Tag Archives: Iron ore

Fortescue puts first tonnes through Eliwana iron ore processing facility

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.

Roy Hill backs interoperability developments with ERDi TestLab membership

Iron ore miner Roy Hill has become the latest member of the University of Western Australia’s (UWA) Energy & Resources Digital Interoperability Industry 4.0 (ERDi i4.0) TestLab.

Roy Hill is committed to the development of interoperability within the resources industry and recently appointed Michael Waller to a new role – Interoperability Manager – to lead the company’s strategy and engagement, according to the TestLab.

In the few short weeks since Michael’s appointment, Roy Hill’s interoperability approach has progressed at a rapid rate, with Waller spearheading the establishment of a collaborative interoperability project within the TestLab, it added.

This new project will be sponsored by ERDi TestLab founding partner METS Ignited, and centres around interoperability in the mobile equipment execution management and control technology space across both manual and automated equipment, it said.

“We are thrilled to be working with Roy Hill and the other participants on this exciting project, more details of which will be announced soon,” it added.

Roy Hill’s interoperability streak was made clear earlier this year when it signed an agreement with Epiroc and ASI Mining to deliver a fully automated solution for the iron ore mining operation’s mixed fleet of 77 haul trucks.

Other companies to recently sign up to the TestLab include Trevali, RPMGlobal and ABB.

Weir adds aftermarket and service contract to Iron Bridge remit

The Weir Group says it has won a £95 million ($127 million) order to provide aftermarket components and service to the Iron Bridge magnetite project in Western Australia.

The aftermarket contract follows Weir’s success in winning a record £100 million order for original equipment for the Iron Bridge project in 2019, including its Enduron® High Pressure Grinding Rolls (HPGRs, pictured) that, it says, will enable dry processing of ore and use at least 30% less energy than traditional alternatives.

The Iron Bridge magnetite project is a $2.6 billion joint venture between Fortescue Metals Group’s subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd located in the Pilbara region, around 145 km south of Port Hedland.

Both the aftermarket order and revenues will be recognised over the seven-year period of the agreement, which starts in 2022, in line with the 22 Mt/y project’s initial production.

Ricardo Garib, President of Weir Minerals, said: “This is another landmark order for Weir. Having helped design an energy and water efficient magnetite processing plant, we are delighted to provide operational support for Iron Bridge from 2022. It is an excellent example of the value that Weir’s innovative engineering and close customer support can create for all our stakeholders and reflects the key role we have to play in making mining operations more sustainable and efficient.”

Weir’s Enduron HPGRs are increasingly replacing conventional mills in comminution circuits, Weir says. In addition to their energy and water savings, they also reduce grinding media consumption, while their wearable components last longer, reducing maintenance costs. Additionally, HPGRs contribute significantly to carbon dioxide emission savings.

Stuart Hayton, Managing Director of Weir Minerals Netherlands, where the Enduron HPGRs are designed and manufactured, said: “This is an important project for Weir and for the broader mining industry. We know comminution is one of the most energy intensive parts of the mineral process and, with our Enduron HPGRs, we have a unique ability to offer significant cost, energy and water savings to customers around the world. As the mining industry evolves, we are commited to continuing to innovate, reducing miners’ costs and environmental impact.”

This latest contract award means Weir now has more than £200 million of orders from the Iron Bridge project including its Enduron HPGRs, GEHO® and Warman® pumps, Cavex® hydrocyclones and Isogate® valves.

To support the project and future growth, Weir says it will build a new service centre in Port Hedland, Western Australia, thereby providing employment and training opportunities in the area, with a particular emphasis on supporting greater Aboriginal representation in the broader mining workforce.

LKAB plots carbon-free pathway with direct reduced iron switch

LKAB has presented its new strategy for the future, setting out a path to achieve net-zero carbon emissions from its own processes and products by 2045, while securing the company’s operations with expanded mining beyond 2060.

Jan Moström, President and CEO of LKAB, said the plan represented the biggest transformation in the company’s 130-year history, and could end up being the largest industrial investment ever made in Sweden.

“It creates unique opportunities to reduce the world’s carbon emissions and for Swedish industry to take the lead in a necessary global transformation,” he said.

