Michael Taylor - Bulk Materials Handling & Processing - An international example - The development and recent changes in materials handling infrastructure in Mozambique

12th Annual Bulk Materials Handling (BMH) 2015 Conference

24-25 June 2015Duxton Hotel, Perth

Michael Taylor

Director

Bulk Materials Handling & Processing Pty Ltd

(specialising in coal, minerals processing and materials handling)

Co-Authored by Armando Abacar

Materials handling challenges encountered during the development of the Moatize Coal Basin

Bulk Materials Handling & Processing Pty Ltd(specialising in coal, minerals processing and materials handling)

Slide number 2

1. Introduction

This presentation outlines the recent developments of the materialshandling infrastructure in the Moatize Coal Basin in Mozambique. Itidentifies options evaluated and constraints encountered. Thepresentation includes:

Overview of the existing infrastructure and post civil wardevelopments.

Growth drivers and the materials handling and transportinfrastructure developed and constraints encountered.

Changes in growth drivers and impact on planneddevelopments.

Options evaluated with specific focus on three technologies.

The presentation will conclude with lessons learned andhighlight relevance to the global bulk materials handlingindustry.

2. Overview – Location and Demographics

Location map of the Moatize Coal Basin, Rail Corridors and Ports:

Sena – Beira Line 583 Km.

Nacala Line 912 Km.

Macuse Line 480 Km.


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3. Overview – Tete / Moatize Region

Coal was first identified in the region in 1859 by Dr David Livingston.

The region produced small amounts of commercial quantities of coalsince early Portuguese Colonisation.

Regional geography is dictated by the Zambeze river and the rift valley.

Tete is the regional city with smaller communities including Moatizeand Songo.

Cahora Bassa hydropower plant and coal mines are the most notable investments in the region to date.


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4. Handling properties of Mozambique coals

The coals are a combination of premium coking and thermalcoals with the following characteristics:

The coal oxidizes and is subject to spontaneous combustionand coking coal looses its swell properties over time.

The coking coals contain high concentration of Vitrinitewhich is a very friable maceral (mineral). Mozambique coalstypically have a 90 to 120 Hardgrove. These coal breaks downrapidly with a P90 - 8mm.

The thermal coals include other macerals and aresignificantly less friable and have a higher ash content. Thesecoals are typically coarser and have higher bulk densities.

The deposits are very low yielding, typically 20 to 40% withmost of the waste material in the coarse fractions.

Co

kin

g

Ther

mal

5. Restoration of regional infrastructure

Post-civil war development included the re-establishment ofthe Beira port which included the establishment of a new coalterminal and berth 8, the facility is referred to as TCC8.Restoration of the Sena Rail Line was also undertaken.

Mining operations was re-established with Minas Moatizemine and handling facilities.

Other infrastructure was being restored by the Government ofMozambique (GoM) including:

Upgrade to regional road network including a newZambeze bridge for local coal haulage.

Cahora Bassa North hydropower plant upgrade to 1245MW capacity.

Mozambique backbone transmission line from TeteRegion to Maputo

Slide number 6Bulk Materials Handling & Processing Pty Ltd(specialising in coal, minerals processing and materials handling)

Beira - TCC 8 Port Terminal

6. Major Growth Drivers

Several factors initiated major growth resulting in significant

development in the Moatoze basin. The growth drivers include:

Ongoing political stability in the region and a willingness by the

GoM to promote mining and infrastructure developments.

Improved market conditions in the coking and thermal coal market.

Development of India as a key regional customer, and the

advantageous location of the Moatize Basin to Indian ports

Increasing exploration activity resulting in the identification of large

shallow premium coking and thermal coal resources.


7. Local Development Constraints

Local development issues included:

Remote location and 3rd world capabilities, including:

Shortages of skills and trades.

Shortages of materials (eg concrete batch plants).

Inadequate support infrastructure and governmentservices to meet development demands.

Complex surface infrastructure :

Geographical and topographical, including the Zambezeriver (400 to 600 meters wide) and surrounding hillyterrain.

Expansion of local communities and infrastructure,including Tete, Moatize and other smaller communities,

Development of the Tete Airport.

Proposed competing mine developments withpotential to sterilise resources.

The combination of these factors imposed severe limitationsin locating processing and handling facilities and identifyingtransport servitudes.


8. Moatize Coal Constraints

The coking coal is very friable coal with a very fineproduct size distribution creating a number of issueswith regards to handling including:

Very high surface moisture impactingtransportable moisture limits.

Dust generation at transfer chutes and on openstockpiles.


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9. Port and Rail development constraints

This included:

Beira Port: TCC8 constrained by existing infrastructure, proximity ofcommunities and limited ability to expand. Alternative locationwere assessed such as TCC13 in Beira and a new port at Mecuse.

Mozambique’s shallow coastline requiring either extensivedredging or extensive key/jetty development. Restricting the BeiraPort and alternative port locations, except for the Nacala region.

Sena – Beira railway line:

Proximity of communities to rail infrastructure.

Shared use of track with general freight and passenger trafficand slow turnaround at the port.

Individual mines being operated on a single rail systemmanaged and owned by GoM.

