Tag Archives: shipping

Anglo American to introduce LNG into iron ore chartering fleet

Environmental, Mine operation news, Mining services, Steel and iron ore, Sustainable mining, , , , , , , , ,

Anglo American has announced the award of a 10-year charter contract for four LNG fuelled capesize-plus vessels, introducing LNG into its chartered fleet for the first time.

The new build LNG vessels offer significant environmental benefits, including a circa-35% cut in CO2 emissions compared with standard marine fuel, while also using new technology to eliminate the release of unburnt methane, or so-called “methane slip”, the company said.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said: “Anglo American is committed to reducing emissions from its ocean freight operations and to playing a leading role in shaping a more sustainable future for the maritime industry. Today’s agreement is aligned with Anglo American’s goal to be carbon neutral across our operations by 2040 – as we work to reduce emissions not only at our production sites but also along our entire value chain – and builds on our track record of implementing concrete actions to deliver on the targets set by the International Maritime Organisation’s 2018 strategy.

“LNG is a readily available, commercially viable, lower emission solution which, combined with innovative technology designed to eliminate unburnt methane, will allow these new builds to provide a much improved environmental and more efficient performance.”

LNG marine fuel offers significant environmental advantages over heavy fuel oil – the most widely used fuel by vessels operating along sea trade routes – and is abundantly available through an established global network of existing infrastructure, according to Anglo American. Compared with conventional fuel options, the use of LNG eliminates sulphur oxides, considerably reduces nitrogen oxides and particulate matter from vessel exhausts and, as mentioned, cuts CO2 emissions by around 35%.

Designed to be larger than, but remain as flexible as, a conventional capesize vessel, the new builds will optimise cargo transport by increasing load and improving overall cost effectiveness. U-Ming Marine Transport will own the newly designed 190,000 DWT LNG fuelled bulk carriers. The fleet will be built by Shanghai Waigaoqiao Shipbuilding in China and is expected to be delivered in 2023.

The fleet is expected to carry up to 5 Mt/y of product, transporting iron ore from Anglo American’s operations in Brazil and South Africa to the company’s global customer base. The new builds will be flagged and registered in Singapore, which will also serve as prime bunkering port, thereby avoiding deviations from trading routes for refuelling purposes, the company said.

Earlier in October, Anglo American was among the founding signatories of the Sea Cargo Charter – created by some of the world’s largest energy, agriculture, mining, and commodity trading companies, with the aim of establishing a standard methodology and reporting framework to allow charterers to measure and align their emissions from ocean transportation activities.

Venture Minerals takes ‘one-stop shop’ approach at Riley with Qube agreement

Bulk handling, Mineral project development, Mining services, Steel and iron ore, , , , , , ,

Venture Minerals has awarded bulk material handling services company, Qube, with preferred road haulage tenderer status for the Riley iron mine, in Tasmania, Australia.

Alongside this, Venture has also engaged Qube to provide the necessary Burnie Port Services to complete the logistics solution of delivering iron ore from Riley to on board the ship.

Venture said: “Securing Qube as the complete ore transport provider for the Riley iron ore mine will increase the efficiencies for one of the project’s key cost centres as the company progresses towards becoming the next Australian iron ore producer.”

Recently, Venture Minerals commenced dry screening operations at Riley as part of the ramp-up phase of the project. Full production is expected to occur upon successful commissioning of the wet processing plant, which is subject to financing, the company said.

At a $90/t 62% iron ore price, an August 2019 feasibility study on the project returned a post-tax cash surplus of A$31 million ($23 million) over the two-year production life of the mine.

Andrew Radonjic, Venture Minerals’ Managing Director, said: “Venture is fortunate to be working with Australia’s leading provider of bulk material handling services to provide a complete logistics solution in delivering Riley iron ore from the mine gate to the port and then on board ship. This one-stop shop approach will increase efficiencies and reduce costs which is all important when mining bulk commodities.”

He added: “Qube is a professional logistics company with modern, well managed vehicles and trained, professional drivers. Qube’s safety record was also an important part of our selection criteria and their real-time monitoring of vehicle movements is impressive.”

Port Hedland’s iron ore export capacity receives ‘potential’ boost

Bulk handling, Mining services, Steel and iron ore, , , , ,

One of the world’s largest ports for iron ore exports, Port Hedland, in Western Australia, has had its  potential shipping capacity increased by 40 Mt/y.

