Tag Archives: Port Hedland

Red Hawk Mining plots Blacksmith iron ore project haulage path with MGM Bulk

Red Hawk Mining says it has entered into a strategic partnership with MGM Bulk Pty Ltd (MGM Bulk) for the haulage of iron ore from the company’s 100%-owned Blacksmith iron ore project, in Western Australia, to the Utah Point bulk handling facility in Port Hedland.

The haulage agreement enables Red Hawk and MGM Bulk to work collaboratively through the prefeasibility study (PFS) and definitive feasibility study (DFS) phases to develop and optimise the transport and logistics strategy, focusing on maximising productivity and reducing unit operating costs, the company says.

Following completion of the studies, MGM Bulk has the exclusive right to enter into a haulage services agreement on terms equivalent to those contained in the DFS. MGM Bulk will be responsible for providing a fleet of 150 t ultra-quad trucks and drivers plus associated loading and other equipment and infrastructure.

In a February presentation deck, Red Hawk Mining claimed over 200,000 m of drilling has defined the largest direct shipping ore (DSO) resource of any ASX-listed junior iron ore company (excluding magnetite) at Blacksmith with 174 Mt at 60% Fe. It said there was potential for thee project to be a long-term supplier of at least 3 Mt/y of 60.5% Fe DSO for over 20 years.

Red Hawk’s Managing Director, Steven Michael, said: “We are excited to work with the team at MGM Bulk to establish a haulage strategy optimised for the Blacksmith project. MGM Bulk’s operations in the Pilbara, centred around delivering iron ore into the Utah Point, are second to none. Their fleet size, quality, operational performance and safety record are critical factors in ensuring the success of the Blacksmith project.

“Our PFS team is working closely with MGM Bulk’s commercial and operations team to deliver operating and capital cost estimates with a high degree of certainty, which can easily be translated into an operational haulage contract.”

MGM Bulk’s CEO, Michael Giacci, added: “We are immensely proud to be forging a long-term partnership with Red Hawk Mining on the mine-to-port haulage solutions for their Blacksmith iron ore project.”

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.”

BHP and Gallawinya agree on tyre agreement for WAIO operations

A new contract with Pilbara Traditional Owner business Gallawinya Pty Ltd, will supply up to 4,000 tyres a year for light vehicles and light trucks across BHP WA Iron Ore’s central Pilbara mining operations, the mining company says.

Gallawinya is one of more than 80 Indigenous and Traditional Owner businesses engaged directly in the first half of BHP’s 2023 financial year – with a total spend of more than A$120 million ($82 million) – to Indigenous and Traditional Owner businesses through WAIO’s Project Rise initiative.

Chris Cowan, Head of Global Indigenous Procurement, said the Gallawinya contract represented a major step forward in a non-traditional supply area and would create social value opportunities including additional regional employment.

“We’re trying to find ongoing, longer term operational contracts to collaborate with Traditional Owner businesses, and this is a great example of that,” he explained.

“What I particularly like about this one is, it’s demonstrating a new category of supply by a Traditional Owner business that we haven’t seen before, and it’s going to create social value back into the communities in which we operate.

“We hope to collaborate with our maritime team to bring tyres directly into Port Hedland to reduce the need to transport the tyres by road from Perth to the Pilbara. This will improve our carbon footprint as well as safety risk and performance.”

Under the contract, Gallawinya will initially supply tyres to BHP’s central Pilbara operations (Mining Area C, South Flank and Yandi) before potentially expanding to other WAIO’s mining sites including Jimblebar, Newman and Port Hedland.

Gallawinya is a subsidiary of Nyamal owned and operated East West Pilbara Group, which employs more than 10 people in the Pilbara, through its facilities at Port Hedland and Karratha. The BHP supply contract will create more training and employment opportunities for Indigenous people.

Compared to the same period in FY22, to date WAIO has increased its year-to-date annual spend by around 62.5% and, thanks to Project Rise, is on track to deliver on its FY23 target of A$225 million spend with Indigenous and Traditional Owner businesses, which will extend to A$300 million in FY2024.

