Tag Archives: Iron ore

Minehaul and Fenix form trucking and logistics JV to move Iron Ridge project forward

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

Fenix Resources says it has formed a strategic alliance with trucking and logistics company, Minehaul Pty Ltd, in a move seen as a significant step towards the development of its Iron Ridge project in the Mid-West region of Western Australia.

The alliance will see Fenix and Minehaul form a new 50/50 joint venture company, to be known as Premium Minehaul Pty Ltd (PM). It is intended that PM will provide all trucking services to the Iron Ridge project.

Craig Mitchell, the founder and former owner of Mitchell Corp, a major supplier of transport and logistics services to the Western Australia mining industry, has been elected as Chairman and CEO of the newly formed JVC.

The Iron Ridge project is a greenfield development and, therefore, requires all infrastructure, equipment, power, water, communications and other services to be established, according to Fenix.

Pursuant to the JVC agreement, Fenix has provided an undertaking that it will ensure all iron ore transport it is involved with in the Mid-West region of WA (including relating to the project) will be conducted through the JVC.

The terms relating to the provision of these services are to be agreed in the coming months and are pursuant to a separate road haulage contract agreement, however Fenix expects the JVC arrangements to provide several key benefits, including:

  • Greater transparency in relation to the likely transport costs associated with the project;
  • Significant experience that Craig Mitchell brings to Fenix’s trucking operations;
  • Potential for significant cost savings relating to transport costs, and;
  • Elimination of management role duplication and the sharing of the benefits of innovation throughout the life of the project.

The Iron Ridge project is some 490 km by road from the Geraldton port and, therefore, it is expected that a significant proportion of the total operating costs associated with the project will be related to the cost of road transport and logistics, Fenix said.

Fenix’s Managing Director, Robert Brierley, said the company already had a well-developed road transport model with detailed cost estimates for the task at hand, and this model will be refined further now the JVC had been formed.

Related to this agreement, Minehaul has subscribed for A$250,000 ($173,975) of new Fenix shares as part of a larger A$1.25 million placement.

Caterpillar, WesTrac to help automate Rio Tinto’s Koodaideri iron ore mine

Automation, Environmental, IoT, Mineral project development, Mining equipment, Mining safety, Mining software, Steel and iron ore, Water management, , , , , , , , ,

Rio Tinto and Caterpillar have agreed to work together to create an automated mine operation at the Koodaideri iron ore project, in Western Australia, that makes best use of data analytics and integration to enhance safety, optimise production, boost mining machine use and lower costs.

The recently signed agreement will see Cat® and dealer WesTrac supply and support mining machines, automation and enterprise technology systems for the new mine. Rio, in a separate release, said this would see the supply of a fleet of 20 autonomous 793F trucks (pictured) as well as four autonomous blast drills.

Beyond the autonomous fleet, Caterpillar will also provide loaders, dozers, graders, water carts and diggers for the operation, which will be Rio Tinto’s first Pilbara mine to be primarily operated using Caterpillar machinery, Rio said. “The two companies have also agreed to study the potential for increased levels of automation of heavy mining equipment at the mine in the future.”

The partnership with Caterpillar at Koodaideri will enhance Rio Tinto’s industry-leading Mine of the Future™ programme, which connects all components of the mining value chain for the first time, as well as making increased use of automation and digitisation, according to Rio. Caterpillar’s machinery will be integrated with Rio Tinto’s Mine Automation System (MAS), which collects and enhances data created by the company’s mining operations, to improve productivity across Rio Tinto’s entire iron ore network.

Rio Tinto Iron Ore Chief Executive, Chris Salisbury, said: “We’re pleased to be partnering with Caterpillar and WesTrac, the regional Cat dealer, to help make Koodaideri the most technology-enabled and innovative mine in our Pilbara iron ore network.

“Technology is rapidly changing our mining operations as we harness innovation to make our operations safer, smarter and more productive. This extension of our partnership with Caterpillar and WesTrac represents an exciting step for our business.”

Denise Johnson, Group President Resource Industries, Caterpillar Inc, said: “The Caterpillar team is looking forward to working with Rio Tinto to apply our proven mining equipment and technology and to implement additional MineStar™ autonomy solutions at Koodaideri—a new mine designed to capitalise on leading-edge technology.

