Tag Archives: Iron ore

Monadelphous, BGC win West Angelas iron ore work off Rio Tinto

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

Engineering firms Monadelphous Group and BGC Contracting will help construct new facilities for Rio Tinto’s West Angelas iron ore mine, in the Pilbara of Western Australia, after the major miner awarded the two companies contracts.

Monaldelphous said its contract at West Angelas Deposits C and D, valued in excess of A$100 million ($68 million), includes the supply and installation of structural, mechanical, piping and electrical and instrumentation works associated with the construction of new iron ore facilities, as well as modifications to existing plant.

The work will commence immediately and is expected to be completed in April 2021.

BGC Contracting, meanwhile, will deliver civil infrastructure work as part of the same project. This includes carrying out bulk earthworks and civil works necessary to construct the heavy and light vehicle road networks that will connect the existing processing plant with the new C and D deposits.

In addition, BGC Contracting will construct the concrete foundations for the planned facility, as well as a HDPE water pipeline and install 17.5km of PVC conduit. BGC said work was due to commence on site in early October, with completion in less than a year. Detailed planning and mobilisation are already underway, it added.

Back in October, Rio, together with joint venture partners Mitsui and Nippon Steel & Sumitomo Metal, approved an investment of $1.55 billion to sustain production capacity at two projects forming part of the Robe River joint venture in the Pilbara. Around $967 million was set to go towards developing the Mesa B, C and H deposits at Robe Valley, with $579 million for developing Deposits C and D at West Angelas operation.

The investments were to enable Rio to sustain production of its Pilbara Blend products, with first ore anticipated from 2021.

Once operational, both projects will feature the latest technology with 34 existing haul trucks to be retrofitted with autonomous haulage system technology, it said.

Monadelphous Managing Director, Rob Velletri, said his company’s contract award highlighted Monadelphous’ strong reputation and proven capability in delivering large-scale construction projects.

BGC Contracting CEO, Greg Heylen, said: “The West Angelas project will display the multidisciplinary capability of our construction team to deliver this large earthworks and civil works project.

“This latest contract award is a further step in the company’s diversification strategy. We look forward to working with Rio Tinto and all stakeholders to deliver this large-scale project.”

Rio Tinto continues to invest in Pilbara haul truck automation

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Rio Tinto, in its half-year results, provided an update on its haul truck automation efforts at its iron ore mines in the Pilbara of Western Australia, saying it expects to hit some significant milestones by the end of 2019.

The company, one of the first adopters of autonomous haulage systems through a commercial trial at its West Angelas operation all the way back in 2008, said it had continued investing in productivity and automation in the first six months of 2019 and expected 50% of its iron ore truck fleet to be fully autonomous by the end of the year.

The company said: “Deployments are complete at seven of our sites, with Hope Downs 1 and Marandoo in transition.”

Last week, Fortescue Metals Group (FMG) said its plan to automate all haul trucks across its Pilbara iron ore network was going to plan, with 128 trucks running in autonomous mode as of the end of June.

Meanwhile, Rio said its AutoHaul project, which sees 2.4 km long trains travel across a network of 1,700 km of track, all monitored remotely from an operations centre in Perth, was now fully operational. These trains have safely travelled more than 4.5 million kilometres autonomously since they were first deployed last year.

Shaw Contracting returns to Riley iron ore project

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Venture Minerals’ plan to restart mining at the Riley iron ore project in Tasmania, Australia, is accelerating with the announcement that the ASX-listed company has awarded Shaw Contracting the preferred tenderer status for mining and processing works at the operation.

One of Tasmania’s most experienced civil and mining contractors, Shaw previously worked with Venture when it commenced mining the Riley iron ore deposit, in 2014. The company also carried out several major overburden and mining contracts for Savage River Mines (pictured) and Bluestone Mine in Tasmania.

The Riley project is on a granted mining lease, where reserves of 1.8 Mt at 57% Fe with low impurities have been outlined. Venture says around 90% of the equipment previously purchased for mining the orebody is still on hand and there is potential for producing a direct shipping ore product. The deposit is also all at surface, Venture says, and is less than 2 km from a sealed road that accesses existing rail and port facilities.

Venture has had the former operating mine on care and maintenance since August 2014 shortly after it suspended operations.

The company says it continues to work on updating the previous feasibility study at Riley so a decision to recommence mining can be made at the earliest opportunity. Following a favourable study outcome, its goal is to commence iron ore production in the December quarter of this year.

