FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING RAM Spreader loading a vessel with iron ore. Seabulk’s semi submersible transshipper. It is now in operation for Berau Coal in Indonesia. Maritime trio dominates transshipment for miners Three shipping and maritime groups appear to be wrapping up the majority of transshipment activity among Australia’s miners. AJM’s Mike Foley spoke to senior representatives of CSL, Sea Transport Corporation and Brightwater Seabulk. B ulk commodity junior miners that sprouted all over Australia during the last decade are now itching to start exporting. They are loath to miss soaring commodities prices but wait endlessly for large-scale shared infrastructure to be built. The juniors are predominantly prospective producers of iron ore, but also coal, bauxite and various bulk mineral concentrates. Frustrated by the glacial pace of port development, and baulking at the huge sums of capital involved anyway, more and more miners are investigating alternatives, such as transshipment. For inspiration they are looking to systems in place in Indonesia, India, Canada and, in Australia, at sites like Whyalla with OneSteel, and Karumba with Century Zinc. Most eager are companies contemplating projects in new provinces with little existing infrastructure, such as the Kimberley, the Gulf of Carpentaria, mid-west Western Australia, and South Australia in general. Prospective proponents range from iron ore minnows contemplating a few million tonnes per year to substantial operations like Citic 52 JULY / AUGUST 2011 Pacific’s Sino Iron project and, at an earlier stage, Cape Alumina’s Bauxite Hills project. One of the first juniors to jump on board was IronClad Mining, which with Sea Transport, is currently developing a barge and transshipment operation. This will be close to IronClad’s mine site on the western side of the Spencer Gulf in South Australia. IronClad’s alternative was to transport its ore a vast distance overland to the only suitable, and available, deepwater terminal which is located in Adelaide. Over on the Gulf’s eastern edge, transhipping has enabled OneSteel’s 6mtpa operation to outgrow the capacity of its onshore terminal at Port Augusta. Since 2004 the company and CSL Australia have loaded deep draft Capesize bulk carriers offshore. Sea Transport Stuart Ballantyne, managing director of Sea Transport Corporation, said the company had a history in transshipping before coming to Australia. “Sea Transport has 20 years of experience in bulk feeders and self-dischargers. In 1991 Sea Transport designed the world’s first no ballast bulk carrier Deepwater … In 2008, the Sea Transport 5,200 dwt self-discharging barge Wunma [for MMG’s Century mine] was the only bulk carrier abandoned in a cyclone that actually survived.” The transshipment system on offer in Australia from Sea Transport has a relatively short lead time. Ballantyne said “a feeder barge you can get in 11 months” and it takes “up to 16 months” to build a floating harbour transshipper (FHT). “The FHT comes in Handymax, Supramax and Capesize versions. The Handymax FHT has 30,000 tonnes of storage and capacity of 7mtpa; the Panamax size 50,000 tonnes storage and 12mtpa capacity; the Capesize 100,000 tonnes storage and 20mtpa.” As with any transshipment system, the first contact with product is on land. Sea Transport uses a negative pressure shed, sized between 5-10,000 tonnes. A wet dock is attached, which includes patented stern loading vessels with capacities ranging from 3-6,000 tonnes. Loading vessels are shallow draft, meaning the harbour required to house the terminal can be small and shallow with four metres depth. Ballantyne described the loading process: feeder vessels, of 2,000 to 6,000 tonne capacity, back into the shed for loading; they then sail out to the FHT, and back into a reclaimer system inside it, which strips the feeders. CONTINUES NEXT PAGE AUSTRALIAN JOURNAL OF MINING u BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE (top left) Seabulk’s Goan Pride transshipment vessel. (bottom left) The Goan Pride can unload at 4,000tph. (above) The Goan Pride, seen here loading iron ore onto a Panamax vessel in Goa, India. t FROM PREVIOUS PAGE “If there is no bulk carrier alongside it stacks into the FHT. If the ship is there, the product goes directly from the feeder into the bulk carrier.” Sea Transport’s transshipper loads the bulk carrier with grabs. “About 60% of the export cargo is actually sitting there, at the [FHT]… so the trick is to feed another 40% during the 3-4 day load out. That is how we optimise the size and number of feeders, so that these feeders go 24/7, backwards and forwards feeding just as a truck or a train would.” Ballantyne claimed that the company’s system can operate in seas usually deemed too rough for transshipping. “10 days of model tests were carried out at the Australian Maritime College during November 2010 confirming that 4.5 metre significant wave heights can be handled without stopping the feeder vessel operations, whereas two metres is the normal maximum limit. “The cost of a FHT and feeders and small shore shed works out about 20-25% of a fixed jetty installation. But the fixed installations now have to place a bond to have them removed at the end of the mine life, which could add 30% as a contingent liability.” This system is not indicative of a fixed approach from CSL, however. Ian Ives, the company’s director of transshipping operations in Australia said “we tailor a particular system to whatever the requirements are for the particular area where you do the transhipping. “You need to look at the cycle time, the availability of the stockpile and shore loading rate and the weather conditions. We look at each individual circumstance that comes along and we don’t believe there is one system that fits all, because every situation is different.” An example of this is CSL’s contract for iron ore junior WPG Resources at Port Pirie, which plans to begin exports in 2012. Shallow draft self-unloading barges were designed especially for the Spencer Gulf’s shallow waters. Brightwater Seabulk (above) CSL transshipping in Whyalla for OneSteel. (below) CSL’s Sea Spider Transshipper located in East Kalimantan, Indonesia, transships over 3.5mtpa for PT Berau. CSL CSL transships around 32 million tonnes of various cargoes annually, with projects in Australia, Indonesia, Canada and the U.S. The company’s 6mtpa contract with OneSteel uses two 12,000 dwt self-unloading barges. The barges travel between Port Augusta and unload at a floating offshore transshipment platform at a rate of 5,000 tonnes per hour. AUSTRALIAN JOURNAL OF MINING Unlike the small sheds of the Sea Transport system, WPG has built a substantial $50m shed at its onshore terminal. Ives said small storage capacities in the transhipment system – onshore or on a floating platform – can pose problems when multiple grades of ore are involved. “OneSteel has a shed with 250,000 tonnes capacity. When you start dividing that up into different grades, the capacity drops to 150,000 tonnes, because you have to separate between your cargoes.” A floating platform “would have exactly the same problem.” The lead time for a transshipment operation depends upon the particular circumstances as well, Ives said. For OneSteel the system took 18 months, and WPG’s system just four months, as it only needed “modifications to one of our self-unloaders.” New Zealand-based engineering firm Brightwater Group operates a transhipping joint venture with Seabulk Systems of Canada. David McGregor, group business development manager for Brightwater, said his company first tested the waters on a partnership with Seabulk in 2006. “Brightwater was looking for a partner to deliver a barge loading terminal for a coal project on the New Zealand west coast. “Seabulk had developed a similar terminal in Campbell River British Colombia and the two firms decided to replicate some features.” He explained that Brightwater Seabulk officially came into being in 2007. It first CONTINUES NEXT PAGE JULY / AUGUST 2011 53 u FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING (left) The Floating Harbour Transshipper (blue vessel) with aft dock and feeder inside with a Panamax alongside. (right) Sea Transport’s patented stern loading vessel, which has capacities ranging from 3-6,000 tonnes. t FROM PREVIOUS PAGE tendered when “Gindalbie Metals was looking for a transshipment solution for ore exports from a shallow-draft port at Geraldton.” Brightwater Seabulk “signed a heads of agreement with Gindalbie, which did not lead to a TSA agreement due to project changes.” Brightwater Seabulk has gone on to develop plans for several other projects for: Grange Resources, Aurox, Atlas Iron and