WOMEN IN MINING

Rio Tinto report shows bullying remains rife with women targeted

Nov 25  

International Day for the Elimination of Violence against Women.

Bloomberg News | November 19, 2024 | 


(Stock image.)

A new report by Rio Tinto Group showed 39% of workers surveyed by the world’s second-biggest miner had experienced bullying within a 12-month period, up from 31% in 2021.


Two years after Rio Tinto pledged to address toxic cultures that were deterring females and non-Whites from the mining industry, details from a survey of more than 10,000 employees have laid bare the challenges it still faces. The rates of sexual harassment and racism that respondents reported were unchanged from three years ago, affecting 7% of those surveyed from workers in nations including Australia, US, Canada, Mongolia and New Zealand.

“While reports of bullying increased across all genders, the largest increase between 2021 and 2024 was against women,” the report said. “This change can be explained by a range of factors including increasing retaliation in the form of gendered bullying as a response to Rio Tinto’s efforts to promote gender diversity and inclusion.”

Rio Tinto’s latest report comes after the government of Western Australia — the nation’s key resources state with massive iron ore and liquefied national gas projects — in June 2022 released its own landmark inquiry. The government report uncovered dozens of shocking cases of alleged sexual harassment and abuse of women workers at companies including BHP Group, Woodside Petroleum, Fortescue Metals Group, and Chevron Corp.

The industry has seen pressure increasing from investors, governments and society to address its impacts on local communities and the wider environment. A focus has been creating a safer work environment for women and minorities, particularly at remote mining sites where so-called Fly In-Fly Out (FIFO) staff are based for several weeks at a time.

Rio Tinto’s company-commissioned external review is the second of its kind. In 2022 it took the rare step of publishing detailed findings from a report conducted the year before that outlined a list of 26 recommendations. Now, 17 measures have been implemented, with the remaining nine still in progress.

Under-reporting issue

In its latest report, Rio Tinto said under-reporting of sexual harassment and racism remained a key issue, with just over 10% of respondents who had experienced the harmful behaviors within the 12-month period lodging a complaint.

Eight people reported experiencing actual or attempted sexual assault or rape in the year, compared with five people in 2021.

Meanwhile, First Nations people continued to report a racism at a greater rate, particularly in Australia at 39%.

“We’re at the tip of the iceberg” in regards to getting victims to report their abuse, Kellie Parker, Rio Tinto’s chief executive for Australia, said in an interview. “We are changing by the fact that we’re being transparent. We haven’t got it all, it’s not all roses, but we are prepared to listen and we are prepared to change.”

While around half of respondents reported a perceived improvement in relation to bullying, sexual harassment and racism at Rio Tinto since the first report was conducted in 2021, several respondents also shared that they were regularly told that they only got their roles because they were women and therefore not qualified for the job.

The backlash highlights the complexities facing companies with historically male-dominated workforces as they implement policies aimed at increasing the number of women employees, who are at higher risk of being targeted. Women were more likely to report bullying and were the group that had the biggest increase in reported bullying since the first report, yet the proportion of women in the company’s workforce rose only marginally, to 25% from 22% in 2022.

The survey, conducted in April and May, was open to all Rio Tinto staff and had a response rate of 17.4%.

(By Sybilla Gross)

 

HD Hyundai Claims Ammonia Engine First Using High-Pressure Injection

HD Hyundai reports it has completed a high-pressure injection technology for ammonia-fueled power (HD Hyundai)

Published Oct 10, 2024 4:21 PM by The Maritime Executive

 

 

HD Hyundai Heavy Industries is claiming to have achieved a critical breakthrough in the development of ammonia-fueled engines using a unique high-pressure injection method. The South Korean shipbuilder says it achieved certification during model testing and is ready to begin commercialization of the engine.

The engine Hyundai reports uses a newly developed "high-pressure direct injection method" that compresses air in the engine combustion chamber and then burns it by injecting ammonia with high pressure. According to the company, this is the first ammonia engine in the world that has successfully applied a high-pressure ammonia direct injection method.

“Until now, ammonia engines were based on a ‘low-pressure premixed combustion method’,” says Hyundai, which they explained burns a mixture of ammonia and air, which has been provided to the engine combustion chamber, through compression. They are saying that despite the benefits of great output and fuel efficiency, engine companies around the world had difficulty developing this method due to its high technological complexity.

While setting up an optimized fuel spraying time and period to maximize the burn rate, HD Hyundai Heavy Industries reports it also utilized a selective catalytic reduction (SCR) system to minimize the amount of nitrogen oxide and unburned ammonia. In addition, an Integrated Scrubber developed independently by HD Korea Shipbuilding & Offshore Engineering has been widely applied resulting in a drastic reduction of ammonia concentrations.

"The development of this ammonia engine has great meaning as it will be an opportunity for us to lead the market while providing an expanded eco-friendly dual-fuel engine lineup," said an official of HD Hyundai Heavy Industries. "We aim to enhance our advanced technology and take the lead in the future eco-friendly ship market."

Model-based testing of the engine was completed on October 7 at Hyundai’s Engine Technology Center in Ulsan, South Korea. The testing was attended by representatives from seven classification societies including ABS, DNV, LR, BV, RINA, ClassNK, and KR. 

They report that the engine is receiving model-based class approval from the seven major classification societies. The detailed examination and compliance review were finalized with the model-based class approval, and HD Hyundai Heavy Industries reports it will soon start commercialization of the HiMSEN ammonia engine.

HD Hyundai Heavy Industries says that the ammonia engine will be suitable not only for ammonia carriers but also for marine power generation and propulsion purposes. The company also plans to market the engine to the land-based power generation market.

This comes just weeks after Japan’s NYK reported it had completed the conversion of a tug to become the first to operate on ammonia as its primary fuel. They plan to begin operations in Tokyo Bay as part of a demonstration project. Singapore has been proceeding with the testing and certification of an offshore supply vessel converted for ammonia operations by Australia’s Fortescue while in the United States, a startup company Amogy demonstrating an ammonia cracking technology that produces hydrogen for fuel cells. They completed the first demonstration on a converted tugboat as they work to scale up their technology.

Major engine manufacturers including MAN and Wartsila have also reported strong progress on the development of their versions of ammonia-fueled engines. It is widely anticipated that the technology would begin to be deployed by 2026. 
 

