Tag Archives: Iron ore

BOC and Linde recruited for hydrogen coach project at FMG’s Christmas Creek

Leading gas and engineering company, BOC, a subsidiary of Linde plc, has announced a project to provide hydrogen production and refuelling infrastructure for the first fleet of hydrogen coaches at Fortescue Metals Group’s Christmas Creek iron ore operation in the Pilbara region of Western Australia.

The A$32 million ($23 million) renewable hydrogen supply project will enable Fortescue’s 10 coaches to be fuelled with renewable hydrogen and will transport workers from its base camp to the mine site.

Christmas Creek will be the first mine in Australia to deploy hydrogen for transport and transition from diesel engines, according to BOC.

BOC will supply two 700 kW ITM electrolysers to produce renewable hydrogen through electrolysis. The electrolysers will have capacity to produce enough renewable hydrogen to power 10 hydrogen fuel cell coaches that carry around 3,000 workers to and from the mine site every day. A state-of-the-art Linde hydrogen refuelling station will also be supplied by BOC at a site in the Pilbara.

The 10 full-sized hydrogen coaches, custom built by HYZON Motors, will replace the existing fleet of diesel coaches at Christmas Creek.

The project is expected to be completed by early 2022.

Linde is at the forefront in the transition to clean hydrogen and has installed over 190 hydrogen fuelling stations and 80 hydrogen electrolysis plants worldwide, according to BOC.

John Evans, Managing Director, BOC South Pacific, said the project will demonstrate BOC’s expertise in customised hydrogen solutions to suit the most challenging environments.

“BOC is proud to be the chosen partner in this exciting project that will demonstrate how renewable hydrogen can be used as a fuel for heavy vehicles in remote environments.

“Mining is a 24/7 operation which, together with the remoteness of the site, means that reliability is essential. BOC provided a solution that recognised the criticality of the application and we collaborated with Fortescue to design an application to protect the electrolyser and refueller from the environment in the Pilbara region.”

He concluded: “We look forward to working with Fortescue and our other partners to expand the use of hydrogen in heavy transport and remote applications – which are key priorities outlined in the Western Australian Renewable Hydrogen Strategy.”

Fenix in it for the long haul at Iron Ridge

Fenix Resources says it has executed a contract for the road transport component of its Iron Ridge project, in Western Australia, with Fenix Newhaul Pty Ltd.

Fenix Newhaul, formerly Premium Minehaul Pty Ltd, is the incorporated joint venture company established to implement the strategic alliance between Fenix and Craig Mitchell, the founder and former owner of Mitchell Corp, a major supplier of transport and logistics services to the Western Australian mining industry, as announced in May 2019.

Fenix Newhaul is 50% owned by Fenix and 50% owned by Newhaul Pty Ltd (formerly Minehaul Pty Ltd), an entity controlled by Craig Mitchell.

Fenix Newhaul has already ordered prime movers and trailers for the project and secured funding for this specialist equipment through an equipment manufacturer, Fenix said. Fenix Newhaul also has funding for start-up costs and equipment deposits through shareholder loan facilities totalling up to A$3.9 million ($2.8 million).

The contract is valued at around A$360 million for the estimated six-year life-of-mine, based on a terminal gate diesel price ex-Geraldton of around A$1.34/litre (current diesel price is around A$1.05/litre). It is due to commence in December 2020, in line with the current project development timeline.

Fenix Managing Director, Rob Brierley, said: “Road transport was quickly identified as the largest cost component for the commercialisation of Iron Ridge. We took an innovative approach to optimise this aspect and we strongly believe that the joint venture concept with Craig Mitchell has been the right way to go. Fenix Newhaul plan to commence operations with a mix of sub-contract and owned fleet and they are actively recruiting for personnel, with most of their employees to be Geraldton-based.”

The terms of the contract are in line with the company’s feasibility study, announced on November 4, 2019, which outlined that circa-8 Mt of high-grade hematite, grading some 64% Fe, will be extracted over a 6.5-year life of mine.

Last week, Fenix awarded the drill & blast, mining, and crushing & screening contract for Iron Ridge to MACA Ltd.

