsidiary Pentium Hydro, meanwhile, advises that it has amended, via a Deed of Amendment, the agreement for hydrogeological borefield drilling and construction services with Fortescue’s wholly owned Chichester Metals Pty Ltd and FMG Solomon Pty Ltd subsidiaries, previously announced in November 2019.

This amendment will see the term of its contract increased to 36 months, with the option of a two-year extension exercisable by Fortescue. The scope of work has also been amended to include the provision of dual tube flooded reverse drilling services, with an additional drill rig expected to be deployed by April.

At the same time, the companies have amended the revenue model for the contract.

Revenue from works in the original contract was based on key performance indicators for a number of production and monitoring bores and was subject to metres drilled and drill rates. Revenue from works will now be based on a combination of day rates and a schedule of hourly rates, Vysarn said.

Komatsu HD1500-8 haul trucks reach new heights for MinRes’ Iron Valley mine

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Mineral Resources Limited (MRL) has looked to speed up the cycle time from the pit to the crusher at its Iron Valley mine site in the Pilbara of Western Australia by integrating a fleet of Komatsu HD1500-8 haul trucks into the iron ore operation.

The time taken to haul ore from the pit floor to MRL’s locally developed crusher has been found to make a significant difference in the efficiency of the mine’s operation, and in its environmental footprint.

MRL’s technological point of difference has helped solidify its position as a leading mining services company, with EBITDA from this business coming in at more than A$300 million ($235 million) in its 2020 financial year.

In addition to its mining services business, Mineral Resources has its own mining operations, providing a great research and development platform. At the Iron Valley mine site, the 1.6 km climb from the pit floor to the crushing facility and return was the test ground for this new Komatsu equipment.

According to MRL, the cycle time with existing dump trucks was 23.84 minutes, but a new faster machine could complete the journey in 21.63 minutes – a 9.2% improvement.

Significantly, the newly available vehicle also increased payload by 10 t (the trucks come with a rated payload of 142 t), enabling MRL to complete its entire process with the need for one less vehicle in its fleet.

“Following the success of the HD1500-8, MRL placed a milestone order for 10 of our machines,” Komatsu Sales Person, Jason Lambert, said.

The first of Komatsu’s HD1500s went into service with MRL towards the end of 2020, and the remaining nine are scheduled to be road freighted from Perth this quarter.

“From a miner’s perspective, cost is a major determinant – capital cost, life cycle cost and productivity,” Lambert said. “In this instance, there was a consistent theme of 10% improvement – in purchase cost, payload and operating efficiency – an additional 10 t, 10% faster and 10% cheaper.

“But increasingly, there’s also the consideration of health and safety.”

The Komatsu HD1500-8’s Collision Awareness System, incorporating eight on board radars and six cameras combined by one algorithm into a 360° overhead view of surrounding conditions, was a major boon to operators, according to Komatsu.

In-cabin ergonomics including specific cooling systems, low vibration operation and noise attenuation pegged at 72 db met contemporary operator expectations, too.

The operator also had the option of dialling down fuel use in a range from 90 litres per hour, to 80 l/h to achieve a full two shifts of operation between refuelling.

“The pit depth at Iron Valley is 160 m, and it’s a 10% gradient from the pit floor to the top of the pit with another 900 m from the top of the pit to the crusher,” Lambert said. “The HD1500-8 climbs at 13 km/h, achieves 60 km/h on the flat and descends at 22 km/h. The operator can alter the fuel use according to gradient and also the load for the return trip to the floor.

“It’s as if the HD1500-8 has been purpose built for the mine and, in many respects, that is the case.

“Increasingly we’re capable of working with each specific operator to fine tune our machine to their exact requirements.”

Fe Ltd and Big Yellow make plans to mine JWD iron ore project

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Fe Limited says it has executed a letter of intent (LOI) with Big Yellow that could see the emerging company become the mining contractor for the JWD iron ore project in the Pilbara of Western Australia.

A full form contract is targeted to be completed within the next 30 days, subject to receipt of necessary environmental approvals and logistic contracts. This LOI, the company says, will enable Big Yellow to allocate the necessary mining fleet and people to the FEL project.

Big Yellow is a new contractor founded by mining executives Brad Gordon (former CEO of Acacia and Intrepid), David Edwards and Mitch Wallace (both ex MACA).

“FEL believes that Big Yellow’s combination of experienced personnel looking to replicate their past success in a new entity is a good fit with FEL’s own aspirations to do the same and looks forward to continuing to work together,” it said.

