Tag Archives: Pilbara

Fe Ltd and Big Yellow make plans to mine JWD iron ore project

Fe Limited says it has executed a letter of intent (LOI) with Big Yellow that could see the emerging company become the mining contractor for the JWD iron ore project in the Pilbara of Western Australia.

A full form contract is targeted to be completed within the next 30 days, subject to receipt of necessary environmental approvals and logistic contracts. This LOI, the company says, will enable Big Yellow to allocate the necessary mining fleet and people to the FEL project.

Big Yellow is a new contractor founded by mining executives Brad Gordon (former CEO of Acacia and Intrepid), David Edwards and Mitch Wallace (both ex MACA).

“FEL believes that Big Yellow’s combination of experienced personnel looking to replicate their past success in a new entity is a good fit with FEL’s own aspirations to do the same and looks forward to continuing to work together,” it said.

Following the LOI being executed by both parties, discussions have commenced on works that can be commenced in advance of final environmental approvals being received.

The approvals received to date allow certain clearing and preparatory works to occur at JWD, along with refurbishment of the existing office facilities on site. These early works will allow a faster ramp-up of operations once the remaining approvals and key contracts are secured, FEL claims.

FEL says it has revisited the JWD geological model and mine plan, with opportunities identified for a reduction in the strip ratio and an improved average iron ore head grade. If successfully implemented, this would have a positive impact on its margins through reduced mining costs and improved pricing as a result of higher-grade products than initially expected, it said.

FEL Executive Chairman, Tony Sage, said: “With mining at Wiluna close to commencing, we are pleased to have advised Big Yellow of our intention to appoint them as our mining contractor. We are well advanced with the final approvals and other key contracts and would anticipate being able to update shareholders on these shortly.”

In September, FEL acquired a 51% interest (including operatorship) in the Gold Valley Iron Ore Mining Rights Agreement over the Wiluna West JWD deposit. The JWD project is part of the wider Wiluna West project, owned by GWR Group. It came with a 10.7 Mt resource grading 63.7% Fe using a 55% Fe cutoff.

FEL classes the project as a low capex, direct shipping ore development, which will produce a high-grade (resource average circa-63.7% Fe), low impurity iron ore. A January 2021 presentation claimed the mining and transport of the first 300,000 t of iron ore is required by September under the iron rights agreement.

First Graphene predicts increased PureGRAPH wear line lifespan following Pilbara trial

First Graphene says results from field testing of a PureGRAPH®-enhanced bucket wear liner have shown an almost six times reduction in average abrasion loss compared with a standard polyurethane liner.

Rubber wear liners are an essential component on steel fabricated mining equipment, providing a resilient, sacrificial layer to protect the steel equipment from abrasion wear during ore handling operations. The wear liners are replaced periodically and extending the periods between replacement helps maximise throughput at the mine.

The bucket wear liners were installed at a major iron ore producer’s load-out facility in the Pilbara of Western Australia, beginning in mid-2019. A standard wear liner and a graphene-enhanced ArmourGRAPH™ wear liner ran simultaneously in the same location for the 62-week period.

The ArmourGRAPH liners, developed by First Graphene and its partner newGen Group, had been prepared using a low addition rate of PureGRAPH 20 in hot cast polyurethane (PU). The PureGRAPH enhanced liners were used side-by-side with standard PU liners throughout the 62-week trial before being returned to newGen Group for assessment.

A detailed abrasion analysis confirmed the abrasion loss was significantly reduced in the PureGRAPH-enhanced ArmourGRAPH liner, with a circa-6 times reduction in average abrasion loss (improved resistance to wear). As abrasion loss is the primary mechanism of failure, a significant 6 times increase in lifespan of the wear liner is anticipated, First Graphene said.

The abrasion analysis was performed on the rear sliding face of the bucket liner as this surface is well fitted to the steel bucket and provides the most representative analysis of liner wear life, according to the company.

First Graphene CEO, Mike Bell, said the results indicated the benefits and value PureGRAPH could provide to mining and mineral processing operators.

“Reducing production downtime is major area of focus in mining and these results show the significant improvements that can be gained from adding small amounts of PureGRAPH to polymer formulations,” Bell said.

newGen Group Managing Director, Ben Walker, added: “The results of this extended trial prove that our ArmourGRAPH liners can deliver vast improvements for operators. We anticipate strong demand for a broad range of graphene-enhanced consumable products across the mining and mineral processing sectors.”

