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Dr Angus Paterson - Paterson & Cooke - Long distance slurry pipelines – A viable alternative for the bulk transport of iron ore and other commodities

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Dr Angus Paterson delivered the presentation at 2014 Africa Iron Ore conference. …

Dr Angus Paterson delivered the presentation at 2014 Africa Iron Ore conference.

The Africa Iron Ore conference is the annual gathering for iron ore and stainless steel executives engaged in the African Region.

For more information about the event, please visit: http://www.informa.com.au/africaironoreconference14

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  • 1. Africa Iron 2014 Conference, June 2014, Slide 1 www.PatersonCooke.com Slurry pipelines - A viable option for West African iron projects Dr Angus Paterson, Paterson & Cooke, Cape Town Africa Iron 2014
  • 2. Africa Iron 2014 Conference, June 2014, Slide 2 Introduction  Africa is endowed with world class mineral resources  Many of these resources are located in regions where road and rail access is limited, for example Marampa (Sierra Leone), Zanaga (Congo)  The lack of infrastructure often inhibits the development of an ore body that requires a suitable export corridor for large volumes of mineral concentrate  Chile and Brazil provide good examples of where slurry pipelines have enabled the development of resources
  • 3. Africa Iron 2014 Conference, June 2014, Slide 3 Outline of presentation  Options for bulk transport  A brief background to long distance concentrate slurry pipelines  Examples of long distance pipelines transporting a range of commodities/concentrates  The requirements to produce a suitable product for pumping  Advantages and disadvantages of concentrate slurry pipelines
  • 4. Africa Iron 2014 Conference, June 2014, Slide 4  Short haul trucking • Within mine fence, < 20 km  Long haul trucking • Beyond mine fence, up to 75 km  Overland conveyor • Single flight up to 50 km or more • 10% grade, horizontal radius limits, dusting  Ore trains / rail • Sishen to Saldahna 800 km = unlimited distance • 1% maximum grade when loaded = longer routes, crossings costly • Continuous power supply along route  Slurry Pipelines – fine particle transport • Viable over long distances • Water, particle preparation (grinding and drying) requirements • Steep terrain limits (10% to 15% grade) Ore concentrate transport system options Haul roads, grade limits, high running costs, flexible, can be contracted
  • 5. Africa Iron 2014 Conference, June 2014, Slide 5 Slurry pipelines - historical background  First major long distance ore pipeline system was Consolidation Coal (172 km, 1.3 Mt/a, 1957) • Railways reduced tariffs and system was mothballed but kept in care & maintenance  President Kennedy promoted the idea of long distance coal pipelines in 1962 to help ailing coal industry in USA
  • 6. Africa Iron 2014 Conference, June 2014, Slide 6 Pipeline politics
  • 7. Africa Iron 2014 Conference, June 2014, Slide 7 Black Mesa coal slurry pipeline  1970: Black Mesa coal pipeline was commissioned: • 440 km long • 450 mm diameter pipeline • Transported 4.8 Mt/a of coal  The Peabody Coal Mine used water from the underground Navajo Aquifer (only plant that used groundwater in such a way)  Coal slurry pumped to Mohave Power Station in Nevado that supplied power to California and Nevada  Operated until 2005 ?
  • 8. Africa Iron 2014 Conference, June 2014, Slide 8 On the success of the Black Mesa pipeline project: • Pipelines proved to be a cost effective alternative to conventional coal transport • 1973 - Energy Transportation Systems Inc (ETSI) project started • Aim to develop, build and operate ± 2250 km of coal pipelines transporting 30 MTA coal, linking Wyoming, Colorado, Kansas, Oklahoma, and Arkansas
  • 9. Africa Iron 2014 Conference, June 2014, Slide 9 But then . . .  Late 1970’s - US railways barred slurry pipelines from crossing their servitudes, effectively blocking long distance pipelines in the USA History has a short memory  Effectively ended developments in long distance slurry pipeline technology in USA  However, elsewhere projects continued . . .