Fortescue electrifies iron ore trucks in $2.8 billion deal

Bloomberg News | September 24, 2024 

Image courtesy of Liebherr.

Fortescue Ltd., the world’s fourth-biggest iron ore miner, will pay $2.8 billion to replace two-thirds of its fleet of haulage trucks and equipment in Western Australia with electric versions, as it seeks to cut diesel consumption and meet ambitious emissions-reduction targets.


The miner will buy 475 emissions-free machines, including 360 autonomous battery-electric trucks, from Germany’s Liebherr Group, it said in a statement Wednesday. The fleet, which was developed using Fortescue’s battery technology, will service its sprawling iron ore operations in the remote Pilbara region and is aimed at reducing costs in the longer term.


Perth-based Fortescue, led by executive chairman and billionaire Andrew Forrest, has plans to decarbonize its entire iron ore mining operations by 2030. Reducing industrial pollution from mining is a significant challenge, with Fortescue consuming 631 million liters of diesel last financial year alone.

“You will watch the breath sucked out from CEOs’ chests when they realize this is a $2.8 billion order,” Forrest said in a phone interview after the announcement. “This is the future of heavy industry. And it’s zero emissions.”

Fortescue shares surged as much as 6.4% in Sydney after the announcement, and closed 4.7% higher to A$18.85 apiece. Since reaching a record high early this year, they have tumbled about 37%, as falling demand in China for iron ore has pressured prices of the steelmaking material.

The deal with Liebherr also includes purchasing 55 electric excavators and 60 battery-powered dozers, the company said in its statement, adding that the technology “will be available to the rest of the mining industry in the near future.”

Emissions from “stationary energy”, which includes emissions from direct combustion of fuels in mining, accounts for more than 20% of Australia’s air pollution, according to the government. Pollution from the global industry sector is continuing to increase faster than any other segment, according to researcher Systems Change Lab.

Earlier this month, fellow iron ore major Rio Tinto Group announced it would develop seed farms in Australia to test biofuel as a replacement to diesel.

(By Paul-Alain Hunt)

BHP to test Caterpillar’s new energy transfer system on its mining trucks

Reuters | September 25, 2024 |

Cat Dynamic Energy Transfer system prototype under development at Caterpillar Tucson Proving Ground. Credit: Caterpillar

BHP Group said on Thursday it plans to test US-based equipment manufacturer Caterpillar’s new technology, which transfers energy to diesel-electric and battery-electric large mining trucks while they are working on a mine site.


Caterpillar launched its Cat Dynamic Energy Transfer (DET) system earlier this month, saying that the use of this technology would lead to lower operating costs for miners and a reduction in greenhouse gas emissions


The DET system can also charge the batteries of electric trucks while they are under operation, providing extra speed and upgraded efficiency.

Mining giant BHP would become the first to try this new system, starting planned trials at its iron ore and copper businesses, including at its Escondida operations in Chile.

BHP, in 2021, had announced a collaboration with Caterpillar to work towards zero-emission mining truck deployment at its sites to cut back on its emissions of operational greenhouse gas.

(By Rajasik Mukherjee; Editing by Alan Barona)

Tugboat powered by ammonia sails for the first time, showing how to cut emissions from shipping

JENNIFER McDERMOTT and MICHAEL HILL
Updated Mon, September 23, 2024 

 

KINGSTON, N.Y. (AP) — On a tributary of the Hudson River, a tugboat powered by ammonia eased away from the shipyard dock and sailed for the first time to show how the maritime industry can slash planet-warming carbon dioxide emissions.

The tugboat used to run on diesel fuel. The New York-based startup company Amogy bought the 67-year-old ship to switch it to cleanly-made ammonia, a new, carbon-free fuel.

The tugboat’s first sail on Sunday night is a milestone in a race to develop zero-emissions propulsion using renewable fuel. Emissions from shipping have increased over the last decade — to about 3% of the global total according to the United Nations — as vessels have gotten much bigger, delivering more cargo per trip and using immense amounts of fuel oil.

CEO Seonghoon Woo said he launched Amogy with three friends to help the world solve a huge, pressing concern: This backbone of the global economy has not started to transition to clean energy yet.

“Without solving the problem, it’s not going to be possible to make the planet sustainable,” he said. “I don’t think this is the problem of the next generation. This is a really big problem for our generation.”

The friends met while studying at the Massachusetts Institute of Technology. In their free time during the COVID-19 pandemic, they brainstormed how to power heavy industries cleanly. They launched their startup in November 2020 in a small space at the Brooklyn Navy Yard. The name Amogy comes from combining the words ammonia and energy.

They looked for a boat and found the tug in the Feeney Shipyard in Kingston, New York, languishing without a mission. It could break ice, but little to no ice has formed on that part of the Hudson River in recent years, so it was available for sale.

“It represents how serious the problem is when it comes to climate change,” Woo said. The project, he said, is "not just demonstrating our technology, it’s really going to be telling the story to the world that we have to fix this problem sooner than later.”

They named the tugboat NH3 Kraken, after the chemical formula for ammonia and their method of “cracking” it into hydrogen and nitrogen. Amogy's system uses ammonia to make hydrogen for a fuel cell, making the tug an electric-powered ship. The International Maritime Organization set a target for international shipping to reach net-zero greenhouse gas emissions by, or close to, 2050.

Shipping needs to cut emissions rapidly and there are no solutions widely available today to fully decarbonize deep-sea shipping, according to the Global Maritime Forum, a nonprofit that works closely with the industry. There is a lot of interest in ammonia as an alternative fuel because the molecule doesn’t contain carbon, said Jesse Fahnestock, who leads the forum’s decarbonization work.

Ammonia is widely used for fertilizer, so there is already infrastructure in place for handling and transporting it. Ton for ton, it can hold more energy than hydrogen, and it can be stored and distributed more easily.

“It certainly has the potential to be a main or even the main fuel,” Fahnestock said. “It has a potentially very friendly greenhouse gas footprint.”

Ammonia does have drawbacks. It's toxic. Nearly all of it currently is made from natural gas in a process that is harmful for the climate. And burning it has to be engineered carefully or it, too, yields traces of a powerful greenhouse gas.