CSI NextGen II modular crushing plant starts up at BHP Mt Whaleback

Mineral Resources Ltd’s CSI Mining Services team has reached a major milestone with the NextGen II modular crushing plant having now crushed its first ore at the BHP-owned Mt Whaleback iron ore mine in the Pilbara of Western Australia.

The relocatable plant, developed by CSI and Metso Outotec, has been painted in Lifeline WA’s trademark blue and displays the 13 11 14 crisis support number.

The crusher has been on a monumental journey to get to its final home in the Pilbara, transported by a sea vessel from its manufacturing site in Turkey to CSI’s Kwinana workshop.

“The CSI team at Kwinana worked around the clock to assemble the revolutionary relocatable modular design last year, which allows for sustained reliable performance over time with the flexibility required to meet our clients’ changing and challenging production demands,” the company said.

CSI was awarded the contract to design, construct and operate the 12 Mt/y crushing plant back in June. It was due to replace the existing CSI crushing plant at the iron ore operation.

The crushing and screening plant is expected to come with low capital and operating costs, in addition to significant flexibility with its portability. It is assembled in modules and, compared with fixed crushing plants, provides for sustained reliable performance over time with the flexibility required to meet clients’ changing and challenging production demands, according to CSI.

Rio Tinto cements new Singapore-Western Australia freight shipping route

Rio Tinto says it has secured a new commercial freight shipping service connecting Western Australia’s Pilbara region to the major international shipping hub of Singapore.

The service will provide the company with a quicker, cheaper and cleaner alternative to the existing freight delivery route via Perth, helping to drive regional economic development and local job creation, according to the miner.

The regular freight service commenced with the arrival of the MCP Graz at the Port of Dampier from Singapore today. The vessel delivered essential maintenance supplies for Rio Tinto Iron Ore’s operations in the Pilbara, including rail wagon wheels, wagon parts, oil and lubricants. Future shipments are expected to include tyres for heavy earth moving equipment, conveyor belts, rail wagon and locomotive parts and mining consumables.

The service is also open for use by local businesses in the northwest of Australia, providing companies operating in the region with better access to international markets and more efficient movement of freight, Rio said.

Rio Tinto Iron Ore Managing Director of Port, Rail and Core Services, Richard Cohen, said: “This is an important new service that connects the Pilbara to the rest of the world via the major international shipping hub of Singapore. It will provide a number of benefits by delivering cheaper, cleaner and faster freight to the region.

“It is an important breakthrough not only for our business, but it will also provide a great opportunity for the local Pilbara economy by helping to unlock small business growth and supporting job creation.”

Rio Tinto expects the service to reduce the lead time for goods in to the Pilbara by six to 10 days compared with freight via Fremantle. Additionally, it is expected to provide an annual saving of around three million litres of diesel fuel by reducing road train travel from Perth by more than 3.8 million kilometres.

Over time, Rio Tinto is hopeful more than 50% of its freight requirements to the Pilbara will use this service, increasing the speed of delivery and lowering costs. The vessel capacity of the freight service will be 350 TEUs (twenty-foot equivalent) with Toll Global Forwarding (a division of Toll Group) and other freight forwarders offering a service for smaller volumes on the vessel, the company said.

Peter Stokes, President of Global Logistics for Toll Group, said: “This dedicated container vessel service from Singapore to Dampier will enable enormous possibilities to deliver more efficient supply chains to the Pilbara region.

“Toll Group is heavily invested in the north of Western Australia and is one of the largest employers in the Pilbara region. We are proud to be partnering with Rio Tinto on this landmark project which will provide businesses in the north with a significant opportunity to access international imports and exports.”

Viva Energy, the supplier of fuels and lubricants and supply partner to Rio Tinto, expects to reduce its road transport travel by 350,000 km/y through use of the new service.

Viva Energy Sales Manager, Gavin Syminton, said: “Over and above any commercial benefits, there are also a number of other positive aspects to the initiative including increased opportunities for local employment through infrastructure investment, the reduction of our carbon footprint and a shorter, more efficient supply chain.

“As we continue to work closely with Rio Tinto, we hope to further connect our business and community through this opportunity while making the region a more sustainable place to live.”

