Tag Archives: Iron ore

Rio Tinto verifies use of Pilbara ore for low-carbon iron-making using BioIron

Rio Tinto says it has proven the effectiveness of its low-carbon iron-making process using ores from its mines in Australia in a small-scale pilot plant in Germany, and is now planning the development of a larger-scale pilot plant to further assess its potential to help decarbonise the steel value chain.

The process, known as BioIron™, uses raw biomass instead of metallurgical coal as a reductant and microwave energy to convert Pilbara iron ore to metallic iron in the steelmaking process. BioIron has the potential to support near-zero CO2 steelmaking, and can result in net negative emissions if linked with carbon capture and storage, according to the company.

Over the past 18 months, the process has been tested extensively in Germany by a project team from Rio Tinto, Metso Outotec and the University of Nottingham’s Microwave Process Engineering Group. Development work was conducted in a small-scale pilot plant using batches of 1,000 golf ball-sized iron ore and biomass briquettes.

Rio Tinto Chief Commercial Officer, Alf Barrios, said: “Finding low-carbon solutions for iron and steelmaking is critical for the world as we tackle the challenges of climate change. Proving BioIron works at this scale is an exciting development given the implications it could have for global decarbonisation.

“The results from this initial testing phase show great promise and demonstrate that the BioIron process is well suited to Pilbara iron ore fines. BioIron is just one of the pathways we are developing in our decarbonisation work with our customers, universities and industry to reduce carbon emissions right across the steel value chain.”

BioIron’s potential was confirmed in a comprehensive and independent technical review by Hatch, the global engineering, project management and professional services firm, Rio said. Hatch noted the thorough work completed by the team and BioIron’s capacity to reduce greenhouse gas emissions while converting Pilbara iron ore into iron and steel.

The BioIron process will now be tested on a larger scale, at a specially designed continuous pilot plant with a capacity of 1 t/h. The design of the pilot plant is underway and Rio Tinto is considering suitable locations for its construction.

The BioIron process works using lignocellulosic biomass including agricultural by-products (eg wheat straw, canola stalks, barley straw, sugar cane bagasse) or purpose-grown crops. The biomass is blended with iron ore and heated by a combination of combusting gases released by the biomass and high-efficiency microwaves that can be powered by renewable energy.

Rio says it is aware of the complexities around the use of biomass supply and is working to ensure only sustainable sources of biomass are used. Accordingly, the company is undertaking a benchmarking study of biomass certification processes. Through discussions with environmental groups, as a first step Rio Tinto has ruled out sources that support the logging of old growth and High Conservation Value forests.

Metso Outotec breaks ground on new Karratha service centre

Metso Outotec has celebrated the groundbreaking ceremony of the company’s biggest service centre globally to be built in Karratha, Western Australia.

The investment, which was announced in November 2021, will result in a centre offering comprehensive maintenance and repair services for mining and aggregates customers in the Pilbara and Gascoyne regions, the company said.

Located in one of the world’s largest mining regions, the centre offers increased productivity and shorter lead times as well as substantial environmental advantages due to shorter transportation journey, according to Metso Outotec.

The new service centre’s lot size is over 35,000 sq.m, with a 5,000 sq.m workshop and a total of 18,000 sq.m of storage space.

The total investment value is around €32 million ($32 million), including the purchase of the land, assets and construction of the service centre. It is expected to be operational during the December quarter of 2023.

Martin Karlsson, Senior Vice President, Professional Services, Metso Outotec, said: “This is a great day for Metso Outotec and our customers. Reaching this milestone means that the construction work on the site is proceeding after a thorough planning phase. The service centre is an expansion to our footprint and an important strategic investment in supporting our customers. The strong operational support and leading process knowledge we provide, will help our customers to meet their targets.”

The centre will be equipped to repair and refurbish, for example, large mining crushers, grinding mills, screens and car dumpers. Further, it will act as a base for field services, hold inventory for critical wear and spare parts, as well as providing a customer training facility.

Stuart Sneyd, President, Asia Pacific market area, Metso Outotec, said: “By investing in this state-of-the-art service centre, we are demonstrating our long-term commitment to the Pilbara Region and the communities there. We can offer shorter lead times, and environmentally efficient service and delivery capabilities. The functionalities of the building have been carefully designed, and we are able to support our customers with a comprehensive service and repairs capability for all their needs.”

Metso Outotec has, today, 140 service centres globally, over 3,000 field services professionals and additional support resources close to customer operations.