The strategy sets out three main tracks for the transformation:

  • New world standard for mining;
  • Sponge iron (direct reduced iron) produced using green hydrogen will in time replace iron ore pellets, opening the way for a fossil-free iron and steel industry; and
  • Extract critical minerals from mine waste: using fossil-free technology to extract strategically important earth elements and phosphorous for mineral fertiliser from today’s mine waste.

The transformation is expected to require extensive investments in the order of SEK10-20 billion ($1.2-2.3 billion) a year over a period of around 15 to 20 years within LKAB’s operations alone. The company said the new strategy was a response to market developments in the global iron and steel industry, “which is undergoing a technology shift”.

The move could cut annual carbon dioxide emissions from the company’s customers worldwide by 35 Mt, equivalent to two thirds of Sweden’s domestic greenhouse gas emissions, it said.

Developments under the HYBRIT project, in which SSAB, LKAB and Vattenfall are collaborating on a process to enable the reduction of steel from iron ore using hydrogen instead of carbon, will be keenly observed following the miner’s announcement.

On top of this collaboration, LKAB is working with Sandvik, ABB, Combitec, Epiroc and several other industry leaders to develop the technology that will enable the transition to fossil-free, autonomous mines, it said.

Moström added: “The market for iron and steel will grow and, at the same time, the global economy is shifting towards a carbon-free future. Our carbon-free products will play an important part in the production of railways, wind farms, electric vehicles and industrial machinery.

“We will go from being part of the problem to being an important part of the solution.”

The market for steel is forecasted to grow by 50% by 2050. This growth will be achieved by an increase in the upgrading of recycled scrap in electric arc furnaces, according to LKAB. Today, the iron and steel industry accounts for more than a quarter of industrial emissions and for 7% of the world’s total carbon dioxide in the atmosphere, according to an IEA report.

The company said: “The global market price for recycled scrap is now twice that of iron ore pellets. The carbon-free sponge iron that will in time replace iron ore pellets as LKAB’s main export product is suitable for arc furnaces, allowing the company to offer industries throughout the world access to carbon-free iron.”

Moström said the switch from iron ore pellets to carbon-free sponge iron was an important step forward in the value chain, increasing the value of its products at the same time as giving customers direct access to “carbon-free iron”.

“That’s good for the climate and good for our business,” he said. “This transformation will provide us with good opportunities to more than double our turnover by 2045.”

During the transformation period, LKAB will supply iron ore pellets in parallel with developing carbon-free sponge iron.

To reach the new strategy’s goals, rapid solutions must be found for various complex issues, according to the company. These include permits, energy requirements and better conditions for research, development and innovation within primary industry.

Moström said: “Our transformation will dramatically improve Europe’s ability to achieve its climate goals. By reducing emissions primarily from our export business, we will achieve a reduction in global emissions that is equivalent to two-thirds of all Sweden’s carbon emissions. That’s three times greater than the effect of abandoning all cars in Sweden for good.

“It’s the biggest thing we in Sweden can do for the climate.”

Göran Persson, Chairman of the Board of LKAB, said: “What Swedish industry is now doing, spearheaded by LKAB, is to respond to the threatening climate crisis with innovation and technological change. In doing so, we are helping to secure a future for coming generations. This will also create new jobs in the county of Norrbotten, which will become a hub in a green industrial transformation. Succeeding in this will create ripples for generations to come. Not just here, but far beyond our borders.

“Now we are doing, what everyone says must be done.”

SCEE to electrify Rio Tinto’s Gudai-Darri iron ore mine

Southern Cross Electrical Engineering is to perform plant electrical and instrumentation works at the Rio Tinto-owned Gudai-Darri (formerly known as Koodaideri) iron ore mine site in Western Australia as part of a contract valued at over A$65 million ($48 million).

The agreement will see SCEE mobilise to the Pilbara site in late 2020, with completion of work planned for December 2021.

SCEE Managing Director, Graeme Dunn, said: “We are pleased to secure this significant award with such a longstanding and valued client as Rio Tinto for whom we have undertaken many successful projects in the Pilbara. This further boosts our already strong order book and will provide a solid base of construction work in the resources sector into the 2022 financial year.”

Earlier this month, Rio opened Western Australia’s newest airport at the $2.6 billion Gudai-Darri Stage 1 iron ore project (see photo, credit: Rio Tinto). The greenfield mine development, around 35 km northwest of the Yandicoogina mine in the East Pilbara mining region, will initially be developed as a nominal 43 Mt/y high-grade, dry processing operation, with start-up expected in early 2022.

