Tag Archives: mineral ports

OZ Minerals to use SIMEC Mining’s Whyalla Port for Carrapateena concentrate exports

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OZ Minerals has become the first company to sign a long-term port services contract with SIMEC Mining’s Whyalla Port, in South Australia.

The pact will see OZ ship copper concentrate from its new Carrapateena mine from the port.

The port in Whyalla currently serves SIMEC’s haematite and magnetite iron ore mines as well as the Liberty steelmaking facilities in the same location (all part of the GFG Alliance). The facility handles both the loading of vessels with export-bound ore, as well as the inbound handling of raw materials, storage and blending of iron ore, according to SIMEC Mining.

SIMEC Mining Executive Managing Director, Matt Reed, said the three-year contract was the first major deal the business had secured.

“We’ve stated for some time that our port is open for business, and the last few years have demonstrated that through the number and variety of trials we’ve undertaken,” he said. This includes wind farm transport and the current ship deconstruction, scrapping and recycling project utilising the old shipyard slipway, the company explained.

Reed continued: “To take that to the next level and secure an ongoing contract is testament to our increased capability; and an exciting step in the evolution of the Whyalla Port.”

The contract will see secure containers of copper concentrate trucked from the mine – located about 165 km north of Port Augusta – to the Whyalla Port for consolidation. The concentrate will then be shipped out in 5,000-10,000 t cargoes, with annual shipments gradually increasing in conjunction with the ramp up of the mine.

In its March quarter report, OZ Minerals said Carrapateena was expected to produce 20,000-25,000 t of copper and 35,000-45,000 oz of gold in the 2020 financial year to the end of the June. It added that the plant ramp-up was ahead of schedule with a five-day continuous period at 12,000 t/d nameplate capacity achieved in March.

According to SIMEC Mining, strict environmental controls are in place including sprays to manage dust – with the state government and EPA consulted and engaged prior to providing the necessary approvals.

OZ Minerals’ Chief Financial Officer, Warrick Ranson, said: “We were really excited to hear that SIMEC had opened its port to third parties, and it has made a significant difference for us in reducing transport times.

“We are impressed with the capability SIMEC has managed to develop through the facility in recent years and look forward to partnering with them to deliver our product to market.”

While initially a three‐year contract, Reed is hopeful the agreement can be extended to reflect the overall life of the mine.

“This contract justifies our investment in the port – particularly the installation of our state‐of‐the‐art mobile harbour crane – as this wouldn’t have been possible with our old facilities,” he said.

“We will be able to transport this material safely, efficiently and with a high standard of environmental care; and expect our performance to lead to further long-term contracts in the near future.”

Paterson & Cooke floats new port concept by Zanaga Iron Ore

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Zanaga Iron Ore says a concept study on the viability of using a floating dewatering, storage and offloading (FDSO) port facility shows the potential for a $184 million reduction in capital costs for the 12 Mt/y Stage One development at the Zanaga iron ore project in the Republic of Congo.

Following an approach in 2019 from a leading engineering procurement and construction (EPC) company specialised in the development of floating mooring and operating facilities, in recent months the Zanaga project team has been actively investigating the potential to use an offshore floating port instead of the transhipping solution envisaged in the 2014 feasibility study, the company said. This transhipping solution involved Zanaga’s slurry pipeline terminating at the coast of the Republic of Congo, whereby the slurry material would be dewatered in a coastal based location north of Pointe Noire.

Zanaga is planned as a large scale iron ore mine, processing and infrastructure operation to produce 30 Mt/y of high-grade iron ore (pellet feed) concentrate over a 30-year life of mine, to be developed in two stages. Stage One consists of 12 Mt/y of pellet feed, with the Stage Two 18 Mt/y expansion to 30 Mt/y of pellet feed.

The feasibility study envisaged a slurry pipeline for transport of iron ore concentrate from the mine to the port facilities, with the port facilities and infrastructure for dewatering and handling of the iron ore products located within a proposed third-party constructed port facility.

According to the latest concept study, the floating port solution could provide a number of advantages both technically and economically over previous solutions.

“The solution involves extending Zanaga’s slurry pipeline straight out into the ocean, with significantly reduced land-based facilities,” the company said. “The pipeline would run along the ocean floor to a fixed mooring point where the pipeline would connect to the FDSO vessel.”

The slurry would be processed onboard by a dewatering plant and the pellet feed concentrate would be stored within the vessel. Offloading facilities would be built into the vessel to allow the FDSO to load cape size vessels directly. By utilising the FDSO, Zanaga’s materials handling steps would be reduced to only three phases, providing significant efficiencies and a more seamless operation, the company said.

The FDSO evaluation process has been led by Paterson & Cooke, leading experts in slurry pipeline design and engineering. P&C has completed a concept level report involving a comparison of the three port solutions available for the Zanaga project, namely transhipping, deep water port, or the new FDSO port, Zanaga said.