Metso Outotec launches direct reduced iron smelting furnace to further decarbonise steel sector

Metso Outotec is launching the innovative DRI (direct reduced iron) Smelting Furnace to, it says, substitute blast furnaces used in iron and steel making.

The DRI Smelting Furnace is one of Metso Outotec’s key solutions for decarbonisation of the iron and steel industry, which currently produces about 8% of the global carbon dioxide emissions.

Jyrki Makkonen, Vice President, Smelting at Metso Outotec, said:“The DRI Smelting Furnace is a true breakthrough technology. It will help the iron and steel industry to reach their CO2 emission reduction targets and limit global warming. The new high-capacity 6-in-line DRI Smelting Furnace is part of Metso Outotec’s Planet Positive offering, which is focused on environmentally efficient technologies.”

Kimmo Vallo, Product Manager, DRI Smelting Furnace at Metso Outotec, said: “Combined with a direct reduction plant, the DRI Smelting Furnace will substitute blast furnaces in the production of hot metal. This is an optimal solution for primary steel producers aiming for a significant reduction in their CO2 emissions with minimal changes to the rest of the steel plant. The furnace can be integrated with Metso Outotec’s hydrogen-based CircoredTM process or other direct reduction processes.”

Timo Haimi, Senior Sales Manager, Smelting, added: “The DRI Smelting Furnace enables the use of easily available blast furnace-grade iron ore instead of DRI-grade iron ore by managing bigger slag volumes than what scrap melting electric arc furnaces (EAF) are capable of.”

DRI Smelting Furnace technology is based on existing Metso Outotec equipment. The furnace and related products are complete and ready for implementation, according to the company. Customer-specific pilot-scale testing will be conducted in the Metso Outotec research facilities to demonstrate large-scale DRI smelting.

The company said: “DRI smelting technology development continues to further optimise the process for customer-specific feed materials and to complement Metso Outotec’s Planet Positive offering for decarbonisation of the iron and steel industry.”

Metso Outotec’s DRI Smelting Furnace provides the following benefits:

  • Flexible for any DRI feed;
  • High productivity with capacity above 1.2 Mt/y;
  • Continuous production of hot metal with high availability and long campaign life;​
  • Capable of handling large slag volumes;
  • Possibility to change slag chemistry to achieve high iron yields and good-quality slag;
  • Minimal changes to existing steel plant; and
  • Furnace off-gas can be used as energy or in a carbon capture and storage process.

BHP collaborates with CIMIC’s UGL and QRRS on ‘flat pack’ rail cars for the Pilbara

An industry-first initiative to construct 140 ‘flat pack’ iron ore cars over the next four years in Perth, Western Australia, will develop capability and boost the state’s manufacturing sector, through a collaboration between BHP, UGL, QRRS and supported by the State Government, BHP says.

In an initial trial, BHP has shipped ore car components from QRRS’s factory in China to UGL’s Bassendean facility as ‘flat packs’, where the UGL team has assembled, welded and commissioned the cars before delivering them to BHP’s Pilbara operations.

For over a decade, iron ore cars have traditionally been built offshore. On average, BHP orders several hundred each year.

To date, five iron ore cars have been completed and delivered to the Pilbara. A further 15 are due to be built and delivered by February 2023. At least 12 UGL jobs have been sustained through the project, according to BHP.

Following the trial’s early success, BHP has committed to constructing an additional 120 cars over the next four years in Western Australia.

BHP says it is continuing to build local content through manufacturing and maintenance opportunities to ensure the local ore car supply chain is sustainable and competitive.

BHP’s Asset President WA Iron Ore, Brandon Craig, said: “BHP makes a significant contribution to the WA economy, and we want to keep building and strengthening that contribution through more local manufacturing.

“We are taking the first important step by working together with the expert teams at UGL and QRRS to build ore cars right here in WA.

“Through this investment, we will support the WA manufacturing sector to strengthen its capability and create new opportunities for business growth and local employment.

“This is a terrific initiative that we’ve been able to develop with our partners and the West Australian Government, and we thank them for their support.”

Premier of Western Australia, Mark McGowan MLA, said: “This project is a testament to the work of our Iron Ore Railcar Wagons Manufacturing and Maintenance Action Group, which is committed to boosting local manufacturing and securing local jobs.”

Doug Moss, UGL Managing Director, said: “We are proud to be the only Australian manufacturer of freight locomotives and we’re pleased to extend this capability through the re-introduction of rail ore car assembly into Australia, and particularly in Western Australia.

“We look forward to continuing this program with BHP and creating a strong and sustainable ore car assembly capability in the state.”

UGL is CIMIC Group’s specialist end-to-end engineering and services provider.