Monadelphous pockets more WA iron ore, nickel work with Rio and BHP

Engineering company Monadelphous Group says it has secured new construction and maintenance contracts with both Rio Tinto and BHP, with a combined value of around A$60 million ($44 million).

The company has been awarded three three-year master services contracts with Rio Tinto for the delivery of sustaining capital projects across various mine sites and port operations throughout the Pilbara region in Western Australia (stockyard machines at Rio’s West Angelas iron ore operation, pictured), it said.

This work includes structural, mechanical and piping, electrical, instrumentation and controls, and non-process infrastructure projects.

Monadelphous also secured a three-year contract, with a two-year extension option, with Rio Tinto to provide mechanical, electrical and access maintenance services for fixed plant shutdowns at Rio’s Gove alumina operations in the Northern Territory of Australia.

In addition, Monadelphous secured a 12-month extension to its existing mechanical and electrical maintenance, shutdown and project services contract across BHP’s Western Australian nickel operations.

Dynamic Drill and Blast to deploy rigs at iron ore, gold mines in Western Australia

Dynamic Drill and Blast Holdings says it has entered into a services contract with Pilbara Resources Group (PRG) and been selected as preferred supplier to Carey Mining, resulting in the delivery of work across two separate resource projects (gold and iron ore) in Western Australia.

The services contract with PRG relates to the provision of drilling and blasting services at GWR Group Ltd’s Wiluna West iron ore project, where PRG is also a contractor. It will see DDB provide services from November for Stage 1 of the C4 iron ore deposit, part of Wiluna West.

The C4 iron deposit is 1.4 km long and contains a combined DSO hematite, JORC 2004 mineral resource estimate of 21.6 Mt at 60.7% Fe, comprising 18.5 Mt at 61.2% Fe indicated and 3.1 Mt at 58% Fe inferred. DDB’s contract relates to around 1 Mt of the 21.6 Mt resource, it said.

DDB has also been selected as preferred supplier by Carey for the provision of drilling services at the AngloGold Ashanti-owned Golden Delicious deposit, part of the Sunrise Dam operation.

It is estimated DDB will provide services from late December 2020 for a period of around 24 months, with DDB and the contractor working towards execution of the final form drilling contract.

The combined revenue from both services contracts once executed is estimated to be A$9-11 million ($6.6-8.1 million) and will be based on a fixed and variable pricing structure, DDB said. It will see the recently listed ASX company use up to four drill rigs, as well as around 20 personnel and ancillary equipment to deliver the required services.

As well as the new projects, DDB has deployed equipment and personnel to additional short-term projects, it said.

DDB Managing Director, Mark Davis, said: “We are pleased to be diversifying our client base, adding two longer-term production projects, including one in the precious metals sector. These contracts complement our current operations, which include long-term mining projects and specialised civil works, which will support the sustainable growth of the business.”

ABB to deliver drives and motors to Fortescue’s Iron Bridge Magnetite project

ABB has won a $26 million order from Fortescue Metals Group to deliver water-cooled variable speed drives and high voltage induction motors to FMG’s majority-owned Iron Bridge Magnetite project in Western Australia.

The project, operated under an unincorporated joint venture between Fortescue subsidiary, FMG Magnetite Pty Ltd, and Formosa Steel IB, covers the development of a new magnetite mine, including processing and transport facilities. The $2.6 billion development is expected to produce 22 Mt/y (wet) of high grade, magnetite concentrate, with first ore in 2022.

As part of the project, the Iron Bridge Joint Venture required a cost-effective energy efficient variable speed drive solution, according to ABB. These drives, to be installed in eight switch rooms, operate with a separate transformer that is located outside the room. This reduces the heat generated inside, resulting in less energy required to maintain the 25°C room temperature.

ABB’s water-cooled drives also directly support a higher voltage 33 kV network, it said. “This eliminates the need for a lower voltage intermediate switchboard and additional components, which ultimately reduces the total cost of the project,” the company explained.

Iron Bridge also selected ABB high voltage induction motors to power high pressure grinding rolls, grinding mills and baghouse fans used to separate the ore from the dust at Iron Bridge. Engineered to withstand harsh conditions, the motors offer high power efficiency, but in a frame size smaller than competitive alternatives, it said.

