Tag Archives: Iron ore

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

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.”

Multotec solution scrubs up well at Ekapa Minerals diamond plant

A revolutionary new concept in fines scrubbing is proving to be a game changer for Ekapa Minerals at its Combined Treatment Plant (CTP) in Kimberley, South Africa.

The innovation, developed by Multotec Wear Linings, is processing both virgin underground kimberlite as well as tailings for retreatment at the CTP. The solution is effectively a pulping chute that scrubs and washes the re-crushed product after it has passed through the high pressure grinding rolls (HPGR) inter-particle tertiary crushing circuit.

The important advantage here, according to Multotec Wear Linings Projects Sales Manager, John Britton, is that it performs the scrubbing action faster and more efficiently than a traditional rotary scrubber would, and at much lower cost.

Multotec commissioned two of these pulping chutes at Ekapa Minerals in late 2019, where they have been operating consistently and in line with expectations. With the use of patented wave generators, the pulping chute uses the gravitational energy from the slurry flow to create a constant turbulent mixing action that releases the mud, clay and slime sticking to the kimberlite particles.

According to Ekapa Minerals CEO, Jahn Hohne, the pulping chutes are a welcome contribution to the company’s cost saving efforts, and a clear demonstration of Multotec’s expertise in developing value-adding solutions in the mining sector.

“The dual chute pulping plant is ideally suited to de-conglomerating the HPGR cake product and is exceeding expectations in efficiency and effectiveness at over 600 t/h, which is a major relief on the existing overloaded pair of CTP scrubbers,” he said. “The net result is a meaningful increase of up to 20% throughput capacity of the entire processing plant which substantially improves the economy of scale of CTP, feeding directly to the bottom line.”

Britton highlighted the efficiency of the system, which is able to aggressively scrub the material in just three to four seconds as it passes through the chute. This represents just a fraction of the usual retention time in a rotary scrubber, which is three to four minutes, according to the company. He also emphasises the drastic reduction in running cost which the pulping chute achieves.

“From our experience of plant layouts and flow diagrams, it is clear that fines scrubbers are significant contributors to a plant’s capital, operating and maintenance costs,” Britton said. “Scrubbers are equipped with large drives with gears and gearboxes to rotate the drum. They are high consumers of power and require mechanical component maintenance which means higher operating costs.”

Substantial structures and supports are also needed for the scrubber and its drive mechanisms. In designing the pulping chute, Multotec sought a simplified solution, Britton says. In addition to improving scrubbing efficiency, the objective included reducing the cost of replacing scrubber liners and the downtime that this demanded. The cost of replacing the steel shell of a scrubber – which is constantly subject to stress, wear and fatigue – was another cost to be considered.

“The pulping chute, by contrast, is a stationery and much simplified innovation, focused on the scrubbing of fines less than 32 mm in size,” the company said. “Slurry deflectors located at the top end of the scrubbing chute direct at least part of the slurry away from the scrubbing chute floor. This curls into an arched form which flows backwards into the approaching flow of slurry, creating the turbulent scrubbing effect.”

Britton said: “We custom-design the chutes to suit the application and can increase chute capacity to up to 800 t/h. This is achieved with no moving parts, bearings, hydraulic packs or girth gears; the only power required is to supply material and water to the receiving chute. These actions are also required to feed the scrubber, then gravity takes over and provides the required energy.”

Maintenance is also streamlined by designing the chute in segments. Should one segment be wearing more than others, it can be quickly removed and replaced – putting the chute back into operation while the original segment is refurbished as a spare.

Britton says the pulping chute has drawn interest from other diamond producers in southern Africa, Australia and Canada. It can also be applied in commodity sectors such as coal, platinum, chrome, iron ore and mineral sands.

Venture Minerals takes ‘one-stop shop’ approach at Riley with Qube agreement

Venture Minerals has awarded bulk material handling services company, Qube, with preferred road haulage tenderer status for the Riley iron mine, in Tasmania, Australia.

Alongside this, Venture has also engaged Qube to provide the necessary Burnie Port Services to complete the logistics solution of delivering iron ore from Riley to on board the ship.

Venture said: “Securing Qube as the complete ore transport provider for the Riley iron ore mine will increase the efficiencies for one of the project’s key cost centres as the company progresses towards becoming the next Australian iron ore producer.”

Recently, Venture Minerals commenced dry screening operations at Riley as part of the ramp-up phase of the project. Full production is expected to occur upon successful commissioning of the wet processing plant, which is subject to financing, the company said.