  • 10. Africa Iron 2014 Conference, June 2014, Slide 10 Iron ore pipelines: Savage River  Savage River Mine situated in north west Tasmania in mountainous terrain  Pipeline commissioned in 1967  85 km from mine to pelletisation plant & port terminal  Unlined 250 mm pipeline, 13.5 – 6.3 mm thick  2.3 Mt/a  65%m magnetite  Max particle size 149 µm (d80 43 µm)  Single pump station with 4 +1 triplex plunger pumps, 11.7 MPa  Design life was 20 years (35 years operation to date)  Lime and sodium sulphate oxygen scavenger added  88 % availability reported  10% slope  Magnetisation of ore had up to 10% effect on pumping pressure
  • 11. Africa Iron 2014 Conference, June 2014, Slide 11 Iron ore pipelines: Savage River  Savage River Pipeline Bridge:129 m high and 439 m span http://www.highestbridges.com/wiki/index.php?title=Savage_River_Pipeline_Bridge
  • 12. Africa Iron 2014 Conference, June 2014, Slide 12 Iron ore pipelines: Samarco  Mine situated in central Brazil near Belo Horizonte  Commissioned in 1977  396 km from mine to coast  Pipelines: • 12 to 15 Mt/a in original 500 mm diameter pipeline • 2nd pipeline commissioned in 2008 • 3rd pipeline (20 Mt/a) 550 mm diameter due for commissioning in 2014  Four pelletising plants required  70%m haematite (itabiritic ore)  Max particle size 75 µm (d90 43 µm)  Two pump stations with 6 +1 triplex plunger pumps, 15 MPa  Design life was 20 years, however 40 years predicted  Lime added to control corrosion  99 % availability reported  Minimal failures and blockages reported
  • 13. Africa Iron 2014 Conference, June 2014, Slide 13 Iron ore pipelines: Samarco
  • 14. Africa Iron 2014 Conference, June 2014, Slide 14 Iron ore pipelines: MMX Iron Ore, Brazil  Anglo American Iron Ore - 529 km iron concentrate pipeline  From mine site in Minas Gerais to terminal at the coast  Combination of 600 and 650 mm outside diameter pipeline  Capacity: 27.5 MTA ore  Main pump station at mine site, plus booster pump station  Planned start-up during 2014 J Harman, Anglo American Iron Ore: “Global Iron Ore & Steel Forecast”, 11 March 2014, Perth, Australia http://www.angloamerican.com/~/media/Fil es/A/Anglo-American- Plc/media/releases/2014pr/anglo- american-global-iron-ore-steel-forecast- 2014.pdf
  • 15. Africa Iron 2014 Conference, June 2014, Slide 15 Iron ore pipelines: African studies  South Africa • Numerous local studies conducted since the 1970’s  10 MTA from Kathu to Saldanha, Port Nolloth and Vanderbijl Park  10 MTA from Thabazimbi to Richards Bay via Pretoria & Newcastle  Existing large fine ore stockpiles well suited to slurry pipeline transport with minimum additional processing  Requires pelletizing plant at Saldahna Kathu Saldahna Vanderbijl Park Thabazimbi Palabora Richards Bay Maputo Port Nolloth • Palabora to Maputo magnetite pipeline (1990’s)  Fine stockpile in excess of 240MT  Considered a direct route via Kruger Park (297 km) and a southern route (369 km)
  • 16. Africa Iron 2014 Conference, June 2014, Slide 16 Iron ore pipelines: African studies  Congo: • Zanaga Project  30 MTA pellet feed  An open pit mining operation and process plant and mine infrastructure  380 km slurry pipeline identified as optimal transportation solution Data and image obtained from “Zanaga Iron Ore – Pipeline PFS presentation” link at http://zanagairon.com/project  Port facilities and infrastructure for dewatering and handling of the iron ore products for export • Slurry pipeline offers:  $1 billion capital expenditure savings on direct costs  Lower execution risk
  • 17. Africa Iron 2014 Conference, June 2014, Slide 17 Iron ore pipelines: African studies:  Congo: • Zanaga Project • Cominco’s Hinda Project  37 km NE of Point Noire  4 MTA phosphate rock concentrate  Slurry pipeline to port drying and export facility • Other possible opportunities?