Duratec to carry out remediation works at BHP WAIO port facilities

Duratec says it has secured a major contract with BHP WA Iron Ore (BHP WAIO) that will see it carry out wharf remediation works at the BHP Berth C&D at Finucane Island, in Port Hedland, Western Australia.

The A$48 million ($32 million) project award follows a successful competitive tender (following early engineering input by Duratec’s technical engineering team), with work set to commence immediately, with a start on site scheduled for March 2023. The project is anticipated to be completed by February 2025.

The project’s key objectives on the wharf include:

  • Repair to steel piles and steel members;
  • Replacement of steel ladders;
  • Concrete remediation;
  • Pile wrapping repairs;
  • Pile jacket installation;
  • Fabrication and installation of a new raw water line and hose connection points;
  • Approach jetty and maintenance jetty repair (Berth D); and
  • Demolition of two access landings (Berth C and between Berth C&D).

Duratec’s Managing Director, Phil Harcourt, said: “Duratec continues to demonstrate its ability to secure work through its early contractor involvement engagement model by working with its clients early in partnership to deliver project solutions that are beneficial to all parties.”

BHP partners with Curtin Uni and Greening Australia to capture dust at Port Hedland

BHP has partnered with Curtin University and Greening Australia to trial vegetation barriers to capture dust and improve air quality in the West End of Port Hedland as part of the BHP Pilbara Air Quality Program.

Phase one, which involved around 80,000 seedlings planted, was recently completed with an additional 80,000 seedlings scheduled for phase two, which will begin in a few months.

Over the years as the plants grow and develop, they will create a dust barrier between the operations of BHP’s business and the community.

We’ve partnered with Indigenous owned and operated nursery, IBN Services, in Port Hedland to provide the specifically selected plants for the project.

“This is an important contract for our business,” Evelyn Kroczek, Manager IBN Services said. “We’re very involved with the land and the country and we want to help look after it.”

In addition, Indigenous-owned landscaping company, Yurra, has been contracted to manage ground works. Justin Bryne, Manager Yurra, said: “We’ve worked with Greening Australia to formulate the design and look at the plant mixes and what we think will grow well. We’re also providing the local supervision as well as the project management.”

If these trials prove successful, vegetation barriers could be strategically used across the West End and adjacent to BHP’s other operations to capture dust from industry and natural sources and help improve overall air quality, the company said.

Aqura Technologies to deliver Private 4G network at Port Hedland

Aqura Technologies, a Telstra Purple company, says it will design and deliver an advanced Private 4G network for the Port Hedland-based operation of Pilbara Ports Authority (PPA).

The new standalone broadband network will support PPA’s extensive marine digital platforms, enhance worker mobility and provide seafarers with independent high-speed connectivity when visiting the Port of Port Hedland, it said. Port Hedland is a major export facility for the big iron ore producers in the Pilbara of Western Australia.

Aqura Chief Operations Officer, Alan Seery, said: “The solution Aqura has designed blends the best in operational network capability with enhanced user experience, accessible across the extensive Port of Port Hedland operations and out to sea.

“Our installation of Private 4G at the Port of Port Hedland will leverage the expanded capabilities of Private 4G that will assist the PPA in driving safety, productivity and efficiency initiatives.

“The communications network, upgradeable to 5G as technology advances, also offers more control and flexibility to support Industry 4.0 use cases and other technologies such as IoT.”

Private 4G requires the delivery of several prioritised services for a range of different end-use cases. The network leverages the embedded Quality of Service capability and high throughput of 4G and is dimensioned to ensure the extensive marine sensors network that PPA uses has reliable and robust connectivity for the safe passage of vessels through challenging waterways in the area.

The private network will also enable PPA staff to access their corporate and operational systems reliably and securely from anywhere across their extensive port operations, which enhances productivity and improves access to digital safety systems and procedures, Aqura says.

To ensure the wellbeing and welfare of seafarers is enhanced while being restricted to their vessels at berth or at anchor, Aqura will leverage its Complete Access Network platform to deliver a secure, user-friendly service, it added.

The project has kicked off with the network planned to be live by the end of 2022.