On the contract award to Shaw, Venture said: “In the awarding of preferred tenderer status to Shaw, Venture did receive strong interest from other service providers in relation to the mining and processing tender packages sought by the company. Venture is now well progressed in the process of collating this and other necessary information to form a robust view of potential project economics as it finalises the Decision to Mine study.”

The company has already undertaken extensive pre-production works at the Riley project to recommence operations, making the project a ‘quick to market’ opportunity for the company, it said.

Venture’s Managing Director, Andrew Radonjic, said: “Venture is glad to welcome back the experience and knowledge of Shaw Contracting to the Riley iron ore project. The advantages of getting Shaw to pick up from where they left off will be a huge advantage to the recommencement timeline of the mine.”

BHP extends FIFO agreement with Alliance in Western Australia

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Alliance Aviation Services says it and BHP’s Western Australia Iron Ore division have agreed to extend their air charter services agreement for a further two years.

The extension solidifies a relationship that started with the first flight for BHP WA Iron Ore in 2009, Alliance said.

BHP’s WAIO division is an integrated system of four processing hubs and five mines connected by more than 1,000 km of rail infrastructure and port facilities in the Pilbara region of northern Western Australia. At each processing hub – Newman, Yandi, Mining Area C and Jimblebar – the ore is crushed, beneficiated (where necessary) and blended to create high-grade hematite lump and fines products. Iron ore products are then transported along the Port Hedland–Newman Rail Line to the Finucane Island and Nelson Point port facilities at Port Hedland.

Lee Schofield, Alliance’s Chief Executive Officer, said: “Alliance is delighted to be continuing the provision of these charter services into Coondewanna and Barimunya. Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension.”

Schofield, added: “In May this year, BHP acknowledged Alliance’s exceptional safety and operational record when BHP presented Alliance with an Aviation Safety Award in recognition of the safe carriage of 3.5 million BHP staff and contractors on charter and scheduled services throughout Australia from April 2002 to April 2019.”

Vale’s Vargem Grande iron ore complex slowly coming back to life

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Vale says Brazil’s National Mining Agency (Agência Nacional de Mineração – ANM) has authorised the partial resumption of dry processing operations at the Vargem Grande Complex in Minas Gerais.

The Vargem complex is comprised of three operating mines — Capitão do Mato, Tamanduá and Abóboras — and produces a mixture of fines, lump and concentrate products for the seaborne export market and the Vargem Grande pellet plant.

Vale said all operations of the complex were suspended by ANM on February 20, to prevent “occasional triggers” that could affect tailings dam stability as a result of ongoing activities at the complex.

Vargem was one of several operations that were suspended after one of Vale’s tailings dams ruptured at its Córrego do Feijão mine (Paraopeba complex) on January 25, 2019.

The decision will enable the partial resumption of dry processing operations at the complex within 24 hours, totalling about 5 Mt of additional production in 2019, thus increasing the supply of Brazilian Blend Fines, Vale said.

The Brazil-based miner reaffirmed its 2019 iron ore and pellets sales guidance of 307-332 Mt, as per previous announcements.

VIST automated solution improves ore quality at EVRAZ KGOK operations

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An automated system for monitoring mining vehicles, developed by VIST Group, has been deployed at EVRAZ’s Kachkanarsky mining and ore processing plant (KGOK) operation in Russia, the Zyfra Group subsidiary confirmed.

The iron ore at KGOK is mined in four open pits: the Glavny, Zapadny, Severny and Yuzhny deposits. The ore is removed from the pits by BELAZ trucks and delivered to the crushing plant by rail. Pit machinery includes heavy-duty 130-t dump trucks, modern NP-1 locomotives and 12 m² capacity excavators.

Some 58.5 Mt of ore was mined at the KGOK operations in 2018, which was processed into 3.5 Mt of sinter and 6.5 Mt of pellets, according to EVRAZ.

Work on the autonomous investment project, which required $1.23 million in funding, began in November 2017. So far, 19 communication towers have been installed around all the operations, while 30 excavators and 35 BELAZ trucks have been equipped with sensors and navigation antennae, as well as smart displays in the driver’s cabs, VIST said.

“Thanks to the joint efforts of specialists from KGOK and VIST Group, a sophisticated and up-to-date system for managing mining vehicles has been deployed at the EVRAZ plant,” Alexander Bondarenko, Business Unit Director at VIST Group, said.

