Tag Archives: Iron ore

First wet concentrate produced at Iron Bridge Magnetite Project

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Fortescue Metals Group has reported that the first wet concentrate has been produced from the ore processing facility at the Iron Bridge Magnetite Project, ahead of being pumped to Port Hedland in Western Australia.

The company, which is the majority owner of Iron Bridge through its ownership in an unincorporated joint venture between FMG Magnetite Pty Ltd (69%) and Formosa Steel IB Pty Ltd (31%), fed first ore into the processing plant back in October.

After managing weather impacts on activity and infrastructure at the site, the company has now reached the wet concentrate milestone, Fortescue confirmed in its March quarter results, released today.

The concentrate was produced on April 22, 2023, ahead of being pumped to Port Hedland. Iron Bridge is set to deliver 22 Mt/y of high grade 67% Fe magnetite concentrate, with the total project capital estimated at $3.9 billion, with Fortescue’s share approximately $3 billion.

During the quarter, the project achieved key milestones, including:

  • Load commissioning of Crushing Circuit A, including the commissioning of the Coarse Ore Stockpile Stacker;
  • Completion of Dry Plant Circuit A and continued construction on Dry Plant Circuit B, together with continued commissioning activities in the Wet Plant;
  • Continued progress on the installation and testing of the concentrate and return water pipelines, with welding completed and pipelines buried;
  • Water testing was conducted on the Concentrate Handling Facility at Port Hedland ahead of first production.

Fortescue Metals Chief Executive Officer, Fiona Hick, said: “This is a significant milestone for Fortescue as Iron Bridge represents our entry into the highest grade segment of the iron ore market, providing an enhanced product range while also increasing production and shipping capacity. It demonstrates our strong track record of successfully delivering complex projects safely.”

Foraco to help Rio Tinto manage groundwater activities in the Pilbara

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Foraco International SA, a global provider of mineral and water drilling services, says it has been awarded a major contract with Rio Tinto Iron Ore.

This contract is for water-related drilling services in the Pilbara region, involving both monitoring wells, dewatering wells and vibrating wire piezometers digital networks installation, mostly with flooded reverse circulation rigs. The length of the contract is two years, with an option for a further three years. It will see a total of four rigs deployed and a VWP grout unit, including Foraco’s new proprietary generation of BF800, the NGBF. This 60 t pull, remotely-operated rig brings Foraco’s diameter drilling capacity to the next step in term of intrinsic safety and capabilities, according to the company.

The contract has a total value of A$111 million ($74 million), including options.

Daniel Simoncini, CEO of Foraco, said: “Our remarkable partnership with Rio Tinto Iron Ore in the Pilbara has gone one step further with this additional contract on top of our long-term exploration contract and we’re very excited to extend our collaboration with Rio Tinto to help them to manage their mines’ groundwater, which is now seen as a critical and vital natural resource to be preserved and well managed.

“We are very proud that Rio Tinto management and their field operators appreciate Foraco technical expertise, safe execution and reliable services. This is a great reward for all our employees, field crews and support teams in Australia.”

BHP and Hatch commence design study for an electric smelting furnace pilot

Environmental, Mining services, Steel and iron ore, Sustainable mining, , , , , , , , , , , , , , , , ,

BHP and global engineering, project management and professional services firm, Hatch, have signed an agreement to design an electric smelting furnace pilot (ESF) plant in support of a decision to construct this facility in Australia.

The facility will aim to demonstrate a pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from BHP’s Pilbara mines for BHP’s steelmaking customer, BHP says.

The small-scale demonstration plant would be used to collaborate with steel producers and technology providers to generate and share learnings with the aim of accelerating scale up of ESF plant designs.

The pilot facility would be intended to test and optimise production of iron from the ESF, a new type of furnace that is being developed by leading steel producers and technology companies targeting low CO2 emission-intensity steel. The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen replacing coking coal, when combined with a direct reduced iron (DRI) step. Estimates show that reductions of more than 80% in CO2 emission intensity are potentially achievable processing Pilbara iron ores through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route, BHP says.

The ESF allows for greater flexibility in input raw materials, addressing a key barrier to wider adoption of other lower CO2 emissions production routes, such as use of electric arc furnaces which are designed for scrap steel and high grade DRI only. The ESF also has the potential to be integrated into a steel plant’s existing downstream production units.

The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel. Planned test programs will help de-risk further investment in commercial scale projects, thereby complementing development plans of BHP’s steel customers. This scale-up approach has been utilised by other industry demonstrations such as Sweden’s HYBRIT project, BHP added.