Mike Briggs, Business Manager for ABB Motion, Australia, said: “We have worked closely with the Iron Bridge team to ensure that we delivered an energy efficient, reliable and innovative solution. We are especially pleased to have won both the drive and the motor business, and look forward to continuing our strong relationship with Fortescue beyond the delivery of this project and supporting them throughout the mine’s lifecycle.”

Anglo American to introduce LNG into iron ore chartering fleet

Anglo American has announced the award of a 10-year charter contract for four LNG fuelled capesize-plus vessels, introducing LNG into its chartered fleet for the first time.

The new build LNG vessels offer significant environmental benefits, including a circa-35% cut in CO2 emissions compared with standard marine fuel, while also using new technology to eliminate the release of unburnt methane, or so-called “methane slip”, the company said.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Anglo American is committed to reducing emissions from its ocean freight operations and to playing a leading role in shaping a more sustainable future for the maritime industry. Today’s agreement is aligned with Anglo American’s goal to be carbon neutral across our operations by 2040 – as we work to reduce emissions not only at our production sites but also along our entire value chain – and builds on our track record of implementing concrete actions to deliver on the targets set by the International Maritime Organisation’s 2018 strategy.

“LNG is a readily available, commercially viable, lower emission solution which, combined with innovative technology designed to eliminate unburnt methane, will allow these new builds to provide a much improved environmental and more efficient performance.”

LNG marine fuel offers significant environmental advantages over heavy fuel oil – the most widely used fuel by vessels operating along sea trade routes – and is abundantly available through an established global network of existing infrastructure, according to Anglo American. Compared with conventional fuel options, the use of LNG eliminates sulphur oxides, considerably reduces nitrogen oxides and particulate matter from vessel exhausts and, as mentioned, cuts CO2 emissions by around 35%.

Designed to be larger than, but remain as flexible as, a conventional capesize vessel, the new builds will optimise cargo transport by increasing load and improving overall cost effectiveness. U-Ming Marine Transport will own the newly designed 190,000 DWT LNG fuelled bulk carriers. The fleet will be built by Shanghai Waigaoqiao Shipbuilding in China and is expected to be delivered in 2023.

The fleet is expected to carry up to 5 Mt/y of product, transporting iron ore from Anglo American’s operations in Brazil and South Africa to the company’s global customer base. The new builds will be flagged and registered in Singapore, which will also serve as prime bunkering port, thereby avoiding deviations from trading routes for refuelling purposes, the company said.

Earlier in October, Anglo American was among the founding signatories of the Sea Cargo Charter – created by some of the world’s largest energy, agriculture, mining, and commodity trading companies, with the aim of establishing a standard methodology and reporting framework to allow charterers to measure and align their emissions from ocean transportation activities.

LKAB, Mitsui on board with Talga’s graphite anode journey in northern Sweden

Talga Resources, Mitsui and LKAB have signed a Letter of Intent (LoI) that could see the three jointly develop the Vittangi Anode project, in northern Sweden.

The LoI is a non-binding agreement between the parties whereby, after completing the detailed feasibility study on the project, expected March 2021, and due diligence, LKAB, Talga and Mitsui intend to negotiate a business agreement including ownership and investments in the project.

Talga is the 100% owner of the Vittangi graphite project and proprietary technology for anode battery production. Permit applications for the graphite mine were filed in May 2020.

The ASX-listed company is intent on establishing a European supply of sustainable, low-CO2 emission anode materials for lithium-ion batteries, using its 100% owned Swedish mineral assets and battery material technologies.

Building on the company’s vertically integrated business strategy, the development plan includes construction of a scalable lithium-ion battery anode production facility and integrated graphite mining operations in northern Sweden, with initial production capacity of 19,000 t/y coated anode from an annual ore mining rate of 100,000 t.

LKAB said growth within the industrial minerals market is a strategic activity for the company to reduce its dependence on the iron ore market, which today accounts for around 90% of external sales.

“There is also a clear sustainability-based rationale, coupled with the growth ambition, to recycle and upgrade by-products and waste streams,” the miner said. “Additionally, the growth will be accelerated through selected acquisitions and investments that offer synergies with LKAB’s market, operations and sustainability ambitions.”

Talga, with its proximity to LKAB’s existing mining operations in northern Sweden, may offer synergies with resources, skills and infrastructure, according to LKAB. “There are also potential commercial synergies with sales and distribution, including the developments in the ReeMAP project that will produce both phosphorus and rare earth elements through recycling mine waste.”