Aqura to supply LTE equipment to Iron Bridge magnetite project

Veris Ltd subsidiary, Aqura Technologies, has secured a contract to supply advanced LTE equipment for the Iron Bridge Magnetite project, a joint venture between Fortescue Metals Group subsidiary FMG Magnetite Pty Ltd and Formosa Steel IB Pty Ltd, in the Pilbara of Western Australia.

The A$2 million ($1.4 million) contract reflects Aqura’s strong focus to understand the evolving technology needs of the project and demonstrate its industry-leading capability to identify and design robust technology solutions that will support clients’ future operational strategies, the company said.

Aqura Technologies CEO, Travis Young, said: “This contract award is a great validation of the strategy the Aqura team are pursuing to leverage their expertise to enable other organisations to achieve positive business outcomes with leading-edge technology. We are very pleased to be supporting the great work of FMG and look forward to assisting them with their longer-term technology transformation program.

“Aqura continues to lead in high-performance industrial connectivity with advanced engagements for new rollouts, and other developments such as the imminent completion of our first 5G-enabled LTE network to bring the benefits of private LTE to a broader spectrum of businesses.”

The $2.6 billion Iron Bridge Magnetite project 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.

MACA to get mining Fenix Resources’ Iron Ridge project

Fenix Resources has awarded the drill & blast, mining, and crushing & screening contract for its Iron Ridge project, in Western Australia, to MACA Ltd.

MACA is a reputable contractor with a strong track record of operational experience in the mining sector and has been involved in the Australia iron ore industry having carried out long-term works for Atlas Iron Ltd and Crossland Resources, Fenix said.

Early stage works commenced last month through local contractors, with MACA currently mobilising heavy earthmoving equipment to site.

Open-pit mining and crushing and screening operations are due to commence in the current quarter.

MACA said the contract is expected to generate around A$185 million ($131 million) in revenue for it over the 75-month term.

Fenix Managing Director, Rob Brierley, said: “We having been interacting with MACA on all aspects associated with the Iron Ridge project for well over a year now, and we are pleased that this relationship will continue as we transition to production in the near-term.

“MACA has vast experience in all aspects of iron ore mining operations and has essentially offered Fenix a one-stop shop for all our service requirements leading up to the transport of the ore from site to the port of Geraldton.”

The terms of the contract are in line with the company’s feasibility study, announced on November 4, 2019, which outlined that circa-8 million tonnes of high-grade hematite grading some 64% Fe will be extracted over a 6.5 year life of mine.

This same study assumed a single open-pit operation using conventional excavator‐truck mining fleet, adopting 10 m benches and mining these benches in three flitches. Ore and waste would be hauled to the run of mine pad and waste dump, respectively, by a fleet of 100 t haul trucks, while drill and blast will be conducted using a top hammer drill rig and ANFO or heavy ANFO explosives.

LKAB warms to Sandvik’s ‘renewed’ LH625iE as second electric LHD heads to Kiruna

Having been on a journey to electrify its operations with Sandvik since the mid-1980s, LKAB says the latest addition to its electric fleet, a Sandvik LH625iE, is performing well at its flagship Kiruna iron ore mine in northern Sweden.

The company took delivery of the “renewed” Sandvik LH625iE electric loader for field testing earlier this year and, according to Per Brännman, Section Manager for sublevel caving at LKAB in Kiruna, the machine’s performance has picked up recently after some adjustments, mainly to the cable reeling system.

“It has completed 350 hours without any error codes or stops, and loaded over 140,000 t of crude iron ore,” he said.

The machine in question is operating down on block 15, level 1022, at the iron ore mine, and the company is expecting to put another LH625iE into action on this level in early November.

“The future looks bright and carbon dioxide free,” Brännman said.

The underground loader, which features a 9.5 cu.m bucket and 25,000 kg payload capacity, is designed specifically to operate in the world’s largest underground iron ore mine. It comes with a total length of 14 m, bucket width of 4 m and cabin height of 3 m.

The basic LH625iE design is well-proven (and based on the LH625E), according to Sandvik, with the equipment manufacturer delivering electric loaders powered by a trailing cable for more than 35 years.