Following the LOI being executed by both parties, discussions have commenced on works that can be commenced in advance of final environmental approvals being received.

The approvals received to date allow certain clearing and preparatory works to occur at JWD, along with refurbishment of the existing office facilities on site. These early works will allow a faster ramp-up of operations once the remaining approvals and key contracts are secured, FEL claims.

FEL says it has revisited the JWD geological model and mine plan, with opportunities identified for a reduction in the strip ratio and an improved average iron ore head grade. If successfully implemented, this would have a positive impact on its margins through reduced mining costs and improved pricing as a result of higher-grade products than initially expected, it said.

FEL Executive Chairman, Tony Sage, said: “With mining at Wiluna close to commencing, we are pleased to have advised Big Yellow of our intention to appoint them as our mining contractor. We are well advanced with the final approvals and other key contracts and would anticipate being able to update shareholders on these shortly.”

In September, FEL acquired a 51% interest (including operatorship) in the Gold Valley Iron Ore Mining Rights Agreement over the Wiluna West JWD deposit. The JWD project is part of the wider Wiluna West project, owned by GWR Group. It came with a 10.7 Mt resource grading 63.7% Fe using a 55% Fe cutoff.

FEL classes the project as a low capex, direct shipping ore development, which will produce a high-grade (resource average circa-63.7% Fe), low impurity iron ore. A January 2021 presentation claimed the mining and transport of the first 300,000 t of iron ore is required by September under the iron rights agreement.

SIMPEC awarded significant Cloudbreak crusher contract from Fortescue

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SIMPEC’s relationship with Fortescue Metals Group continues to strengthen, with the engineering contractor set to replace two Metso Outotec Nordberg® C160 jaw crushers at the miner’s Cloudbreak iron ore operation in the Pilbara of Western Australia.

The WestStar Industrial Ltd subsidiary’s new contract for the Hopper 5 Jaw Crusher Replacement project is the first win directly from Fortescue but is far from the first time the company has stepped on site at one of its mines. SIMPEC has previously carried out work on its operations after being subcontracted by the likes of Central Systems, Energy Power Systems, ATCO and others.

The scope of the jaw crusher contract includes removal of all structural and mechanical items required to access the jaw crushers, followed by reinstatement on completion of the change out. It also includes maintenance works and modifications to the existing Hopper 5 hoppers, chutes and screens, SIMPEC said.

Worth A$2.1 million ($1.6 million), the vertical contract has commenced immediately, with works expected to be completed in April.

SIMPEC Managing Director, Mark Dimasi, said: “It has been a long-term goal of SIMPEC to work directly for Fortescue and to break into the field of sustaining capital works. By building our sustaining capital portfolio, SIMPEC aims to achieve a more stable cash flow as well as provide continuity for our workforce.

“This is a very proud moment for the team, and we look forward to successful completion of this project and what we hope will be a long-term relationship with Fortescue.”

Bauer drives Tippler upgrade project at Saldanha iron ore terminal

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Bauer Geared Motors, a business division of Hudaco Trading Ltd, has been awarded a contract to deliver a total drive solution that includes five large sized 750 kW industrial gearboxes and two 185 kW units for the Tippler upgrade project at the Saldanha Iron Ore export terminal in South Africa.

Weighing up to 15 t each, the 750 kW gearboxes are the largest machines ever supplied by Bauer.

Bauer says it has been a market leader in electric drives since 1984, initially specialising in geared motors. The Hudaco power transmission division later diversified, expanding its portfolio to include industrial gearboxes and transmission solutions.

It joined the Hudaco group in 2002 and, in the same year, became a supplier to Saldanha providing slew and bucketwheel drives. Bauer upgraded these drives after 10 years of operation and, in 2020, supplied a third slew drive with planetary gearboxes, and an overland conveyor.

When Derek Gilmore joined Bauer as Managing Director – Drives and Motors, in June 2019, the Tippler upgrade project for Saldanha Iron Ore port fell under his auspices. He explained that the company responsible for overseeing the project favoured a total solutions supply chain through a single sourced provider.

“The fact that Hudaco is a listed supplier to the Saldanha Port operation paved the way for Bauer, as part of the Hudaco group, to put in a bid on the drive requirements for this project,” he said.

Bauer proved compliance on design and all critical criteria as specified by the main consulting house.

The full scope of supply from Bauer includes industrial gearboxes, medium-voltage electric motors, drive base plates, high- and low-speed couplings, brakes, actuators, parts and spares as well as condition monitoring.

