Tag Archives: Pilbara

FMG sets up Future of Mobility Centre in WA, starts autonomous light vehicle trial

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Fortescue Metals Group has announced the establishment of a research and development centre based in Karratha, Western Australia, to explore opportunities for the application of autonomous mobility technology in an urban environment.

On top of this, it said it had commenced an autonomous light vehicle trial at its Christmas Creek iron ore operation in the Pilbara of WA.

In partnership with the local community, City of Karratha and technology and research partners, the Fortescue Future of Mobility Centre will “leverage the company’s success in using autonomous technology across its operations”, FMG said.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said that innovation and emerging technologies, like autonomy, present an opportunity to work closely with the community to bring about mutual benefits.

“We are at the forefront of this technology with our mine operations set to become the first in the world to be fully autonomous and our fleet having safely travelled over 26 million kilometres since the first autonomous truck was introduced in 2012,” Gaines said.

“We are now building on our autonomous capability with the commencement of an autonomous light vehicle trial, at our Christmas Creek mine.

“The emergence of autonomy is one aspect in which our world is changing rapidly, and we intend to be part of the opportunities that it will represent for the mining industry, local communities such as Karratha, and beyond.”

By establishing the Fortescue Future of Mobility Centre in Karratha, FMG will have the ability to develop, test and trial this technology, Gaines said. This will further contribute to “Western Australia’s position as a world leading autonomous hub”, she added.

“We’ll be exploring all facets of the future of mobility including software, hardware and various forms of mobility solutions, to see where the opportunities lie,” she said.

City of Karratha Mayor, Peter Long, said: “I am delighted that of all the potential locations around Australia, Fortescue has selected Karratha as its base to develop this exciting and innovative new technology.”

Dr Fang Chen, Executive Director Data Science at The University of Technology Sydney, which will be a leading research provider to Fortescue’s work in autonomous technology, said: “Research into new technology and infrastructure will accelerate innovative mobility solutions to accommodate growth and future demands.”

Civmec to help modularise BHP’s South Flank iron ore mine

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Civmec says it has signed a contract with BHP that will see the ASX-listed engineering company fabricate and modularise key components for the under-construction South Flank iron ore project, in the Pilbara of Western Australia.

The award of the South Flank module fabrication and assembly package #3 covers the supply and assembly of 23 fully-equipped ‘smart modules’, including the supply and installation of the required mechanical and electrical equipment up to no-load commissioning for each module, Civmec said. The scope comprises conveyor shuttle modules, sample station, pump skids, train loadout and feeder modules, all of which will be fabricated and assembled at Civmec’s facility in Henderson, Western Australia, before being transported to site for installation.

Work will commence immediately, with completion anticipated by mid-2020, according to Civmec.

Civmec’s Chief Executive Officer, Patrick Tallon, said: “We are extremely pleased to be given this opportunity to further support BHP in the delivery of what will ultimately become its flagship mine. The award of this scope of work complements the packages already in production for thyssenkrupp, in the supply, manufacture, trial assembly, surface treatment and pre-assembly of stackers, bogies and equalisers for the rail mounted machines for the South Flank project.”

When fully operational, South Flank will be one of the world’s largest iron ore operations integrating the latest advances in autonomous-ready fleets, digital connectivity and modular design, Civmec said.

BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output. This will replace production from the existing Yandi mine, which is reaching the end of its economic life. The company carried out the first blast at the project in September.

The combined value of these packages for South Flank is around A$48 million ($34 million).

BHP looks at phased rollout of autonomous trucks at WA iron ore ops

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BHP CEO, Andrew Mackenzie, says the diversified miner is looking at a phased roll out of autonomous haulage technology across its Western Australia Iron Ore operations following success at its Jimblebar mine.

BHP opened Jimblebar, located 40 km east of Newman in the Pilbara, back in 2014 and soon started using it as one of the main testbeds for autonomous trucking technology. The site went fully autonomous at the end of 2017.

Mackenzie said in the company’s half-year (to end-December) results presentation that Jimblebar’s fully autonomous trucks were now “amongst our safest and most productive”. He added: “This success will guide a phased roll out across other operations.”

In terms of automation, the company also said it was studying the use of autonomous drills at its majority-owned Escondida copper mine in Chile, in addition to carrying out further trial integration and automation technologies at its Eastern Ridge Innovation Mine.

Baru Group wins conveyor and stacker work at Rio Tinto’s Brockman 2 iron ore mine

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Rio Tinto has awarded its 100th work package to local businesses in the Pilbara of Western Australia, as part of a programme designed to increase opportunities for companies within the state.

The programme, launched in May 2017, features an online local procurement portal to increase the visibility of upcoming work and maximises opportunities for local companies to be part of Rio Tinto’s supply chain, according to the company.

One of the most recent local businesses to secure work through the portal was indigenous-owned-and-operated civil and concrete construction company, Baru Group.

The work awarded to Baru involves an upgrade of the stackers and conveyors at Rio Tinto’s Brockman 2 operation, including earthworks and a structural upgrade to the stacker rail sleepers and conveyor foundations.

Baru, based in Karratha, is expected to complete the project by the end of 2019.

Anne Tallon, director of Baru Group, said: “Winning this work has a flow on effect for our employees and their families. Rio Tinto’s local procurement portal shows us what jobs are coming up and provides us with enough information so that we can do our own investigation into whether we can be cost competitive as well as if the scope of works are within our capabilities.