Amogy’s technology is different.

The tugboat ran on green ammonia produced by renewable electricity. A 2,000-gallon tank fits in the old fuel tank space, for a 10-to 12-hour day at sea.

It splits liquid ammonia into its constituents, hydrogen and nitrogen, then funnels the hydrogen into a fuel cell that generates electricity for the vessel without carbon emissions. The process does not burn ammonia like a combustion engine would, so it primarily produces nitrogen in its elemental form and water as emissions. The company says there are trace amounts of nitrogen oxides that it's working to completely eliminate.

Amogy first used ammonia to power a drone in 2021, then a tractor in 2022, a semi-truck in 2023, and now the tugboat to prove the technology. Woo said their system is designed to be used on vessels as small as the tugboat and as large as container ships, and could also make electricity on shore to replace diesel generators for data centers, mining and construction, or other heavy industries.

The company has raised about $220 million. Amazon, an enterprise with immense needs for shipping, is among the investors. Nick Ellis, principal of Amazon’s $2 billion Climate Pledge Fund, said the company is excited and impressed by what Amogy is doing. By investing, Amazon can show ship owners and builders it wants its goods delivered with zero emissions, he added.

“Many folks will now get a chance to see and understand how real and promising this technology is, and that it could actually be in container ships or tugboats in a matter of a few years,” he said. “If you would've asked five years ago, I think a lot of people would have thrown up their hands ... And suddenly we have not only a compelling example, but a commercially-viable example. These types of things don’t come by every day.”

Other companies are developing ammonia-powered ships that still use some diesel.

In Singapore in March, Fortescue's Green Pioneer vessel showed how ammonia could be used in combination with diesel as a marine fuel. An ammonia-powered container ship, the Yara Eyde, will be on water in 2026 with an engine running on green ammonia, according to Yara Clean Ammonia. In Japan, the NYK Group converted the tugboat Sakigake to run on ammonia rather than liquified natural gas.

As a next step, Amogy is working with major shipbuilders to bring ammonia power to the maritime sector. South Korean shipbuilder Hanwha Ocean is purchasing its technology. HD Hyundai and Samsung Heavy Industries are working with Amogy on ship designs.

Sangmin Park said that because Amogy has made significant progress in proving ammonia's potential as a clean fuel, “we expect the industry to move towards adoption more quickly.” Park is senior vice president at HD Hyundai subsidiary HD Korea Shipbuilding & Offshore Engineering.

“For the past few years, the industry has recognized the potential of ammonia as a zero-carbon fuel,” Park wrote in an email, “but actually building and sailing the first vessel is a true landmark event.”

___

McDermott reported from Providence, R.I.


Amogy completes first sailing of ammonia-powered vessel

Noah Bovenizer
Tue, September 24, 2024 



Maritime technology company Amogy has conducted the first sailing of its ammonia-powered demonstration vessel in a significant step for the development of its carbon-free solution.

The retrofitted NH3 Kraken tugboat conducted its first sailing with Amogy’s ammonia-to-electrical power system on a tributary of the Hudson River in New York, US in the largest and first maritime application of the technology.

CEO Seonghoon Woo said: “By demonstrating our technology on the water for the first time, we’ve gained invaluable knowledge that will help us move quickly to commercialization and real-world applications.

“The opportunity to decarbonize the maritime industry is within reach, and for Amogy, it’s just the beginning.”

https://twitter.com/amogyinc/status/1838239744242733372

The ‘ammonia-cracking’ technology uses the colourless gas as its primary fuel source before converting it into hydrogen and nitrogen, using the former to power integrated fuel cells.

Amogy previously tested the technology at smaller scales, including a 200kW system used on a class eight truck, but the 1mW scale system used on the NH3 Kraken marks the final demonstration of the solution before the company begins deploying pilot projects.

The company has already seen a wide array of interest in its solutions with investment from major maritime players including Hanwha Ocean, Samsung Heavy Industries, and HD Hyundai Heavy Industries.

https://www.ship-technology.com/interviews/anastasija-kuprijanova-amogy-ammonia-qa/Speaking to Ship Technology earlier this year, Amogy’s director of maritime business development Anastasija Kuprijanova said the business was targeting full 

commercialisation of its technology in mid-2025.

"Amogy completes first sailing of ammonia-powered vessel" was originally created and published by Ship Technology, a GlobalData owned brand.

Climate Solution Ammonia Ship
A worker stands near the NH3 Kraken, a tugboat powered by ammonia, on Friday, Sept. 13, 2024, in Kingston, N.Y. (AP Photo/Alyssa Goodman)

Liebherr and Fortescue partner on world’s first autonomous electric haul truck

Jo Borrás | Jul 29 2024 - 


In what both companies claim to be a world’s first, Liebherr and Fortescue have announced plans to jointly develop a fully Autonomous Haulage Solution (AHS) for their massive, 264-ton BEV-converted electric haul trucks.

The on-site validation of a fleet of the four zero emission Liebherr T 264 autonomous trucks equipped with AHS is already underway, having begun earlier this month at a purpose-built facility at the Fortescue Christmas Creek mine. That’s the same active mining site that’s also testing Liebherr’s BEV-converted excavator.

“With our teams now fully integrated, Liebherr is excited to formally announce our partnership with Fortescue to collectively develop and deploy our Autonomous Haulage Solution,” says Oliver Weiss, Executive Vice President, R&D, Engineering, and Production, Liebherr Mining. “Liebherr has always prioritised market-led product development and we are privileged to be partnering with Fortescue. Our collaborative efforts will be beneficial for not only Fortescue, but all customers who choose to implement Liebherr technology products on their sites.”

As part of the development of AHS, Liebherr and Fortescue will develop an integrated Fleet Management System and a Machine Guidance Solution (no acronyms there, apparently), capable of being used independently alongside human-operated machines.

Upon completion of the AHS’ validation cycle, the Autonomous Haulage Solution will be deployed across all the global Fortescue mining sites.

“This development will allow us to offer the global market a complete AHS,” says Weiss. “These innovative technologies form part of our expanding range of technology products and are another step forward in our strategy to become a total solution provider for the mining industry.”

Liebherr will begin offering AHS to other mining customers as the company continues to expand its autonomous tech portfolio.

