Tag Archives: Iron ore

Anglo resumes operations at Minas-Rio iron ore mine

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Anglo American has resumed operations at its Minas-Rio iron ore mine in Brazil almost nine months since it suspended activities following the discovery of two leaks along the 529 km slurry pipeline.

The restart of the integrated iron ore operation follows a technical inspection of the pipeline that carries the iron ore in slurry form from the mine to the port, the repair of certain sections of the pipeline and receipt of the appropriate regulatory approvals, Anglo said.

“The inspection of the entire pipeline by specialist pipeline inspection devices (PIGs), and the analysis of the collected data by expert teams drawn from Brazil and internationally, confirmed the pipeline’s integrity,” the company added.

As part of Anglo’s “responsible approach” to the leaks, it has pre-emptively replaced a 4 km stretch of pipeline where the two leaks of non-hazardous material occurred, as well as a small number of individual sections of pipe where the PIGs detected minor anomalies below the normal threshold for intervention. It also shortened the intervals for future inspections by PIGs from five years to two years to ensure the long-term integrity of the pipeline, while also fitting a fibre-optic system of acoustic, temperature and vibration sensors along critical sections of the pipeline to monitor performance.

Mark Cutifani, Chief Executive of Anglo American, said: “The protection of the natural environment surrounding local communities and the overall integrity of the pipeline have formed the focus of our work to restart Minas-Rio and meet our obligations to our host communities, employees, customers and other stakeholders.”

Cutifani said the majority of Minas-Rio employees have been deployed across its operations in Brazil during this year, including on the construction work required to secure its Step 3 operating licence for Minas-Rio. Safety and other refresher training has been under way since early November in preparation for the restart, he added.

Anglo American expects the operation to ramp up to 1.2 Mt/mth (wet) and to produce approximately 16-19 Mt (wet) of iron ore in 2019, with the expectation that the Step 3 licences are received as planned.

Anglo’s Brazil chief executive, Ruben Fernandes, told Reuters earlier this year that the company expects to hit the 26.5 Mt/y (wet) nameplate capacity some time in 2021.

Fortescue’s new iron ore blend on its way to China steel mill

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The maiden shipment of Fortescue Metals Group’s new 60.1% Fe content product, West Pilbara Fines, has recently left Herb Elliott Port in Port Hedland, Western Australia, bound for Hunan Valin Steel in China.

Fortescue will produce 5-10 Mt of West Pilbara Fines in the year to end-June 2019 by blending higher iron, low alumina ore from the western pits at the Cloudbreak operations with ore from the Firetail mine. This involves the use of an innovative 5 km relocatable conveyor, provided by RCR Tomlinson.

When Fortescue’s$1.275 billion Eliwana iron ore project begins production in December 2020, production of West Pilbara Fines is expected to ramp up to 40 Mt/y.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “The production of West Pilbara Fines demonstrates the flexibility of our wholly–owned, integrated mining operations and infrastructure and the agility of our processing and blending strategy.

“For the last decade, we have delivered a range of differentiated products with a high value in use for our customers. As we look out to financial year 2019 and beyond, West Pilbara Fines will further enhance the range of ores available, as we continue to ensure that our quality control and product consistency are maintained at the highest levels for our customers in China, Asia and Europe.”

Chairman of Hunan Valin, Dr Cao Zhiaqiang, said: “We are very pleased to be the first steel mill customer for West Pilbara Fines. Fortescue continues to understand and respond to the market’s needs by expanding its product suite, while remaining focussed on delivering high value in use products.”

LKAB takes to the skies to find new orebodies around Kiruna

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LKAB, in tandem with representatives from the University of Münster (Germany) and Luleå University of Technology, LTU (Sweden), recently flew a helicopter-borne survey system, around 90 m above the ground, around its Kiruna area in northern Sweden.

The process works where a helicopter flies past 90 m above the ground with a survey instrument in tow. During a week in October, the helicopter flew in the Luossavaara area near Kurravaaravägen in and around the Varggropen/Nukutus outdoor leisure area and Lake Tuollujärvi.

LKAB said: “The method is unique and was conducted as a research study – one that can help safeguard LKAB’s future.”

The area surveyed was around 40 km², but two weeks preparation was necessary before flying could begin. First, a 2 km cable was laid out in various places in the terrain. Iron digging bars for conducting electrical current into the earth were attached to each end of the cable.