“Being successful in these opportunities means that our businesses can grow, our employees and their families can live in the towns they chose to live in, and our communities can thrive.”

Rio Tinto Iron Ore Managing Director Pilbara Mines, Stefan Buys, said: “The programme is gaining momentum and we have now received more than 3,000 expressions of interest from suppliers for work published on the online platform, the Local Procurement Portal.

“Rio Tinto aims to make a significant contribution to our local communities by making sure we provide opportunities for local businesses to benefit from our activities. Our procurement practices, and those of our contractors, help sustain many Western Australian and Pilbara-based businesses.”

Ausdrill’s Barminco to go underground at Regis Resources’ Rosemont gold project

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Having recently closed a deal to acquire fellow contractor Barminco, Ausdrill has announced A$171 million ($123 million) in new work across the mining space.

Its Barminco business has sealed a three-year underground mining services contract with Regis Resources at the Rosemont project (worth A$113 million), in addition to receiving the nod to perform decline rehabilitation and development works at Western Areas’ new Odysseus mine. Meanwhile, Ausdrill has booked a 12-month contract from Consolidated Minerals for the provision of exploration drilling services at the Woodie Woodie manganese mine. This comes on top of a similar contract with Bellevue Gold at its namesake project in the Eastern Goldfields of Western Australia.

Ausdrill Managing Director, Mark Norwell, said: “These new projects demonstrate the diversity of the expanded Ausdrill group across different projects and resources, solid progress of Barminco, and the professional service our businesses have been providing to our customers.”

Rosemont has been a fully operational open-pit gold mine since March 2013 and is one of three Regis projects in the Duketon deposit area, 130 km north of Laverton in the Goldfields region of Western Australia.

Regis recently approved expansion of the mine to an underground operation located directly below the current Rosemont open pit, with Barminco to perform development and production work at the underground deposit. In August, the Regis board announced it had approved the development of an underground mining operation directly below the current Rosemont open pit exploiting the maiden underground mineral resource estimate of 1.4 Mt at 5.1 g/t for 230,000 oz of gold.

Barminco will commence mobilisation immediately and expects to employ around 100 staff at the project. Onsite works will commence in the March quarter, including commencing portal development at the southern end of the Rosemont Main open pit.

Barminco CEO, Paul Muller, said: “This project adds to Barminco’s extensive experience in the Western Australia Goldfields, with current mining projects at Sunrise Dam and Agnew. We will draw on our deep capability across Barminco’s people, equipment, systems, processes, and expertise in underground mining to ensure we provide a safe and reliable service at Rosemont and look to build a strong, long-term relationship with Regis.”

Meanwhile, the company has already mobilised on the 14-month contract to carry out decline rehabilitation and development works at Western Areas’ Odysseus mine. The contract builds on Barminco’s 14-years of continuous service for Western Areas at Forrestania, which includes the Spotted Quoll and Flying Fox mines where Barminco is the mining services provider.

Ausdrill’s work at the Woodie Woodie manganese mine, in the Pilbara of Western Australia, will commence next month, will run for 12 months and will require five RC drill rigs and one diamond drill rig to be drawn from the company’s existing fleet.

The company has already kicked off work at the Bellevue gold project, which will require around four diamond rigs to be drawn from the existing fleet.

 

Downer wins five-year rail renewal services contract with Rio Tinto

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Downer has recently been awarded the preferred supplier role for a five-year rail renewal services contract with Rio Tinto.

The five-year contract, with options to extend for a further five years, builds on the work the company has been delivering for Rio Tinto’s Iron Ore division, including tyre management and track construction. Work has already commenced, according to Downer.

Executive General Manager of Downer’s Infrastructure Projects, Mark Mackay, said: “Our values very strongly align to Rio’s values when it comes to safety, delivery, thought leadership and relationships – this includes how we build and grow relationships and partnerships with local suppliers, contractors and the local community. For example, this new work will see us set a target of 35% local content, including partnerships with local business to develop a Pilbara rail workshop facility as well as the delivery of rail training to improve the skills and capability of local suppliers.”

Matt Baartz, General Manager – Rail Maintenance at Rio Tinto Iron Ore, confirmed Downer has been identified as the preferred supplier for inland renewals, adding: “Downer has a strong safety record and has performed well over a sustained period of time working across Rio Tinto.”

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

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

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

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

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

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

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

Pindari to build Koodaideri iron ore mine construction camp for Rio

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Rio Tinto has confirmed Perth-based Pindan will build a 780-room construction camp at its new Koodaideri iron ore mine in Western Australia as part of a A$45 million ($33 million) contract award.

The miner approved a $2.6 billion investment in Koodaideri last month, saying it would become its most technologically advanced mine. The award to the Australia-based construction company was acknowledged in Iron Ore Chief Executive Chris Salisbury’s presentation at the WA Mining Club on Friday.

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

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

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.

SIMPEC ready for camp construction and deconstruction at West Angelas

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

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

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

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

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

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

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

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

Rio to consolidate technology developments with Koodaideri iron ore mine

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

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

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

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

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

The operation has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine, which is expected to be Rio Tinto’s lowest cost contributor to its industry benchmark Pilbara Blend product.

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

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

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

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

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

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

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

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

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

Koodaideri has more than 70 innovations in scope including:

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

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

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