Fortescue employs SRG Global for maintenance and shutdown services

SRG Global has been awarded a five-year term contract from Fortescue Metals Group to initially provide rope access and electrical maintenance requirements across the company’s mine, rail and port locations throughout Western Australia.

The A$150 million ($117 million) term contract, which has already commenced, is a Master Agreement for Maintenance and Shutdown Services, the company said.

Locations for SRG’s work include the Christmas Creek (pictured), Cloudbreak, Firetail, Kings Valley and Eliwana mine sites, along with its supporting rail and port infrastructure.

SRG Global Managing Director, David Macgeorge, said: “We are delighted to be selected as a key partner to FMG and to provide critical maintenance and shutdown services across their Pilbara operations for the next five years. This is another significant step forward in our strategy to build a portfolio of annuity earnings, with quality clients, to deliver long-term sustainable growth.”

Sanjiv Ridge heads for full operations after Atlas Iron crushes first milestone

Atlas Iron has announced first ore has been crushed at its new mine, Sanjiv Ridge, in Western Australia, ahead of schedule.

Sanjiv Ridge is set to provide a significant boost to Atlas’s annual output, with an expected 4-5 Mt/y of lump and fines to be hauled by road to the Utah Point stockyard at Port Hedland. It is expected the mine will add 5-6 years to the Atlas value chain, with 64 Mt at 57.2% Fe of mineral resources and 29 Mt at 57% Fe reserves.

On the crushing milestone, Atlas Iron CEO, Sanjiv Manchanda, said: “Congratulations to all our team members, including both Atlas Iron staff and our valued contractors, for their hard work and dedication to hit this target ahead of schedule. Now, with first ore crushed, we are focusing on building the product stockpile and commencement of road haulage.”

Sanjiv Ridge was recently renamed from Corunna Downs after Atlas’ CEO in recognition of his long service across the Hancock Prospecting Group of companies.

The new mine site is due to be in full operation in the third quarter of Atlas’ 2021 financial year, and is situated northeast of Atlas Iron’s existing mining operation, Mount Webber.

SIMPEC and IronMerge create Aboriginal Business JV serving the Pilbara

WestStar Industrial Ltd’s engineering contractor business SIMPEC has formed its first Aboriginal Business joint venture, IronMerge SIMPEC JV, with IronMerge Pty Ltd.

IronMerge is a Supply Nation Aboriginal-owned mining and civil works service company, delivering local contracting solutions to customers across the Pilbara, driving employment outcomes for Indigenous people and local communities in the Port Hedland region, WestStar says. The company prides itself on being a Nyamal family business and offers direct employment for Nyamal people in the Pilbara.

IronMerge SIMPEC JV, an unincorporated 50:50 joint venture, has been formed to deliver a key component of SIMPEC’s Aboriginal engagement strategy and overall commitment to returning benefit to Traditional Owners and communities within its operational footprint, according to WestStar.

The key objectives of the joint venture are:

  • For SIMPEC and IronMergeto cooperate and support one another in construction and service opportunities in and around the Pilbara, winning work jointly or separately;
  • To actively participate and positively contribute to the communities in which the parties operate by continuing to create local employment opportunities and engaging the community interest in everything that is done; and
  • To be project and service delivery partners of choice through complete alignment with clients in meeting their goals, obligations and commitments to Traditional Owners and local Aboriginal businesses.

SIMPEC Managing Director, Mark Dimasi, said: “This is a milestone achievement not only for SIMPEC but also Ian Taylor (pictured in the centre) and his IronMerge team. This is a very proud moment for all of us and I sincerely look forward to seeing this JV relationship delivering sustainable outcomes to our businesses and equally to Aboriginal business and communities. A big thank you to all involved in bringing the first step in our ambitious goal to a reality.”

SIMPEC says it continues to develop and strengthen its relationship with local Traditional Owners and Aboriginal businesses.

“We believe our overall focus on social responsibility will further enhance SIMPEC’s positioning for financial year 2021 and beyond,” it added.

Fortescue adds to Billion Opportunities program with Iron Bridge contracts

Fortescue Metals Group has continued its longstanding commitment to Aboriginal procurement and delivery of benefits for its Native Title partners, with over A$13 million ($10.1 million) of new contracts awarded as part of the company’s Iron Bridge Magnetite project.

Two contracts have been awarded to 100%-owned Aboriginal-owned business Jukawalyi Resources Pty Ltd, and the Yulu Joint Venture (a joint venture company between Njamal Resource Enterprises Pty Ltd and Icon SI (Aust) Pty Ltd).