BHP continues to innovate with Port Hedland automation, dust control measures

BHP has completed Australia- and world-firsts at Port Hedland, in Western Australia, involving the award of a wind fences contract and testing of two new automated shiploaders at the port operations.

The automation world first is aimed at providing significant safety, production and cost benefits, BHP said, using 3D laser scan technology as part of the A$50 million ($36 million) project to fully automate eight shiploaders by 2023.

The eight shiploaders – at BHP’s Nelson Point and Finucane Island operations – are responsible for loading about 1,500 bulk ore carriers every year, exporting approximately 280 Mt of iron ore to global customers in 2021.

The project is expected to enable an increase in production of more than 1 Mt/y, through the combination of greater precision, reduced spillage, faster load times and equipment optimisation, BHP said.

An additional 12 jobs have been created through this project, located in the Integrated Remote Operations Centre in Perth. The number of Port Hedland-based roles remains unchanged, with existing staff being deployed across the shiploaders and through a range of other production-based roles.

BHP’s Asset President WA Iron Ore, Brandon Craig, said: “The shiploader automation project shows that our Pilbara teams are at the forefront of innovation, technology and operational excellence. Automating our shiploaders will improve safety for our people and allow us to load our ships more precisely and efficiently, including through automatic adjustments for weather, hazards and other variable port conditions.”

The shiploaders will transition towards becoming fully automated later this year. Once completed, the ship loading operations will be operated from the Integrated Remote Operations Centre in Perth.

Australia’s first wind fences, meanwhile, are designed to reduce dust emissions as part of BHP’s A$300 million air quality commitment. They will be built in Port Hedland by CIMIC Group’s CPB Contractors.

Announcing the successful tender in Port Hedland, BHP and CPB Contractors said three fences would be built at BHP’s Nelson Point and Finucane Island operations. Construction of the wind fences is expected to start in August 2022 and take 14 months to complete.

Up to 150 employees will be involved in the construction of the project, with up to 10% Indigenous employment.

Designed for the Pilbara’s unique weather conditions, and rated specifically to withstand cyclones, the fences will include mesh panels designed to reduce wind speeds, shielding BHP’s stockpiles and reducing the potential for dust lift-off, it said.

The fences will abate dust emissions in current operations and ensure no net increases in dust emissions should operations expand over time.

BHP Port General Manager, Cindy Dunham, said: “The wind fences will be constructed using global best practice dust management and air quality control technology.

“The investment forms part of our Pilbara Air Quality Program and demonstrates our commitment to the region and contribution to the revitalisation of the West End.”

CPB Contractors General Manager WA, SA & NT, Andrew Giammo, said: “Construction of the wind fences will involve the fabrication of 3,000 t of structural steel – this work will be undertaken here in WA and will be a major boost to local industry.”

The wind fences, which will be fabricated and built in Western Australia, are designed to control dust from BHP’s port operations and will be the first of their kind in Australia.

The 30-m-high fences, which span a length of 2 km, will include mesh panels designed to reduce wind speeds, shielding the stockyard and reducing the potential for dust lift-off. As the wind speed reaches a certain limit, the mesh curtain opens, to let the air flow through the fence.

Civmec to replace car dumper at BHPs Nelson Point, carry out new work for Roy Hill

Civmec Limited says it has recently secured circa-A$120 million ($86 million) of new contracts across multiple operating sectors, including three new agreements with BHP and Roy Hill.

Among these new assignments is a Car Dumper Replacement project for BHP, which has instructed Civmec to replace Car Dumper 3 (CD3) at the Nelson Point facility in Port Hedland, Western Australia, was commissioned in 1998. The new CD3 has a design life of 30 years and is intended to fit in the existing concrete vault with minimal structural modifications, Civmec said.

Procurement activities for this project have commenced, with fabrication commencing in the first quarter of its 2023 financial year (September quarter) and completion of fabrication in Q4 FY2023 (June quarter of 2023). At peak, this contract will employ approximately 85 people, Civmec said.

Roy Hill, meanwhile, has instructed Civmec to perform two contracts.