Zhang Quanyong, QRRS Managing Director, said: “As a long-term supplier of BHP, QRRS will continue to support all projects that BHP is involved in. We are pleased to take this partnership further and supply more good products and service to BHP.”

Rio Tinto and Wright Prospecting update Rhodes Ridge iron ore JV to accelerate development

Rio Tinto (50%) and Wright Prospecting Pty Ltd (50%) have agreed to modernise the joint venture covering the Rhodes Ridge project in the East Pilbara of Western Australia, providing a pathway for the development of the deposits using Rio’s rail (pictured), port and power infrastructure.

The binding joint venture updates an existing agreement between the two parties dating back to 1972.

The participants have commenced an Order of Magnitude study, conducted by Rio, which will consider the development of an operation before the end of the decade with initial plant capacity of up to 40 Mt/y, subject to the receipt of relevant approvals.

Rhodes Ridge contains 5,800 Mt of high grade mineral resources at an average grade of 62.3% Fe. The project’s total resource, 6,700 Mt at an average grade of 61.6% Fe, represents approximately one-third of Rio Tinto’s existing resource base in the Pilbara. A resource drilling program is currently underway to support future project studies.

Rio Tinto Iron Ore Chief Executive, Simon Trott, said: “Rhodes Ridge contains one of the biggest and best undeveloped iron ore deposits on the planet with proximate access to existing infrastructure. We are very excited we have been able to strengthen our relationship with Wright Prospecting and have a pathway to bring this high quality resource to market.

“With its significant resource base, the Rhodes Ridge project has the potential to underpin production of the Pilbara Blend in the decades ahead.”

He added: “We are committed to working closely with the Traditional Owners, the Nyiyaparli and Ngarlawangga People, to ensure sites of significant cultural, environmental and biodiversity value are protected as part of any future development at Rhodes Ridge. Consistent with our revised approach for new operations, a co-management approach to any future mining activity will be developed in partnership with Traditional Owners.”

A spokesperson for Wright Prospecting, said: “We are delighted to have reached this important milestone for the Rhodes Ridge project. We look forward to partnering with Rio Tinto to develop this asset with a world-leading focus on climate, biodiversity and heritage.”

The joint venture intends to use Rio Tinto’s existing rail, port and power infrastructure, including the planned installment of 1 GW of renewable power assets in the Pilbara.

Epiroc to deliver automation-ready Pit Viper 271 XC rigs to CITIC Pacific’s Sino Iron mine

Epiroc says it has won a large mining equipment order from CITIC Pacific Mining in Australia to deliver a fleet of Epiroc Pit Viper 271 XC blasthole drill rigs.

The drill rigs will come with advanced automation features for use at the Sino Iron open-pit mine in the Pilbara region of Western Australia, with the Pit Viper drills used to drill for magnetite. They build on the delivery of three other Pit Vipers the company made to the operation back in 2019.

The equipment order was booked in the September quarter of 2022 and is valued at more than SEK300 million ($26 million).

“Epiroc delivered Pit Viper rigs to the Sino Iron site in 2019, and we are proud to continue this productive partnership as CITIC Pacific Mining is expanding the mine while optimising productivity and safety,” Epiroc’s President and CEO, Helena Hedblom, said.

Xianglin Cheng, General Manager – Mining at CITIC Pacific Mining, added: “In the last three years, Epiroc has provided satisfactory after-sale services to help the three Pit Viper 351 drill rigs perform to expectation and has also successfully established mutual trust with CITIC Pacific Mining. The confidence and trust are the major reasons for us to choose Epiroc.”

The Pit Viper drills are manufactured in Texas, USA. They will be installed with automation features including AutoDrill, which allows for up to 100% of the hole drilling cycle to be in automatic mode with high consistency and reliability of operations; and AutoLevel, which minimises the time it takes to level and delevel and hence provides more time drilling, according to Epiroc.

Epiroc to supply loaders, drills and bolters to Luannan’s Macheng iron ore mine

Epiroc says it has won a large order for underground mining equipment from Luannan Macheng Mining, with several dozen machines with automation features set to head to the new Macheng iron ore mine in Hebei Province, northern China.

Luannan Macheng Mining, part of Shougang Group, has ordered a fleet including Scooptram loaders, Simba production drilling rigs, Boomer face drilling rigs and Boltec rock reinforcement rigs. Some of the loaders are the electrically-powered Scooptram EST1030s (powered by cable), and all the machines have market-leading energy efficiency, Epiroc says.