  • 18. Africa Iron 2014 Conference, June 2014, Slide 18 Iron ore pipelines: African studies  Sierra Leone • Marampa  Orebody ± 150 km east of Freetown, limited access and infrastructure  Currently trucking to riverhead, barging downstream and offshore loading is cumbersome and costly  Several operations could consider a slurry pipeline to terminal at Pepel Port http://www.fatprophets.com/Member%20Area/Product%20Landing /Report%20List/Report%20Page/~/media/D8FAC035E257450986 FFADFD717D55D6.ashx
  • 19. Africa Iron 2014 Conference, June 2014, Slide 19  Solids concentration: • Typically 50% to 70% solids by mass Requirements for Long Distance Slurry Pipelines  Particle size: • Grind / mill to produce an easily pumpable material • Iron ore typically < 100 µm 50%m 1 tonne solids 1 tonne water 67%m 1 tonne solids 0.5 tonne water Coarse settling slurries = high velocities = high power consumption and wear rates High concentration viscous slurries = high friction losses = high power consumption and short pumping distances
  • 20. Africa Iron 2014 Conference, June 2014, Slide 20  Pipeline operating costs driven by power consumption: • Transport velocity proportional to particle size and concentration Requirements for Long Distance Slurry Pipelines Da Hong (1 Mt/a) Savage River (2.3 Mt/a) Essar (8 Mt/a) Jian Shan (2 Mt/a) Kudremukh (7.5 Mt/a) Samarco (12 Mt/a) 1.3 1.4 1.5 1.6 1.7 1.8 0 100 200 300 400 500 600 MinimumOperatingVelocity(m/s) Pipeline Diameter(mm) LONG DISTANCEIRON ORECONCENTRATEPIPELINES • Wear rate proportional to particle size and velocity • Pumping pressure proportional to pumping velocity • Efficient power consumption requires a fine grind  The majority of long distance iron ore pipelines mill at mine and pelletize at terminal
  • 21. Africa Iron 2014 Conference, June 2014, Slide 21 Slurry Pipeline Transportation Issues  Single use • Can only be used to transport slurry • Can transport different slurry types in batches  Water • Requires a water source • Treatment at terminal prior to discharge, or return water pipeline • Product dewatering / filtration required to transportable moisture content  Environmental • Relatively low environmental impact compared to railway or trucking • Pipeline is buried so there is no surface impact • No emission or noise impact • No spillage or dust losses  Right of Way / Routing • Need to negotiate a servitude for the transport corridor • Pipeline generally shorter than road or rail (subject to grade limitation)
  • 22. Africa Iron 2014 Conference, June 2014, Slide 22 Slurry Pipeline Transportation Issues  Safety • Minimal safety risk compared with road and rail transport  Sabotage • Risk of sabotage mitigated by leak detection systems  Weather • Not affected by adverse weather, continuous operation  Economics • Power costs dominate, sensitive to electricity and potential fuel price increases • Not subjected to possible arbitrary increases in road usage or fuel taxes  Labour • Requires significantly less labour than other transport methods
  • 23. Africa Iron 2014 Conference, June 2014, Slide 23 Typical Costs  Operating costs a strong function of capacity and average particle size: • Increasing mean particle size from 44 µm to 300 µm increases operating costs by 10 times • Unit operating cost per tonne decreases substantially with increasing capacity • Operating cost/tonne generally lower than rail transport - electricity a significant variable cost  Capital costs highly dependant on: • Pipeline size • Terrain and construction  Trade off studies to determine rail and pipeline total cost of ownership 44 µm 1 10 Relativeoperatingcost Particle size 0.0 3.5 0 50 US$/tonne Annual capacity (MTA)