“We are excited to work together to advance Rio Tinto’s mine automation and digitalisation program.”

Koodaideri will deliver a new production hub for Rio Tinto’s iron ore business in the Pilbara. Construction work has commenced, and first production is expected in late 2021. Once complete, the mine will have an annual capacity of 43 Mt, underpinning production of the Pilbara Blend, Rio’s flagship iron ore product.

As mine construction advances, WesTrac will manage logistics of mining machine delivery and commissioning and play a key role in implementing technology solutions.

Jarvas Croome, WesTrac CEO, said: “WesTrac is excited to be part of the Koodaideri project and to work with Caterpillar to deliver ground-breaking equipment solutions to support Rio Tinto’s Mine of the Future vision.”

Last week, FLSmidth announced it would bring the latest smart 3D design to Koodaideri after announcing a contract win.

Clough to provide key infrastructure at Rio’s Koodaideri iron ore project

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Clough, as part as the Acciona Clough joint venture, has been awarded a civil works contract for the construction of the northern rail formation for the Rio Tinto Koodaideri iron ore project, in Western Australia.

Clough CEO and Managing Director, Peter Bennett, said: “We are excited with the opportunity to work with Rio Tinto Iron Ore to deliver its vision for the Koodaideri project as we continue to grow our presence in Western Australia’s iron ore developments.”

Bennett said the execution of the contract would create more than 200 new jobs, with the scope including 100 km of rail formation earthworks, culverts, bridge construction, access roads and level crossings.

“Clough is a proudly Western Australian engineering and construction company with a proven history of delivering world-class projects with outstanding safety and quality results in Australia and overseas,” he added.

The engineering and construction company is celebrating its 100th year of operation.

The Koodaideri project is a greenfield mine development for Rio Tinto Iron Ore, in the East Pilbara mining region. The mine will initially be developed with an annual capacity of 43 Mt. To allow the transportation of iron ore product to either Dampier or Cape Lambert, the project requires a 170 km rail spur to connect the Koodaideri mine to the existing Rio Tinto Iron Ore rail network, just south of Lyre Siding at Numbat.

WorleyParsons is carrying out the EPCM contract for the project, while FLSmidth said this week that it will bring the latest 3D smart design to the development.

The project has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine, which is expected to be Rio Tinto’s lowest cost contributor to its industry benchmark Pilbara Blend product.

DDH1 after WA iron ore contract growth with Ranger Drilling acquisition

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DDH1 Holdings says it has acquired Ranger Drilling as it looks to grow the Australia iron ore RC drilling specialist’s business.

DDH1 Holdings now consists of three drilling businesses, namely DDH1 Drilling, Strike Drilling and Ranger Drilling.

Ranger was established in 2005 by Matt and Julie Izett and specialises in providing reverse Circulation (RC) drilling services to customers operating in the Western Australian iron ore market.

DDH1 Chief Executive Officer, Sy van Dyk, said: “Ranger will continue operating as a separate company, under the same management from the same premises. DDH1’s intention is to continue to grow the Ranger brand, while preserving their culture of leadership, productivity, innovation and safety. These are the qualities that attracted our investment in Ranger and we want to ensure it is protected and fostered going forward.”

Ranger’s Managing Director, Matt Izett, said: “DDH1 is a natural partner for Ranger to further our growth ambitions by providing additional capital to the business in a cost-effective and disciplined manner. I look forward to continue leading and growing the business Julie and I founded in 2005 and to deliver superior drilling solutions to our loyal customer base, whilst contributing at a senior level to the wider group’s operations”.

DDH1 Drilling, Strike Drilling and Ranger’s capabilities are highly complementary, DDH1 said, and the combination of the businesses provides the opportunity to offer clients the full suite of drilling services required across the resource life cycle, from discovering new deposits to extending existing mine lives. “The group’s drill rig fleet is modern, standardised and highly productive,” the company said.

DDH1 Managing Director, Murray Pollock, said: “DDH1 and Ranger have worked together on a shared contract basis, during which time we have observed Ranger’s premium customer service offering, the productivity gains delivered by their modern fleet and quality management team led by Matt Izett. Together, we are committed to being the drilling contractor and employer of choice in the Australian drilling industry.