Niklas Juhojuntti, Geophysicist at LKAB, said: “It creates an electromagnetic wave that emits a signal that penetrates the ground. The signal is captured by sensors in the survey instrument suspended beneath the aircraft.”

Based on the aircraft test results, the project group in Germany will put together a 3D model which could reach down to a depth of around 1 km. The survey results will show if there are any electrical conductors, which could indicate the presence of an orebody.

“If this is the case, we will have to drill to find out more precisely what it is. Magnetite is a great conductor,” says Juhojuntti.

LKAB anticipates the results from the aerial survey in January or February 2019 at the earliest. Scientists from LTU will also compile the results from surveys carried out on the surface.

“By piecing together all of the results, we can gain a better picture. From what we’ve seen so far, all the survey data looks good and provided a clear signal,” says Juhojuntti.

LKAB took responsibility for certain parts of the logistics in Kiruna, but the research project paid for the surveys.

“They wanted to demonstrate that there survey methods work, and now they’ve been able to fly in an area where we know mineralisation is present,” Juhojuntti said.

“In Germany, it’s not as easy to find areas like this, and nor is everyone there quite as well disposed toward this method. They were extremely pleased with the Kiruna residents, who left their equipment well alone. They enjoyed a great reception by the people out in the field.”

The results from the flights can help LKAB in its hunt for new orebodies and create a more secure future, the company says.

“I’m hoping this method will allow us to detect any indications concerning unknown major orebodies at depth. We still haven’t done much work at depth north of Nukutus,” Juhojuntti says.

Vale gets hands on iron ore beneficiation technology with New Steel purchase

Comminution of minerals, Mineral processing, Mining mergers and acquisitions, Steel and iron ore, , , ,

Vale has entered into an agreement with Hankoe FIP to buy innovative iron ore beneficiation technology provider, New Steel, for $500 million.

New Steel currently owns patents of dry processing concentration (fines dry magnetic separation) in 56 countries, which is expected to support Vale’s development of high-grade pellet feed initiatives.

Vale said the transaction was expected to close in 2019, subject to certain conditions precedent, including approval by antitrust authorities in Brazil.

One project that is expected to benefit from this acquisition is Vale’s 20 Mt/y Southeastern System pellet feed project, the company said.

Epiroc autonomous drill gets working on BHP’s South Flank iron ore project

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The first autonomous Epiroc Pit Viper 271 drill rig has broken ground at BHP’s South Flank iron ore project in Western Australia, the mining major confirmed.

This is the first of five autonomous drill rigs to operate at the mine, all of which will be controlled remotely from the BHP Integrated Remote Operations Centre in Perth.

BHP, which officially broke ground on the $3.6 billion project in July, is targeting first ore extraction in 2021 and expects to ramp up to 80 Mt/y of output. South Flank 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.

Epiroc says the Pit Viper 271 is the most productive drill available for rotary tricone and downhole drilling of 171 mm to 270 mm holes with up to 18 m cleanhole single pass capability.

It features a patented cable feed system with automatic tensioning for improved component life and low total cost of operation, with the standard Rig Control System (RCS) providing on board automation capability as part of the standard drill package to help deliver safety and productivity.

“With RCS you can run automation with an operator on board with options like auto drill and auto level, or you can run with the operator off the drill with the optional BenchREMOTE package, allowing one operator to run one or multiple units,” the company says.

“With the RCS system on Pit Vipers you can even achieve your ambition of fully-autonomous drilling with almost no human interaction with the drill.”

SIMPEC ready for camp construction and deconstruction at West Angelas

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WestStar Industrial’s engineering contractor business, SIMPEC, has been awarded a key contract by ATCO Structures and Logistics in the construction and deconstruction of a 600-room camp at Rio Tinto’s West Angelas iron ore mine in the Pilbara of Western Australia.

The A$4 million ($2.96 million) contract award work is due to commence early in 2019.

SIMPEC’s electrical and communications scope of work is to design, supply, construct, test, commission and deconstruct the electrical and communications systems of the construction camp. The camp will be delivered over a three-to-four-month period and is to be used in the major development project at West Angelas to build deposits C and D.

Following completion of mine development, SIMPEC will return to site and deconstruct the camp’s electrical and communications systems.