Automation features for many of the machines include Epiroc’s Rig Control System, making them ready for automation and remote control, and ABC (Advanced Boom Control) Total, which enables drilling a sequence of holes (full round) automatically, the company explained.

Epiroc says it will also provide rock drills and other consumables as well as on-site services.

The equipment order was booked in the September quarter of 2022 and is valued at more than SEK300 million ($26 million).

“Epiroc and Shougang Group have a productive partnership going back many years,” Epiroc’s President and CEO, Helena Hedblom, said. “We look forward to supporting them with highly productive and sustainable solutions at their new Macheng mine.”

Fu Zhen Xue, Mine Manager at Luannan Macheng Mining of Shougang Group, said: “China, in recent years, started the quick move towards consolidation of steel companies and the high-quality development of the steel industry, focusing more on safety and the environment. The equipment will help Shougang Group lead China’s steel industry and the shift towards safety and productivity.”

K2fly engaged by Fortescue for software development services

K2fly Limited says it has received orders from entities related to or associated with Fortescue Metals Group Ltd for the provision of software development services with a total contract value of A$1.2 million ($766,780).

The services will be provided on a time and materials basis over an expected period of six months.

The iron ore miner has been using K2fly’s services since 2012, initially signing up to use its Infoscope Land Management software. Within this it is also using the ASX-listed company’s Ground Disturbance Solution, among others.

Nic Pollock, CEO of K2fly, said: “We pleased to be working with Fortescue across a number of areas in the business. Fortescue are using a number of our platform solutions and, in addition, have engaged us for software development services in other areas of their business. These services are additional one-off revenues for K2fly and are also generated from time to time with other K2fly clients.”

BHP looks to halve WA Iron Ore port facility emissions with Alinta Energy pact

BHP says it expects to halve emissions from the generation of electricity used to power its WA Iron Ore port facilities in Port Hedland by the end of 2024, following the signing of a large-scale renewable Power Purchase Agreement with Alinta Energy.

The halving of reported emissions, based on current forecast demand and compared with financial year 2020 (FY2020) reported emissions, will contribute to BHP’s medium-term target to reduce operational emissions by at least 30% from FY2020 levels by 2030 and the company’s long-term goal of achieving net zero operational emissions by 2050.

This agreement between BHP and Alinta will see the construction and connection of a 45 MW solar farm and 35 MW battery energy storage system into Alinta Energy’s existing Port Hedland power station, approximately 14 km from BHP’s port facilities, BHP says.

The construction of the solar farm, subject to final regulatory approvals, is expected to begin in December 2022 and create 200 jobs.

Once completed, it is expected that 100% of the forecasted average daytime energy requirements for BHP’s port facilities will be powered by solar generation, with the remaining power requirements to be met through the integrated battery energy storage system and market access to Alinta Energy’s existing gas fuelled power station facilities.

BHP is the foundation customer of Alinta’s solar battery hybrid project, which is expected to be the first large-scale renewable facility at Port Hedland and will support the expansion of the renewable energy industry in Western Australia.

In addition, BHP and Alinta Energy have entered into a memorandum of understanding in relation to the development of the Shay Gap Wind Farm. The Shay Gap Wind Farm is currently planned to be 45 MW, with a potential first-generation date of 2027.

The PPA is the latest milestone in BHP progressing its plan to reduce operational emissions in line with BHP’s climate targets and goals.

In recent years, it has signed power purchase agreements to provide renewable energy to BHP’s Nickel West operations in Western Australia, Olympic Dam operations in South Australia, BMA operations in Queensland and the Escondida copper mine in Chile.

BHP’s WA Iron Ore Asset President, Brandon Craig, said: “The world needs WA’s high quality iron ore to support economic development and decarbonisation, and we are committed to supplying iron ore more sustainably while investing in WA and creating local jobs. We are delighted to expand our partnership with Alinta Energy as we seek to lower emissions from our WA iron ore business.”

Alinta Energy MD and CEO, Jeff Dimery, said that BHP was once again demonstrating strong leadership in the transition to net zero.

“This is exactly the kind of leadership, progress and smart use of renewables and storage that we need from companies like BHP to show the way forward for Australia,” he said. “We’re excited to get the project underway and thank BHP for their partnership and vision.”

Fortescue pledges $6.2bn of decarbonisation investment on way to producing carbon-free iron ore

Fortescue Metals Group’s decarbonisation plans have stepped up a gear, with the company announcing it intends to eliminate fossil fuel use and achieve “real zero” terrestrial emissions (Scope 1 and 2) across its iron ore operations by 2030 with a $6.2 billion capital investment.