“The group now has 84 Tier One drill rigs and employs over 700 staff to provide our customers with end-to-end drilling solutions. I am also pleased that as part of the transaction Matt and Julie Izett will become significant shareholders in DDH1 Holdings and we look forward to working with them.”

BGC Contracting, SIMPEC awarded contracts for FMG’s Eliwana iron ore project

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Australia mining and construction firm, BGC Contracting has been awarded a A$24 million ($16.9 million) contract to deliver bulk earthworks and roads at Fortescue Metals Group’s A$1.7 billion Eliwana iron ore project, 90 km west-northwest of Tom Price, in the Pilbara of Western Australia.

The six-month project is underway and BGC Contracting will deliver infrastructure including the construction of the permanent accommodation village earthworks and access road, a RFDS airstrip and a 16 km-long construction access road, the company said. BGC is carrying out all earthworks and civil works necessary to develop initial road facilities, which will also facilitate connection to near-future construction packages to rail and other infrastructure.

The Eliwana project will involve the building of 143 km of rail, a new 30 Mt/y dry ore processing facility and infrastructure. Production is expected to commence in December 2020 with a life of mine strip ratio of 1.1. The project underpins the introduction of a 60% Fe grade product (Fortescue Premium) in the second half of the company’s 2019 financial year.

BGC Contracting CEO, Greg Heylen, said the Eliwana contract is a major achievement for the company’s diversification strategy and allows BGC to extend its expertise in the mining construction sector.

“When you partner with BGC Contracting, you don’t just partner with one of Australia’s largest contractors; you partner up with every person that works on the job. You get their collective experience, their knowledge, and their work ethic. You get 110%,” he said.

“There has been a real increase in resource sector and construction opportunities, particularly in Western Australia and Queensland, and we look forward to this next phase in our growth strategy.”

The day after BGC announced this contract award, WestStar business SIMPEC said it had been awarded a circa A$10 million contract by ATCO Structures and Logistics to design, supply, construct, test and commission the electrical, communications and dry fire systems for an 800-room mine camp at Eliwana.

The contract, SIMPEC’s largest single contract award to date, was scheduled to commence in mid-2019 and was expected to take nine months to complete.

SIMPEC Managing Director, Mark Dimasi, said: “To see the fruits of the concerted effort during the Fortescue Eliwana tender phase is very rewarding for the team. This Tier One project award is a significant achievement for SIMPEC allowing the company to construct alongside some of Australia’s biggest construction companies.”

FLSmidth to bring the latest smart 3D design to Rio Tinto’s Koodaideri iron ore mine

Automation, Bulk handling, Comminution of minerals, IoT, Mineral processing, Mineral project development, Mining equipment, Mining project news, Steel and iron ore, , , , , ,

Rio Tinto has chosen FLSmidth to supply key minerals handling equipment for the company’s Koodaideri iron ore project in Western Australia, the mining OEM says.

The contract is a turnkey agreement for the design, supply, installation and commissioning for the new greenfield iron ore mine.

“FLSmidth will provide the products and know-how that will be instrumental in developing the Koodaideri mine to be Rio Tinto’s most technologically-advanced mine to date,” FLSmidth said. “Rio Tinto will for the first time apply smart technology to interconnect all components in the mining value chain. FLSmidth will design the equipment to the latest Australian standards and incorporate smart 3D design and a variety of advanced engineering solutions, such as BulkExpert™ (pictured).

Manfred Schaffer, President, FLSmidth Mining, said: “Koodaideri will set new benchmarks in digitalisation and will feature the most technologically-advanced solutions employed to date in the iron ore sector. This will enable Rio Tinto to run the most advanced mining operation featuring high productivity and high safety in a cost-efficient set-up and we are proud to be part of this.”

Construction at the Koodaideri mine will commence this year with the first ore expected to be fully functional by late 2021, with a production capacity of 43 Mt/y of iron ore.

The exact total contract value for the supply of the equipment won’t be disclosed but is exceeding A$80 million ($56 million) and will be booked in the June quarter, FLSmidth said.

