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

Africa Iron 2014 Conference, June 2014, Slide 1

www.PatersonCooke.com

Slurry pipelines - A viable option for West African iron projectsDr Angus Paterson, Paterson & Cooke, Cape Town

Africa Iron 2014


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


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


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


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


Pipeline politics


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

?


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


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 . . .


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


Iron ore pipelines: Savage River

Savage River Pipeline Bridge:129 m high and 439 m spanhttp://www.highestbridges.com/wiki/index.php?title=Savage_River_Pipeline_Bridge

http://www.highestbridges.com/wiki/index.php?title=Savage_River_Pipeline_Bridge


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


Iron ore pipelines: Samarco


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


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

ThabazimbiPalabora

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)



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

http://zanagairon.com/project


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?



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

http://www.fatprophets.com/Member Area/Product Landing/Report List/Report Page/~/media/D8FAC035E257450986FFADFD717D55D6.ashx


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


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 600M

inim

um

Opera

ting V

elo

city (m

/s)

Pipeline Diameter (mm)

LONG DISTANCE IRON ORE CONCENTRATE PIPELINES• 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


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)


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


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 µm1

10

Re

lati

ve o

pe

rati

ng

cost

Particle size

0.0

3.5

0 50

US$

/to

nn

e

Annual capacity (MTA)


An established technology – A sample onlyProduct 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


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.






Improved pipe lining technologies.

• HDPE slip lining to combat corrosion and erosion.







High pressure long service ball valves.








Choke stations to control slack flow.








Choke stations to control slack flow.

Multi-species transient analysis.

Control systems.

• Real time pipeline monitoring of

slurry and water batches.

• Leak detection systems.


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.

Business

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