At a $90/t 62% iron ore price, an August 2019 feasibility study on the project returned a post-tax cash surplus of A$31 million ($23 million) over the two-year production life of the mine.

Andrew Radonjic, Venture Minerals’ Managing Director, said: “Venture is fortunate to be working with Australia’s leading provider of bulk material handling services to provide a complete logistics solution in delivering Riley iron ore from the mine gate to the port and then on board ship. This one-stop shop approach will increase efficiencies and reduce costs which is all important when mining bulk commodities.”

He added: “Qube is a professional logistics company with modern, well managed vehicles and trained, professional drivers. Qube’s safety record was also an important part of our selection criteria and their real-time monitoring of vehicle movements is impressive.”

DDB awarded drill and blast gig at Rio’s Western Turner Syncline 2 project

Dynamic Drill and Blast Holdings is to carry out drill and blast services at Rio Tinto’s Western Turner Syncline 2 project in Western Australia after entering a services contract with WBHO Infrastructure Pty Ltd (WBHO-I).

Under the contract at the bulk earthworks project, Dynamic Drill and Blast is expected to commence delivery of services immediately until late October. This timeline is dependant on drill and blast volumes required as the project progresses, it noted.

This newly awarded project follows on from current services being undertaken by DDB at the Western Turner Syncline Northern Access Road project, the ASX-listed company said. The company will mobilise two drill rigs, 15 personnel and ancillary equipment to deliver the required services, all of which are contracted on standard terms and conditions for a short-term pact of this nature, it said.

Back in November 2019, Rio said it would invest $749 million in the Western Turner Syncline Phase 2 (WTS2) mine at its Greater Tom Price operations, in the Pilbara of Western Australia, facilitating mining of existing and new deposits and including construction of a new crusher as well as a 13 km conveyor.

On top of this work at WTS2, Dynamic Drill and Blast is currently deploying equipment and personnel to two short term, strategic projects, it said.

“Whilst these contracts are not considered to be material contracts by Dynamic Drill and Blast, they have the potential to evolve into further opportunities in the gold and/or iron ore production sectors,” the company said.

It estimates the revenue generated from the three short-term combined projects will be around A$1-A$3 million ($738,004-$2.21 million). This is based on the fixed and variable nature of these types of agreements, the company explained.

Dynamic Drill and Blast continues to source suitable drill rigs to increase the capacity of the fleet, it said.

Since listing on the ASX earlier this month, three additional Epiroc T45 drill rigs have been sourced to complement the company’s existing fleet, it said. One unit has been mobilised to the Pilbara region of Western Australia, with another two units being transported from North America currently. These drills support the existing asset strategy and are suitable for projects within the tendered pipeline, it said.

And, with DDB’s current workshop facility lease maturing, a new fit for purpose premises including workshop, laydown, and office facilities, has been secured in Wangara, Western Australia, it said.

“The new facility provides greater maintenance and supply chain capacity, and this is now the company’s principal place of business,” Dynamic Drill and Blast said.

Monadelphous set to take on more BHP work in Australia, Chile

Monadelphous Group has gained a further foothold in numerous BHP majority-owned projects as part of its latest construction and maintenance contract awards in the resources and energy sectors that come with a combined value of around A$100 million ($72 million).

Under its recently awarded WAIO Site Engineering Panel Framework Agreement with BHP, the company has been awarded the following contracts in the Pilbara region of Western Australia:

  • A contract for the supply and installation of the Jimblebar Transfer Station project, with work expected to be completed by December 2020; and
  • A contract for the refurbishment of Car Dumper 3 at Nelson Point, Port Hedland, with work expected to be undertaken during the second half of 2020.

Further, Monadelphous has also been awarded a contract under its WAIO Asset Panel Framework Agreement with BHP for the Port Availability Improvement project to provide multidisciplinary brownfield modification works to conveyors and transfer chutes across the Nelson Point and Finucane Island facilities, in Western Australia. The work is expected to be completed in the second half of the 2021.

Then, in Chile, Monadelphous has secured several new contracts through its maintenance and construction services business, Buildtek, which it acquired late last year.

This includes two contracts with Minera Escondida BHP, for the construction and assembly of a communications tower and associated infrastructure at the Escondida copper mine, as well as an upgrade to the conveyor system feeding the Filter Plant Warehouse at Coloso Port, both in the Antofagasta region.

These contract awards were announced the day before Monadelphous released its 2020 financial year results, which showed the company generated A$1.65 billion of revenue in the 12 months and produced a net profit after tax result of A$36.5 million.