The investment, the company says, will eliminate Fortescue’s fossil fuel risk profile and enable it to supply its customers with a “carbon-free” product.

“Real zero” refers to no fossil fuels and, wherever possible, no offsets, the company explained. Under the use of the term, offsets must only be used as a temporary solution while the technology or innovation required to completely decarbonise is developed.

Fortescue’s strategy will see the company lead the market in terms of its response to growing customer, community and investor expectations to reduce/eliminate carbon emissions, it said.

“Fortescue expects to generate attractive economic returns from its investment arising from the operating cost savings due to the elimination of diesel, natural gas, and carbon offset purchases from its supply chain,” it added. “Fortescue is well positioned to capitalise on first-mover advantage and the ability to commercialise decarbonisation technologies.”

Fortescue made the announcement at the invitation of US President Biden’s First Movers Coalition and the United Nations Global Compact, with the Secretary General of the United Nations at the CEO roundtable on “Business leadership to rescue the Sustainable Development Goals”.

Fortescue also announced that the Science Based Targets Initiative (SBTi) will verify and audit its emissions reduction. This technical auditing initiative was instituted to ensure companies reach their Paris Agreement goal to limit global warming to 1.5 degrees centigrade.

Fortescue says its decarbonisation journey started on the commencement of the first major trip on August 25, 2020, during the advent of COVID-19 to secure technology, demand and resources for the green energy ecosystem. It consolidated further at the successful completion of the 100-day sprint to create the world’s first mining truck to run on hydrogen (a FCEV).

When fully implemented, Fortescue’s decarbonisation strategy and associated investment will provide significant environmental and economic returns by 2030, including:

  • Avoidance of 3 Mt of CO2-equivalent emissions per year;
  • Net operating cost savings of $818 million per year from 2030, at prevailing market prices of diesel, gas and Australian Carbon Credit Units (ACCUs);
  • Cumulative operating cost savings of $3 billion by 2030 and payback of capital by 2034, at prevailing market prices;
  • Elimination of Fortescue’s exposure to fossil fuels and associated fossil fuel price volatility which, in turn, will de-risk the operating cost profile;
  • Removal of the company’s exposure to price risks associated with relying on carbon offsets as well as carbon tax regulatory risk;
  • Establish a significant new green growth opportunity by producing a carbon-free iron ore product and through the commercialisation of decarbonisation technologies;
  • Ensuring future access to green driven capital markets.

Fortescue’s capital estimate of $6.2 billion is expected to see the investment largely planned in the company’s 2024-2028 financial years. This investment includes the deployment of an additional 2-3 GW of renewable energy generation and battery storage and the estimated incremental costs associated with a green mining fleet and locomotives.

The capital expenditure to purchase the fleet will be aligned with the scheduled asset replacement life cycle and included in Fortescue’s sustaining capital expenditure. Studies are underway to optimise the localised wind and solar resources.

The investment is expected to generate a positive net present value through enabling the displacement of approximately 700 million litres of diesel and 15 million GJ of gas per year by 2030, as well as the associated reduction in CO 2 emissions.

Fortescue Executive Chairman, Dr Andrew Forrest AO, said: “There’s no doubt that the energy landscape has changed dramatically over the past two years and this change has accelerated since Russia invaded Ukraine.

“We are already seeing direct benefits of the transition away from fossil fuels – we avoided 78 million litres of diesel usage at our Chichester Hub in financial year 2022 – but we must accelerate our transition to the post fossil fuel era, driving global scale industrial change as climate change continues to worsen. It will also protect our cost base, enhance our margins and set an example that a post fossil fuel era is good commercial, common sense.

“Fortescue, FFI and FMG are moving at speed to transition into a global green metals, minerals, energy and technology company, capable of delivering not just green iron ore but also the minerals, knowledge and technology critical to the energy transition.

“Consistent with Fortescue’s disciplined approach to capital allocation, this investment in renewable energy and decarbonisation is expected to generate attractive economic returns for our shareholders through energy cost savings and a sharp reduction in carbon offset purchases, together with a lower risk cost profile and improvement in the integrity of our assets.”

Fortescue has already made significant effort in decarbonising its iron ore operations through its successful green fleet trials and innovation, acquisition of Williams Advanced Engineering (WAE) and its partnership with Liebherr in June this year. Building on Fortescue’s announcement in March 2022 to develop with FFI and WAE the world’s first regenerating battery electric iron ore train, feasibility studies are progressing, with delivery of the first parabolic (gravity powered) drive trains to the Infinity locomotives scheduled to be operational by the end of 2026.