MCC of China. McGregor said “our target market is Australia, New Zealand and the Asia Pacific region. This is a huge market for dry bulk exports of coal and iron ore. Lack of port infrastructure and the urgency to tap into Asian demand will continue.” Seabulk builds “custom-designed systems, involving top-down or gravity reclaim systems,” McGregor said. The company has also developed transshippers for dewatering slurry cargo and loading dry cargo in open seas. “Concepts and sub-systems from previous projects are usually customized to deal with requirements for each project. This is very much dependent on operability of the transshipper at a particular site. However, the economics work when the minimum yearly tonnage is 3-4mtpa, and the upper limit is 8mtpa.” One of Seabulk’s flagship projects is in southern India with the Goan Pride bulk carrier, which was converted into a transshipment vessel in 2006. It has storage capacity of around 120,000 tonnes and is fitted with self-unloading equipment. The Goan Pride is loaded 22 nautical miles offshore by barges. The transshipper is fitted with hoppered holds, basket gates, a tunnel conveyor, a C – loop conveyor and a travelling shiploader. It is loaded by barges with four highcapacity grab cranes with a 2,000 tonnes per hour capacity. Seabulk’s transshipper can load a large 300,000 tonne Capesize vessel in about three to four days, discharging its cargo at approximately 4,000 tonnes per hour. Brightwater Seabulk is currently seeking its inaugural Australian contract. Avoiding liquefaction and dust Cargoes containing small particles and too much moisture can liquefy in transit. This can cause a cargo shifting effect, which may be sufficient to capsize a bulk carrier. The transportable moisture limits sets a standard to prevent liquefaction. All three companies employ similar measures that they say are sufficient to prevent this from occurring. Essentially, they are covered barges, stockpiles, and loading and unloading facilities which prevent rain from entering the product. A transshipping system, all three companies said, can remove the burden of fugitive dust emissions from an exporter’s environmental approval process. They claim their systems will greatly speed governmental approvals that consider dust emissions. Each company stated that its closed system is effective and proven. Extraction fans capture and re-circulate dust from sheds, barges and transshipment platform stockpiles. Enquiries aplenty It would appear that the potential for junior companies is beginning to be recognised. Ives reports that CSL is in discussion with 50 prospective companies that are considering transshipment in their pre-feasibility studies. McGregor said Brightwater Seabulk is also enjoying significant interest in Australia and overseas. Sea Transport “has 28 speaking to us globally and seven of those are in the serious level of discussion,” Ballantyne said. n Contacts: www.cslaustralia.com.au, www.seatransport.com, www.brightwater.co.nz (left) Sea Transport’s system uses small sheds. (right) Building a small harbour for barge loading can save on infrastructure costs normally associated with bulk commodities terminals. 54 JULY / AUGUST 2011 AUSTRALIAN JOURNAL OF MINING Presents Innovative Bulk Material Export Solutions for Mining 20th - 21st September 2011 | Novotel Langley Perth Examining low cost shiploading, transshipment and port infrastructure for mineral assets Including an analysis of: The outstanding speaker panel includes: Transshipment Mark Roberts, General Manager Townsville Operations, Xstrata Copper Barging Andrew Thomson, Executive Director Port Operations, CITIC Pacific Mining Use of containers Simon Parsons, General Manager, Cairn Hill Project, IMX Resources Rotary tipplers Neville Conway, Acting Chief Executive Officer, Cape Alumina Floating harbours Ben King, Project Manager, Fitzroy Terminal Floating cranes Stephen Timmins, Project Development Manager, POAGS Drive over mobile shiploaders Andrew Keith, Project Delivery Manager, Aurecon Group Case studies Ross Ballantyne, Naval Architect, Sea Transport Corporation (STC) Environmental issues Rahima Velagic, Research Analyst, Braemar Seascope And more… John Visser, Metallurgical Manager, METS panies on 8 mining com “More than 2 g similar are considerin four continents amount duce the huge concepts to re nd-based ired to build la of capital requ on the s and cash in export facilitie om” commodities bo 2011 view 30th May n Financial Re lia ra st Au e Th “Bulk commodity junior miners..are loath to miss soaring commodities prices but wait endle ssly for large-scale shared infrastructure to be bu ilt” “South East Asia’s power ma rkets benefit from their proximity to Indonesia...This proximity pro vides the option of barging coal directly from Indonesian mines to regional markets, rather than depending on por t infrastructure.” Australian Bulk Hand ling Review May / June 2011 Asia Miner 12th May 201 1 Proudly sponsored by Researched and developed by: SECURE O RD E R REGISTER NOW www.informa.com.au/miningexport FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING Transshipping in Indonesia’s calm seas. Some experts warn Australia’s rougher conditions will preclude the technique in some locations (image courtesy of Qmastor). Potential slips for transshipping to ships A viable transshipping operation depends on a multitude of factors, including geography, prevailing sea conditions, water depths, export volumes and project life. Mike Foley spoke to a range of experts to discover what prospective operators need to consider. A ndrew keith, resources portfolio manager at Aurecon, cut his teeth in transshipping amongst the coal rich islands of Indonesia. Calm seas, shallow water, low labour costs and a lack of existing infrastructure means that barging and offshore shiploading are an obvious solution for the region’s prolific coal mines. Keith told AJM “most of the coal that comes out of Indonesia is from the island of Borneo, in the province of Kalimantan. Historically, development of the coal industry there has been around getting to the easy coal to be transported. The easiest transport has been directly on the coast, or you put it on barges, float it down the river and transship it into a larger vessel.” He said transshipping operations in Indonesia “range from being a bit more than a floating crane, in that they have floating grab cranes to unload the barges. The product comes directly into a hopper, then onto a conveyor and onto a shiploader boom that loads the ship. There are also some that have replaced grab cranes with continuous unloading systems. 56 JULY / AUGUST 2011 “There are some facilities coming into play now with storage facilities for the coal, so you don’t have to stop shiploading when you change barges. The approach there is to build up your stock before the ship comes in. The ship comes in and you bring barges alongside the cranes, unloading to the hopper that is on the shiploader. “In fact there is only one shore-based coal port capable of fully loading Cape-class vessels in Indonesia, so there is limited access to deepwater for all the large bulk carriers.” Keith identified some of the trends evident in bulk handling for minerals in Indonesia. “One is that people are again looking at the development of shore based terminals for large capacities, but they often require a lot of dredging or long jetties to get out to deep water. Or there is one proposal there to put a stockyard area on an island and take barges out to it and then transship it onto a vessel.” Keith pointed out that two coal terminals, built in the region by BHP and Adara Coal in the 1990s, both employ this concept. In Australia, similar trends are emerging. Andrew Keith, resources portfolio manager at Aurecon. “With a large project we are looking at in Australia, it seems to us it has a window of opportunity, in that there are bottlenecks at the ports. That is something to consider when you are unloading on the barges from a shore facility, then bringing it to a floating terminal,” Keith said. He stressed, however, that each case for transshipment needs to be judged on its merits, while acknowledging that there are potential benefits. “You can potentially get it [barge loading and transshipment facilities] in place a lot quicker, pay off your capital. Then the fact that you have higher operating costs, because of the nature of the facility, means that having paid off your capital expenditure, CONTINUES NEXT PAGE AUSTRALIAN JOURNAL OF MINING u BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE t FROM PREVIOUS PAGE you might be able to bring your charges down to be competitive with some of the larger shore based facilities. “It is going to come down to balancing