Electrek’s Take

Fortescue gets all the fun electric toys; via Liebherr.

As we discussed in our special mining episode of Quick Charge, mines are great applications for both autonomous trucks and battery-electric vehicles. I think I said it well enough there to repost the video, below, and argue out the details in the comments. Enjoy!

Quick Charge mining episode

World's 1st Machine Room Safety Accreditation for Ammonia Gas Carrier

Realizing safe operation of ammonia-fueled ships through the highest safety measures

Published Aug 27, 2024 12:36 PM by The Maritime Executive


[By: NYK Line]

The world’s first accreditation* for “Machinery Room Safety for Ammonia” (MRS) will be granted by ClassNK for the ammonia-fueled medium gas carrier (AFMGC) currently being developed by a consortium that includes Nippon Yusen Kabushiki Kaisha (NYK) and Nihon Shipyard Co., Ltd. (NSY). MRS is Class notation demonstrating a ship is equipped with excellent ammonia safety measures for the machinery room. MRS also confirms the vessel meets the highest safety measures under the guidelines for ammonia-fueled ships.

Background

The consortium to which NYK and NSY belong is aiming for AFMGC delivery by the end of November 2026. The vessel development is under the Green Innovation Fund Project*** by Japan’s New Energy and Industrial Technology Development Organization (NEDO). One of the biggest challenges in the ship’s development is to overcome toxicity in the machinery room. It is essential to have measures to keep the crew safe, such as a design to avoid ammonia leakage from piping and tanks. To overcome toxicity, the consortium has conducted a risk assessment reviewed by ClassNK, risk assessments and safety measures from a user’s point of view led by NYK’s engineers, and a study of the ship’s specifications to realize the world’s highest level of safety.

Overview of MRS Notation

The minimum design requirements for using ammonia safely on board are regulated in the ammonia-fueled ship guidelines issued by ClassNK. To receive an MRS notation, it is necessary to satisfy the optional functional requirement to minimize personal exposure to leaking ammonia in the machinery room. This notation shall be granted only to ships that meet the functional requirement and secure the highest level of safety.

Future Developments

The consortium continues vessel development, the creation of operation manuals for actual operations, etc., aiming for delivery by November 2026. Moreover, we aim to further improve safety for ammonia-fueled ships through technical know-how and achievements, including MRS accreditation, with the collaboration of consortium members.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Eidesvik, Equinor and Wärtsilä Pl Retrofit for First Ammonia-Powere OSV

Viking Energy is slated for conversion to ammonia in 2026 (Eidesvik Offshore)

Published Aug 26, 2024 4:05 PM by The Maritime Executive

 

 

In a pioneering project, Eidesvik Offshore as the vessel owner, Equinor as the charterer, and Wärtsilä will proceed with the conversion of an offshore supply vessel (OSV) to operate as an ammonia-fueled vessel. The companies believe it will become the first ammonia-powered OSV in the world when Viking Energy returns to service after the 2026 conversion.

Plans for the conversion were first announced in 2020 and were expected to proceed by late 2023. It is part of the Apollo Project funded by the EU’s Horizon Europe program designed to accelerate the transition toward a climate-neutral Europe by 2050. The companies report that in addition to the vessel conversion, the project will contribute to the preparation of regulations related to ammonia as a maritime fuel, as well as to establishing a value chain for ammonia bunkering.

The Eidesvik, Equinor and Wärtsilä Proceed with Retrofit for First Ammonia-Powered OSV was delivered in 2003 as the first LNG-fueled supply ship and has operated since its introduction for Equinor supporting its operations on the Norwegian continental shelf. The vessel is 6,000 dwt and approximately 95 meters (312 feet) in length. The vessel was fitted with a Wärtsilä battery system and in early 2026 they plan to begin the ammonia conversion. The conversion is projected to reduce emissions by at least 70 percent.

 In addition to the Wärtsilä 25 Ammonia engine, Wärtsilä will supply the complete ammonia solution, including its AmmoniaPac Fuel Gas Supply System, the Wärtsilä Ammonia Release Mitigation System (WARMS), and a selective catalytic reduction (SCR) system designed for ammonia. A service agreement, covering maintenance, is also included in the contract.

"The offshore fleet on the Norwegian continental shelf is aging and needs renewal,” said Ørjan Kvelvane, Equinor's senior vice president for joint operations support. “Investing in new technology is expensive, and there are many uncertainties. At the same time, scaling up the use of operational technology to enable the necessary transformation is urgent.”

Equinor will contribute to the funding for the conversion to ammonia operation as part of its goal to halve maritime emissions associated with its Norwegian operations by 2030. The company also extended its charter for Viking Energy to run from April 2025 to 2030, with options for further extensions.

The project is at the forefront of the efforts to introduce ammonia as an alternative fuel for maritime operations. The companies highlight that the Norwegian government has announced that it will establish requirements for low-emission solutions from 2025, and zero emissions from new supply vessels from 2029.

The Apollo project aims to demonstrate the first full-scale ammonia engine operating in an in-service environment on board Viking Energy. Fortescue recently completed the first ammonia conversion on an offshore supply vessel and has been undergoing certification and demonstration testing in Singapore where the first bunkering was also completed. Last week, NYK announced the completion of the first retrofit of a tugboat previously operating on LNG to full-time ammonia operations. It will begin operating demonstrations in Tokyo Bay. Other vessels have been ordered to be ammonia-ready as the technology is perfected and introduced.

 

NYK Completes World’s First Commercial-Use Ammonia-Fueled Vessel

Sakigake becomes the world's first ammonia-fueled commercial vessel and will demonstrate operations in Tokyo Bay (NYK)

Published Aug 23, 2024 1:01 PM by The Maritime Executive

 

 

Japan’s NYK working in conjunction with IHI Power Systems has completed the conversion of a tugboat operating in Tokyo Bay to run on ammonia-fueled propulsion. The project which began four years ago marks the first successful deployment of a commercial vessel fueled by ammonia. The project was reviewed, and the vessel now classed by ClassNK.