The first one is a capital upgrades project where it has been awarded the SMP&E (Structural Mechanical Piping and Electrical) works for the ROM4 Crusher 5 project at Roy Hill’s mine in the Pilbara of Western Australia. This is a follow on from the current SMP&E contract for the WHIMS project for Roy Hill, which is nearing completion and will see the same project management team transitioning to the ROM4 project.

The scope includes SMP&E plus communications works for the Crushing Station 5 and transfer conveyor, including installation of client-supplied modules and equipment. Mobilisation will commence in the June quarter of this year with completion by the end of the year.

Civmec has also received an extension of its Shutdown and Maintenance Support Services Agreement with Roy Hill, being granted an additional five years through to March 2027.

“This contract extension demonstrates a significant commitment from Roy Hill and will enable Civmec to support the Roy Hill Operation with multi-disciplined shutdown and maintenance services for the fixed plant assets across the port (facility) and PSA (mine),” Civmec said.

“As one of Civmec’s long term customers, Roy Hill is an important stakeholder for our maintenance business. Our investment in the local community and our commitment to building our Port Hedland Workshop facility is evidence of our pledge to being a long-term partner to Roy Hill and our intent is to further strengthen this relationship.”

CPB Contractors to help BHP debottleneck Nelson Point at Port Hedland

CIMIC Group says its CPB Contractors business has been selected by BHP to deliver the structural, mechanical, piping, electrical and instrumentation package for the port debottlenecking project at Nelson Point, Port Hedland in the Pilbara region of Western Australia.

The contract will generate revenue of approximately A$100 million ($72 million) to CPB Contractors.

CIMIC Group Executive Chairman and Chief Executive Officer, Juan Santamaria, said: “We’re pleased to be supporting BHP with this project. Our mining and resources experience and history in the Pilbara means we can collaborate on the project’s high standards of safety and quality.”

CPB Contractors Managing Director, Jason Spears, added: “This project builds on CPB Contractors’ substantial experience in delivering resources infrastructure. We are pleased to continue our long-term partnership with BHP, to deliver another important resources project in the Pilbara.”

The project involves delivering both greenfield and brownfield works, with work commencing this year and expected to be completed in 2023.

Last year, Civmec also received a contract linked to the port debottlenecking project, which, in Stage 1, includes a new stockyard planned for the South Yard at Nelson Point.

Hancock, Mineral Resources and Roy Hill consider Australia-first infrastructure sharing pact

Hancock Prospecting Pty Ltd and Mineral Resources Ltd have entered into a legally binding agreement under which they will jointly investigate the potential to develop a new iron ore export facility at Port Hedland’s Stanley Point berth 3 in South West Creek.

The agreement would see Roy Hill Holdings, a Hancock subsidiary, provide services to both MRL and Hancock for development and operation of the project, including rail haulage and port services.

MRL said: “The project aligns with MRL’s strategy to unlock stranded deposits in the Pilbara by developing pit-to-port solutions and expanding its capability to be a long-term, low-cost sustainable supplier of iron ore to international markets.”

Hancock and MRL will conduct an expedited study to assess the economic and technical feasibility of the proposed project in the coming months, to usual market standards, they said.

In addition, Hancock and MRL will seek to undertake discussions with the Government of Western Australia and the Pilbara Ports Authority (PPA) in relation to the potential project. It is acknowledged that in order for the proposed project to proceed, the parties would need to first receive a development approval and a capacity allocation for the project from the PPA to jointly develop and operate Stanley Point berth 3 and other associated supporting port infrastructure.

MRL Managing Director, Chris Ellison (pictured in shot with Hancock Prospecting Executive Chair, Gina Rinehart on screen), said this partnership and infrastructure sharing proposal is the first-of-its-kind in the Australian resources industry and would enable significant value to be unlocked for the company in a sustainable manner.

“Our long-stated strategy is to transition from short-life, high-cost mines to lower-cost, long-life operations underpinned by innovative infrastructure solutions,” he said. “Developing our stranded assets will provide additional growth for MRL’s unique mining services build-own-operate model.”

The project  will be subject to a final investment decision by both parties, and other necessary approvals and agreements (including a lease, licence and an infrastructure development agreement or similar) from the PPA on agreed terms.