BHP and Hatch will assess several locations in Australia for the proposed facility based on supporting infrastructure, technology skills and the availability of local partnerships to build and operate the facility.

BHP’s Chief Commercial Officer, Vandita Pant, said: “We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO2 emission reduction roadmaps.”

BHP’s Group Sales and Marketing Officer, Michiel Hovers, said: “Hatch is a key partner in carbon emissions reduction initiatives across the world. We are pleased that we can collaborate with Hatch, alongside BHP’s existing customer and research partnerships, to further progress the development of pathways towards a lower GHG emission footprint for the steelmaking industry. The ESF technology is very exciting and potentially very relevant for reducing the carbon emissions intensity of steel production and provides new and exciting opportunities for our Pilbara iron ore and our customers.

“BHP and Hatch have collaborated on steel technology and design for reducing GHG emissions from over several years, including the ESF and in collaboration with steel producers, and this project is a natural progression in our partnership.”

Hatch’s Managing Director for Bulk Metals, Joe Petrolito, said: “Hatch is excited to collaborate with BHP on this forward-looking initiative and is honored to contribute to the efforts of an industry leader who is dedicated to driving tangible progress. This project marks a significant milestone in the pursuit of decarbonisation within a challenging sector that underpins global infrastructure and progress.”

MACA wins load and haul contract with Atlas Iron’s McPhee Creek project

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MACA says it has been awarded the mining contract at Atlas Iron’s McPhee Creek project, in the northeast Pilbara region of Western Australia, approximately 100 km north of the Roy Hill Mine.

Thiess Group Executive Australia West and MACA CEO, David Greig, said: “MACA has a strong, 20-year history servicing the resources and construction industries, and has built long standing client relationships during this period. We are now operating as a Thiess company, and I am delighted with the effort between both companies to continue to support these relationships and critical project development in Western Australia.”

“We’ve been working with Atlas for almost 15 years across our crushing, civil and mining businesses, and I look forward to working with them once again on the McPhee Creek project,” he said.

Thiess Executive Chair and CEO, Michael Wright, added: “It is very pleasing to see MACA’s ongoing commitment to their clients. They have great people who pride themselves in providing value across a broad range of services.”

The three-year project scope includes mine load and haul of up to 10 Mt/y, before being transported to Roy Hill for processing. The project is anticipated to employ 145 people at peak operations and will include partnerships with local Indigenous businesses.

Sandvik brings D25KX rotary drill rig to South Africa

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Sandvik’s new D25KX rotary drill rig, which the OEM says combines reliability and technology, has arrived in Africa ready to be deployed.

The Sandvik D25KX is an improved version of the mining contractor’s drill rig of choice – the D25KS – according to Nelize Nel, Sandvik Mining and Rock Solutions’ Acting Business Line Manager for Rotary Drills. The new model includes a redesigned cabin with significant ergonomic and safety enhancements.

Large cabin windows now allow greater visibility from the operator’s swivel seat and control panel. With a focus on operator comfort, the cabin systems include a 7 in (178 mm) mobile grade touch screen and PLC control. Added intelligence of the touch screens and digital gauges gives the operator real-time feedback on machine performance and monitors machine health. There is also a seat in the cabin for a trainer or supervisor to accompany the operator when working.

“These enhancements have been applied to a design which retains the elements that made the previous model such a success,” Nel says. “These include the robust base and frame, the rigid lattice-style mast, and the heavy-duty pulldown chains.”

She points to the large population of the legacy model that developed in southern Africa since they were introduced over two decades ago.

Around 20% of the approximately 500 machines sold globally are active in this region. This demonstrates the popularity of the design and the expected positive reception of the new Sandvik D25KX, Nel said.

The first unit to arrive in the country has already been sold, and will carry out duties in a Northern Cape iron ore mine.

Equipped as a down the hole hammer drill, the new Sandvik D25KX drills hole diameters from 127-203 mm. It can reach a drilling depth of 45 m, with a maximum pulldown force of 184 kN. Its efficient handling of drill pipe ensures shorter cycle times so that more holes can be drilled.

“Ease of maintenance continues to be a central feature of this model, and customers will be able to work on it as easily as they have on the previous model,” Nel says. “This will ensure high levels of confidence about the uptime that these units will deliver.”

Metso Outotec to deliver two compact-sized pelletising plants to China’s BSIET

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Metso Outotec says it has signed a contract with Beijing Shougang International Engineering Technology Co Ltd (BSIET) for the delivery of two compact-sized iron ore pelletising plants for Chengde Zhaofeng Iron and Steel Group, Co. Ltd in Hebei province, China.