The conversion project, which was awarded in August 2022, is based on the 272-ton tug Sakigake which was built in 2015 as Japan’s first LNG-fueled tug. At the time it was viewed as a proof of concept for alternative fuel operations in the class and it is again taking that role for ammonia fueled propulsion. The NYK Group company Shin-Nippon Kaiyosha will now employ the vessel in Tokyo Bay over a three-month demonstration period.

The vessel measures just 122 feet in length. NYK reported that the project which was under Japan’s New Energy and Industrial Technology Development Organization (NEDO), is part of an effort to develop vessels equipped with domestically produced ammonia-fueled engines. They had to overcome numerous challenges in handling and operating on ammonia.

After eight years of tug service in Tokyo Bay, the vessel was docked at the NYK Group's Keihin Dock Co. in October 2023 for conversion to an ammonia-fueled vessel. The main engine and fuel tanks were replaced for ammonia, and sea trials were conducted using ammonia as fuel.

Bunkering of the Sakigake, which is also being called A-Tug, took place for the first time in Yokohama, Japan in July. The bunkering was completed using the truck-to-ship method, marking the first time the tug has been fueled with ammonia and followed two similar bunkering operations earlier this year in Singapore for Fortescue’s converted OSV which became the first large ship to be bunkered with ammonia as part of testing and certification by the Singapore authorities.

As part of the development of vessels equipped with domestically produced ammonia-fueled engines through NEDO’s Green Innovation Fund Project, NYK is also conducting research and development on an ammonia-fueled medium gas carrier with Japan Engine Corporation, Nihon Shipyard Co., IHI Power Systems, and ClassNK. This vessel is scheduled for delivery in November 2026.

The NYK Group reports it will continue to utilize the knowledge gained through the research and development of these vessels to contribute to the decarbonization of the shipping industry. The group plans to promote and expand the use of ammonia-fueled vessels.

Mining powerhouse Australia to tighten up exploration rules

Bloomberg News | July 31, 2024

Fortescue Solomon project. Image from Fortescue.

Australia — one of the world’s most important mining nations — is planning to tighten rules that govern how companies announce their exploration results, with a revised code for listed companies including industry leaders BHP Group Ltd. and Rio Tinto Group.


A draft of the new code published on Thursday would impose additional environmental requirements, plus a need for qualified experts to sign off on estimates of minerals and metals to be mined. The tweaked JORC Code — or Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves — will require ministerial approval before coming into force.

“It puts the handbrake on companies making up their own terminology and definitions,” Steve Hunt, JORC committee chair, told Bloomberg. “There’s always a tendency for companies to talk up, as best they can, their investment opportunities. This code provides technical guardrails.”

Australia has a vast mining industry, with players large and small seeking to exploit the nation’s trove of mineral resources including iron ore, gold, and copper, as well materials central to new-energy technology such as lithium. The JORC Code has its roots in the 1970s, when thousands of investors lost billions after a mining company falsified exploration results, then collapsed. It was first published in 1989 and last updated more than a decade ago.

Under the planned changes — which, when adopted, will apply to all locally-listed miners — a company will need to acknowledge publicly any environmental risks to their projects. In addition, a qualified professional, with experience in mining, is required for the technical sign off on a project, and must now display their credentials publicly.

The framework not only sets benchmark standards for Australian-listed miners, but also for companies listed on some overseas exchanges in the region, including the New Zealand Stock Exchange and Papua New Guinea’s Port Moresby Exchange. Further afield, the JORC code is also comparable to Canada’s own version.

“To the extent that any proposals impact on the Listing Rules and our guidance, our main interest will be that the changes continue to encourage strong and consistent disclosure on our market of mining exploration results and estimates of resources and reserves,” a spokesperson for the Australian Securities Exchange told Bloomberg.

No mining entity listed on the exchange will be exempt from the changes, which are expected to take effect next year, according to Hunt. Stakeholders will be consulted over the coming weeks.

(By Paul-Alain Hunt and Georgina McKay)

 

Fortescue and China Cosco Cooperate on Ammonia-Fueled Ships

The ammonia-powered OSV Fortescue Green Pioneer, the first vessel of its type (Fortescue)

Published Jul 29, 2024 11:03 PM by The Maritime Executive

 

 

China Cosco, the world's largest shipowner, has agreed to work with Australian mining conglomerate Fortescue to build a new series of bulkers powered by green ammonia. The ships would be used to transport Fortescue's iron ore to China, without onboard emissions.

"The cooperation marks another big step in decarbonizing the shipping industry," said Fortescue in a statement. "These solutions will be integral to achieving our net zero Scope 3 emission target by 2040."

Fortescue already operates the world's first tested ammonia dual-fuel vessel, the OSV Fortescue Green Pioneer. In March, the ship underwent its first trial burning a combination of ammonia and diesel fuel at the Port of Singapore. 

Fortescue has ambitious plans to eliminate its Scope 1 and Scope 2 emissions by 2030, and it views China as an essential partner. Chinese steel mills are the primary customers for Fortescue's iron ore exports, and the Australian company wants China's support in decarbonizing its operations. 

Just last month, Fortescue welcomed Chinese Premier Li Qiang to its green-tech test center in Perth for a tour of zero-emission locomotives, hydrogen-powered trucks and ammonia-fueled engines. The key to the pitch, though, is to partially process the ore in Australia - making "green iron" - and then ship the product to China to turn into steel.

"Our proposed Australia-Sino green iron metal supply chain will bring together mining powered by large-scale renewable power and green hydrogen to produce green iron metal. Our ambition is to provide 100 million tonnes of green iron metal to China each year, eliminating more than 200 million tonnes of carbon dioxide emissions," Fortescue chairman and founder Andrew Forrest said in June.

However, Fortescue recently walked back its plans to produce 15 million tonnes of green hydrogen by 2030, citing the rising cost of green electric power. It has withdrawn from marquee developments like the "Project Coyote" hydrogen plant in British Columbia, which ran into political difficulties over its need for massive amounts of electricity from hydropower. 

On Monday, Fortescue's stock price fell by nine percent on news that a large institutional investor had put $1.2 billion worth of the company's outstanding shares up for sale as a block, equivalent to three percent of Fortescue's share volume. Bloomberg has identified the investor as Capital Group. 
 