The additional capacity, which was a result of Western Australia Government and industry investment at the port, will see Port Hedland’s potential shipping capacity go from 577 Mt/y to 617 Mt/y, a 6.9% increase.

Annual capacity allocations for each port user will remain the same, according to a media statement from Western Australia Ports Minister, Alannah MacTiernan. However, the increased capacity will allow all port users more capacity above their allocated tonnages by accessing D‑class shipping opportunities under the Port Hedland Vessel Movement Protocols.

Investments at the port to facilitate this new capacity modelling by the Pilbara Ports Authority included capital dredging, innovative marine technology and other port efficiencies, according to the statement.

This includes the recently completed three-year dredging works program, the Channel Risk and Optimisation Project. The A$120 million ($81 million) project included the removal of “high spots” in the channel, optimising navigable depths to allow deeper drafted vessels to safely navigate along the 42 km shipping channel.

Also driving this increase is the continued movement and facilitation of larger vessels in the channel. The sizes of ships coming into Port Hedland have increased significantly in recent years, with 45% of vessels now carrying more than 200,000 deadweight tonnage, compared with less than 10% in 2009, according to the Pilbara Ports Authority. Much of this increase can be put down to bigger vessels carrying iron ore from Port Hedland to Asia and elsewhere.

In August, Port Hedland achieved a monthly throughput of 46.1 Mt, of which 45.4 Mt was iron ore exports. The monthly throughput was a 7% increase from August 2018, according to the Pilbara Ports Authority.

BHP looks to LNG for lower iron ore shipping emissions

Bulk handling, Environmental, Mining services, Steel and iron ore, Sustainable mining, , , , , ,

BHP, as part of its goal to reduce greenhouse gas emissions across its operations, has released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27 Mt of its iron ore.

The company said: “Introducing LNG-fuelled ships into BHP’s maritime supply chain will eliminate nitrogen oxide (NOx) and sulphur oxide (SOx) emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.”

BHP, as part of its greenhouse gas emission reduction plans, recently signed a memorandum of understanding with Mitsubishi Development to work together in the pursuit of emissions reductions, including from the life-cycle use of marketed products.

Rashpal Bhatti, Vice President, Maritime and Supply Chain Excellence, BHP, said emissions resulting from the transportation and distribution of the company’s products represented a material source of its value chain emissions (Scope 3).

“We recognise we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” Bhatti said. “Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain.”

The tender is open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers, BHP said. “As well as LNG-fuelled transport for up to 10% of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.”

Bhatti added: “We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulphur levels in marine fuels.

“While LNG may not be the sustainable homogenous fuel of choice for a zero carbon future, we are not prepared to wait for a 100% compliant solution if we know that, together with our partners, we can make significant progress now.

“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products.”

The IMO ruled from January 1, 2020, that the marine sector will have to reduce sulphur emissions by over 80% by switching to lower sulphur fuels, with the current maximum fuel oil sulphur limit of 3.5 weight percent (wt%) falling to 0.5 wt%.

As well as investments in emerging technologies, BHP sets greenhouse gas emissions reduction targets for its operations, builds the resilience of its operations and communities to the physical impacts of climate change, and works across sectors to strengthen the global policy and market response, the company said.

EGA and Maersk extend aluminium shipping relationship

Base metals, Bulk handling, Mine operation news, Mining services, , , , , ,

Emirates Global Aluminium says it has signed a volume commitment extension agreement for 2019 with the global shipping company A.P. Moller – Maersk for transport of its aluminium to customers around the world.

EGA exports its metal to customers in more than 60 countries worldwide and makes more than 11,000 shipments each year using over 100,000 containers. EGA’s aluminium is the biggest made-in-the-UAE export after oil and gas, according to the company.

The company said: “EGA works with 20 different shipping lines to ship its products, transporting metal to over 70 global ports. Maersk is one of EGA’s most significant shipping partners, and has supplied shipping services to the UAE aluminium giant since 1992.”

Walid Al Attar (right), EGA’s Chief Marketing Officer, said: “Meeting our customers’ expectations depends on both the quality of our production and the efficiency of getting the metal to them, so I am pleased to sign this agreement today with one of our most important shipping partners, Maersk.”

Christopher Cook (left), Managing Director for Maersk in UAE, Oman and Qatar, said: “As the global integrator of container logistics, this agreement enables us to continue to partner with EGA to ensure their aluminium reaches their customers as fast and as cost-effectively as possible.”