SIMPEC said the contract award at West Angelas builds on the portfolio of camp work packages successfully undertaken by SIMPEC, specifically the camp works completed at Iluka Resources’ Cataby iron sands project, 150 km north of Perth, Western Australia.

SIMPEC Managing Director Mark Dimasi said: “This is a tribute to our team resulting from our efforts at the Cataby project. What a commendable achievement to secure a project with ATCO Structures and Logistics for the Rio Tinto West Angelas mine site, further enhancing our exposure to camp construction works.”

The investment at West Angelas’ C and D deposits is part of a $1.55 billion plan to sustain production capacity at part of the Robe River joint venture (owned 53% by Rio, 33% by Mitsui and 14% by Nippon Steel & Sumitomo Metal Corp).

The joint venture partners will invest $579 million in developing deposits C and D, with first ore expected in 2021.

Tacora hoping for Scully iron ore mine restart in 2019

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The Scully iron ore mine in Wabush, Newfoundland and Labrador, Canada, looks like restarting after owner Tacora Resources secured up to $276 million of funding to turn the lights back on.

Just this week, the company announced it had closed on $212 million in private equity and senior secured debt financing which, together with existing commitments for up to US$64 million in mining equipment debt financing, will fully fund the restart.

Tacora purchased substantially all the assets associated with the Scully mine on July 17, 2017. In the subsequent months, it completed a feasibility study that confirmed the viability of Tacora’s restart plans for the mine, secured life of mine access to rail transportation services and ship loading infrastructure, including access to a deep water port with Société ferroviaire et portuaire de Ponte-Noire and the Port of Sept-Iles, and concluded various regulatory matters with the Government of Newfoundland and Labrador, including consultations with local indigenous peoples.

The company is now hoping mining will recommence in June 2019.

Larry Lehtinen, Executive Chairman and CEO of Tacora, said: “We are extremely pleased to have the Scully mine restart fully financed and to move forward with hiring the workforce and implementing the various commercial contracts and capital projects to bring the Scully mine back to life.”

As part of the financing, trading company Cargill has made an equity investment and extended its long-term offtake agreement for Scully.

Lee Kirk, Managing Director of Cargill’s Metals business, said by extending this agreement through 2033, the company was “better positioned to provide our customers around the world with greater access to high quality iron ore”.

The previous owners, Cliffs Natural Resources, shut down Scully in 2014 as global prices for iron ore plummeted.

It is expected to produce some 6 Mt/y of high-grade concentrate when fully ramped up.

Works on the project include the installation of a manganese reduction line, concentrator upgrades, the construction of an additional load-out bin and improved material handling equipment at Pointe Noire.

BHP grants Decmil extension to Mulla Mulla camp contract

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Decmil Group’s wholly-owned subsidiary, Decmil Australia, has been awarded an extension to its contract with BHP at the Mulla Mulla camp in Western Australia.

The works, which upgrade and expand the existing Mulla Mulla village, will support current operations at Mining Area C and the South Flank iron ore project, the latter of which is currently in execution.

The extension adds to the A$13 million ($9.5 million) early works package announced in August 2017 and the A$75 million stage one package announced in November 2017.

The second stage includes the refurbishment, relocation and installation of a further 632 rooms, the installation of 10 laundries and the supply and installation of new verandas. The scope also includes internal roads, drainage and concrete footpaths. The works on the second stage will commence immediately.

The 80 Mt/y South Flank iron ore project is aimed at sustaining BHP’s Western Australia iron ore production as the Yandi mine is exhausted over the next five to ten years. The South Flank deposit is around 130 km by road northwest of the town of Newman, and approximately 8 km to the south of the company’s existing Mining Area C operation.

BHP commenced its first blast at the project in September and expects first ore extraction to take place in 2021.

Rio to consolidate technology developments with Koodaideri iron ore mine

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Rio Tinto says it will develop its most technologically advanced mine following the full approval of a $2.6 billion investment in the Koodaideri iron ore mine in Western Australia.

Koodaideri will deliver a new production hub for Rio Tinto’s iron ore business in the Pilbara, incorporating a processing plant and infrastructure including a 166 km rail line connecting the mine to the existing network.