“Following Phase 2 of project implementation, which will cover rail transportation and quality control of ore arriving at the plant from the shipping sheds, the system will be the most sophisticated in the Russian ore mining sector,” Bondarenko said.

The VIST Group system tracks and displays real-time information on the locations and operating conditions of dump trucks, dozers, excavators, automatic loaders and “mobile canteens”.

Using the Wi-Fi network installed in four mines, all data on the vehicles’ speed, mileage, fuel levels and rock loads, as well as the locations of the “mobile canteens”, are transmitted in real time to the computer terminals of the plant’s dispatchers and chief specialists. “The data is also seen by the excavator operators and dump truck drivers on smart displays in their cabs,” VIST said.

Thanks to a modular geological model of the ore deposit integrated into the system, it is possible to analyse the quality of the iron ore and control the movements of the dump trucks and excavators, according to VIST.

And, in the event of an unforeseen stoppage, the system redirects the BELAZ truck to be loaded by another excavator.

Denis Novozehnov, Vice President of EVRAZ and Head of the company’s Urals Division, said: “The switch to an automated monitoring system has helped us to reduce ore losses and ensure more reliable quality. We’ve also been able to improve the productivity of the quarry dump trucks.”

BHP looks to LNG for lower iron ore shipping emissions

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BHP, as part of its goal to reduce greenhouse gas emissions across its operations, has released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27 Mt of its iron ore.

The company said: “Introducing LNG-fuelled ships into BHP’s maritime supply chain will eliminate nitrogen oxide (NOx) and sulphur oxide (SOx) emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.”

BHP, as part of its greenhouse gas emission reduction plans, recently signed a memorandum of understanding with Mitsubishi Development to work together in the pursuit of emissions reductions, including from the life-cycle use of marketed products.

Rashpal Bhatti, Vice President, Maritime and Supply Chain Excellence, BHP, said emissions resulting from the transportation and distribution of the company’s products represented a material source of its value chain emissions (Scope 3).

“We recognise we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” Bhatti said. “Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain.”

The tender is open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers, BHP said. “As well as LNG-fuelled transport for up to 10% of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.”

Bhatti added: “We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulphur levels in marine fuels.

“While LNG may not be the sustainable homogenous fuel of choice for a zero carbon future, we are not prepared to wait for a 100% compliant solution if we know that, together with our partners, we can make significant progress now.

“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products.”

The IMO ruled from January 1, 2020, that the marine sector will have to reduce sulphur emissions by over 80% by switching to lower sulphur fuels, with the current maximum fuel oil sulphur limit of 3.5 weight percent (wt%) falling to 0.5 wt%.

As well as investments in emerging technologies, BHP sets greenhouse gas emissions reduction targets for its operations, builds the resilience of its operations and communities to the physical impacts of climate change, and works across sectors to strengthen the global policy and market response, the company said.

Fortescue breaks ground at $1.275 billion Eliwana iron ore development

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Fortescue Metals Group says it has officially broken ground on the Eliwana iron ore mine and rail project in the Pilbara of Western Australia.

FMG Founder and Chairman, Andrew Forrest, was today joined by Mark McGowan, Premier of Western Australia, FMG CEO, Elizabeth Gaines, and the company’s core leadership team, for the official sod turning.

The $1.275 billion project includes the construction of 143 km of rail, a new 30 Mt/y dry ore processing facility (OPF) and infrastructure. First ore on train is expected in December 2020, the company says.

FMG says contracts to the value of A$330 million ($232 million) to date have been awarded to more than 250 Australian business entities as part of the Eliwana development, of which 80% are Western Australia-owned businesses. As further approvals are progressed, it is expected over A$500 million in additional contracts will be awarded by the end of 2019, FMG said.

Contract recipients include BGC Contracting for bulk earthworks and roads, NRW Holdings, also for bulk earthworks, and SIMPEC for electrical, communications and dry fire systems testing.

“Eliwana underpins the sustainable production of West Pilbara Fines and provides the flexibility for Fortescue to deliver products at greater than 60% Fe grade,” FMG said. “The development will utilise the latest technology, autonomous trucks and design efficiency, further cementing Fortescue’s world leading use of innovation across its mining operations.”

Forrest said: “This is a proud day for Fortescue as we celebrate the largest project since the Kings Valley mine in 2014.

“Since Fortescue was founded 16 years ago, we have held community and family at our core and continued to deliver on our commitment to be the safest, lowest cost company. Eliwana is the next great step into the Western Hub, enhancing our profitability and extending our mine life.”