Ferrexpo brings autonomous drilling to Yeristovo iron ore operation

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Ferrexpo says it has started using autonomous drilling as part of a push to increase mining and production efficiencies at its FYM iron ore operation in Ukraine.

Among $32 million of investment at the Ferrexpo Yeristovo Mining (FYM) operation in 2018 was a project to commence drill automation, the company confirmed in its delayed 2018 results today.

This investment is part of the company’s plan to hit its medium-term production target of 12 Mt/y, up from 10.6 Mt produced in 2018. Ferrexpo’s longer-term intention is to move to annual output of 20 Mt/y.

Outside of the automation development, Ferrexpo said: “The group has several projects under way which contribute to cost savings, efficiency improvements and enhanced health and safety standards.”

These include efficiency gains in shovel and dragline dig rates as well as a transition to 100% liquid emulsion blasting media. On the latter, the company said: “The transition to emulsion blasting media has resulted in increased rock fragmentation. This has improved excavator and shovel dig rates and reduces equipment wear and tear. It also yields power savings and reduced maintenance costs in the crushing plant.

“Other efficiency projects include the use of automatic pit drills, drones for surveys of the pit area and the commencement of the creation of a centralised mining control hub for all mining operations.”

The centralisation effort follows the consolidation of FPM and FYM’s maintenance centre for mobile equipment, Ferrexpo said.

FMG looks for magnetite iron ore upside with Iron Bridge investment

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Fortescue Metals Group has approved the $2.6 billion Iron Bridge Magnetite project in Western Australia, which, the company says, will deliver 22 Mt/y of high-grade 67% Fe concentrate production by mid-2022.

FMG and its joint venture partner Formosa Steel IB approved the development of Stage 2 of the project, following a $500 million investment in the Stage 1 construction of large-scale pilot and demonstration plants, which, FMG said, validated key equipment and magnetite production processes for Stage 2.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said: “The Iron Bridge project holds Australia’s largest JORC compliant magnetite resource supporting a long mine life. The successful delivery of the project by the joint venture partners is underpinned by Fortescue’s unparalleled track record and capability in safely developing and operating major iron ore projects in the Pilbara.

“We are confident this project will deliver growth in earnings and cashflow, resulting in enhanced returns to our shareholders and our joint venture partners through all market cycles.

“The project is well progressed and ready for detailed design and execution with the majority of key approvals already in place. The innovative design, including the use of a dry crushing and grinding circuit, will deliver an industry-leading energy efficient operation with globally competitive capital intensity and operating costs.

“In developing the Iron Bridge Project, Fortescue has demonstrated and refined each step of the ore processing system and conducted full-scale trials. Our focus has been to create the most energy and cost-efficient ore processing facility, tailored to the specific ore we will mine. We are now ready to build this plant and develop this mine, and are confident that our early work will support rapid progress to full production.”

HYBRIT fossil-free steelmaking project moves forward with biofuel plant build

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A joint initiative between LKAB, SSAB and Vattenfall to develop the world’s first fossil-free steelmaking process is gaining momentum, with construction of a biofuel-based pelletising plant shortly beginning at the iron ore miner’s Malmberget site, in Sweden.

This “world-unique test facility”, a key component of the HYBRIT initiative, will see fossil fuels replaced with biofuel to achieve fossil-free production of iron ore pellets.

The aim of HYBRIT, which is supported by the Swedish Energy Agency, is to develop a process for fossil-free steelmaking by 2035.

In 2018, the Swedish Energy Agency announced it would contribute funding amounting to more than SEK500 million ($54 million) towards the pilot-scale development of an industrial process, with three owners, LKAB, SSAB and Vattenfall, each contributing a third of the outstanding capital for the project.

LKAB said: “Fossil-free steel production starts at the mine and LKAB is working hard to determine the design of the next generation of pelletising plants.”

Back in October, Tenova HYL was contracted by HYBRIT to supply its direct reduced iron solution as part of the project.

The biofuel-based plant, to be built near to LKAB’s Malmberget iron ore mine, will cost in the region of SEK80 million.

