Tag Archives: Pilbara

First wet concentrate produced at Iron Bridge Magnetite Project

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

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

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

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

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

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

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

Austin Engineering delivers Indonesia-made truck trays into Pilbara region

Austin Engineering Limited has completed the first shipment of fully built and assembled truck trays from its Indonesia facility in Batam, which have been delivered directly into Western Australia’s Pilbara mining region.

The delivery comprised four truck trays that were shipped from Indonesia via Singapore into Port Hedland and then onto the customer site.

Austin recently completed a major expansion and upgrade of its Indonesian facility, which has doubled its manufacturing capacity to address increased demand.

The larger Indonesian facility is allowing Austin, it says, to mitigate the impact of ongoing supply constraints in Western Australia, particularly for skilled fabrication labour, which has been a limiting factor for production.

Alleviating these supply constraints has enabled the company’s local Western Australian facility to maintain more even operational output in line with local labour availability while ensuring Austin’s customers continue to have access to products, it said.

A return of freight costs to pre-pandemic levels has also enabled Austin to augment the shipping of sub-assemblies into Perth for final build (which has been standard practice for some time) with the delivery of full truck trays direct to the Pilbara.

Austin said: “The ability to ship directly from Indonesia to Port Hedland has the added benefit of removing the need for road haulage from Perth to client mine sites in the Pilbara. A reduction in overall transport and logistic requirements has safety, environmental and cost benefits. Specifically, a reduction in road haulage is favourable from a road safety and emissions reduction perspective.”

Further direct deliveries into the Pilbara are being planned with customers to augment Austin’s Australia-based supply, it said.

Austin CEO and Managing Director, David Singleton, said: “We are extremely pleased to see our design and manufacturing strategy starting to work in sync in the Asia Pacific region. The expanded facilities in Perth and Indonesia are allowing more flexibility from a manufacturing and delivery point of view. We have previously shipped truck trays, buckets and other mining equipment directly into Queensland, but it is the first shipment we’ve completed direct to the major mining centre of the Pilbara, and we expect this supply route to become a regular feature of our integrated supply chain.

“We remain committed to Australia as a manufacturing location, exemplified by our two factory units in Kewdale, Perth along with our two operating sites in Queensland. In addition, the majority of the steel we used in Australia and Indonesia is sourced from Australia.“

Foraco to help Rio Tinto manage groundwater activities in the Pilbara

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Duratec to carry out structural works at Rio Tinto Pilbara ops

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Belinga has been progressively assessed by Fortescue since 2018.

BHP engages Nyiyaparli-owned ROMS for mine rehab work at Newman

Nyiyaparli Traditional Owner Business, Resource Operations and Maintenance Services (ROMS) has been awarded a A$2.8 million ($2 million) contract to help with mine rehabilitation at BHP’s Newman Operations, on Nyiyaparli Country, in Western Australia.

Work is underway on the eight-month contract for bulk earthworks and mine rehabilitation of two of the overburden stockpile areas at Newman West.

The works involve a fleet of Cat dozers to undertake the bulk regrade work, in conjunction with a fleet of ancillary equipment to undertake topsoil spreading, scarification and fauna habitat construction.

This is ROMS’ first mine rehabilitation contract with Newman Operations, however the company has worked across BHP since joining the South Flank project, also in Western Australia, in 2018.

ROMS Managing Director, Jason Bull, said: “BHP has continued to support our growth and we’re now onsite at South Flank, Whaleback, Jimblebar and Mining Area C delivering our services to operations, sustaining capital and engineering works.

“We have two fully trained and developed Indigenous supervisors at BHP sites, as well as nine young Indigenous people completing a Certificate II in civil construction. This has helped build a solid portfolio of tickets, with strong on-site learning and positive mentoring through our group’s strong culture.”

Newman Operations General Manager, Dan Heal, said the partnership with ROMS was just one of the many partnerships Newman Operations hopes to build upon into the future with Pilbara Aboriginal businesses.

“Supporting our community and working with Traditional Owners towards a common purpose is something I’m particularly excited about growing here in Newman,” he said. “Contracts like this encourage the growth of Indigenous business and create new opportunities for our Traditional Owners to support their own communities.”

Bull added: “We’re extremely appreciative of BHP’s support and look forward to making a positive impact on the local community through our continued partnership with BHP.”

Rio Tinto to start construction on 100 MW solar PV system in Pilbara next year

Rio Tinto says it is planning to invest a further $600 million in renewable energy assets in the Pilbara as part of the company’s efforts to decarbonise its Western Australian iron ore operations.

The investment will fund the construction of two 100 MW solar power facilities as well as 200 MWh of on-grid battery storage in the Pilbara by 2026. This is in addition to the 34 MW of solar power installed at the recently commissioned Gudai-Darri iron ore mine (pictured).

Initial funding for Rio Tinto’s first major standalone solar farm on the Pilbara coast has been approved, a 100 MW solar photovoltaic system and associated transmission infrastructure. Construction, which will involve the installation of approximately 225,000 solar panels built to withstand the Pilbara’s cyclonic conditions, is expected to start next year ahead of project commissioning in 2025.

Rio Tinto is engaging with state and local authorities as well as Traditional Owners about the project and relevant approvals. Final capital approval is expected in the June quarter of next year.

These new projects combined are expected to abate around 300,000 t of CO2, equivalent to a 10% reduction in total Scope 1 and 2 emissions from Rio Tinto’s iron ore business in the Pilbara based on 2021 levels. It will also reduce gas costs by approximately $55 million per year at current prices by displacing around 30% of the company’s current gas consumption in the Pilbara.

This new investment forms part of Rio Tinto’s previously announced plan to complete installation of a 1 GW renewable energy system in the Pilbara as part of a global commitment to invest approximately $7.5 billion to halve emissions by 2030. This will include significant investment in transmission infrastructure to support full decarbonisation of the Pilbara including electrification of mobile and rail equipment beyond 2030 which is estimated to require up to 3 GW of installed renewable energy assets.

Rio Tinto Iron Ore Chief Executive, Simon Trott, said: “The Pilbara is extremely well-positioned to take advantage of renewable power with land, access to people, and abundant wind and solar resources. Our Pilbara electricity grid is the largest privately-owned grid in Australia, ensuring that we have the initial infrastructure required to enable a transition to renewable energy.

“We expect to invest around $3 billion to install renewable energy assets as well as transmission and storage upgrades in the Pilbara as part of our commitment to halve our emissions from the Pilbara by the end of this decade.”

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.