“The results of the investigation have been very positive from a technical and economic perspective,” the company said. “Potential has been indicated for a $184 million reduction to total capital costs of the 12 Mt/y Stage One project, resulting in a reduction of total capital cost from $2.219 billion to $2.035 billion.”

While the study was conceptual in nature, it compared favourably with the transhipping and deep water port options the company had previously weighed for the project, it said. The capital cost associated with the FDSO was $111 million, compared with $295 million for the transhipping option and $899 million for the deep water port.

On top of this, operating costs are expected to be maintained at around $6.50/t due to previously high transshipping costs being substituted by a lease cost to the EPC contractor providing the solution, it said.

Clifford Elphick, Non-Executive Chairman of Zanaga Iron Ore, said: “This evaluation exercise demonstrates the clear potential of a floating port facility to enhance significantly the economics of the Zanaga project through the reduction of upfront capital costs and enhanced internal rate of return.

“In addition, there is potential to achieve significant ancillary technical benefits such as reduced environmental impact, elimination of dredging, and significant flexibility on coastal route selection.”

On top of this development, Zanaga said the project team had made progress on evaluating the early production project (EPP) potential of the asset.

Having ditched plans to explore a logistics route through Gabon, it said the team was now evaluating a range of capacities from 1-5 Mt/y involving optimising process plant design and reviewing in-country logistics solutions for an upgraded truck and rail solution using upgraded road and rail infrastructure within the Republic of Congo.

“In terms of power supply, heavy fuel oil is available in RoC in sufficient quantities to support such a project and pricing has been obtained from the national oil company allowing the project team to evaluate the viability of such an option to support the EPP’s power consumption requirements,” the company said.

“In addition, potential hydropower sites have also been identified in the area of the future mine. One site located 70 km to the north on the Ogooué river site seems promising, with a potential capacity of 20 MW to 40 MW.”

A detailed study is underway to further evaluate the potential of the site, it added.

“The project team continue to evaluate the potential for the EPP to operate as a standalone project, or as an initial pathway to production during the construction period of the 30 Mt/y staged development project,” it concluded.

McConnell Dowell to bring marine construction expertise to BMA project at Hay Point

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McConnell Dowell says it has signed an Early Contractor Involvement (ECI) contract with the BHP Mitsubishi Alliance (BMA) for its Shiploader 2 and Berth 2 Replacement (SABR) project at the Hay Point Coal Terminal, in Queensland, Australia.

The SABR project scope encompasses replacement of one of the three berths and shiploaders at the terminal. The wharf and shiploader being replaced have reached end of life, according to McConnell Dowell, and the SABR project will see replacement of both facilities. At the same time, it will improve operability (with a berth extension) and storm immunity (by raising of the berth).

In collaboration with BMA and its design engineer Aurecon, McConnell Dowell will work in an “integrated project delivery environment” to optimise the facility design and construction methodology, so the project can be completed in 2023, the company said.

The scope of the contract includes the “provisions of constructability input”, advice, and preparatory work for construction, including assisting with facility design; construction execution planning; and estimating and planning assistance, McConnell Dowell said.

Back in 2015, BMA opened the new third berth at its Hay Point coal terminal, which lifted the export capacity from 44 Mt/y to 55 Mt/y.

“McConnell Dowell is thrilled to be partnering with BMA once again and bringing our leading marine construction expertise to drive innovation and project certainty.”

EGA and Maersk extend aluminium shipping relationship

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Emirates Global Aluminium says it has signed a volume commitment extension agreement for 2019 with the global shipping company A.P. Moller – Maersk for transport of its aluminium to customers around the world.

EGA exports its metal to customers in more than 60 countries worldwide and makes more than 11,000 shipments each year using over 100,000 containers. EGA’s aluminium is the biggest made-in-the-UAE export after oil and gas, according to the company.

The company said: “EGA works with 20 different shipping lines to ship its products, transporting metal to over 70 global ports. Maersk is one of EGA’s most significant shipping partners, and has supplied shipping services to the UAE aluminium giant since 1992.”

Walid Al Attar (right), EGA’s Chief Marketing Officer, said: “Meeting our customers’ expectations depends on both the quality of our production and the efficiency of getting the metal to them, so I am pleased to sign this agreement today with one of our most important shipping partners, Maersk.”

Christopher Cook (left), Managing Director for Maersk in UAE, Oman and Qatar, said: “As the global integrator of container logistics, this agreement enables us to continue to partner with EGA to ensure their aluminium reaches their customers as fast and as cost-effectively as possible.”

CU-River Mining looks to create South Australia bulk transhipment facility

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Flinders Power Partnership has agreed to sell CU-River Mining the former power station at Port Augusta, South Australia, with the iron ore focused company looking to turn the site into a bulk commodity, transhipment port facility.

The acquisition is expected to provide a substantial jobs boon for the Upper Spencer Gulf town, according to CU-River Mining.

Construction will start once feasibility and approvals are complete, the company said, with more than 150 people employed at peak and up to 100 permanent positions to be created once the facility is in operation.