In addition to using the proven design and robust structures, Sandvik says its LH625iE belongs to its i-series, featuring advanced technology, the latest digital solutions and smart connectivity. This sees the new Sandvik LH625iE equipped with Sandvik Intelligent Control System and My Sandvik Digital Services Knowledge Box™ as standard. To use the payload capacity it offers, the loader can also be fitted with Sandvik’s Integrated Weighing System, as well as AutoMine® and OptiMine® solutions, Sandvik said.

Primero banks new work with Fortescue, Rio Tinto and Hazer Group

Primero Group says it has recently booked new business totalling some A$55 million ($39 million) with Fortescue Metals Group, Rio Tinto and the Hazer Group as it continues to build out its 2021 financial year contracted order book.

First, it has been awarded the engineering, procurement and construction contract for the Non-Process Infrastructure (NPI) at Fortescue’s Eliwana mine and rail project, in the Pilbara.

Works commenced in late July based on a limited notice to proceed, with the full contract now awarded to Primero following a successful Early Contractor Involvement (ECI) process. The contract includes the complete engineering design, procurement and construction of heavy vehicle workshops and washdown and refuelling infrastructure required for the new Eliwana mine, with works expected to be completed in the 2021 financial year.

Once completed, the $1.275 billion Eliwana project, which includes the building of a 30 Mt/y iron ore processing facility, will maintain Fortescue’s overall production rate of a minimum 170 Mt/y over 20 years.

With Rio Tinto, Primero has been awarded two multi-year Master Service Agreements for NPI and Structural, Mechanical, Piping services across the miner’s Pilbara operational and project locations. The two contracts have an initial term of three years, with an option for a two-year extension. They cover sustaining capital and maintenance projects required over that period across all Rio Tinto Iron Ore Pilbara sites, it said.

The services cover design, procurement and construction activities for engagement under negotiated commercial terms in a “panel style agreement”, according to Primero.

Primero has also been awarded an EPC contract for Hazer Group’s hydrogen/graphene commercial demonstration plant in Western Australia at the Woodman Point Water Treatment Facility.

Hazer is undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process. This process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst, according to the company.

“The full project award has followed a successful ECI process that has extended over the past 12 months,” Primero said. “This process was targeted at developing the technology engineering to the point where a commercial contract could be executed to deliver the project. The project is the first of its kind in the new global renewables energy market and is patented groundbreaking technology in the hydrogen space.”

Alongside this, Primero said it had been awarded the detailed design contract for a 130 km water delivery pipeline and associated pumping stations for the Covalent Lithium Mt Holland project feasibility study in Western Australia.

Primero said its committed order book for the 2021 financial year now stands at around A$285 million.

Pindan lands design and construct contract at Iron Bridge

Integrated property and construction group, Pindan, says it has been awarded another contract for works linked to the Iron Bridge Magnetite project in the Pilbara of Western Australia.

Iron Bridge, an unincorporated joint venture between Fortescue Metals Group subsidiary FMG Iron Bridge and Formosa Steel IB Pty Ltd, have awarded Pindan a A$3.6 million ($2.6 million) contract to design and construct the $2.6 billion project’s landside airport, it said.

Pindan Executive Director, Tony Gerber, said this new scope of work would kick off in October and was due to be finished by the end of the year.

“We have a long and successful history of working in this part of Western Australia and are already on the ground at Iron Bridge, having been awarded a A$3.4 million contract in June this year to design, supply and install a number of office buildings, as well as deliver associated infrastructure, at Fortescue’s Herb Elliot Port facility in Port Hedland,” Gerber said.

“This contract sees us manage civil works, design, and roadworks, and supply all resources, support facilities, labour and materials for this part of the project. It also includes the construction of a communications tower for the airport terminal building, as well as fitting out the airport.”

Iron Bridge is a new magnetite ore processing facility located 145 km south of Port Hedland. The project is on track to create around 3,000 jobs during construction and 900 full-time operational positions, and will deliver a premium product of high grade 67% Fe magnetite concentrate product with the first ore on ship scheduled for mid-2022.

Central Systems secures $41 million Fortescue Solomon contract

Resource Development Group’s Central Systems subsidiary has been awarded a contract to design and construct the central facilities at the Fortescue Metals Group’s Solomon mine site in the Pilbara of Western Australia.