The project will generate up to 1,900 jobs during construction and 500 full-time site positions once operational, according to Forrest.

Gaines said: “The Eliwana project will build on Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara. Eliwana is core to the next phase of development in Fortescue’s world class, innovative operations. The project will see us maintain our low-cost status, provide us with greater flexibility to deliver on our integrated operations and marketing strategy and, when combined with the Iron Bridge Magnetite development, it will increase Fortescue’s average product grade and provide the ability to deliver the majority of our products at greater than 60% Fe, consistent with our long term goal.”

Fortescue completes tug fleet and towage infrastructure at Herb Elliott Port

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Fortescue Metals Group has celebrated the completion of its fleet of tugs and towage infrastructure at the company’s Herb Elliott Port, in Port Hedland, Western Australia.

Founder and Chairman, Andrew Forrest (pictured on the left), together with Chief Executive Officer, Elizabeth Gaines (pictured on the right), and the core leadership team, were joined by local politicians and members of the Port Hedland community to celebrate the milestone ahead of tug operations commencing in July.

Fortescue has procured and constructed six tugs and leased a further three tugs, including six Advanced Rotor Tugs 85-32W, which were constructed by Damen Shipyards at the Song Cam and Damen Song Cam shipyards, in Vietnam, it said. The tugs will be based at the new nine berth tug and harbour facility, located in the vicinity of Fortescue’s berths one to three at Anderson Point.

Forrest said: “As Australia’s economic and industrial gateway to Asia, the port of Port Hedland is the largest bulk export port in the world. It is an economic powerhouse of our country generating countless jobs and businesses directly across the nation and supporting the standard of living of us all.

“Since Fortescue was founded, we have set ourselves the toughest stretch targets we could. We aimed to develop the world’s most advanced vertically integrated bulk operations infrastructure, and to seamlessly link this with our core exploration, metallurgical and mining operations.

“Our aim was to develop an integrated world leading system to deliver critical ores that would build the economies of nations. The strategic decisions made by the Board to build our fleet of ore carriers and Fortescue owned and operated towage capability mark the critical completion of this part of Fortescue’s journey.”

Gaines added: “Fortescue operates the most efficient bulk port operation in Australia and the towage fleet represents the final element in our supply chain, with our innovative new tug fleet able to provide safe and reliable towage services and additional towage capacity for all Port Hedland users. The tug fleet and new facilities will maximise the efficiencies of our operation and provide long-term sustainable towage services crucial to meeting the demands of our customers.

“I would like to thank the entire Fortescue team for their work to bring us to the point of operational readiness, as well as the Pilbara Ports Authority, Damen Song Cam Shipyard, who constructed the vessels, and KOTUG and Westug Pty Ltd, who will manage the towage operations.”

Vossloh to keep Rio Tinto’s Koodaideri iron ore plans on track

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Vossloh Tie Technologies says it has won its first major order in Australia for the delivery of concrete ties for Rio Tinto’s in-development Koodaideri iron ore project in the Pilbara of Western Australia.

The production and supply of the ties will be performed by Vossloh’s Australian subsidiary, Austrak Pty Ltd, which was acquired in late-2018. The order encompasses approximately 280,000 concrete ties, expected to be delivered in 2020.

Koodaideri will include construction of an additional rail line to connect the new mine to Rio Tinto’s existing network. This is where Vossloh’s concrete crossties come in, providing improved track surface, alignment and gauge holding performance; strong, stable track structures to support high speed and heavy haul rail applications; smooth running surface to lower overall costs by increasing rail life and reducing locomotive fuel consumption; and longer lifecycles by providing exceptional durability and resistance to weathering and corrosion, according to the company.

Production at the $2.6 billion Phase 1 Koodaideri project is planned to start in late 2021, before ramping up to the nameplate 43 Mt/y capacity.

Austrak will perform the deliveries from a factory in Western Australia, which will also serve as a production site for further upcoming mining projects in the Pilbara region, Vossloh said. This will provide the potential to offer further growth opportunities for the company in Australia.

Andreas Busemann, Chief Executive Officer of Vossloh AG, said: “We are excited to see that our recent acquisition Austrak succeeded in this tender, contributing substantial value to Vossloh shortly after acquisition. This perfectly underlines the company’s strong position in Australia’s concrete tie market and once again confirms Vossloh’s outlook for the 2020 fiscal year, seeing an increase in sales and profitability.”