Tag Archives: Pilbara

Onsite Rental Group seals Rio Tinto Iron Ore equipment contract

Rio Tinto says it has awarded a contract worth close to A$30 million ($21 million) to Onsite Rental Group to provide ancillary and light mobile equipment (LME) over the next three years to the iron ore division’s Pilbara mines and Coastal operations.

Onsite is established in the Pilbara and will provide on the ground support through its offices in Karratha, Tom Price, Newman and Port Hedland, as well as its office in Perth, Rio said.

“The equipment will support maintenance activities across Rio Tinto Iron Ore’s Pilbara mines and Coastal operations and includes access platforms, telehandlers, lighting towers and generators,” the miner added.

Onsite has committed to provide local employment opportunities, boost indigenous engagement, deliver apprenticeships and training, as well as establish diversity programs, according to Rio.

Rio Tinto Iron Ore Managing Director Supply Chain Services, Ivan Vella, said: “Rio Tinto’s procurement practices, and those of our contractors, play a significant role in the creation of sustainable and resilient communities, including job opportunities for local people, which ultimately benefits the communities where we operate.”

Onsite Rental Group Managing Director, Mike Foureur, said the company plans to increase local employment, particularly for service technicians based out of Newman and Tom Price, to service this contract.

“We will work closely with Rio Tinto to align, commit and grow local content and indigenous participation through partnering and supplier opportunities within the Pilbara region,” he said.

BHP looking at wide-scale haul truck automation in WA iron ore, Queensland coal

BHP is currently weighing up a project to automate around 500 haul trucks across its Western Australia Iron Ore and Queensland Coal sites, according to a strategy briefing presentation delivered by Chief Financial Officer, Peter Beaven.

Under a list of “projects in feasibility” in the appendices of Beaven’s presentation, the mining major detailed a staged haul truck automation plan that could cost less than $800 million to deliver, with the first of several investment decisions expected this year.

BHP already has automated haul trucks running around its Jimblebar iron ore mine in Western Australia, with the operation going fully autonomous at the end of 2017, but it has not rolled out the autonomous haulage systems (AHS) for haulage across its iron ore portfolio like peers Rio Tinto and Fortescue Metals Group. This latest project, on top of what CEO Andrew Mackenzie said back in February, hints it could do so in the future.

In terms of the delivery of the project, BHP said it was estimating a staged rollout between 2020 and 2023, with AHS decisions made on a “site by site” basis.

NRW’s new RCR Mining Technologies business captures Rio Tinto Koodaideri contract

RCR Mining Technologies has continued its strong start under the guidance of new owner NRW Holdings, winning a “significant” original equipment manufacturer (OEM) equipment package from Rio Tinto for the miner’s Koodaideri iron ore project in the Pilbara of Western Australia.

The new order is for the supply of three large apron feeders, 11 slide gates and two belt feeders, to a combined value in excess of A$18 million ($12.2 million), NRW said.

NRW signed a deal with RCR Tomlinson’s administrators, back in January, to acquire the mining and heat treatment businesses of RCR for A$10 million in cash. Back then, NRW said the purchase of the international OEM and innovative materials handling designer would allow the company to provide incremental services, in line with its strategic objectives, to several core clients common to both NRW and the RCR businesses.

Ian Gibbs, Executive General Manager of RCRMT, said: “RCRMT has a long and proud history of supplying major equipment to Rio Tinto and the WA mining industry.

“Since transitioning to NRW ownership, we have been able to secure orders for all the current major iron ore projects to retain our status as the market leader in the design and manufacture of apron and belt feeders, which is an exciting achievement against a highly regarded multinational supply market.”

NRW CEO and Managing Director, Jules Pemberton, said: “The award represents further validation of our acquisition approach to provide clients with a broader service offering. I’d also like to acknowledge Ian Gibbs and his team who have worked hard to secure this work which will further support activity at both the Bunbury and Welshpool sites.”

NRW’s businesses have already won two contracts on the Koodaideri project – one for rail formation work and another for bulk earthworks.

Mine automation starting to take hold, RFC Ambrian says

In its second report in a series on innovation and new technology in the mining industry, RFC Ambrian has tackled the subject of autonomous mining equipment, which, the authors say, has reached an “important level of maturity”.

The report considered both surface and underground equipment, but most notably surface mine haulage trucks where there has been an area of significant focus for major mining companies.

As the authors said: “This has reached an important level of maturity, although it is still evolving and its penetration across the industry is still in its infancy.”

AHS

The Autonomous Haulage Systems (AHS) have evolved from improvements in GPS for positioning and navigation, developments in sensors and detection –particularly radar and LiDAR, improved computing power and on-board monitoring, faster and more reliable networks and internet connection, and the development of effective and accurate algorithms and software, the authors said.