The contract with FMG Solomon Pty Ltd has a value of approximately A$57.5 million ($41.3 million) and is due for completion in June 2021.

Fortescue’s Solomon Hub is in the Hamersley Ranges and comprises the Firetail and Kings Valley mines, which together have a production capacity of 75 Mt/y. At the hub, higher iron grade, low cost Firetail ore is blended with low phosphorous Chichester ore to create the company’s Fortescue Blend.

RDG also advises that its 80%‐owned subsidiary, Crushing Service Solutions (CSS), recently demobilised from the Minjar gold plant near Southern Cross, Western Australia, as a result of early contract termination with Tianye SXO Gold Mining.

In the company’s recent annual financial report, it said it was in the process of reviewing the operations of CSS as it seeks to determine its future direction to ensure profitability.

Sandvik enters LKAB-led SUM project as Volvo Group departs

Sandvik has joined the Sustainable Underground Mining (SUM) project being run by LKAB at the same time as the Volvo Group has exited the Sweden-based collaboration.

The moves come as the iron ore miner looks to “further strengthen a joint endeavour towards sustainable underground mining at great depths”, it said.

To develop the digitalised, autonomous and carbon-dioxide-free mine of the future, in collaboration with other globally leading Swedish companies, LKAB initiated SUM in 2018.

After 2030, LKAB must be ready to mine iron ore deeper in the mines in Kiruna and Malmberget, in northern Sweden. For this, one of Sweden’s biggest industrial investments ever, decisions will have to be taken in the mid-2020s.

“This type of strategic collaboration project is very complex, each company contributes its specific expertise, and the partners will link together both digital systems and operations,” LKAB says. “Providing unique possibilities for SUM, the test mine, Konsuln, in Kiruna will serve as a real mine environment where technology, machines and working methods will be tested.”

Sandvik will be joining LKAB, Epiroc, ABB and Combitech in trying to achieve this goal. The Volvo Group’s earlier partnership in SUM will now take the form of other collaboration with LKAB, the miner said.

Jan Moström, President and CEO of LKAB, said: “In the coming years, LKAB must have a solution in place to be able to mine iron ore at depths approaching or exceeding 2,000 m in a cost-effective way by employing technology that is safe, autonomous, electrified, digitalised and carbon-dioxide-free.

“To enable this, collaboration with other leading industrial companies will be decisive. Sandvik’s longstanding experience of producing underground vehicle systems will complement the ongoing work in an important way.”

Stefan Widing, President and CEO Sandvik, said: “LKAB has used automated equipment from Sandvik for many years and we look forward to the opportunity to extend our collaboration and introduce new and advanced solutions that will set an industry standard.”

Epiroc and Sandvik will be relied on for battery-powered, autonomous and efficient mining equipment and related solutions that will ensure improved productivity and safety in LKAB’s mines. ABB’s role is to contribute knowledge and solutions for electrification, automation, service and maintenance. Combitech, meanwhile, will bring broad expertise and experience when it comes to connecting autonomous processes and people via so-called digital ecosystems.

LKAB says significant progress has been made on the project to date, including:

  • Successful establishment of the test mine, Konsuln, in Kiruna, where testing is carried out in a real mine environment;
  • An integration and collaboration platform, ‘LOMI’ (LKAB Open Mine Integrator) has been developed to enable an open systems architecture whereby all partners can develop modules and solutions that work together;
  • ABB has delivered ABB Ability System 800xA, the control-room console Extended Operation Workplace and a “Collaboration table” for visualising key functions and key figures in the mine, allowing the operator to monitor and control equipment in the best, most sustainable way. The ambition is that everything that is done in the test mine can be approved, planned and controlled via a project office at surface level, so that underground work can be done more efficiently;
  • Epiroc has delivered the drill rig Easer L and Scooptram ST18 LHD, both equipped for automation functionality, for the test mine, and operators and service personnel have been trained. The Easer L, commissioned in 2019, has shown good results in drilling over 50-m-long holes in the test mine, which is an important step for planning the future mine layout. For the loader, during Autumn 2020, the plan is to conduct tests with increasing complexity in terms of automation and interoperability; and
  • Combitech has delivered new solutions for systems platforms on an ongoing basis together with LKAB’s IT department. The aim is to synchronise new technology with existing systems.