It is expected the facility will have an initial capacity up to 15 Mt/y. However, future export potential via a multi-stage development approach, is in excess of 50 Mt/y.

It is proposed the A$250 million ($181 million) port facility will be capable of handling iron ore, grain and other commodities. Barges will be loaded at the port then sail into Spencer Gulf’s deeper water to unload onto larger, capesize vessels, which have a capacity of approximately 175,000 t.

The company expects to begin operations within two years, which will lead to the return of commercial shipping to Port Augusta for the first time in almost half a century.

The retention of key infrastructure at the site, including a 5 km rail loop and unloading systems, made the 1,068-ha site an attractive proposition for CU-River, according to External Affairs Manager, Shelaye Boothey.

“CU-River has a strong project pipeline and an ambitious growth strategy that will see it headquartered in South Australia for decades to come. The purchase of the site is a significant, strategic decision that allows CU-River to secure a direct export pathway for the 15 Mt of high-grade iron ore magnetite it plans to mine each year from 2026.

“However, it is our intention to develop the port as a multi-user facility, providing Spencer Gulf and far-north industry with further export opportunities.”

The significant size of the site means there is considerable scope for the land to be further developed for a number of commercial uses, according to Boothey.

“We will be examining the feasibility of constructing a large-scale solar farm,” she said. “However, we will be exploring every option to ensure the site’s commercial potential is maximised. Further development of the site will result in more jobs for Port Augusta, making this an exciting prospect.”

The power station ceased generation in May 2016. Since that time, Flinders Power has been responsible for the decommissioning and demolition of the power station and rehabilitation of the site. It is expected the sale of the site will be finalised in early April 2019, once remediation is complete.

CU-River plans to continue with the Community Reference Group (CRG) established by Flinders Power after it acquires the site. This will provide key stakeholders the opportunity to work collaboratively with CU-River and provide an opportunity to contribute to the future planning of the site, according to the company.

CU-River Mining aims to be an important partner to the South Australia Government by helping achieve its Magnetite Strategy goal of producing 50 Mt/y by 2030. It holds four exploration licences covering approximately 3,000 km² in broadly the same vicinity as Cairn Hill (which has a 3 Mt/y capacity). Once these resources are brought into production our goal is to produce 15 Mt/y of magnetite concentrate.

Established in 2014, the company purchased the existing Cairn Hill iron ore mine, 55 km southeast of Coober Pedy. After an extensive A$20 million upgrade, CU-River started mining in 2016,  producing and exporting 1 Mt of magnetite ore in its first 12 months of operation. Production ceased in late 2017, but the company plans to recommence mining in the middle of this year.

Mechel’s Trade Port Posiet tests out thyssenkrupp coal storage sprinkler system

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Trade Port Posiet, part of Mechel Group’s transport division (managed by Mecheltrans Management Co), has started testing specialised equipment to suppress dust at the port’s outdoor coal storage areas in Russia.

The port acquired a stationary sprinkler system for coal storage from thyssenkrupp as part of its technical upgrade investment project. This system consists of 22 automatic sprinklers that operate “as natural rain” and ensures year-round dust suppression in the production area. The system’s water discharge rate is up to 96 cu.m/h.

The first four sprinklers have been assembled, connected to a 2.9-km trunk pipeline and checked for pressure integrity, according to Mechel. After these tests, the port’s staff pronounced the first sprinkler line ready for launch. To prevent mechanical damage, the port constructed concrete safety barriers separating the sprinklers and haul roads.

The launching of the stationary sprinkler system at the port’s storage areas is the latest stage of the company’s efforts to upgrade the port’s infrastructure and reduce its environmental impact, Mechel said. It is due to be launched in the March quarter.

Mecheltrans Management Company OOO’s Chief Executive Officer, Alexey Lebedev, said: “A work zone sprinkler system is an efficient instrument widely used in specialised terminals dealing with loose goods. What is important is that the sprinkler system will be managed from a central dispatch. A special program will determine the sprinkler operating algorithm that would be the most effective in suppressing dust at any given moment.

“In addition, the trans-shipment complex’s operator will finetune the sprinkler system’s work, depending on the wind’s strength and vector, the state of handled coal and other factors. This way we will ensure accurate control of the dust suppression system.”

Trade Port Posiet’s technical upgrade project includes various ways of reducing the port’s impact on the environment. Coal is currently unloaded by railcar dumpers in a closed space equipped with de-dusting systems that rule out the chance of dust escaping into the open air. In the winter, railcars with thawed coal are moved after defrosting into the railcar dumper facility via a covered conveyor gallery. Coal transfer stations are also equipped with de-dusting systems. Conveyor lines are additionally equipped with metal galleries to protect the environment from coal dust. As coal is transferred into storage areas, it is moistened by a water dispersion system installed on stacker/reclaimers.

Mechel Group’s investments into creating a computerised terminal at Port Posiet exceed RUB4 billion ($61 million). The port’s trans-shipment capacity enables the company to export up to 9 Mt/y of coal.