CR beefs up Pilbara service offering with ‘Boots on the Ground’

As part of CR’s strategy to further increase its on-site service model and ensure it maintains a high level of service through these times of regional and border restrictions, it has announced its local Pilbara ‘Boots on the Ground’ initiative.

“Equipped with the latest in vehicle safety, communication, navigation and journey management systems, we welcome Troy Honey back to the CR Australasia Team,” the company said. “Troy is residential to Karratha, has been a North West local for four years and, combined with over 20 years of experience servicing the Pilbara resources sector, he will be an asset to ensuring our customers productivity assets are maintained to the highest level possible.”

CR added: “Whether it is during restrictions or any time requiring service, CR’s ‘Boots on the Ground’ will provide the rapid response required by the Pilbara’s world leading mining industry, all the while supporting the local communities of the Pilbara in Western Australia.”

Venture Minerals takes the dry screening route at Riley iron ore project

Venture Minerals Ltd has decided to start operations at the Riley iron ore project, in Tasmania, Australia, using dry screening as a way of realising early cash flow.

The company’s Board of Directors has delivered a positive final investment decision (FID) for the mine prompting preparations for mining and dry screening operations to commence immediately, the company said. This could see mining occur in the next week.

“The dry screening operations of the Riley mine is part of the ramp-up phase of the project with the full production rate to occur upon successful commissioning of the wet processing plant (which is subject to financing),” Venture Minerals said.

It is another key milestone on the company’s push towards its first shipment of Riley ore.

The company recently signed a Port Access Agreement with TasPorts and signed the Road Access Agreement with Hydro Tasmania, securing the pathway for Riley output from mine gate to shipping.

The Riley mining team has commenced preparations for low cost mining and dry screening activities given the zero strip ratio (iron ore at surface) characteristics of the Riley DSO deposit, it said. “The contracting of a dry screening plant for processing the top layer of the Riley deposit affords the company the opportunity to accelerate production and capture the current iron ore prices before the wet screening plant has been built and commissioned, and also reduce the capital cost requirements,” it added.

Venture is now finalising discussions on financing options including a debt facility to fund capital to complete construction of the wet screening plant at Riley. It is also focused on concluding the road haulage tender process as well as achieving more efficient ore handling logistics, including finalising negotiations on gaining access to other on-wharf storage.

The current Riley mine economics are well above the August 2019 feasibility numbers, which were based on a $90/t 62% Fe price, according to Venture. This is due primarily to higher iron ore prices (>$120/t 62% Fe price) and lower fuel prices, and further supported by a strong iron ore market outlook, it said.

At the $90/tonne 62% Fe price, the August 2019 feasibility study returned a post-tax cash surplus of A$31 million ($22 million) over the two-year production life of the mine.

CPB Contractors to help deliver wet processing plant at Iron Bridge project

CPB Contractors has been awarded a contract at the Iron Bridge magnetite joint venture project in the Pilbara of Western Australia.

The contract from Fortescue Metals Group subsidiary FMG Iron Bridge, and Formosa Steel IB Pty Ltd, the joint venture partners at Iron Bridge, will see the CIMIC Group subsidiary deliver concrete and detailed earthworks for a wet processing plant.

Work will commence this year and is scheduled for completion in 2021, CPB Contractors said.

The Iron Bridge project is expected to see a new magnetite mine developed to support production of 22 Mt/y of high grade concentrate, according to FMG.

The contract was announced in tandem with another award in the water sector, with both set to provide around A$128 million ($92 million) of revenue in total.

CPB Contractors Managing Director, Diego Zumaquero, said: “The award of these contracts is recognition of our people’s expertise in delivering essential and strategic infrastructure projects. Our commitment is to safely and efficiently deliver these projects while maximising the benefits to local communities.”

Scott Technology wins sample prep and analysis lab contract from Rio at Robe Valley

Scott Technology has been awarded a further multi-million dollar contract by Rio Tinto to provide and commission the equipment for a new sample preparation and analysis laboratory at the Robe Valley iron ore mine site in Western Australia.

This is the second significant iron ore sample laboratory project awarded to Scott Technology by Rio Tinto in 2020, building on the inaugural order for an automated lab at the Koodaideri project.

The automation and robotics solutions provider said this latest contract builds on the decades-long relationship between the two businesses and Scott’s expertise and experience in this area.

The Robe Valley project scope comprises equipment from Scott Technology’s Rocklabs business as well as third-party supply. Work has begun on the development and planning for the new laboratory, which is expected to commence operation in June 2021.

