Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
Issue link: https://emj.epubxp.com/i/342236
16 E&MJ; • JULY 2014 www.e-mj.com Fortescue Signs Contracts for Four Large Ore Carriers REGIONAL NEWS - AUSTRALIA/OCEANIA Fortescue Metals Group has signed a con- tract with a Chinese shipyard for the con- struction of four very large ore carriers val- ued at about $275 million. The 260,000- dwt vessels will account for approximately 6% of Fortescue's iron-ore shipping fleet requirements, are larger than traditional Capesize vessels, and incorporate design specifications ideally suited to tidal condi- tions at Fortescue's Herb Elliot port near Port Hedland, Western Australia. The vessels will be delivered from November 2016 through to May 2017, with the majority of payments made upon deliv- ery and funded from operating cash flows. Fortescue CEO Nev Power said the con- tract represented a strategic decision to secure long-term, low-cost freight on vessels that will complement infrastructure at Herb Elliot port and maximize shipped volume. "We are already in the shipping busi- ness, with an annual forecast spend of around $1.5 billion a year," Power said. "These vessels are a natural extension of our supply chain and will play a significant role in increasing efficiencies at the port and lowering costs. They also reflect and strengthen our close relationship with China, our largest customer." Power also said the contract was con- sistent with Fortescue's strategy of improv- ing efficiencies and lowering its cost base. "Owning and managing vessels especially designed to complement conditions at the port and to maximize shipped volume is expected to reduce our costs below bench- mark rates." Western Australia Government Details Plans for Anketell Port The Western Australia government has released a "master plan" detailing plans for Anketell Port, a major, multiuser, multi- commodity, deep-water port in the Pilbara. The key driver for the port is the ongoing demand to export iron ore from the Pilbara region. A further key driver is the unprece- dented level of economic development in the Pilbara over the last decade. The master plan includes provisions for a substantial infrastructure corridor and more than 800 ha of industrial land to sup- port port activities and future mining oper- ations. Initial environmental approvals for the site are in place, a native title agree- ment has been signed, and an Aboriginal heritage survey is currently under way. The Anketell Port site is on the West Pilbara coast 30 km east of Karratha. At full development, the port is expected to have capacity of about 350 million metric tons per year (mt/y), around 20% more than the total shipments through Port Hedland in 2012-2013. However, the port is planned to be built in stages over several decades. The actual stage 1 capacity and configuration will be decided by the port builder/user, subject to a minimum capacity of about 25 million mt/y. Anketell Port will be developed and funded by private sector builders/users, and managed by a port area manager. Three iron ore companies, Australian Premium Iron, Fortescue Metals Group, and China Metallurgical Group Corp., have independently selected Anketell as the pre- ferred location for their export facilities. The state government will work with these companies to develop the port to meet their requirements, with plans to com- mence operations by 2015. ERA Restarting Ranger Processing Following Six-month Shutdown Energy Resources of Australia (ERA) report- ed on June 5 that it had begun a progressive restart of processing operations at its Ranger uranium mine in Australia's Northern Territory. The processing plant had been shut down since December 7, 2013, following a leach tank failure that allowed the escape of slurry containing a mixture of mud, water, ore and acid. The slurry mixture was fully contained within the processing area and had no impact on Kakadu National Park, which surrounds the mine site. The restart of Ranger processing opera- tions followed approvals from the Northern Territory Department of Mines and Energy and the commonwealth minister for industry. On March 27, ERA reported the find- ings of an independent investigation that it commissioned into the leach tank failure. The first phase of the investigation found that the rubber lining inside the plant's Leach Tank 1, which protects the tank structure from corrosion, had been dam- aged as a result of wear from a partially failed baffle inside the tank. The damaged rubber lining allowed the acidic slurry mix- ture to come into contact with the tank's steel wall, which subsequently corroded and ultimately led to the failure of the tank. ERA decided to redesign and replace the baffle supports in all of the leach tanks before returning them to service. The investigation commissioned by ERA was separate from and run in parallel with a joint investigation undertaken by a government-appointed taskforce charged with overseeing the regulatory response to the leach tank incident. With the progressive restart of Ranger processing operations to occur throughout the second and third quarters of 2014, ERA's 2014 production of uranium oxide is expected to be between 1,100 and 1,500 mt. The company produced 2,960 mt of uranium oxide in 2013. Fortescue Metals Group will pay a Chinese shipbuilder $275 million for construction of four very large iron ore carriers, which, when completed, will account for roughly 6% of FMG's fleet requirements. (Photo courtesy of FMG) EMJ_pg04-27_EMJ_pg04-27 7/2/14 1:50 PM Page 16