AUSTRALIA

Fortescue to step up energy spending despite job cuts

Reuters | July 24, 2024 |

Andrew Forrest, Australian billionaire and founder of Fortescue. (Credit: Fortescue Metals Group)

Australia’s Fortescue said on Thursday it will increase spending on its energy division to advance several new green hydrogen projects next year, disappointing analysts who had expected a company restructure to lower its capital outlay.


The world’s fourth-largest iron ore miner has brought its metals and green energy businesses back together after it split them into separate divisions a year ago amid an exodus of senior management that cast doubt on whether the green unit was on track deliver against stretch targets.

Last week, Fortescue announced it would shed 4.5% of its global workforce and said it was unlikely to meet 2030 targets for green hydrogen production. The cuts also come as the price of iron ore, Fortescue’s main profit driver, is forecast to fall back below $100 a tonne.

Fortescue cuts 700 jobs, slows down green hydrogen plans

Analysts said that suggested Fortescue was slowing down the speed of its hydrogen development but on Thursday, it reaffirmed its commitment to the sector.

Its focus will initially be on four projects in Australia, the United States, Norway and Brazil with additional projects in Morocco, Oman, Egypt and Jordan to follow.

Fortescue still plans to boost capital expenditures at its energy division to $500 million, up from initial plans to spend $300 million, and its net operating expenditure to around $700 million next year, up from as much as $500 million anticipated in 2024.

“Good operational performance but market might be marginally disappointed by still high FMG Energy spend in FY25,” analysts at Citi said in a report.

Analysts also flagged a jump in decarbonization spending to $700 million-$900 million for fiscal 2025 from $300 million-$500 million this year as the miner seeks to meet aggressive net-zero targets by 2030.

Shares in Fortescue fell 2.7%, outpacing smaller losses among other Australian miners.

Fortescue plans to raise its focus on producing green iron, or iron produced with a lower carbon footprint, CEO Dino Otranto told a news briefing from China where he has been talking with potential partners for joint projects.

“Pivoting to producing green iron metal is the next step for us, and we see a massive potential in green iron industry out of Australia, supplying China,” he said.

Fortescue plans to produce green iron from its Christmas Creek operations before the end of next year.

The miner forecast higher iron ore shipments for the fiscal year ending in June 2025 and said for the fourth quarter of 2024 shipments of the steel-making material rose 24% from the third quarter to a quarterly record of 53.7 million metric tons.

It now expects to ship between 190 million tons and 200 million tons of iron ore in fiscal year 2025, up from 191.6 million tons shipped in fiscal year 2024.

(By Ayushman Ojha and Melanie Burton; Editing by Devika Syamnath, Alan Barona and Christian Schmollinger)

Australia’s largest iron ore deposits are 

1 billion years younger than we thought

THE CONVERSATION 

Published: July 22, 2024

Iron ore is the key ingredient in steel production. One of the fundamental resources for the Australian economy, it contributes A$124 billion in national income each year.

This is not surprising, considering Western Australia is home to some of Earth’s largest iron ore deposits, and 96% of Australia’s iron ore comes from this state. Yet despite the metal’s significance, we still don’t know exactly how and when iron deposits formed within the continent.

In new research published in the Proceedings of the National Academy of Sciences, we answer some of these questions by directly measuring radioactive elements in iron oxide minerals which form the basis of these resources.

We found that several of Western Australia’s richest iron deposits – such as Mt Tom Price and Mt Whaleback – are up to 1 billion years younger than previously understood. This redefines how we think about iron deposits at all scales: from the mining site to supercontinents. It also provides clues on how we might be able to find more iron.

Punurrunha or Mt Bruce, part of the Hamersley Range in the Pilbara, Western Australia. Julie Burgher/Flickr, CC BY-NC

Where does iron ore come from?

Billions of years ago, Earth’s oceans were rich in iron. Then early bacteria started photosynthesising and rapidly introduced huge amounts of oxygen into the atmosphere and oceans. This oxygen combined with iron in the oceans, causing it to settle on the sea floor.

Today, these 2.45-billion-year-old sedimentary rock deposits are called banded iron formations. They represent a unique archive of the interactions between Earth’s continents, oceans and atmosphere through time. And, of course, banded iron formations are what we mine for iron ore.

These sedimentary deposits have distinctive, rhythmic bands of reddish iron and paler silica. They were alternately laid down on the sea floor seasonally. Such remarkable rocks can be visited today in Karijini National Park, WA.

Typical banded iron formation at Fortescue Falls in Kaijini National Park, Western Australia. Graeme Churchard/Wikimedia Commons, CC BY

The iron content of these banded iron formations is generally less than 30%. For the rock to become economically viable to mine, it must be naturally converted by later processes to around 60% iron.

The nature of this rock conversion is still debated. In simplest terms, a fluid – such as water – will both remove silica and introduce more iron during an “upgrading” process which transforms the rock’s original makeup.

The geochronology (age dating) of this chemical transformation and upgrading is not well understood, largely because the tools required to directly date the iron minerals have only recently become available.

Previous age estimates for the Pilbara iron deposits were indirect but suggested they were at least 2.2 billion years old.
What did we find out?

You may think of iron ore as rusty, red-coloured dust. However, it’s typically a hard, heavy, steely-blue material. When crushed into a fine powder, iron ore turns red. So the red landscape we see across the Pilbara today is a result of the weathering of iron minerals from beneath our feet

.
1.3-billion-year-old steel blue iron ore extracted from Hamersley Province, Western Australia. Liam Courtney-Davies

We extracted microscopic scale “fresh” iron minerals from drill core samples at several of the most significant Western Australian iron deposits.

Leveraging recent advancements in radiometric dating, we measured naturally occurring radioactive elements in the rocks. In particular, the ratio of uranium to lead isotopes in a sample can reveal how long ago individual mineral grains crystallised.

Using the newly generated iron mineral age data, we constructed the first-ever timeline of the formation of Western Australia’s major iron deposits.

We discovered that all major iron ore deposits in the region formed between 1.4 and 1.1 billion years ago, making them up to 1 billion years younger than previous estimates.

These deposits formed in conjunction with major tectonic events, especially the breakup and reemergence of supercontinents. It shows just how dynamic our planet’s history is, and how complex the processes are that led to the formation of the iron ore we use today.