Both companies are owned by members of the Njamal Native Title group, who are the traditional custodians of the land where Iron Bridge is located.

Under the contract, Jukawalyi will provide light vehicles for the Iron Bridge operations. The future sustainability and ongoing success of Jukawalyi will be further supported with Fortescue acting as a guarantor for the purchase of the vehicles, through Fortescue’s guaranteed leasing facility with ANZ, it said.

Yulu JV was awarded a contract to complete a portion of the non-mining process infrastructure work, including designing and constructing the main ore processing facility administration building, laboratory building and associated facilities.

The Iron Bridge, operated under an unincorporated joint venture between Fortescue subsidiary, FMG Magnetite Pty Ltd, and Formosa Steel IB, covers the development of a new magnetite mine, including processing and transport facilities. The $2.6 billion development is expected to produce 22 Mt/y (wet) of high grade, magnetite concentrate, with first ore in 2022.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue is proud of our strong relationships with Native Title groups across the Pilbara, which is delivering significant benefits including jobs, training and business development opportunities for Aboriginal people, their families and their communities.

“Empowering businesses like Jukawalyi and Yulu JV to make long-term, beneficial business decisions is at the heart of our Billion Opportunities initiative. These contracts will provide the opportunity to build local capability and asset ownership for these local Aboriginal businesses.”

Jukawalyi Managing Director, Joanne Taylor, said: “As a small family-owned business based in Port Hedland, the ability to access finance in addition to the contract with Fortescue is transformative, providing us with the ability to take our business to the next level.”

Yulu JV owner, Troy Eaton, said: “We are proud to secure this work for such an important project. With the Pilbara positioned for ongoing development, the securing of this project leaves us well-positioned to capture future opportunities for both Yulu JV and the Njamal People.”

Since its inception in 2011, Fortescue’s Billion Opportunities program has awarded over A$2.7 billion in contracts and sub-contracts to Aboriginal businesses and joint venture partners.

BHP factors wind fence into Pilbara Air Quality Program

BHP has unveiled its plans to construct a wind fence at Finucane Island, in Port Hedland, Western Australia, as part of the company’s Pilbara Air Quality Program at its iron ore operations.

The fence would be the first of its kind in Australia, and designed for the Pilbara’s unique weather conditions, it said.

BHP Port General Manager, Nilson Davila, said: “We recognise we have a shared responsibility to address dust issues at Port Hedland. The wind fence will be constructed using global best practice dust management and air quality control technology.

“This planned investment forms part of our Pilbara Air Quality Program and demonstrates our commitment to improve air quality in the area and contribute to the revitalisation of the West End.

“Subject to government approvals, the 30-m high fence supports our intention to improve and build on our existing dust control measures as we continue to increase production towards 290 Mtpa in the medium term.”

It is intended to be located on the western side of BHP’s Finucane Island port operations, and will include mesh panels designed to reduce wind speeds, shielding the stockyard and reducing the potential for dust lift-off, BHP said.

The system has been designed to deal with the extreme wind conditions often experienced in Port Hedland. As the wind speed reaches a certain limit, the mesh curtain opens to let the air flow through the fence.

“We continue to work closely with government, industry and the local community to further improve air quality controls at our operations and for the communities in which we operate,” Davila said. “We want to help improve local amenity while also continuing to provide jobs and economic opportunity for the region.”

The project is still subject to all necessary internal and state government approvals.

Schlam to provide MEM support to Rio’s Pilbara iron ore ops

Schlam says it has been selected to sit on a panel to provide mining equipment maintenance (MEM) support for Rio Tinto Iron Ore (RTIO) across its operations in the Pilbara of Western Australia.

The company is one of three firms tasked with providing support to the major, with the three-year contract incorporating various trades, including heavy-duty mechanics, auto electricians, light vehicle mechanics, boilermakers and more.

Schlam Chief Executive Officer, Matt Thomas, said being invited to the panel was a fantastic opportunity for the company.

“Being invited to sit on this panel would not have been possible without our team putting in the hard work on-site that they have done up until now to show what we’re capable of,” he said.

“Over the past six to 12 months, our team has demonstrated a commitment to safety and quality, world-class trade skills and excellence in customer service. I thank everyone who has contributed to this win for the company and hope that it’s one of many more to come soon.”