“We will also be responsible for torque arm and complete drive assembly,” Gilmore added.

“Our industrial gearboxes are manufactured by India-based OEM, Elecon Engineering Company Ltd, one of the largest manufacturers of industrial gear units in Asia,” he said. These gearboxes boast a service factor of more than two and 100,000 hours design life, according to the company.

The 750 kW gearboxes, two parallel drive systems and three parallel and tandem drives, will be installed on a sacrificial conveyor and a 283 m long overland conveyor, respectively. The 185 kW units will drive an adjustable shuttle conveyor.

Compliant with necessary and important thermal criteria, the 750 kW gearboxes are equipped with a cooling and forced lubrication system with dual oil pumps, one serving as a backup unit. Gilmore explains that, in addition to machine longevity, this system is also a safety feature, keeping the drive temperature to below a safe-touch of 70°C.

Bauer will also be responsible for providing the condition monitoring sensors to facilitate remote monitoring of the gearboxes, including motor speed and motor windings temperatures, brake wear and temperatures, oil levels and flow pressures, as well as bearing wear and vibrations.

“Early detection allows for a planned shutdown to do the necessary maintenance, thereby avoiding critical failure and costly downtime,” Gilmore noted.

He said Bauer is also supplying large 710 mm diameter hydraulic disk brakes for the sacrificial and shuttle conveyors in collaboration with supply partner, Magnet Service Binder.

Fortescue fast-tracks carbon neutrality aim, sets plan to trial hydrogen-powered drills

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Fortescue Metals Group is accelerating its carbon neutrality efforts, with the iron ore miner now expecting to achieve this ‘green’ milestone by 2030, 10 years earlier than its previous target.

Fortescue Future Industries (FFI), a wholly owned subsidiary of Fortescue, will be a key enabler of this target through the development of green electricity, green hydrogen and green ammonia projects in Australia, however, the company has also identified battery-electric technology as a potential diesel alternative game changer.

Dr Andrew Forrest, Chairman of Fortescue Metals Group, said: “We have joined the global battle to defeat climate change. We are trialling and demonstrating green hydrogen technologies in global-scale commercial environments, while also rapidly evolving into a green hydrogen and electricity producer of similar scale.”

In line with its 2030 aim, Fortescue, through FFI and its operations team, is undertaking to deliver several key projects by the stretch target of June 30, 2021. This, the company says, will underpin its pathway to decarbonisation.

These projects include:

  • Developing a ship design powered by green ammonia and trialling that design in new ammonia engine technology, at scale;
  • Testing large battery technology in its haul trucks – a project the company is pursuing with the help of Williams Advanced Engineering;
  • Trialling hydrogen fuel cell power for its drill rigs;
  • Trialling technology on its locomotives to run on green ammonia; and
  • Conducting trials to use renewable energy in the Pilbara of Western Australia to convert iron ore to “green iron” at low temperatures, without coal.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Each of these projects will contribute to the world’s inexorable march to carbon neutrality. Fortescue will establish that the major steel, truck, train, ship and mobile plant industries can be operated with renewable, environmentally friendly energy. This will be possible as a result of these ground-breaking Fortescue trials. Each will be tested by Fortescue using commercial-scale equipment to prove that the demand for direct green electricity, green hydrogen and green ammonia could one day be as large as the fossil fuel industry.”

She added: “These projects are in addition to Fortescue’s significant investment with our partners into energy infrastructure, including the Chichester Solar Gas Hybrid Project and Pilbara Energy Connect program.”

Forrest said the company’s commitment to demonstrate green hydrogen’s economic value in world-scale operations, and become a major energy exporter, means Fortescue will emerge as an “executor” of major green hydrogen projects.

He said the company’s green energy and industry initiatives may one day out-scale its iron ore business due to the global demand for renewable energy, but Fortescue’s commitment to iron ore and resources globally “remains indefeasible”.

Fortescue says it is seeking to move from being a major consumer of fossil fuel with a current trajectory of more than 1 billion litres a year of diesel being used across the operations if no remedial action is taken – to a major clean and renewable energy exporter.

FFI is advancing projects across Australia, including Tasmania, to build large-scale renewable energy and green hydrogen production capacity. This will expedite the substitution of green hydrogen and green ammonia for carbon-based fuels, it says. These projects will, with the support of Australia’s governments, contribute to a significant reduction in national carbon emissions.