  • 24. Africa Iron 2014 Conference, June 2014, Slide 24 An established technology – A sample only Product Location Length (km) Diameter (mm) MTA Coal Black Mesa, Arizona 439 450 4.8 Iron concentrate Samarco, Brazil 395 500 12 Copper Concentrate Alumbrera, Argentina 316 150 0.8 Copper Concentrate Antamina 302 200 - 250 2.2 Coal Belovo-Novosibirsk, USSR 262 525 3 Copper Concentrate Collahuasi, Chile 203 175 1 Phosphate Concentrate OCP, Morocco 187 900 38 Coal Consolidation, Ohio 174 250 1.3 Copper Concentrate Escondida, Chile 167 150 - 175 2.0 Copper Concentrate OK Tedi, PNG 156 150 0.6 Phosphate Conc. Vernal, Utah 153 250 2.9 Phosphate Conc. Simplot, Idaho 138 225 1.9 Copper Concentrate Los Pelambres 120 175 1.1 Ramu Long distance - ore 120 600 3.4 Copper Concentrate Freeport, Indonesia 119 100 - 125 1.3 Iron concentrate Jian Shan, China 105 225 2
  • 25. Africa Iron 2014 Conference, June 2014, Slide 25 Long distance pipeline technology  Design codes: Since 2013 ANSI B31.4 incorporates ANSI B31.11 for the design of long distance slurry systems.  Increased high pressure pumping capacity. • Fewer pumps required, operating at higher pressures and flow rates.
  • 26. Africa Iron 2014 Conference, June 2014, Slide 26 Long distance pipeline technology  Design codes: Since 2013 ANSI B31.4 incorporates ANSI B31.11 for the design of long distance slurry systems.  Increased high pressure pumping capacity.  Improved pipe lining technologies. • HDPE slip lining to combat corrosion and erosion.
  • 27. Africa Iron 2014 Conference, June 2014, Slide 27 Long distance pipeline technology  Design codes: Since 2013 ANSI B31.4 incorporates ANSI B31.11 for the design of long distance slurry systems.  Increased high pressure pumping capacity.  Improved pipe lining technologies.  High pressure long service ball valves.
  • 28. Africa Iron 2014 Conference, June 2014, Slide 28 Long distance pipeline technology  Design codes: Since 2013 ANSI B31.4 incorporates ANSI B31.11 for the design of long distance slurry systems.  Increased high pressure pumping capacity.  Improved pipe lining technologies.  High pressure long service ball valves.  Choke stations to control slack flow.
  • 29. Africa Iron 2014 Conference, June 2014, Slide 29 Long distance pipeline technology  Design codes: Since 2013 ANSI B31.4 incorporates ANSI B31.11 for the design of long distance slurry systems.  Increased high pressure pumping capacity.  Improved pipe lining technologies.  High pressure long service ball valves.  Choke stations to control slack flow.  Multi-species transient analysis.  Control systems. • Real time pipeline monitoring of slurry and water batches. • Leak detection systems.
  • 30. Africa Iron 2014 Conference, June 2014, Slide 30 Conclusions  Long Distance Slurry Pipelines: • Long distance slurry pipeline transport is a well established technology. • Developments in pipeline components result in more efficient systems with lower maintenance and reduced power costs. • Require fine grind material and water • In general:  Require significantly less labour than other transport methods.  Minimal safety risk compared with road and rail transport.  Viability increases with capacity and distance.  Slurry pipelines offer a viable alternative to conventional long distance, high volume materials handling, especially in areas with limited infrastructure, difficult access and mountainous terrain.  Evaluate the benefits of slurry transport and the requirements for a transportable slurry, versus the costs of conventional handling of coarse ore.