In March 2020, the “Testbed for integrated, efficient and carbon-dioxide-free mining systems”, a part of SUM, received funding amounting to 207 million Swedish kronor ($23 million) from the Swedish Energy Agency.

LKAB plots path for fossil-free industrial mine waste recycling park

LKAB says it is planning a fossil-free industrial park for recycling mine waste and producing critical raw materials.

In the ReeMAP project, of which the aim is to develop technology for recycling mine waste, LKAB also plans to produce input materials, including hydrogen, and to electrify processes and, thereby, virtually eliminate carbon dioxide emissions in mine-waste recycling.

Ibrahim Baylan, Sweden’s Minister for Business, Industry and Innovation, comments: “LKAB continues to develop Sweden’s strengths as an innovative nation. ReeMAP is an important initiative to utilise today’s mine waste, leading to increased circularity and contributing to the green transition with both phosphorus and rare earth elements.”

ReeMAP will apply fossil-free processes for recycling mine waste (tailings) from LKAB’s iron ore production and upgrade it to phosphorus products and rare earth elements; products which, owing to import dependency and their economic importance, are classed by the EU as critical raw materials. In addition, gypsum and fluorine products will also be produced at the industrial park, through the hydro chemical processes.

As part of the ReeMAP project, LKAB has already started producing apatite concentrate from mine waste in a pilot plant.

A “pre-study” for the park is to be completed in 2021, with full production, following environmental permitting and construction, estimated to be achievable by 2027.

The planned recycling of mine waste will entail a circular business model and improve resource utilisation, since all valuable minerals will be extracted, according to LKAB. Residual mine waste will continue to be landfilled.

“Thanks to electrification, the process will be almost entirely free of carbon dioxide emissions,” the company said. “Certain minor emissions may arise, due to the release of chemically-bound carbon in apatite (bound in remnants of calcite mineralisation).”

Production of mineral fertiliser will result in a reduction of 700,000 t of carbon dioxide emissions (corresponding to 1% of Sweden’s emissions in 2019), as compared with the alternative of increasing production of mineral fertiliser using conventional technology, it said.

Leif Boström, Senior Vice President for LKAB’s Business Area Special Products, said the investment in the fossil-free industrial park amounted to several billion Swedish kronor.

“The industrial park will be a centre for chemical engineering where innovative technology is used to recover valuable resources,” he said. “Here, we will set a global standard for clean products, energy efficiency and emissions.”

LKAB said: “In agriculture, high crop yields are made possible by the addition of plant nutrients in the form of phosphate fertiliser. As much as half of all agricultural production is dependent on fertilisers. The purity of the product is also important. For example, the phosphate fertiliser LKAB plans to produce will be free of cadmium, a hazardous substance which is contained in some of the material imported into the EU. Rare earth elements are used in many high-tech products, for example, permanent magnets for electric vehicles and wind turbines.”

ReeMAP’s Project Manager, Ulrika Håkansson, explains that several challenges related to technological development, localisation and industrialisation must be addressed.

“We will need up to 50 ha to accommodate our facilities,” Håkansson said. “A railway line and port access are also important, since we plan to ship as much as a million tonnes of product a year. Production, especially hydrogen production, will be energy intensive. We are now looking at all of these requirements and conditions for possible localisation in Luleå, Skellefteå and Helsingborg.”

Jan Moström, President and CEO for LKAB, explains the importance of ReeMAP for LKAB’s strategy and future: “We have an ambition to be one of the most innovative, resource-efficient and responsible mining companies in the world. Through our development projects SUM, HYBRIT and now ReeMAP, we have assumed a global leadership role for industrial transformation and to provide the world with tomorrow’s resources.”

The European Union is tomorrow launching the European Raw Materials Alliance with LKAB as a partner. The aim is to increase the union’s degree of self-sufficiency in critical raw materials. Initially, the alliance will focus on rare earth elements.

Via ReeMAP, LKAB will have potential to produce 30% of the current EU requirement for these materials, it says.