Coal in colonial times was initially barged on the Zambeze River.The development of the Coharra Bassa dam in the 1960’s resultedin low river levels for 3 months of the year and barging optionswould require extensive and expensive dredging, thus eliminatingthis option.


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1 x Offshore Transfer Facility

Tug & Barge

Supramax entering Channel

ChannelMacuti Channel

10. Mine Developments

Mining developments included:

Establishment of new mining operations including:

Vales’ development of Moatize mine phase 1; a 4000 tph CHPP, handlingfacilities, rail load out facility, loop and procurement of rolling stock.

Moatize CHPP Phase 2 – 4000 tph under construction. Commissioningexpected in January 2016.

ICVL (previously RTCM) construction of the Benga 800 tph CHPP,handling facilities, train loading siding and procurement of rolling stock.

ICVL (RTCM) Feasibility studies for Zambeze, Tete East and Minjova minedevelopments.

Jindal construction of CHPP handling facilities and truck loading facilities.

Jindal Feasibility studies for a coal slurry pipeline to Beira Port.

Other developments included projects studies for ETA Star and ENRC(project Estima).

Expansion of the existing Minas Moatize mine. This included a new open cutmine and construction of a new CHPP.


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11. Infrastructure Developments

Regional infrastructure included:

Construction of the 912 km Nacala railway line and theNacala deep water Port.

Upgrades to the Sena Beira railway line including:lengthening of passing-loops for 100 wagon trains,additional track duplication, additional ballasting and trackupgrades to 57kg/m rail

A new handling terminal and Berth 13, TCC13 in Beira to bephased. Phase 1 is a 6 Mtpa handling facility growing to 18Mtpa. The facility includes: tipplers, rail-loops and stackersand as reclaimers. Ensuring competitive alternative to ValesNacala line. This is currently in the design phase.

Construction of support infrastructure including upgrade toTete Airport, new hotels and camps and establishment ofconstruction and fabrication workshops.


Slide number 12Sh

ore

line

400 000 tons

400 000 tons

400 000 tons

400 000 tons

15

00

0 V

ess

el

Single Rando

m Tippler3 min cycle

Tandem Rando

m Tippler3 min cycle

Stockyard Belt Transfer House with

Sampling StationPortal Reclaimer

Jetty Conveyor

Fixed Shiploader

Travelling Slewing, Luffing Stacker

Portal ReclaimerStockyard Belt

Combi (Stacker/ Reclaimer)Stockyard Belt

Phase 15.9 Mtpa

Phase 212.9 Mtpa

Phase 3 a & bUp to17.6 Mtpa

Rail Loop

Rail Loop

Rail Loop

Rail Loop

Beira - TCC13

12. Changes in the regional developments

A combination of significant factors changed the proposed developmentsthese changes included;

Worsening market conditions for coking and thermal coal.

Upgrade of the proposed developments of port and rail infrastructurewas significantly behind investors and miners expectations. Thisbottlenecked future railing mine capacity expansions.

The consequence of these events resulted in:

Reduction in long term production targets.

Delaying exports of thermal coals from the region.

Delaying phased expansion to match slower production ramp up

Emphasis on lower capital and operating cost handling infrastructure.

In summary the changing market conditions required alternative materialshandling technologies and designs to be assessed.


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13. Materials handling designs and technologies assessed

Mozambique regional supply options including: stockpile locations, size, interfacing to mine and port, and railingoptions. This included assessment of various greenfield and brownfield rail corridors.

Coal slurry pipeline options, including coal briquetting and extrusion technologies.

Port location and ship loading options including: location studies, dredging, jetty and transhipping.

Tete local mine site transportation options including evaluation of haul roads, rail extensions and overlandconveyors.

Stockpile storage options including stacker/reclaimers, open stockpiles and silos.

ROM options including ground feeders, conventional dump hoppers and deshaling facilities.

The following sections will discuss 3 specific materials handling designs and technologies evaluated at the minesite including : 1) Stockpiling options, 2) ROM feeder technologies and 3) ROM pre-treatment (deshaling)options.


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Low profile ROM storage area

Surge capacity provided by 10kt silos

14. CHPP ROM and feed materials handling options – 1) Change of ROM design from traditional stockyards to large silos, 2) Change fromconventional ROM dump hoppers to ground feeders and 3) Pre-treatment (deshaling) options.


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15. Ground feeders in place of traditional dump hoppers

Traditional dump hopper design of ROM and Primary crusher concept:

ROM facilities have a high profile which is determined by size of dump truck resulting in significant hopper structures and associated civil works.


16. Ground feeders assessed as an alternative ROM facility

Redesign of ROM and Primary crusher design concept:

Using low profile ground feeders reduces major civils and equipment costs.

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Capacities for coal up to 2,000tphWidth up to 2.5mLump size up to 1m H x 2m W

Low profile bench feeders

Reduce capex, relocatable


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17. Elevation of ground feeders in place of truck dump hopper for ROM receival

Total installed capital cost savings were identified due to reductionin civil costs due to lower profile ROM pad.

Better ability to match to mine growth by installing multiple feederunits.