Rio’s majority-owned Robe Valley operation produces ore from mines at the Mesa A hub and Mesa J hub, with coarse ore from both processed to lump and fines in the process plant at Cape Lambert.

John Kippenberger, CEO of Scott Technology (pictured), said: “Scott has demonstrated success at many iron ore mine site laboratories in recent years, with our Rocklabs crushers and mills providing safe, reliable, productive operation for our clients. We are excited to be working with the Rio Tinto team on another important mining laboratory project.

“This comes on the back of the positive Rio Tinto Koodaideri project work, which is currently underway and also in Western Australia. As recently announced, building work and site mobilisation has commenced at Koodaideri, in line with the original timetable.

“This latest contract award further cements Scott’s evolution in the mining sector from a world leading supplier of sample preparation equipment, to a complete end-to-end automation and analysis solution provider.”

Kippenberger said the iron ore sector was continuing to experience positive interest and investment in automation given the underlying strength in demand for the steel raw material, which boded well for the company picking up more contracts.

“We see an increasing opportunity for our business, for more projects of the same scale with both existing and new customers as they seek increased safety and greater productivity,” he added.

The Robe Valley is around 140 km southwest of Karratha in the Pilbara region, with the Robe Valley deposits owned by the Robe JV, which is 53% owned by Rio Tinto, 33% by Mitsui Iron Ore Development and 14% by Nippon Steel Sumitomo Metals Corp.

The primary requirement of the Robe Valley Sustaining Project is to sustain production from the Robe Valley from the year 2020.

B&E International to help miners consolidate supply chains amid COVID-19

As mining companies cut back in efforts to remain viable under COVID-19’s demanding conditions, crushing and screening specialist B&E International is proposing a bold new approach to streamline mines’ supply chains.

According to Ken Basson, Director of Plant and Engineering at B&E International, mining suppliers and service providers need to be proactive in helping mines find sustainable solutions to the current challenges.

“COVID-19 will undoubtedly reduce demand for certain commodities, and, with geopolitical uncertainty, we are likely to see increased commodity price volatility,” Basson says. “This is leading most mining companies – especially juniors – to try to strengthen their balance sheets.”

To do this, there are inevitable cuts in capital expenditure and even operating expenditure. He says the time has come for mining suppliers to streamline the delivery of their services and products, and even to assume more of the day-to-day risk facing mining operations.

“At a time when mines are demanding even higher efficiencies and more plant uptime due to tough trading conditions, the post-COVID environment is expected to present a number of logistical and supply chain constraints,” he said. “To cut through this double-whammy, suppliers need to be helping to consolidate supply chain networks. This is the only way of minimising procurement expenses while limiting process plant outages due to critical spares being unavailable in time.”

A range of other imperatives also need to be addressed at the same time, he says. These include the growing demand for mines to support in-country job creation and local skills development, as well as local manufacturing and procurement. This means less reliance on costly expatriate skills, whose movement around Africa may, in any event, be restricted by COVID-related regulations.

“To streamline the supply chain, B&E International is forming strategic partnerships with key suppliers, to integrate their respective service offerings with ours,” he says. “This gives the mine the advantage of dealing with fewer supplier interfaces. We also take over the responsibility of ensuring that our partners – and their products – perform to expectation.”

He highlights that B&E International – with a 40-year legacy in contract crushing, screening and mineral processing services – has expertise across the process supply chain. With experience across commodities including coal, copper, diamonds, gold, iron ore, manganese and aggregates, the company engineers cost effective solutions in various conditions around Africa, he added.

As one of the few companies in South Africa that both builds and operates its own equipment, B&E International is extending its level of vertical integration through this collaboration with strategic partners.

“Not only do we design, manufacture and install complete processing plants across various commodity sectors, but we also operate and finance these facilities,” Basson says. “This places us in a unique position to partner with mines to reduce their capex, opex and risk.”

The company offers a build, own, operate and transfer model of plant procurement, ensuring a mining company of its planned throughput while also fixing the exact cost of that production, he says.

As part of its market offering, it already conducts optimisation and debottlenecking studies for mineral process plant operators. It also provides plant maintenance contracts, in which it will operate and maintain a customer’s process plant on a toll basis, charging a fixed rate per tonne. Other current services include plant audits, optimisation studies, dust extraction, sampling and breaker systems for oversize run of mine treatment.

“A vertically integrated service offering to mines holds great value for both greenfield and brownfield sites,” Basson says. “As important is our experience in developing local skills wherever we operate – with both formal and hands-on training.”

He highlights that this approach empowers the customer to retain their future options in how they will operate their plants, depending on their internal success and broader economic conditions.