out: what is the total rate you need to achieve in a year, how much operating time will you have to lose to weather in the year, how will that line up with your ship arrivals and what rate does the facility need to shipload to be able to achieve the [export] rate you are targeting?” Unlike Indonesia, deep ocean swells and the regularity of their occurrence will be a major factor in determining the viability of an Australian transshipment operation, Keith explained. “I expect there will be seasons of the year when there will be issues with that. You might be able to moor vessels so the transshipment facility gets some shadowing for the wave conditions and is able to operate, but there is a limit to the levels in which transshipment can operate.” Lastly, there is an “option to use a converted bulk carrier … it can be as simple as offloading storage with grab cranes, unloading from your barges, with the grabs unloading from the hold of the bulk carrier into the export vessel. There are some in the US that use self-discharging vessels, which have shiploading conveyors that load into the export vessel,” Keith concluded. Graham Stafford is a principal consulting engineer for ProMet, which is a major player in consulting to Australian iron ore juniors. He said a key consideration was the projected life of the mine and two transshipping suppliers in Australia told ProMet that “a 10 year contract is required for them to amortise their initial capital expenditure. “This means that the operation costs are set for that period, with or without escalation conditions. This means the life of the mine must cover this time frame otherwise the mining company would be subject to a substantial claim from the transshipment operator.” Stafford said a company should “consider transshipping when it is not able to obtain access to existing port facilities, at an economical distance from the product source that can cater for 170,000 tonne bulk carriers or larger, to minimise freight rates to the buyer destination.” Companies should also “consider transshipping when the sea in the desired location is relatively shallow for a considerable distance offshore, before obtaining a minimum 20 metre depth of water without dredging. This is the case on most of the Pilbara coast,” Stafford said, in reference to the savings transshipping can deliver by removing expensive construction costs associated with a deepwater port. However, transshipping does mean some construction costs, he explained. “There is a AUSTRALIAN JOURNAL OF MINING need to have a causeway out from the shore to a minimum depth of six metres, to suit five metre draft barges, plus a protective groyne to shelter the barges when they are being loaded. “Transshipping saves the cost of constructing conventional shore side port facilities and associated dredging costs. The nominal capacity of a single berth with one shiploader is 35mtpa in a sheltered environment such as Port Hedland or Dampier using 170,000 tonne carriers and larger bulk carriers.” Stafford said miners considering transshipment are well advised to keep an eye on developing bulk handling trends. “It is predicted that 75% of the world fleet for bulk carriers suitable for iron ore will be in the 170,000 to 180,000 tonne range, which indicates that this will be where the most competitive rates will be obtained,” he concluded. All sources contacted by AJM emphasised that transshipping is not a one-size-fits-all solution. Gindalbie Metals’ Karara iron ore project is a case in point. Karara, a JV with AnSteel is initially exporting around 11.5mtpa through the Port of Geraldton, with plans to expand to 30mtpa. Relative motion between barges and transshipment vessels is a determining factor for operable loading conditions. Like many previous iron ore exporters around the country, Karara was wedged between its hunger for a rapid route to export and a lack of existing port infrastructure. The very same factors pushed companies like OneSteel at Whyalla, WPG at Port Pirie, IronClad in Lucky Bay and Sino Iron at Cape Preston into transshipment. So why did Gindalbie pump its cash into a traditional port facility? A source at Karara told AJM it was an economic decision. Transshipping has its own capital expenditure associated with infrastructure, they said. “You have to have something to load your barge, and sure it could be a smaller shiploader, but you still have to have some sort of berth facility and a storage facility to load those transshippers.” In total, Gindalbie is spending about $2.6 billion on Karara. A large whack of the bill has gone into a terminal at Geraldton. The company “built a brand new berth, brand new shiploader, brand new storage facility, brand new train unloader – brand new everything for a port.” The future security of access to infrastructure was considered an ongoing benefit of the investment, the source said. “Because we have our own terminal, we don’t have to apply to anyone else. We can just run our own game.” Most significantly, in regards to the wider take up of transshipping across the sector, prevailing sea conditions in the Indian Ocean were an insurmountable obstacle for transshipping. Gindalbie studied the potential for interruptions to loading using transshipping offshore of Geraldton and concluded that there would be too much downtime due to rough conditions, and the company would “only have got about 252 days that we could load.” Stuart Ballantyne of Sea Transport said his company can provide a transshipping solution for rough sea states off the West Australian coast. “We might be able to say, OK, if it is open Indian Ocean conditions, for this wave spectrum then we will use this size Floating Harbour Transshipper, which will be able to work about 330-340 days in a year.” David Mitchell of Brightwater Engineering was more measured in his appraisal of the potential for transshipping in heavy seas. “Usually, ship-to-ship transfer is discontinued for liquid bulk at 3.0 metre significant wave height and 2.5 metre for dry bulk,” Mitchell explained. “There are numerous special mooring, fendering and bulk handling systems required to deal with prevailing sea conditions. “The West Coast of Australia, and New Zealand, poses a challenge to transshipment operations,” he said. Ian Ives of CSL was less circumspect. He said a company considering transshipping “came and asked us to do transshipment off Geraldton. I said ‘you have got to be kidding!’ “You go into the deep ocean off Geraldton and you have a huge swell coming from the south west. The relative motion between the barges, or the two ships, or whatever you are using can be quite significant. You will get to the stage where it would be impossible to transship, not even worth your while.” Ives said it was the energy in the swell “not the height of the waves” that determines the impact on a transshipping operation. Fetch length, the distance over which the wave generating wind has blown – coupled with the wind’s speed, determines how much energy is contained in the swell. CSL, with IronClad Mining, is currently preparing to begin transshipping in the Spencer Gulf in South Australia. Ives said “we have two, even two-and-a-half metre swells in the Gulf, but the fetch of those swells is very short.” These swells, despite their height, do not make “the relative motion between the barges and the ships impracticable.” However, Ives stressed, “when you get out into deep ocean swells, there is a lot of energy coming through.” n JULY / AUGUST 2011 57 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING Photos this page and overleaf show Sino Iron’s Cape Preston port facilities. Sino Iron’s jumbo transshipment for Cape Preston iron ore It is not just juniors using transshipment to export as quickly as possible. Citic Pacific will use the technique for its huge Sino Iron magnetite project at Cape Preston, 100kms south west of Karratha in the Pilbara. T he $5bn Sino iron operation will ramp up to export over 27mtpa of pellets and concentrate. It has a two billion tonne measured resource, with options to develop an additional four billion tonnes. It remains to be seen if Citic Pacific will build a deepwater port in the long term, but 58 JULY / AUGUST 2011 for now the company is well advanced in developing a transshipment system. It will be big and it will be bold: transshipping on an unprecedented scale and loading in the tempestuous Indian Ocean. A Sino Iron spokesman told the AJM “a transshipment port was chosen for several reasons, including the environmental impact of building a deepwater port. This was a rapid development project and at the time the schedule did not allow us to secure the equipment required for such a construction before export was required.” Sino Iron’s