“Testing a bio-oil system is part of the pilot phase and the objective is to convert one of LKAB’s pelletising plants from fossil fuel to 100% renewable fuel,” the company said. “This means that fossil-generated carbon dioxide emissions from the Malmberget operation will be reduced by up to 40% during the test period, which corresponds to about 60,000 t/y. Eventually, LKAB hopes to achieve totally carbon-dioxide-free pellet production.”

Jan Moström, LKAB’s President and CEO, said: “Within HYBRIT, LKAB is examining options for replacing the heating technologies used in the pellet process, which are the heart of our processing plants. In parallel, trials will be conducted in an experimental facility in Luleå using an alternative heating technology. Trials will determine whether new biofuels and plasma burners will work in the unique setting of a pellet plant. Ultimately, this will make LKAB’s iron ore pellets completely carbon-dioxide-free.”

The global iron and steel industry is one of the industrial sectors whose processes emit the most carbon dioxide, according to LKAB. “A growing population, in combination with greater urbanisation, means that demand for steel will continue to grow until 2050. If the HYBRIT initiative succeeds, Sweden’s carbon dioxide emissions will decrease by 10%,” the company said.

Mårten Görnerup, CEO, Hybrit Development AB, said: “The initiative is decisive for Sweden’s ability to meet the targets set out in the Paris Agreement and nationally, and it is our contribution to battling climate change. Fossil-free production of iron ore pellets is an important step towards reaching these goals.”

Following a pre-study conducted in 2016–2017, the first sod was turned in 2018 for a pilot plant for hydrogen-based reduction of iron ore in Luleå, Sweden. This plant, expected to be completed in 2020, will be used to test processes downstream from the pelletising plant. The investment in a pilot-plant for bio-oil in Malmberget, which is an important milestone for HYBRIT and the development of fossil-free pellet production, is expected to be completed by 2020. The first tests will be conducted up to 2021.

Magnus Hall, President and CEO, Vattenfall, said: “Our partnership with SSAB and LKAB is playing a very important role in the electrification of the industry and the development of fossil-free hydrogen to enable a fossil-free life within a generation.”

Martin Lindqvist, CEO and President of SSAB, said the partners are on their way to a revolutionary technical advancement, “showing the world that it is possible to produce steel without producing carbon dioxide emissions”.

He added: “Work is proceeding according to schedule and I am confident that we will succeed. As a first step toward creating a fossil-free SSAB, we have decided to switch to an electric arc furnace in Oxelösund. This will entail decommissioning both blast furnaces in around 2025 and will reduce our CO2 emissions in Sweden by around 25%,” he said.

The primary goal of HYBRIT is to eliminate fossil-generated carbon dioxide emissions and thereby stop the net increase in carbon dioxide in the atmosphere. This will be done by converting to renewable fuel.

In the next step, LKAB’s vision is to fully eliminate carbon dioxide emissions from the pelletising plants. LKAB’s iron ore consists largely of magnetite and, even without the use of bio-oil, it already gives the company a big environmental head-start on competitors, according to the company.

Steel produced from 100% LKAB iron ore pellets results in carbon dioxide emissions that are 14% lower when compared to steel manufactured at an average European sinter-based steel mill. “One explanation is that it requires less energy to make pellets from magnetite than from the more commonly occurring hematite. The pellet process currently requires a lot of energy, while a very great amount of heat is released when magnetite is converted to hematite.”

Monadelphous adds ‘inflow’ infrastructure work to BHP South Flank iron ore package

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Engineering company Monadelphous Group says it has been awarded a second construction contract, valued at A$104 million ($74 million), at BHP’s South Flank iron ore project in the Pilbara region of Western Australia.

The contract includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s inflow infrastructure and brings the total value of work secured by Monadelphous on this project to A$212 million, the company said.

The company’s previous contract – awarded last month – includes structural, mechanical, piping and electrical and instrumentation works associated with the project’s outflow infrastructure.

Work under the inflow infrastructure contract is expected to start immediately and be completed by March 2021, according to Monadelphous.

Monadelphous Managing Director, Rob Velletri, said the award of a second contract at South Flank enables Monadelphous to realise efficiency synergies between the two packages of work, and underlined the strength of its long-term relationship with BHP.

BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output. This will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.