This is the sixth pelletising plant contract Metso Outotec has won in China since 2020 and the first order for plants of this size in the Chinese market. The order value of €33 million ($35 million) is booked into the company’s Metals 2023 first quarter (March quarter) orders received.

Metso Outotec’s scope of delivery includes the engineering and design of the indurating and process gas fan systems, supply of proprietary equipment, instrumentation, control systems, as well as supervisory services and technical training. Both plants feature Metso Outotec’s traveling grate pellet indurating furnace with a grate area of 342 sq.m. The 3-m-wide plants each have a capacity of 2.6 Mt/y. Pellet production at the Zhaofeng plant is estimated to start around the September quarter of 2024.

Attaul Ahmad, Vice President, Ferrous & Heat Transfer business line at Metso Outotec, said: “The new plants incorporate state-of-the-art environmentally sound technology. We thank BSIET and our customers in China for their trust in Metso Outotec’s technology.”

Mr Hou, General Manager of BSIET, said: “These plants will be a good reference for additional compact-sized pellet plants for this market segment in China. We have been successfully working with Metso Outotec for many years now and will further continue our cooperation.”

Metso Outotec’s iron ore pelletising process produces uniform pellets and ensures high performance and quality with low investment and operating costs as well as decreased energy consumption and emissions, the company says.

BHP and bp collaborate on HVO mining equipment trial at Yandi

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BHP is trialling the use of hydrotreated vegetable oil (HVO) to help power mining equipment at its Yandi iron ore operations in Western Australia.

Supplied through a collaboration with bp, the renewable diesel made from HVO will be used in haul trucks and other mining equipment over an initial three-month trial period, the miner says.

BHP Western Australia Iron Ore (WAIO) Asset President, Brandon Craig, said: “About 40% of BHP’s operational greenhouse gas emissions come from using diesel fuel, and this is a core focus of our decarbonisation strategy. Ultimately, our aim is to have fully-electric trucking fleets at our sites, but alternative fuels like HVO may help us reduce our emissions in the meantime while the electrification transition takes place.

“This collaboration with the teams at Yandi and bp is really exciting to see, given the potential application in our WAIO business and BHP’s operations globally.”

bp President Australia, and SVP Fuels and Low Carbon Solutions, Asia Pacific, Frederic Baudry, said: “bp’s ambition to be a net-zero company by 2050 or sooner, and to help the world get to net zero, recognises the crucial role bp has to play in the energy transition.

“Globally, bp plans to increase its investment in low-carbon energy. Forging strategic partnerships with companies like BHP enables bp to create solutions that satisfy the increasing demand for lower carbon fuels in sectors like mining and transport.”

BHP has a medium-term target to reduce operational greenhouse gas emissions by at least 30% by its 2030 financial year, from an FY2020 baseline. Approximately 40% of BHP’s operational emissions in its FY2020 baseline year came from diesel-powered equipment.

The HVO is to have internationally recognised certification as being sourced from more sustainable feedstocks such as waste products.

Sandvik to supply Rana Gruber with 19-strong fleet of battery-electric vehicles

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Rana Gruber has selected Sandvik Mining and Rock Solutions to supply a fleet of 19 battery-electric vehicles (BEVs), including trucks, loaders and drills, for its iron ore operations in Storforshei in northern Norway.

The agreement, worth some SEK370 million ($36 million), underpins Rana Gruber’s aim to operate the world’s first carbon-free iron ore mine by the end of 2025.

Sandvik’s second-largest battery-electric mining fleet to date will include six Sandvik TH550B trucks, five Sandvik LH518B loaders, four Sandvik DL422iE longhole drills, two Sandvik DS412iE mechanical bolters and two Sandvik DD422iE jumbos. Delivery of the equipment will begin during the March quarter and is planned to continue through 2024. Sandvik will also provide on-site service support and batteries.

Gunnar Moe, Chief Executive Officer of Rana Gruber, said: “We’re proud that our mining operations already have among the industry’s lowest CO2 footprints but we have even higher ambitions to completely eliminate our carbon emissions. We have a crystal-clear decarbonisation strategy. When we announced our 2025 goal in 2020, many did not believe it would be possible, but we’re taking another major step forward partnering with Sandvik to implement a battery-electric fleet that will improve our work environment and reduce our operational costs. Most importantly, BEVs will help us achieve our ambitious goals for carbon-free mining.”

Moe said Sandvik’s philosophy around batteries and its approach to battery safety was an important factor in Rana Gruber’s selection process.

“This is a new world for us but Sandvik has extensive battery-electrification expertise,” he said. “We are already very pleased with our cooperation with Sandvik and their commitment to support our BEV transition, not as a supplier but as a true partner wanting to take the journey with us.”