transshipment system will consist of a breakwater to shelter the loading facilities, a port stockyard and conveyor system, a barge loader that works like a CONTINUES NEXT PAGE AUSTRALIAN JOURNAL OF MINING u BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE t FROM PREVIOUS PAGE small ship loader and a large fleet of barges and transshipment vessels. The company said construction of the port facilities was almost complete. The 2.6km breakwater is finished and “construction is almost completed on the project’s concentrate stacker, the giant apparatus for stockpiling the concentrate once it reaches the port, as well as the reclaimer, a machine with 10 big buckets attached to a wheel that scoops ore from the product stockpile.” Barges and transshipment vessels are currently being built in China. “ “ The barges will be loaded unimpeded by prevailing sea conditions as they shelter behind the breakwater. So how will the system work? The conveyor will carry material along the breakwater to the barge loaders. The barges will be loaded unimpeded by prevailing sea conditions as they shelter behind the breakwater. Once loaded, the barges will be towed by tugs about 20kms offshore, where two large scale transshipment platforms wait. Product will be transferred to Citic Pacific’s own purpose-built 115,000t bulk carriers, which will transport the concentrate to the company’s Chinese steel mills. Sino Iron conceded that sea conditions will be an issue. It said “sea conditions will impact this operation on occasion. However, we have various operating strategies to minimise this affect. “We have real-time oceanographic monitoring systems in place at the barge loading and transshipment points, so that we understand the sea conditions at all times. We also have electronic real time weather information as wind effects can also alter the steps that need to be taken to continue to load.” All eyes will be on this pioneering project. No doubt other companies planning large scale operations around the world will closely monitor Sino Iron’s progress. n Contact: www.citicpacificmining.com “ “ Sea conditions will impact this operation on occasion. However, we have various operating strategies to minimise this affect. AUSTRALIAN JOURNAL OF MINING Sino’s 2.6km breakwater shelters barges during loading. JULY / AUGUST 2011 59 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING Cape Alumina might employ self-unloading barges, a staple of CSL’s business. Cape Alumina to transship Cape York bauxite Transshipment is an obvious solution for Cape Alumina’s remote Bauxite Hills project, located 95kms north of Weipa in an area of Western Cape York with shallow water, sheltered seas and no existing infrastructure. C ape alumina acting chief executive Neville Conway told AJM “we are looking to become a major miner and exporter of bauxite to the growing Asian market, particularly China, [who] are short on bauxite and long on aluminium production capacity.” Currently, the company is in the development phase. Conway said “later this year we are undertaking a drill program to establish our maiden JORC resource for the project.” Cape Alumina said in an ASX statement its exploration target is 50 – 100mt. Previously, Cape Alumina was further advanced with plans for its nearby Pisolite Hills bauxite deposit, having established a resource estimate of 132mt. But this project is now on hold. In June 2010 an amendment to the Wild Rivers legislation declared its Wenlock River basin location a high preservation area. Conway said Cape Alumina has transferred the essential elements of the transshipment operations developed for Pisolite into plans for Bauxite Hills. AJM understands the CONTINUES NEXT PAGE Cape Alumina will develop its transshipping operation from the ground up, with no existing infrastructure available. 60 JULY / AUGUST 2011 AUSTRALIAN JOURNAL OF MINING u BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE FROM PREVIOUS PAGE transshipment operation was developed in conjunction with Canadian Steamship Limited (CSL) “Initially, we looked at a range of options and we came up with the transshipment solution,” Conway explained. “The pre-feasibility study for our Pisolite project was quite comprehensive and we are using a lot of the work we did there and applying it to the new project at Bauxite Hills.” In terms of export rates, the company has ambitious figures in mind for Bauxite Hills. OneSteel’s operation at Whyalla currently holds the record for the most bulk material by transhipment in Australia, exporting around 6mtpa with shipping partner CSL. “We have undertaken a concept study, which looks at shipping one to three to seven to 10mtpa. We are aiming at a final production figure of about 10mtpa at Bauxite Hills, meaning we will be able to sustain around about a 15 year export operation,” Conway said. Conway claimed “the process we are looking at doing is quite innovative, and a very elegant solution to extracting the product in the most economic, efficient and environmentally sustainable way. “We will have a small port and barge loading facility in Skardon River, shallow draught barges will then transship the product 15 nautical miles offshore to a mooring in the Gulf … [the product] is then loaded and exported to market.” The potentially low environmental footprint of a transshipping operation, with minimal onshore building and reduced dust emissions, was another key benefit of the system, according to Conway. “The simple fact of the matter is this is the most cost effective and lowest environmental impact proposal. It is also based upon the feedback we received from the traditional AUSTRALIAN JOURNAL OF MINING “ We will have a small port and barge loading facility in Skardon River, shallow draught barges will then transship the product 15 nautical miles offshore. owners … we need to have full support from the local community for our activities, to get permits up and running, so we need to listen to the community.” Cape Alumina’s ore and geography are particular factors in its favour, said Conway. “Western Cape York bauxite in particular is attractive to that [Asian] market, because it is high grade bauxite. It yields a good percentage of alumina and we are close to market.” n Contact: www.capealumina.com.au WPG Resources and CSL devise system for Port Pirie WPG Resources, a South Australian iron ore junior with projects near Coober Pedy, is preparing to start exporting via transshipment by the end of the year. T he tranSShipment SyStem will run shallow draught self-unloading barges from Port Pirie into Capesize bulk carriers in the Spencer Gulf. CSL designed a shiploader for the project. The device will fill barges docked at port, where WPG recently built a new shed at a cost of $50m. The system employs dust suppression and extraction units on its conveyors and shiploader, to comply with stringent environmental standards. CSL’s Ian Ives said that due to the particular requirements of the operation, costs were “ commensurate with those of OneSteel’s 6mtpa transshipment system at Whyalla. At Port Pirie “we had to look for … [a transshipment vessel] that was far more manoeuvrable and was much higher speed, to take into account the longer transshipment time. So when you put that together the transshipment cost at Whyalla and Port Pirie work out to be about the same,” he said. AJM sought comment from WPG but had no response by the time it went to press. n Contact: www.wpg.com.au We had to look for … [a transshipment vessel] that was far more manoeuvrable and was much higher speed… “ t “ Shallow draught barges will transship Cape Alumina’s product 15 nautical miles offshore to a mooring in the Gulf. JULY / AUGUST 2011 61 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING Western Desert Resources to transship in Gulf of Carpentaria Iron ore junior Western Desert Resources’ (WDR) Roper Bar project, in terms of bulk handling infrastructure, lays smack bang in the middle of nowhere. It appears set to advance despite this, however, using a transshipping operation to free it from expensive port facilities. W dr’S roper Bar deposits are 40kms inland from the western shores of The Gulf of Carpentaria, in the north west of the Northern Territory and 80kms from a settlement of the same name. The project area is vacant crown land and not a national park, hastening development, so first production is slated for 2014. The company is currently undertaking a pre-feasibility study on an estimated resource of 311.8mt at 40% Fe. This includes direct shipping ore of 14.5mt at 57.4% Fe. Like Cape Alumina, the alternative to transshipping was dredging a channel and building a port to accommodate a bulk carrier. WDR reported that “various coastal engineering and shipping