“AHS has appeared , first, at large mine operations where the benefits have the largest impacts, due to the high component of fixed costs in an AHS operation, and in developed countries where there is a shortage of skilled workers and labour costs are higher,” they said.

Outlining the potential benefits of AHS is straightforward, but finding hard data to support it is more difficult, according to the authors.

“Companies have made suggestions about the scale of improvement, but they are light on detail, definitions are not clear, and the data varies between companies,” the authors said.

Suggested improvements in productivity have come from Caterpillar (15-20%), Fortescue Metals Group (30%), Komatsu (15%), and Rio Tinto (15%), according to the authors.

“These improvements are still meaningful, and corporate companies would argue that every mine is different and that the mining companies and original equipment manufacturers (OEMs) that have so far implemented AHS have the right to guard this proprietary information and hold on to the competitive advantage,” the authors said.

Autonomy in other surface equipment

The authors said they are also now seeing this same technology used to automate other operations in the surface mine. This includes drill rigs, dozers, loaders and ancillary equipment.

“Much of this equipment is currently, at best, semi-autonomous, although a few mines have implemented fully-autonomous drill rigs and dozers,” they noted.

“Moving this equipment to full autonomy offers significant production improvements, although the scale of actual savings is not likely to be as great as those achieved with AHS,” the authors said.

“However, we have not yet seen quantified the downstream benefits of the resultant improved drilling and blasting.

“The automation of earth moving machines provides another step to increased productivity within the mine. However, loaders face additional challenges as a result of the variability of the loading face and the risk of collisions with the haulage trucks.”

Due to the complex nature of the bucket-media interaction, developing automatic loading functions that are better than or equal to expert manual drivers with regard to performance is a highly difficult task, according to the authors.

“As a result, fully-autonomous loading is not yet commercially available. Some observers suggest that the implementation of fully-autonomous surface loading is still some five years away, while others believe that full automation is unlikely.”

Underground mining

When it comes to underground mining, the authors of the report said, as with surface mining, full autonomy remains the goal.

“Mining companies and contractors are constantly looking to use technological developments to better utilise their investment in equipment and human resources and improve safety,” the authors said. “Particular features of traditional underground mines are: long unproductive periods caused by re-entry times required for operators after blasting; and higher health and safety risks due to geotechnical and environmental challenges.

“The use of autonomy underground aims to increase the productivity of the equipment and improve the safety of the operators.”

While the aims remain the same, full autonomy in the underground mine is not as advanced as in the surface mine, according to the authors.

“Haul trucks are used less frequently in underground mines, although a few mines are using haul trucks with AHS. More underground mines perform a short cycle of loading, hauling and dumping from a draw point to a tipping point with LHD equipment.

“Implementation of autonomous systems underground for LHDs is occurring, however, as with surface loading, one of the major hurdles to automating LHDs is replacing human judgement required for filling the bucket.”

This has seen full autonomy being used for the hauling and dumping cycle, but semi-autonomy usually used for loading, according to the authors. “Successful trials of fully- autonomous LHDs have been achieved and Sandvik i-series now offers an automated bucket filling assistant as a standard function,” they said.

Underground drilling operations, meanwhile, are achieving increased levels of autonomy but are also presently only semi-autonomous.

Robotic rail operations

The authors then looked at autonomous rail haulage systems, a segment of the market that has gained in prominence in the past few years thanks to initiatives such as Rio Tinto’s AutoHaul in the Pilbara of Western Australia.

The authors said: “There has been some form of automation on worldwide metro systems for many years, but one area where autonomous technology has yet to gain a foothold is rail freight. Trials are underway in Holland and Germany but implementing autonomous train driving on a complex rail network, with passenger trains and freight trains, is more difficult than on a metro system.”

The one exception to this is in the mining sector and AutoHaul, they said, where Rio has completed commissioning of the world’s first fully-autonomous, long distance, heavy-haul rail network which is now in full operation.

Pace of implementation

Despite the acclaimed success and the relative level of maturity of the technology, the wider implementation of AHS does not appear to be happening very fast, the authors argue.

“The systems of both the two main suppliers (Caterpillar and Komatsu) are well proven and have delivered positive results, although, according to consultants, both systems also have examples of less-than-expected performance.

“Nevertheless, the technical issues appear relatively minor and there is interest right across the industry but, in spite of the potentially significant benefits, more mines are not now using AHS.”

There are a number of likely reasons for this, the authors said, explaining that one of the most important is a lack of skilled personnel.

“We believe there is a lack of in-depth knowledge of the technology and limited personnel with the requisite experience, skills, and training throughout the industry’s hierarchy,” they said.