Operational flexibility, able to relocate units as production relocatesand can tie in with future in pit crushing and conveying systems.

Can develop larger ROM pads with multiple units, less truckcongestion at ROM pad.

Can better manage ROM blending utilising multiple feeders.

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Zambeze 10 Zambeze 20

Incr

em

en

tal c

apit

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ost

sav

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Mill

ion

s

ROM receiving Civils (estimate)

Incremental capital savings


18. Pre-treatment (Deshaling) Process – Major components

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CHPP capacity can be increased 20% with same CPP capacitye.g. 10 Mtpa ROM facility increases to 12 Mtpa facility whilst no change for 10 Mtpa CPP (processing) module

Deshaling ROM coal at pit top reduces reject haulage and increases CPP capacity. Reducing breaker passing size increases breaker reject. Breaker reject stream is reprocessed with X-ray sorter to scalp

coal.

ROM Feed Deshaling Process Plant

X-ray Sorter

Dump Hopper

Chain feeder

Impact roll crusher

Roller screen

Storage Silos

Plant feed

ROM feedSmall sizer -

50mmRotary Beaker

X-ray Sorter

X-ray sorter Rejects


Low density –Process Plant

Rotary Breaker Rejects

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19. The benefits of pre-treatment (deshaling)

Deshaling removes waste prior to theprocess plant, effectively increasing processplant capacity.

A deshaling facility incorporating an x-raysorter treating breaker reject minimises coalloss from coarse rejects.

The deshaling pre-treatment facility reduceswaste haulage from the process plant


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0

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8

10

12

Capital cost Plant operating cost Haul operating cost Total

Sc

alp

ing

sc

ree

n im

pa

ct

Millio

ns

NP

V

20. Value identified with the pre-treatment facility (deshaling)

Identified savings included:

Reduced capital cost by effectivelyincreasing the capacity of the coalprocessing facility by 20%.

Reduced operating costs by:

reducing excessive crushing;

reduced wear and tear on theprocessing facility.

Reduced haulage costs by reducing plantwaste haulage.


21. Stockpile Storage Options evaluated

Stackers/Reclaimers, portal and bucket wheels.

Simple stackers, radial stackers, dozers.

Silos and bins.

Bunkers.


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22. Change of product handling design from stacker/reclaimer stockyards to silo with simple stacker for thermal coal.

Silos have additional benefits in controlling dust and effects of high rainfall along with low operating costs


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23. Impact of Silos in place of longitudinal stockpiles for coal storage at the mine site

Silos reduces material rehandling and increases live capacity.

Simpler CHPP operation and increases plant feed surge capacity thereby

increasing plant availabilities.

Improved dust control including dust extraction systems.

Less clean up required in stockyard area.

Better ability to match silo capacity to production ramp up, simpler phased

development.

Lower installed capital compared to stacker reclaimers including significantly

lower civil costs due to smaller footprint.

Simpler to control, maintain and operate a silo.

Spontaneous Combustion is reduced due to live feed system and dust

extraction, no stockpile dead ends.


24. Stockpile Storage Options – projected savings

Lower Initial Capital spend (significant savings in civil costs).

Better incremental capital spend based on staged expansions.

Avoids duplicating similar handling infrastructure and development costsassociated with developing the port facilities.

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0

50

100

150

200

250

300

Z10 Stockpile Z20 S&R Z30 S&R Z10 Silo Z20 Silo Z30 Silo

Cap

ital

co

st (

USD

)

Raw S&R Product S&R Raw Silo Product Silo


Lessons learned developing the Moatize Coal Basin Handling Infrastructure


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Lessons Learned

The development of the Moatize coal basin handling infrastructure identified

the following:

Technologies and designs where identified from a global prospective

and based on the specific project requirements including:

Developing designs to meet incremental and delayed production

ramp up schedules.

Understanding the unique coal quality characteristics and impact on

designs.

Developing designs which are integrated with the entire supply chain.

This included developing a simple mine site stockpiling and blending

strategy based on development of larger facilities at the port and

avoiding duplication of extensive handling and blending facilities.

Project planning absolutely critical at all phases of work including:

Designs and technologies based on sound and proven technologies

and robust business analysis.

All stakeholders identified and engaged throughout the project

phases.


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Lessons Learned cont.

Relevance to Global Industry

The technologies and designs are adaptable to the global industry, including:

Ground feeders in place of dump hoppers. As haul truck size increases this will

continue to increase costs associated with traditional dump hopper designs and

constrain phased developments.

Low recovery deposits may utilise a simple pre-treatment (deshaling) process this

can add significant benefits in terms of reduced waste haulage, improved feed

grade (quality) to the process plant effectively adding processing capacity and the

ability to process lower grade remote deposits more effectively.

Where product blending is not a critical design factor or can be undertaken at a

later stage in the supply chain then large silos are a viable and cost effective

alternative. This is a typical materials handling coal supply chain model as seen in

the eastern seaboard of the USA.

Thank You

Business

Michael Taylor - Bulk Materials Handling & Processing - An international example - The development and recent changes in materials handling infrastructure in Mozambique