consultants have been engaged for studies of logistics and infrastructure. This has included extensive bathymetry surveys to determine the position of arrival channels for bulk carriers and optimum loading positions.” WDR has not settled on a particular transshipment system, but it has determined the basic elements. Most significantly, nearby Maria Island has been identified as the preferred barge loading point, which will be fed by a slurry pipeline from the mainland. Bob Howard, project manager iron ore, WDR explained “we have a bit of deepwater north of the island. If we have a barge loading jetty on the north of the island, then we can use that as a staging post for tug and barge operations to head out and load a bulk carrier. We are looking at 3.5mtpa.” Howard explained that under current plans, the product “will be delivered to Maria Island in a slurry pipeline. On the island the water would be removed and pumped back to the mine. We would have enclosed buildings to store the fine iron ore product. (below) Location of Western Desert Resources’ Roper Bar project. (above) Drilling at Roper Bar. “That [product] would be loaded onto a barge on the island and get taken to the ocean going vessel loading position. Then it would be moved with cranes, or whatever is appropriate at that phase of the operation, to be loaded onto ships.” Howard said he identified 16,000tph as a starting point for the loading rate he would like the transshipment system to exceed and that WDR was talking to several companies that build floating platforms as part of its pre-feasibility study. A significant concern Howard said, even within the Gulf, is sea conditions. “You get the differential wave movement between the ship and the barge and there is a lack of control of the grabs that can cause damage,” he said. He has concluded, after studying meteorological databases, “that the wind is not that high and the number of loading days would be more than enough.” Despite the challenges, it seems transshipment is the best available solution for WDR’s bulk handling needs. “We need a system that can cope with the run up through the tonnages, that is the challenge,” Howard said. “I have never known a subject, in all my life, with so many rabbits running down holes and different opinions. But we are beginning to sort it out now.” n Contact: www.westerndesertresources.com.au 62 JULY / AUGUST 2011 AUSTRALIAN JOURNAL OF MINING BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE Covered containers at Port Lincoln for Lincoln Minerals Lincoln Minerals has several prospective projects across South Australia’s Eyre Peninsula. It plans to use the latest in containerisation technology for its flagship Gum Flat project, which lies just 20kms from Port Lincoln. C ontainer tippler specialist, Rotainer has developed a covered container, which aims to eliminate almost all dust emissions. Dr John Parker, Lincoln’s managing director, said the company had firmly settled on Rotainer’s covered containers as its preferred material and storage handling system. Lincoln Minerals expects to begin exports for stage one of its 500mtpa DSO Gum Flat project in the final quarter of 2012. It has a 120mt resource, with further exploration targets on its lease. The company hopes to ramp up to a total of 12mtpa of ore and concentrate by 2015. Lincoln claims the project, out of all others in Australia, is the closest to an existing port facility. Port Lincoln is a mere 20kms away, however its shallow draft will limit bulk carriers to Panamax size. “There are ships coming into Port Lincoln that can handle the Rotainer system. They have got their own gear that can handle containers,” Dr Parker said. He explained that superphosphate is unloaded in containers by a Rotainer system. “We are looking at reversing that system and sending iron ore out,” he said. The covered Rotainer system removes the lid as it picks up and rotates a container into a ship’s hold. Above it, a dust suppression system reduces fugitive emissions. “There will be very little, if any, dust from [the containers]. They will be covered. And Location of Lincoln Minerals’ Gum Flat project on the Eyre Peninsula. being covered, there is no opportunity for the dust to get out.” Dr Parker said that because ore trucks would need to move through town to reach port, an uncovered container was not a viable option, due to the requirements of the development application. He explained that traffic pressure on the town was not an issue, due to the modest 500ktpa export rate. “We are not anticipating a lot of trucks going through the city. About two or three road trains an hour. They would have a 30 tonne container on each of the wagons,” he said. n Lincoln Minerals managing director Dr John Parker. Lincoln’s managing director said the company had firmly settled on Rotainer’s covered containers. Contact: www.lincolnminerals.com.au (left) A Handymax carrier unloading superphosphate. The ship has its own gear that Lincoln Minerals believes may be suitable for using with a Rotainer to load iron ore. (below) Port Lincoln can only accommodate Panamax vessels, up to 80,000 tonnes. AUSTRALIAN JOURNAL OF MINING JULY / AUGUST 2011 63 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING Century mine uses 5,000 tonne transfer vessel Another Gulf of Carpenteria miner, Mineral and Metals Group (MMG), capitalises on its location’s benign sea conditions with a large transshipment operation for zinc concentrate from the venerable Century mine. A uStralia’S largeSt open cut zinc mine, producing around 500,000 tonnes of zinc metal in concentrate annually, operates a self-unloading barge out of the coastal town of Karumba in the remote lower Gulf region of north-west Queensland. Century’s barge, the MV Wunma – which was supplied by Sea Transport Corp – was specially built to ply the shallow waters of the Norman River channel. Engineering firm BMT WBM designed the materials handling plant for the cargo hold on the MV Wunma, as well as the dust control systems. It said the system has a throughput of 2,000tph, utilising a bucketwheel reclaimer, loading hopper, load distributing gantry, discharge boom and seven conveyors. A bulk carrier sits in deeper water 45kms off the coast. The self-unloading barge deposits parcels of concentrates weighing up to 5,000 tonnes each. It takes about 12 hours for the MV Wunma to complete the cycle of loading, transferring and discharging the concentrate and then returning to Karumba. Mining and processing operations take place at Lawn Hill, 304kms to the inland, south west of the port. Concentrates are transported to Karumba via an underground pipeline. It can take three days for a single pump station located at the mine to propel the concentrates to Karumba. n (above) MV Wunma at MMG’s Century. (below) Australia’s largest open cut zinc mine transships 500,000tpa of zinc concentrate. Contact: www.mmg.com (below L to R) Century Zinc’s location. Bucket wheel reclaimer on the MV Wunma. Boom on the MV Wunma. 64 JULY / AUGUST 2011 AUSTRALIAN JOURNAL OF MINING BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE (left) Bulk Converters’ tippler at Townsville. (above) Western Areas export of containerised nickel concentrate on voyage from Esperance to Xingang, China. Bulk Converters using containers for nickel concentrates Bulk Converters Australia and its parent company Merchant Shipping, which offer supply chain logistics solutions for bulk exporters, have recently entered the container tippler market. B ulk converterS’ container tippler system, the ConVerter, is currently in place at the Port of Townsville with two more in production. The company said the ConVerter is suited to sized or sensitive cargo, with a load out capacity exceeding 10,000 tonnes per day. It has a rotation time of approximately 15 seconds and can tip up to 35 tonnes. Rotation speed and direction are controlled by the operator, to manage safety and minimise associated environmental risks, the company said. The ConVerter can handle standard 20ft and half height open top containers. It is adaptable for offloading directly into ships’ hold or can be attached to a mobile crane for tipping onto stock piles. It can also be modified to attach to any standard crane headblock. Brett Money, general manager of Bulk Converters said “lidded container tippler systems require special containers. It doesn’t lend itself to flexibility for the mine site or lease operators to use that equipment elsewhere, whereas our tipping system uses standard ISO open top containers. “When you start getting into parcel sizes of over 10,000 tonnes, then tippling from containers into ships makes a lot of sense. “Using a tippler system can allow small operators to generate cash a lot quicker than