Construction on Koodaideri Phase 1 will start next year with first production expected in late 2021. Once complete, the mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

Koodaideri Phase 1 will help sustain Rio Tinto’s existing production capacity by replacing depletion elsewhere in the system, Rio says.

“The project will increase the higher-value lump component of the Pilbara Blend, subject to market conditions, from the current average of about 35% to around 38%. It is expected to deliver an internal rate of return of 20% and capital intensity of around $60/t of annual capacity, highly competitive for a new mine considering the additional infrastructure of rail spur, airport, camp and road access required,” the company said.

The operation 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.

“Through the use of digital assets, advanced data analytics and automation, Rio Tinto expects to significantly enhance the operation and maintenance of this new mine,” Rio says.

Rio Tinto CEO J-S Jacques said: “Koodaideri is a gamechanger for Rio Tinto. It will be the most technologically advanced mine we have ever built and sets a new benchmark for the industry in terms of the adoption of automation and the use of data to enhance safety and productivity.

“As we pursue our value over volume approach, targeted high-quality investments such as Koodaideri will ensure we continue to deliver value for our shareholders and Australians.”

The investment is underpinned by an orebody of high-quality Brockman ore more than 20 km long and 3 km wide. This contains some 269 Mt of proven reserves and 329 Mt of probable reserves.

In addition to mine infrastructure, an airport, mine support facilities and accommodation for employees will be built. Throughout the construction period Rio Tinto expects to employ over 2,000 people with 600 permanent roles created once the mine is operational.

Since completion of the prefeasibility study in 2016, additional capital has been included for productivity enhancements to increase capacity to 43 Mt, from the 40 Mt base case. The project scope was also broadened to incorporate significant safety improvements and the development of additional infrastructure such as an airport and site access roads. Cost inflation for labour and materials also contributed to the capital increase.

A $44 million prefeasibility study into Koodaideri Phase 2 has also been approved. The expansion could increase annual capacity from the Koodaideri production hub to 70 Mt and beyond. A final investment decision is subject to study outcomes and Rio Tinto’s value over volume approach, Rio said.

Koodaideri will feature technology already in use across Rio Tinto, such as autonomous trucks, trains and drills, and implement systems connecting all components of the mining value chain for the first time.

“The development will consolidate everything Rio Tinto has learned from its studies into finding advanced ways to extract minerals while reducing environmental impacts and improving safety, known as the Mine of the FutureTM programme,” the company said.

Koodaideri has more than 70 innovations in scope including:

  • A digital replica of the processing plant, accessible in real time by workers in the field;
  • Fully-integrated mine automation and simulation systems;
  • Advanced automation including an automated workshop, and;
  • Numerous data analytics capabilities and control loops to optimise production and reduce downtime.

Koodaideri is some 35 km northwest of Rio’s Yandicoogina mine, and about 110 km from the town of Newman in the Pilbara region. The development remains subject to final Western Australian government approval.

IM found out more about the Koodaideri development recently, carrying out a Q&A with Matthew Holcz, Managing Director of Planning Integration and Assets of Rio’s iron ore division. This article was featured in the November issue of IM.

BHP’s South Flank to receive world’s largest rail-mounted stackers and reclaimer from thyssenkrupp

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thyssenkrupp Industrial Solutions has been awarded one of the largest fabrication and construction projects the company has ever handled in Western Australia, with an order from BHP’s South Flank iron ore operation.

Under the €150 million ($171 million) contract, thyssenkrupp will design, supply, construct and commission large-scale stockyard machines for South Flank, in the central Pilbara region.

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.

thyssenkrupp will supply two stackers that deposit iron ore into stockyards for loading, and a reclaimer for loading the ore on to trains for transport to Port Hedland. The machines will have a capacity of 20,000 t/h, making them the largest rail-mounted stackers and reclaimer in the world, according to the company.

Torsten Gerlach, CEO Mining Technologies at thyssenkrupp Industrial Solutions, said: “South Flank will be one of the largest iron-ore operations worldwide. We look forward to contributing to this project by combining longstanding global expertise in the mining business with local experience.

“Our strong partnership with BHP extends globally, but the Pilbara region is a core area where we have provided material handling solutions for decades. With our field service teams, we are supporting our customer on a daily basis.”

The design of the machines incorporates the latest Australian design standard requirements and technology improvements centred on safe construction, operation and maintenance activities, according to the company.