Now that we know that giant ore deposits are linked to changes in the supercontinent cycle, we can use this knowledge to better predict the places where we are more likely to discover more iron ore.

Liam Courtney-Davies completed this research while at John de Laeter Centre, Curtin University.

Author

Liam Courtney-Davies
Postdoctoral Research Associate, University of Colorado Boulder
Disclosure statement
Liam Courtney-Davies received funding for this research through the MRIWA 557 Project and the Australian Research Council.

 

NYK Bunkers Ammonia-Fueled Tug to Prepare for Sea Trials

Sakigake was loaded with ammonia as the conversion is completed and the tug begins trials (NYK)

PUBLISHED JUL 18, 2024 2:48 PM BY THE MARITIME EXECUTIVE

 

 

Japan’s NYK Group reports it has taken another key step as it prepares to start sea trials for the first ammonia-fueled harbor tug. After years of planning, design, and permitting, the conversion project began to outfit the first tug boat to operate on ammonia as its primary fuel.

Bunkering of the Sakigake, which is also being called A-Tug, took place yesterday, July 17 in Yokohama, Japan. The bunkering was completed using the truck-to-ship method, marking the first time the tug has been fueled with ammonia and followed two similar bunkering operations earlier this year in Singapore for Fortescue’s converted OSV which became the first large ship to be bunkered with ammonia as part of testing and certification by the Singapore authorities.

NYK reports that the tug was fueled with a unique form of ammonia called Ecoann which is produced by Resonac Corporation at the company's Kawasaki plant. Resonac explains unlike the traditional process for producing ammonia from naphtha or natural gas, it uses a process that partially employs recycled plastics as one of the fuel’s raw materials. The process reduces CO2 emissions during production by around 35 percent. 

The ammonia bunkering was conducted at the Honmoku Wharf of the port of Yokohama under a fuel-supply agreement that NYK concluded with JERA. The Ecoann will be used for the sea trials of the A-Tug. JERA will also be responsible for the future supply of ammonia to the vessel.

 

Ammonia bunkering took place in Japan in a truck-to-ship operation (NYK)

 

The conversion project began in October 2023 at the Oppama facility of Keihin Dock Company using the Sakigake, a tug that was built in 2015 as the first LNG-fueled tug in Japan. It had a dual-fuel engine manufactured by Niigata Power Systems capable of using LNG and heavy fuel. During eight years of operation, the tug was bunkered 183 times also using a truck-to-ship supply of LNG.

During the conversion, they cut into the engine room to remove the existing main engine and fuel tank. The tug was fitted with a new engine developed in a project with NYK, Japan Engine Corporation, IHI Power Systems, and Nihon Shipyard. NYK reports the engine was tested at IHI’s Ita Plant to confirm virtually zero emissions from the unburned ammonia and nitrous oxide (N2O).

The conversion project for A-Tug is due to be completed in August. The vessel will continue to be operated by NYK’s Shin-Nihon Kaiyosha. The goal is to verify its decarbonization effect and operational safety as a pioneer for ammonia-fueled vessels.

In the U.S., ammonia-to-power startup company Amogy is also working to complete the conversion of a tug to demonstrate its ammonia power technology. They announced last year the plan to convert a 1957-vintage tug which has been renamed NH3 Kraken. The work is reported to be underway at the Feeney Shipyard in Kingston, New York with the company saying testing will begin in the near future.

Electric-powered tugs using batteries have been introduced in several efforts to decarbonize the industry. The Port of Antwerp also launched two demonstration projects, first a methanol-fueled tug and recently the first hydrogen-fueled tug. 
 

CAPITALI$T XAO$

Indonesian onslaught wipes out Australia’s nickel industry

Kristie Batten | July 14, 2024 | 

BHP Leinster airport. Image: Kristie Batten

An influx of cheap nickel supply from Indonesia has all but killed off Western Australia’s long-running nickel sector.


Nickel prices halved in 2023, dipping below $16,000 per tonne in December as surpluses widened.

According to Benchmark Mineral Intelligence, Indonesia accounted for 49% of nickel production in 2023, up from less than 5% just eight years ago.

Nickel sector decimated

The impact on Australia’s nickel industry has been dramatic.

ASX 200 producer IGO paid A$1.1 billion ($744 million) for nickel miner Western Areas in mid-2022. Just 18 months later, the entire value of the acquisition had been written off and the Cosmos development project was suspended, resulting in the loss of 400 jobs.

Wyloo Resources, owned by Fortescue founder Andrew Forrest, paid A$760 million for Kambalda nickel producer Mincor Resources, and just seven months later, announced the suspension of operations.

A spokeswoman for Wyloo confirmed to MINING.COM that a joint feasibility study with IGO into a nickel sulphate plant had been paused.

In April, Canada’s First Quantum Minerals announced it would put its Ravensthorpe nickel laterite operation in WA’s southwest on care and maintenance.

The Savannah mine in WA and Avebury mine in Tasmania were also suspended after owners Panoramic Resources and Mallee Resources, respectively, collapsed.

BHP makes tough call

In February, BHP recorded a non-cash $3.5 billion impairment charge on its Nickel West division and reported negative EBITDA of $200 million, triggering a review into its future.

The worst was confirmed on Thursday when BHP announced it would “temporarily suspend” Nickel West – comprising the Kwinana nickel refinery, Kalgoorlie nickel smelter, Mt Keith and Leinster mines and West Musgrave development – from October.

The Kambalda concentrator, which relied on third-party ore, was suspended earlier this year.

More than 3,000 jobs will be lost though BHP will offer its 1,600 “frontline” employees the choice of redeployment or redundancy.

The decision will be reviewed by February 2027, and BHP has vowed to invest around $300 million per year to support a potential restart.

Once the suspension is complete, Australia will have just three operating nickel mines, IGO’s Nova and Forrestania and Glencore’s Murrin Murrin, though Forrestania and Nova are due to close within the next two years.

Prior to the decision, the Australian government’s Office of the Chief Economist was forecasting Australia’s nickel exports to decline from 161,000 tonnes in the 2023 financial to just 62,000 tonnes in the 2026 financial year.

Long history

Nickel was first discovered in the WA Goldfields in 1966, which led to the establishment of the town of Kambalda by Western Mining Corporation (WMC).