it would take to develop proper overhead infrastructure and bulk loaders. “The other thing [tipplers] are good for is when you have a short mine life. You might have a high grade, but a proven reserve of only two or three years.” Merchant Shipping, Bulk Converters’ parent company, provides a whole logistics chain service, building and supplying the equipment needed to transport a product from pit through to delivery point. “We can provide, quite uniquely for our customers, a delivered rate per tonne of product into markets like China,” Money explained. Money said that through Bulk Converters “we can also provide the equipment needed to move the product from mine to market. “What you have in the supply chain is a lot of focus by the domestic players on getting the stuff to port, and then you have a lot of focus by the international players on the shipping, but no one is really cementing the mine to export market. “Some people come to us and say ‘I can get a cheaper rate per tonne from a carrier’, but then they are paying in stevedoring and demurrage and so on. What they think is a cheap price when they look at the whole supply chain cost is actually quite significant.” Money said that containerised bulk handling should be considered “when you start getting into smaller higher value cargoes, where the product might be anything from 2 -6,000 tonnes and up. We think that unitising and containerising the product makes a lot more sense then. “We are shipping half height containers of nickel to Esperance … exporting nickel concentrate to Canada and China. It proves the containerisation of certain bulk commodities, whether it is just for part or the whole of the journey has some real merit.” n Contact: www.merchant.com.au BCA loading of vessel with containerised nickel concentrate at the Port of Esperance. Visit www.theajmonline.com.au AUSTRALIAN JOURNAL OF MINING JULY / AUGUST 2011 65 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING Update on IMX’s ore handling systems at Port Adelaide AJM first reported on iron ore junior IMX’s use of a container tippler system in February. Heated debate followed on the pros and cons of this innovative infrastructure. Mike Foley updates the story. S outh auStralian miner IMX Resources entered production for the miserly sum of $20 million. To do it, the company capitalised on existing container handling gear at Port Adelaide, where it loads customised containers using a rotary tippler attached to a container crane. This allowed it to avoid the huge costs confronting most iron ore projects which have to fund a large storage shed, jetty and shiploader. IMX exports around 1.7mtpa of direct shipping ore (DSO) through Port Adelaide from its 11.4mt inferred iron ore resource at the Cairn Hill project, 55kms south-east of Coober Pedy. Essentially, in planning its project, IMX was seeking the fastest and cheapest route to market. Duncan McBain, managing director of IMX explained “if you were to build a shed and bottom dump facility, you’d be looking at $35 – $40m. “It wasn’t something that was completely left field. We managed to find somebody to get the right sort of containers for us. It took a little bit of work when we first started out.” Rotainer supplied port operator DP World with the first tippler, which loaded IMX’s inaugural shipment. RAM Spreaders supplied three more. “I think we were talking about 28 tonnes payload originally and now we are up to about 34.5 tonnes payload,” McBain explained. Word of the tippler system spread quickly after first shipment. AJM’s sister publication Lloyds List DCN has played host to an ongoing debate over the system’s viability, with loading rates and ongoing costs the contested issues. Gary Hunt, manager at Soros Engineering, wrote on 14th April that “the achieved bulk handling rates are paltry at 20,000 tonnes per day.” Hunt stated that Port Adelaide’s system “should be seen as a fantastic system for helping junior miners get up and running not as a long-term solution,” and that “this truly should be a debate or more importantly an analysis of long-term average costs.” McBain replied two weeks later: “In many locations like Adelaide around the world, there is container infrastructure which in many cases has spare capacity. Utilising 66 JULY / AUGUST 2011 this existing container infrastructure has the potential to deliver lower life cycle costs and a more rapid path to production for many small to mid-sized operations.” McBain said “I think some of the people externally were pretty harsh. I think there was some vested interest in the port industry and the engineering industry involved there.” Speaking to AJM recently, four shiploads after the tippler’s controversial maiden operation, Flinders Ports and DP World reported that the system has come up trumps. According to Andrew Pellizzari, logistics manager at Flinders Ports, “loading the last two vessels has been absolutely cracking.” Pellizzari said that initially “there was a lot of hard work. You have to remember the first vessel we only had one Rotainer, that was it. We hooked it up and started loading. We couldn’t test the conditions and there were times we had to stop and tweak the system.” Andrew Towers, general manager of DP Adelaide said “we have done four shipments now and everything is very good … from a point of view of where we thought we would be, I as a general manger am very happy with the system.” “There is still a lot of equipment to come down … from the sea to the crane is a bit of a bottleneck at the moment,” Pellizzari explained, noting that the port still needs four straddles. CONTINUES NEXT PAGE RAM Spreader loading a vessel with iron ore from IMX Resources at Port Adelaide. AUSTRALIAN JOURNAL OF MINING u BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE (left) RAM Spreader loading a vessel with iron ore from IMX Resources at Port Adelaide. (right) Rainstorm’s dust suppression system in action for IMX. t FROM PREVIOUS PAGE However, he said “the line rate has improved out of sight, at least 80%, and now we are hitting the rates we need to hit. But we think we can do a lot more ... we still haven’t got two thirds of the equipment and labour that we need and we have hit the mark that we need to hit already. So we are extremely happy with the way things are going.” Towers agreed that there was room for improvement. “It is a new system for our employees, so as we go down the track they will get more exposure to it and their rates will get better.” Pellizzari said that IMX’s latest shipment of approximately 80,000 tonnes had reached the targeted rate of around 20,000 tonnes a day. Both Towers and Pellizzari said the tippler system was a big improvement for dust emissions. Towers said that with the tippler and a dust suppression system there are no dust emissions. “That is part of our license requirement, that there was no visible dust,” he said. Product manager for RAM Spreaders Cameron Hay said that the tippler system should not create dust emissions during loading. The container is lowered into the ship’s hatch, where an overhead misting system can suppress emissions. The longer drop from the boom of a conventional shiploader is open to the elements and generates a plume of dust in the air displaced by the ore as it enters the hatch. IMX has a dust suppression system supplied by Rainstorm, which deploys a fogging spray on the rim of the ship’s hold to capture rising dust from containers as they unload. “Because we put the container almost on top of the ore inside the vessel, and it is rotated, you don’t produce a lot of dust. We have a monitoring system around the mouth of the hold. “As you walk on the deck of the vessel you don’t leave any footprints, which is very unusual for an iron ore vessel,” McBain said. AUSTRALIAN JOURNAL OF MINING Both RAMS and Rotainer have orders for more tipplers, and are hopeful the system will find wider use in the dry bulk materials industry. Rotainer has recently started producing a specialised container with an automatic lid lifting system. RAMS has just taken a patent on a system that can deliver increased loading rates, of up to 1500-1700 tonnes per hour, Hay said. For now, IMX and port operators are satisfied with the situation. McBain told AJM that IMX will continue to use the tippler system into the future. It remains to be seen if any of the many developing juniors will follow suit, as they seek a quick and easy route to export. From Pellizzari’s viewpoint, it would be a welcome development. “For mining juniors, this just makes sense,” he said. n Contact: www.rotainer.com.au www.ramspreaders.com More miners and ports consider container rotation Besides IMX Resources at Port Adelaide, many more bulk commodity and concentrate exporters are either