Established in 1964, Rana Gruber produces approximately 1.8 Mt/y of iron ore concentrate from its five deposits in Norway’s Dunderland Valley. Its resource base includes more than 440 Mt of iron ore.

Sandvik has supplied underground equipment to Rana Gruber for more than 25 years. The companies signed a cooperation agreement to strengthen their partnership in November 2021. Trans4Mine, Sandvik’s in-house consultancy, conducted studies and simulations to advise Rana Gruber on BEV fleet requirements, charging station locations and other mining cycle optimisation opportunities, resulting in a letter of intent in November 2022.

Mats Eriksson, President of Sandvik Mining and Rock Solutions, said: “BEVs have demonstrated their power to reduce a mining operation’s carbon footprint. Rana Gruber is a pioneer in the mining electrification shift in Europe, and we look forward to supporting their battery-electric transition.”

Duratec to carry out structural works at Rio Tinto Pilbara ops

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Australian engineering, construction and remediation contractor Duratec Limited says it has been awarded A$34 million ($24 million) in Master Service Agreement (MSA) projects with Hamersley Iron Pty Ltd, a Rio Tinto subsidiary.

These projects consist of the structural integrity remediation at the Tom Price operation (A$18 million) and the structural integrity remediation at East Intercourse Island (A$16 million), both of which are projects that require Duratec’s specialist service offering, it says.

These contracts also demonstrate the company’s strategic growth into annuity contracts within the resources sector.

These notable project awards, coupled with a record high level of enquiry into Duratec’s service offering through its Pilbara, Goldfields, Northern Territory and Queensland Mining & Industrial operations, have contributed to Duratec’s Mining & Industrial (M&I) orderbook strengthening to A$124 million, it said.

Duratec’s Managing Director, Phil Harcourt, said: “It is pleasing to see the company’s efforts to strengthen its orderbook by targeting opportunities with key repeat clients in the M&I segment being rewarded. M&I now represents 23% of the company’s overall orderbook, which will ensure it is positioned strongly for the current financial year and beyond – in line with the business strategy.”

Fortescue signs Mining Convention for Belinga, paving way for first mining in H2 2023

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Fortescue Metals Group, through its incorporated JV company Ivindo Iron SA, has signed the Mining Convention for the Belinga iron ore project in Gabon with the Gabonese Republic, paving the way for first mining to begin in the second half of 2023.

This will open growth opportunities for Fortescue Metals and Fortescue Future Industries throughout Africa, according to the ASX-listed company.

The Mining Convention governs all the legal, fiscal and regulatory regimes for the 4,500 sq.km, which comprises the Belinga project, including early development for production of up to 2 Mt/y, while studies advance potential designs of a large-scale development.

Fortescue Founder and Executive Chairman, Dr Andrew Forrest, said: “The Gabonese Republic chose Fortescue to develop Belinga not only due to our strong track record of delivering major projects, but due also to our company-wide commitment to use our major industrial scale and expertise to assist heavy industry combat climate change.

“Geological mapping and sampling programs have confirmed our initial thoughts that this new West African iron ore hub may well one day prove to be among the largest in the world. The key aspect of this particular geology is its potential to dovetail with Fortescue Pilbara ore
blends. In doing so it will preserve and enhance the iron ore industry of both Australia and Gabon.

“We have enjoyed strong support and positive feedback from local communities. We will continue to work together to maintain Fortescue’s highest standards of environmental and community consultation.”

The capital estimate for the early stage mining development is approximately $200 million (100% basis) with investment over 2023-24. The development involves conventional open-pit mining methods to produce the ore which will be trucked and railed over existing roads and rail infrastructure, and will be shipped from the Owendo Mineral Port, near Libreville.

Ivindo Iron is the operating entity for Belinga. It is held 90% by the Belinga JV company, established by Fortescue (80% interest) and its joint venture partner, the Africa Transformation and Industrialization Fund (20%). In accordance with the Gabon Mining Code, the Gabon Government will have a free carry interest of 10% in Ivindo Iron.

The Belinga deposit was initially discovered in 1955, and subsequent exploration in the 1970s identified high iron and low contaminant mineralisation. The deposit sits in Archean aged rocks of the Congo Craton. The lithology and structure are typical of other greenstone belts that commonly host banded iron formations and itabirites found in other parts of West Africa such as the Simandou project, Fortescue says. The Belinga geology and iron ore potential is similar in scale as Simandou in its early stages of exploration, with its multi-billion tonne potential and high grades, the company added.

Belinga has been progressively assessed by Fortescue since 2018.