The Kambalda concentrator, Kalgoorlie smelter and Kwinana refinery were in operation by the end of that decade.

BHP acquired WMC in 2006 for $7.3 billion, and was initially extremely profitable, making more money than BHP’s world-class iron ore division in 2007, thanks to a surge in the nickel price to as much as $50,000/t.

The Global Financial Crisis reversed nickel’s fortunes and in 2014, the business was deemed as non-core and put up for sale.

Despite interest from Glencore, the sale was pulled after an acceptable price couldn’t be reached. The more than A$1 billion in closure liabilities and large capital spend required were said to be the sticking points.

Though it remained non-core, Nickel West was surprisingly left out of 2015’s demerger of South32. BHP was still keen to sell the division as recently as 2017 and it was slated for closure in 2019.

Electric era

The rise of electrification changed the outlook for Nickel West and BHP announced it would build a nickel sulphate plant in Kwinana, an industrial area south of Perth, the first and only facility of its kind in Australia.

With Tesla as its foundation customer, the plant produced its first crystals in late 2021.

BHP confirmed it had invested around $3 billion in Nickel West since the 2020 financial year.

Despite the hefty investment, Nickel West had been cashflow negative during that period and was expected to report an underlying EBITDA loss of roughly $300 million in the 12 months to June 30.

“Clearly, it’s not viable to continue operating under these significant and sustained losses,” BHP president Australia Geraldine Slattery told reporters.

The company will record an additional impairment of $300 million in its full-year results in August.

Political fallout

WA premier Roger Cook and federal resources minister Madeleine King both live near the Kwinana refinery and have been watching the review with interest.

At a conference in Perth in May, Cook urged BHP to reflect on the support of the WA government and community before considering “whether they’ll turn their back on WA in relation to the nickel industry”, while King criticized BHP for not investing more in the ageing facilities.

On Thursday, Cook described BHP’s decision as disappointing and pledged to support the workers impacted.

King acknowledged the nickel market conditions were beyond BHP’s control.

“I really am grateful that it’s a temporary suspension and not a more, I suppose, dead-end kind of closure, which would be even a worse situation,” she told local radio on Friday.

‘Devastating’

Kalgoorlie-Boulder, around 600 km inland from Perth, is the largest town in the WA Goldfields with a population of just under 30,000 people.

The City of Kalgoorlie-Boulder released a statement, describing the Nickel West news as “profoundly sad”.

“This decision is devastating, with significant impacts on the livelihoods of our residents and businesses, which will have far-reaching effects across the Goldfields,” it said.

Kambalda is about 60 km from Kalgoorlie and is home to around 2,500 people, while Leinster is a further 300km to the north. Wiluna, which supports the Mt Keith mine, is 585 km north of Kalgoorlie, on the edge of the Western Desert, and has a population of just 240.

Wiluna Shire president Peter Grundy said he was deeply concerned about the community impact.

“While this decision has been coming like a slow train across our red desert landscape, we are still shocked and disappointed by it,” he said.

“There is a knock-on effect with a decision like this – one that may get a small mention in a boardroom, but is as real as an oily, dusty, overdue invoice for some.”

BHP has established a A$20 million community fund though many estimate that won’t be enough.

Hope for Leinster?

Leinster, with a population of just 400 people, is run by BHP Nickel West.

Nickel West asset president Jessica Farrell said the company owned around 280 houses in the town and was hopeful they could be used for those workers supporting the care and maintenance process.

“We would continue to honour, obviously, the obligations of running that town,” she told reporters.

In a positive for the future of Leinster, the 200,000-ounce-per-annum Bellevue gold mine has recently opened and is already talking about expanding, while Liontown Resources’ A$1 billion Kathleen Valley lithium mine is due for firs production within weeks.

Customers and suppliers weigh impacts

Nickel West is also a supplier of sulphuric acid, which is produced as a smelter by-product.

Lynas Rare Earths has a contract with BHP for the supply of sulphuric acid to its Kalgoorlie rare earth facility until mid-2027. Lynas said BHP had affirmed its commitment to supply imported acid to the company.

The suspension of the nickel sulphate plant will impact battery customers including Tesla, Panasonic and Toyota.

IGO is the only remaining supplier of third-party ore to BHP. A spokesman for IGO said the company did not comment on contractual agreements but the closure would have no material impact.

Shares in junior Kambalda nickel explorer Lunnon Metals slumped by more than 12% on Friday to an all-time low. The company said it was considering alternative processing options to Nickel West, including the purchase or lease of the Kambalda concentrator or the development of a new facility.

The decision will also impact contractors and suppliers.

GR Engineering Services said the suspension of West Musgrave would impact its revenue by up to A$80 million in the 2025 financial year, while local airline Alliance Aviation Services, which operates 24 round-trip flights to Nickel West sites per week, reported an EBITDA impact of A$3-5 million per year over the next two financial years.

Other contractors and suppliers are likely to disclose impacts in the coming days.
The end of Australian nickel?

The nickel market is expected to remain in surplus until later this decade. Fastmarkets believes the market is oversupplied by up to 8% of demand.

Slattery said multiple options for Nickel West, including partial curtailment, were considered.

“Ultimately, this was less about the cost of running the business and more about the market outlook and anticipated extension of what is a structural low in the market,” she said.

BHP expects the market to remain in surplus for at least the next three years but was confident of an improvement beyond that timeframe.

“Now, of course, there’s uncertainty with that, but we’ve got sufficient conviction to maintain investment in the option of bringing the Nickel West business back into operation,” Slattery said.

The Nickel West suspension will narrow the nickel surplus but also cement Indonesia’s dominance.
Costly restart

If BHP decides to stick to nickel, it will have to go ‘all in’.

The West Musgrave nickel-copper project, acquired in last year’s A$9.6 billion takeover of OZ Minerals, has a large price tag of A$1.7 billion and is only partially built.

The concentrator, smelter and refinery are all nearly 60 years old and require investment.

In particular, the Kalgoorlie smelter requires a significant upgrade, one that is likely to cost upwards of A$500 million.

The restart will have to compete for capital with other large projects, including a potential new concentrator at the Escondida copper mine in Chile.

Even at full operations, nickel represents a tiny part of BHP’s business – around 1-2%.

(By Kristie Batten)