already using these systems, or plan to do so in the near future. T hySSenkrupp was a pioneer in tippler systems. It designed a container tippler for use at Durban in 2003, although this was a very heavy device. The company is now looking at developing an upgraded second generation model, incorporating weight reductions, improved control systems and an optional dust control system. AJM contacted ThyssenKrupp for comment, but none was received. Closer to home, Panoramic Resources is tippling containers of concentrate at Wyndham and is already developing the third incarnation of its system. IronClad will kick off its ramp up to bulk exports tippling into a bulk carrier from a barge operation that transships containers out into the Spencer Gulf (see page 70). AJM understands Iluka, Minmetals and a certain copper exporter at Port Hedland are currently considering containerised bulk systems. Bunbury Port has a tippler. Cazaly Resources planned to export through Fremantle with Rotainer’s new lidded containers, to satisfy dust emission standards, but was rebuffed at the last moment by State Government. Junior iron ore miner Lincoln Minerals will use a tippler fitted to ship cranes to export through Port Lincoln (see page 63). This system will enable the company to truck Rotainer’s newly developed lidded containers through the town without emitting dust and to then use ships’ cranes – which are already geared up to unload superphosphate – to tipple the containers into an export vessel. Only time will tell how widespread the use of tippler systems will be by miners. Concentrate exporters, requiring closed containers, will have different needs from iron ore, coal and bauxite producers. With the market in its infancy, technology and system kinks will inevitably require fixing. Sticking points will likely be loading rates, and questions around owning or leasing containers. n JULY / AUGUST 2011 67 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING (left) The Mk III tippler. (above) Panoramic Resources and CPC Engineering’s Mk II Tippler. (below) The old skip loading method. Panoramic Resources: keeping a lid on exports Copper and nickel miner Panoramic Resources uses containers for bulk handling of concentrate from its Savannah mine, which lies 240kms south of Kununurra in the East Kimberley. It has developed its own system at Wyndham Port featuring a tippler designed for lidded containers. T he company is preparing to take the new tippler system to market. Tim Shervington, Panoramic’s commercial officer said it is designed for low volume – high value bulk exporters that lack access to onshore port loading facilities. Shervington said concentrates were the main market “particularly from ports without shore based container facilities. We have also had enquiries from exporters using West Australian ports with bulk ship loaders; it appears due to the age of these facilities our system may provide better economic and environmental outcomes.” Panoramic partnered with CPC Engineering, which completed design and construction, to develop its tippler system (see below). The company was spurred into action by dissatisfaction with its old skip loading process. Shervington said “skip loading resulted in the spillage of the product, as it relied on the skip bin bottoming out on loaded concentrate to discharge. The tippler was developed to improve the old loading practice … which was the only alternative, since there are no shore based loading facilities at Wyndham.” Panoramic’s tippler works with Handy to Panamax size vessels. The company reports 68 JULY / AUGUST 2011 that each crane can load about 6,000 tonnes in 24 hours, with 25 tonnes of product per container, making it possible to load the substantial figure of 18,000 tonnes a day on a three-crane vessel. After conducting shore trials in May 2011, Panoramic is preparing for further testing on its Mk III tippler at Wyndham later this year. “This version will enable the lid to be removed and replaced during discharge in the hold and will allow multiple jigs to load vessels,” Shervington said. He explained more generally that “all tipping is conducted inside the hold, since the concentrate has a low stowage factor. Tippling will occur well below the hatchcoaming, which we believe is best practice to minimise emissions. “Containers are loaded in the nickel storage shed onto the back of trailers, which are then hauled by tractors alongside the vessel. The circuit is approximately two kilometres and we have three tractor/trailers operating during each load-out, with one crane working a tippling jig.” Panoramic produced around 7,300 tonnes of nickel contained in concentrate from its Savannah project in the east Kimberley in the year to end-June 2010. The product arrives at Wyndham via a 240km truck haul from the mine site. It is stored at port in a newly built negative pressure shed. “We have also trialled storing concentrate in containers, for up to 45 days. The idea here was to purchase a fleet of approximately 500 containers and store the monthly shipments in containers at the port, instead of constructing a purpose built concentrate storage shed. “One of the technical challenges in container storage was the oxidisation of the concentrate resulting in the formation of large lumps which would have resulted in material handling problems. This was overcome by the addition of a chemical, which is proprietary information.” n Contact: www.panoramicresources.com AUSTRALIAN JOURNAL OF MINING BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE POAGS’ container tippler POAGS has been working with a number of its bulk export customers to develop a containerised bulk transport and handling solution. Over the last year it has developed a light weight container rotator, which is mounted on ship cranes. L ike the other SyStemS canvassed here, the rotator and container are lifted by the ship’s crane into the hold of the vessel. Once inside the hold, the lid is lifted, the container is rotated 180 degrees and emptied and the lid is replaced before it is deposited back on the wharf. The safe working limit of the rotator is 40 tonnes. POAGS said “the concept was developed by working closely with Doric Engineering, who provided technical solutions and manufacturing.” The system is “ideally suited for small parcel bulk concentrate exports” of around 10,000 tonnes, where the containers can be used to store and transport the product directly from the mine site to the wharf. The system can also be used for bulk commodities with up to 45,000 tonne parcels feeding from a stockpile and using a new halfheight container to aid material flow. POAGS’ rotator has recently entered service in Bunbury, with a number of additional operations anticipated to come onboard in future. The company said a key advantage of the system is that it does not require specific shore based cranes. The container rotator is self-sufficient with its own power pack and is operated by the crane operator via remote control. POAGS, formerly P&O Automotive and General Stevedoring, is Australia’s largest stevedoring provider, working in 28 Australian ports. n Contact: www.poags.com.au POAGS’ system in action. Savings in the supply chain from software Mining software company Qmastor says companies contemplating use of barges and transshipment need specialised software to extract maximum efficiency from their supply chain. S teve maxwell, chief operating officer claimed potential savings could reach into the millions each year. Maxwell said “it is nigh on impossible for a barge and transhipment planner, using Excel, to consider all of the factors and the interdependencies between them to derive and execute a schedule that will optimise the operations, and maximise the throughput of the supply chain. “In order to maximise throughput and also optimise mineral commodity quality, consideration needs to be given to a wide range of factors when planning and tracking barging and transshipment operations.” Qmastor has systems in place with Walter AUSTRALIAN JOURNAL OF MINING Energy in the USA for coal barging, PT Adaro in Indonesia for coal barging and transshipment and OneSteel in Whyalla for iron ore barging and transshipment. Maxwell said important factors to consider for transshipping are: variable loading and unloading rates, barge cycle time, barge, tug and transhipment unit availability, ocean going vessel schedules, planned outages including maintenance, tidal, locks and channel constraints on draft and sailing windows, material stockpile capacities and qualities, forecast and actual material quantity and quality, transportation and vessel sampling and analysis results, customer commodity contract specifications, Qmastor software is used for transshipment