“Further, there is a shortage of skilled autonomous operators, developers, and consultants, some of who are moving to the autonomous auto market.”

Important factors in the success of AHS appear to be the level of management commitment, planning, and focus in the implementation, with the best results reported from well-operated mining sites, the authors said.

“Another factor is likely to be limitations on equipment supply from OEMs for new equipment and truck conversions, either due to manufacturing backlogs or maybe market caution, limiting investment. This is allowing the OEMs to be more selective in their customers.”

The authors cautioned: “However, if the existing suppliers do not develop additional capacity quick enough this could create opportunities for additional entrants in to the market.”

Capital availability in the mining industry could also be an issue holding back AHS advancement, they said, although it is less tight than it has been in recent years.

“Certainly, some lower-margin operations might struggle to finance the capital, although the uplift in relative profitability could be transformational, with relatively quick paybacks,” they said.
And the historical conservatism of the mining industry is also likely to be a factor, the authors said.

“There is still a natural reluctance within the industry to adopt new or unproven technology due to the high capital cost involved and the potential operational and reputational risks involved.

“This will be compounded if the organisation has limited experience and limited access to the technology.”

You can read the full report here.

NRW wins second Koodaideri iron ore contract from Rio Tinto

NRW Holdings says it has been awarded the Koodaideri Rail Formation South Earthworks contract by Rio Tinto.

The project scope includes the construction of about 73 km of new rail embankment, a new mine access road and associated road works along the Koodaideri rail alignment, NRW said.

The project value is in excess of A$137 million ($92.9 million) and is expected to have a duration of some 70 weeks with site works commencing in August. At its peak, there will be over 300 site-based personnel required for the project, according to NRW.

NRW’s Chief Executive Officer, Jules Pemberton, said: “NRW has a long history of civil construction expertise in the Pilbara and has been involved in the successful delivery of numerous greenfield and brownfield projects for Rio Tinto since 2002.

“Since then, NRW has also constructed more than 900 km of rail formation across the Pilbara providing work for thousands of Australians and supporting local industries, traditional landowners and suppliers.”

He added that the contract follows the recent award of the Koodaideri plant site earthworks agreement where construction has already commenced (pictured).

Construction on Koodaideri Phase 1 started this year with first production expected in late 2021. Once complete, the $2.6 billion mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

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

Rio Tinto Iron Ore Chief Executive, Chris Salisbury, has previously said that the company wants to make Koodaideri the “most technology-enabled and innovative mine in our Pilbara iron ore network”.

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

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.

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

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

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.

Autonomous drill rigs, Oyu Tolgoi recognised in Epiroc awards

Epiroc’s first annual awards have recognised close customer collaboration in Mongolia and innovative autonomous drill rigs in Australia.

Its “United in Performance Award” honours exceptional customer collaboration, the company said. This inaugural award is presented to Anders Berglund, Bayar Torguud, Batzorig Jamsranjav and Alf Lawrence at Epiroc’s Customer Center in Mongolia, as well as to mining company Oyu Tolgoi LLC.

“Their far-reaching collaboration is boosting productivity and safety at Oyu Tolgoi’s major copper mine,” Epiroc said. “With the mine located remotely in the South Gobi desert, Epiroc has developed strong local service capabilities, yielding customer benefits such as on-time spare parts delivery. The companies are emphasising safety and diversity and they have successfully worked together to recruit more women as equipment operators and service technicians.”

The Inspired by Innovation Award, meanwhile, recognises Epiroc’s most innovative technical development that has had a proven commercial success.

It has been presented, this year, to Tyler Berens, Tim Ledbetter and Dustin Penn at Epiroc’s Drilling Solutions division, Lars Eriksson at the Rocktec division, and to Adrian Boeing at the Customer Center in Australia for developing and deploying autonomous Pit Viper drill rigs for BHP.

A fleet of Pit Vipers is operating remotely at iron ore mines in the Pilbara region, some 1,300 km away from the office building in Perth, Western Australia, where BHP’s operators are located.

“This automation solution brings strong customer benefits, including improved work environment, higher productivity and lower operating costs,” Epiroc said.

Back in December, the first autonomous Epiroc Pit Viper 271 drill rig broke ground at BHP’s South Flank iron ore project in Western Australia. This was the first of five autonomous drill rigs to operate at the mine, all of which will be controlled remotely.

Per Lindberg, Epiroc’s President and CEO, said of the awards: “We are proud of our strong teams that continuously focus on making customers more productive and safe while lowering their operating costs. Automation and proactive customer collaboration are two important ways to achieve this.”

The awards will be presented to the winners at the company’s Annual General Meeting on May 9.

FMG looks for magnetite iron ore upside with Iron Bridge investment

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.”