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D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 1
Developing a New Common User Deep Water Port
for SA’s Bulk Mineral Exports
Stewart Lammin
General Manager Flinders Ports
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 2
Motor Traders Association, 20.81%
Infrastructure Capital Group, 29.11% Equipsuper, 18.60%
State Super, 17.47%
Statewide Super, 14.00%
Flinders Ports Shareholders
Port Adelaide
Port Pirie
Wallaroo
Thevenard
Port Lincoln
Klein Point
Port Giles
2
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 3
Flinders Holdings Organisational Chart
Flinders Holdings
Flinders Ports Flinders Logistics Flinders ACT
Structure
1
Core Business
2 Owning, managing & operating port related infrastructure and
providing services that facilitate the movement of cargo through
the port logistics chain. “
“
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 4
South Australian Ports
Thevenard
Port Adelaide Port Giles
Klein Point
Ardrossan
Wallaroo
Port Pirie Whyalla
Port Bonython
Port Lincoln
Flinders Ports
Indentured / Old Ports
New Port Proposals
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 5
Flinders Ports Options
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 6
Iron Ore Port Options
Proposed Ports
Operational Ports
Cape Hardy Iron Road - Bulk
Port Spencer Centrex - Bulk
Lucky Bay IronClad - Barge
Port Bonython Flinders Ports - Bulk
Port Lincoln Flinders Ports - Bulk
Whyalla Arrium - Barge Port Pirie
Flinders Ports - Barge
Port Adelaide Flinders Ports -
Containers
Myponie Point Braemar - Bulk
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 7
The State’s Mining Growth
The Opport-
unity
The Challenge
Transporting cargo to
a suitable port and
onto a ship.
• Iron Ore – Low value, large parcels,
prefer deep water.
• Mineral sands, copper concentrates,
zinc – high value, smaller parcels – don’t
require deep water.
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 8
Total Potential Resource Availability
Curnamona Province (Braemar formation)
Southern Gawler Craton
Northern Gawler Craton
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 9
Proposed Iron Ore Production
South Australian Forecast Iron Ore Productions (Mtpa)
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 10
Chinese & Indian Iron Ore Consumption & Production
Growing Chinese & Indian iron ore consumption will continue to drive a demand/supply imbalance in seaborne iron ore as China will increasingly rely on imports and India will divert its seaborne iron ore supply towards domestic use. “
“
Chinese Forecast 2007-2026F Indian Forecast 2007-2026F
1 Iron Ore production is expected to increase by 4.4% compounded annually over the forecast period
1 Indian consumption of iron ore is forecast to grow strongly in the future as India industrialises coupled with rapid urbanisation and large infrastructure projects
2 However, iron ore consumption growth will outpace the increased production
3 Therefore it is likely that growing iron ore imports will continue to play an important role in meeting Chinese iron ore consumption needs
2 The consumption is forecast to outpace production increases, leading to a reduction in exported ore and an eventual reliance on imports for demand.
3 Indian trends are relevant as India currently supplies a significant portion of iron ore on the Asian spot market
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 11
Flinders Ports Strategy – Staged Approach
Almost all iron ore resources in and around South Australia are
likely to be competitive against seaborne iron ore on a landed
cash cost basis into China
Cost Curve
Long Term
Viability
All other necessary economic conditions for the long term
viability of the port appear favourable
Interim
Solutions
Interim port solutions are likely to be necessary Port Adelaide and Port Pirie are likely to be the optimal locations due to:
a) adequate rail/land/port capacity and
b) cost effective CAPEX
Bank-
ability
Bankability Port is currently unlikely due to a) default risk and
b) shipment dates of users
c) Market Conditions
Demand Study Conclusions
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 12
Port Adelaide Outer Harbor
Current channel depth (14.2metres)
Swinging Basin (14.2 metres)
Additional dredging (9.3m current)
or 646,000m3 of spoils to be removed
6
9
8
7
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 13
Port Adelaide Outer Harbor – Berth 7
Concept
• Utilise existing supply chain
• Loading Panamax vessels
• Capacity 2,000,000 mtpa Operation
• Existing rail
• Straddles or ITV’s from stockpile
• Tipplers
• Portainer cranes
IMX iron ores
stockpile
Advantage
• Utilise existing assets
• Minimal CAPEX
• Approvals in place
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 14
Ship Loading Options
Number of Material Transfer Points
1. Open
stockpiles with
front end loader
into a hopper
loading a
conveyor ship
loader.
2. Stored in
containers,
tipped into a
hopper loading a
conveyor ship
loader.
3. Stored in
containers (3
high) and loaded
direct from
containers by
tippler system.
Discharge container into stacker hopper
Tele-stacked into stockpile (profile stockpile)
FEL operation between stockpile & reclaim hopper
FEL dumping into reclaim hopper
Convey material to ship-loader
Transfer hopper at base of ship-loader
Convey up ship loader
Discharge in hold
Max
imu
m t
ran
sfer
po
ints
Min
imu
m t
ran
sfer
po
ints
FEL = Front End Loader
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 15
Port Pirie
Concept • Brownfield Development
• Transhipment to Capesize vessels
Users • Northern Gawler Craton
• Curnamona
Supply Chain
• Existing rail corridor & assets
• Enclosed sheds
• Conveyed to shiploader
Capacity • 10,000,000mtpa + (1 berth)
• Studies to identify port capacity
Port
• Utilise existing wharf assets
• Option of Berth/s 2/5 or 7
• Ability to pre-load barges
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 16
Port Pirie – Ore Loading Facility
Advantages
Next Steps
Utilising existing rail & port assets
Utilising existing rail and port capacity
Scalable
Shorter timeframe for operational facility
Lower CAPEX alternative
Environmentally responsible
Pre-Feasibility underway • Preferred option/s – community and environment
• High level CAPEX
User Agreements – Carpentaria Exploration
Community & Council support
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 17
Port Bonython
Advantages
• Deepwater – no dredging
• Access to main line rail
• Land availability
• Existing port
• Scalable
• Environmentally responsible
Existing “Santos”
Jetty
New Jetty
3 km • 25 km rail
• Bottom dump/tippler
• 280,000 ton shed/s
• Conveyors/3km + Jetty
• 5000 tph ship-loader
Infrastructure
• Greenfield Cape size port
• CAPEX $650 million
• 25,000,000 +
Concept
• Spencer Gulf Portlink
• Flinders Ports
• Leighton
• Macquarie
Consortium
D E E P W A T E R P O R T S F O R S A ’ s B U L K M I N E R A L S I I C H C A C O N F E R E N C E I O C T O B E R 2 0 1 4 18
MAY 08: State Government releases EOI
JUN 08 SGPL submit bid
OCT 08 SGPL selected as preferred bidder to move to Phase II – feasibility stage of EOI
MAR 09 Feasibility Report submitted to SA Gov.
NOV 09 Official response received from State Government.
MAY 11 Exclusivity granted to Flinders Ports until 31-Mar-14 via SGPL
AUG 11 ARUP confirmed as SGPL
Environmental Impact Statement Consultants
JUN 11 SGPL submitted its Section 46 Major Project application
FEB 12 SA Gov. confirms approval for project to be developed under Section 46 Status.
EIS - submitted awaiting approval with conditions ILUA/Native Title – Process commenced, to be finalised Engineering – Additional geo-technical Ongoing discussions with Government & industry Binding Agreements Financial close Construction – 36 months.
MAR 10 User Agreements & Government extensions
Next Steps
2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013
SEP 13 EIS submitted – awaiting final approval from State Government
Q1 Q2 Q3 Q4
Port Bonython – Project Timeline to Date