operations for OneSteel in Whyalla. transshipping commercial incentives, demurrage and despatch terms and physical vessel constraints in using transshipment gear. n Contact: www.qmastor.com JULY / AUGUST 2011 69 FEATURE I BARGING, TRANSSHIPMENT & CONTAINER TIPPLING (left) IronClad originally planned on a 540km journey to Port Adelaide, firstly by truck to Whyalla then through to port via rail. (right) IronClad will haul containers 154kms by truck from its Wilcherry Hill mine site to the barge operation at Lucky Bay in the Spencer Gulf. IronClad drops Port Adelaide, opts for floating harbour at Lucky Bay In a bid to kickstart operations at low cost, South Australian iron ore junior IronClad Mining will first use a tug and barge system and later a floating harbour based around a ferry terminal at Lucky Bay. Mike Foley spoke to IronClad executives. S outh auStralia has dozens of developing resources companies, many of which are impacted by restricted access to ports. Adelaide is invariably a long way from remote mine sites and steel producer OneSteel, which has a facility at Whyalla, is unwilling to share its infrastructure. IronClad Mining’s Wilcherry Hill magnetite project sits in the south-eastern section of the Gawler Craton, in the north of Eyre Peninsula, 105 kms from Whyalla. Unable to do a deal with OneSteel, IronClad was faced with a lengthy 540km road and rail haul to Port Adelaide. “Getting into production is our first and foremost aim. Our second aim is to get into Capesize vessels at the earliest possible time,” said Ian Finch, executive chairman, IronClad Mining. “Our strategy has been to get to a JORC compliant resource that will provide us with five to six years of feed. There is no point, in our view, in spending additional capital on getting more and more ore when we can do that once we are in production.” IronClad has an 80/20 joint venture with partner Trafford Resources at Wilcherry Hill. Trafford purchased the deposit from Aquila Resources in 2006, which in turn purchased it from AngloGold in 2002. IronClad was listed on the ASX in 2007 to develop Wilcherry Hill. 70 JULY / AUGUST 2011 The project has a JORC compliant resource of 275mt, with further exploration potential. Production is expected to begin before the end of 2011, with a start-up capital cost of $26 million. Stage 1 of the project will see production of up to 2mtpa of high quality direct shipping ore (DSO). Stage 2 will see the addition of magnetite concentrates, pushing total production to 5 – 6mtpa. Ralph Winter, business development manager, IronClad Mining explained “for the ramp up in exports, we are looking at about one million tonnes in the first year and then increase that up to two million in year two. “We will commence our feasibility on the rest of the ore in the area from around June this year. We hope to bring that in by the end of year two and by then we should have production capabilities set up to incorporate beneficiation of the remainder of the ore. Between years two and three, production will increase from 4 to 6mtpa.” Initially, IronClad was resigned to biting the bullet on transport costs. It made plans to undertake the only available route to export, that is, the 540km journey to Port Adelaide, firstly by truck to Whyalla then through to port via rail. Fortuitously, in the early stages of Wilcherry Hill’s development, the company was approached by Sea Transport Corporation which proposed a transhipment operation that utilised a nearby ferry terminal. Sea Transport suggested Lucky Bay, in the Spencer Gulf, only 154kms south of Wilcherry Hill. By swapping the truck and rail route to Adelaide for a 154km truck haul, and foregoing a deep water port for a transshipment system, IronClad estimates it can cut operating costs from $85 to $65 per tonne. The transhipment solution first came to light in late 2009, Finch explained. “About 18 months ago I was approached by the chairman of Sea Transport Corporation, and he suggested transshipment out of the port they own at Lucky Bay. “I was right in the midst of getting our feasibility out of the way and I didn’t pay as much attention as I should have. But he was persistent, and rightly so. Eight or nine months ago we started to look at it in real detail. To our surprise, the proposition ticked all the boxes and there was no detrimental stuff that we could find in the proposal.” Finch said that Sea Transport’s floating harbour “makes perfect sense because our mine operations are set to progress in production over the next three to four years and we are going to need the capacity to get into Capesize vessels. And locally there are no ports that can take Capesize vessels.” IronClad is so keen to begin exporting that it will commence by December 21 with a tug and barge offshore loading system before its tonnages reach a level that makes a floating harbour viable. Winter said “a free floating barge that the ore is loaded onto will be taken out into the ocean, once we have found an appropriate site somewhere between five and 10kms offshore to load Panamax vessels. We are using Panamaxes because they are the only ones with a crane that can load the containers in the middle of the ocean. “The second stage is to bring feeder vessels in, which is a motorised barge that has loading CONTINUES BOTTOM OF NEXT PAGE AUSTRALIAN JOURNAL OF MINING u BARGING, TRANSSHIPMENT & CONTAINER TIPPLING I FEATURE Zenith Minerals mulls transshipment in lieu of Anketell option Transshipping in the sheltered waters of a shallow Queensland gulf is far from a daunting prospect. But loading a bulk carrier from an open sea platform in the Indian Ocean is an entirely different proposition. Z enith mineralS is in the scoping stage for its 100% owned Mount Alexander iron ore project, located 120 kms south east of Onslow in the Pilbara. Promet Engineering has completed a desktop study, with preliminary costing based on a transshipment system. Zenith is planning on exporting 8mtpa from an inferred resource of 392mt @ 29.5% Fe. Understandably, non-executive director Mike Joyce is more circumspect than his Queensland counterparts. “This is what we have used for our desktop scoping study. It is just a development option for a review. We have not set our heart on it.” In its study, Zenith proposes to transport its concentrate in a slurry pipeline to Onslow, where it would dewater and store the product. A covered conveyor would transport the ore from the shed to a barge port at Onslow, t FROM PREVIOUS PAGE capabilities on the barge. That has, roughly, a $9m – 10m cost for one and we are weighing up whether to buy or lease. “The barge will be docked and packed on shore. Also, the system will be fully containerised, which means the container is loaded from the truck onto the barge. Plan of IronClad’s operations. AUSTRALIAN JOURNAL OF MINING Location of Zenith Mineral’s Mount Alexander project where it would be barged to an offshore transshipment facility. In a perfect world, however, Joyce said Zenith would export through a traditional port, such as the Anketell Point development. “The project at Mount Alexander is about 80kms away from where Aquila is planning a new railway line to up to Anketell.” n “Once the containers are loaded onto the back of the barge, the tug pulls it out into the ocean. When the container is loaded onto the vessel it hooks on the bevel and tips it lengthways and the ore falls into the hold of the ship. “The third stage of the operation is to bring in the floating harbour, to give us the capability to load capsize vessels. We expect that option to come in two-and-a-half to three years’ time. “The floating harbour will actually have the capability to hold 90,000t of product. It can take a Capesize vessel and can load through itself and the feeder barge as well, so we can meet the 150,000 tonnes capacity of the vessel.” Winter said IronClad has “a marketing agreement with OMS trading out of Singapore and the ore will be sold under a two year agreement. We send it through OMS to a stockpile in southern China and they then have a range of 13-14 different steel mills.” While IronClad is a test-case for junior iron ore players, it already seems at this early stage that others are set to follow suit. Winter said “it is a multi-user facility [at Lucky Bay], and the government has been at pains to let us know they want it to be a multi-user facility. “We understand in the future there will be other companies that come and want to use the facility, because of the lack of infrastructure in the area and the lack of adequate port facilities that are available in the Eyre Peninsula.” n Contact: www.zenithminerals.com.au Contact: www.ironcladmining.com JULY / AUGUST 2011 71
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