Barbil Angul Slurry Pipe line

Copyright © 2010 Jindal Steel & Power Ltd.1

Barbil Angul Iron Ore Concentrate Slurry Pipe Line

Dr. Rakesh Saxena

Associate Vice President

Barbil Angul Iron Ore Slurry Pipe Line Team


Historical Perspective – PSI, USAProgress Date Scope of Work Amount Remarks

LOI 30-Apr-08

Design, Tech. Specifications, and Procurement assistance for a)10 MTPA, 225 km 8 MTPA, 200kmb)Feasibility study for less or greater than 10 MTPA capacity.c)Techno-commercial study for 2 x 5 MTPA and 1 x 10 MTPA

US$ 645,000 a) 70% pellet & 30% sinter feeds

b) 12 MTPA is also possible

Work Order

05-Jun-08

Based on the Techno – Commercial study, Capacity fixed at 10 MTPA, with feed size (45 microns)

US$ 645,000

Change Order 1

17-Feb-09

On-site testing for iron ore fine samples US$ 23,880

Change Order 2

01-Oct-09

Change in pipeline route from 225 km to 181 km US$ 38,780 Capacity uncertain

Change Order 3

25-Feb-10

Capacity change from 12 MTPA to 6 MTPA US$ 72,670 Sum up to Change Order 3 - US$ 780,330

Change Order 4

20-Apr-11

Capacity change from 6 MTPA to 12 MTPA US$ 103,930 Not approved


Summary of Payment to PSIS.No Description Amount in % Amount Paid (US$)

1 Original WO price

a) Advance against bank guarantee 10% 64,500

b) Tests, Optimization & Design basis 20% 129,000

c) Steady state hydraulics 20% 129,000

d) Long lead items specs & MRs 20% 129,000

e) All other deliverables and specs 20% 129,000

f) Against performance bank guarantee (valid till 6 months from the actual commissioning)

10% 64,500

2 Change Order 1 Full 23,880

3 Change Order 2 Full 38,780

4 Change Order 3 full 72,670

Total amount paid . WO closed 100% 780,330


PSI – Change Order 4• Total value paid to PSI (up to change order No. 3) US$ 780,330• If change order 4 shall be issued to PSI, then the total order value to

PSI shall scale up to US$ 884,260 – 12 MTPA is included– Water pump back through the same pipeline is not included by

PSI– Broad range of turndown ratio is not included by PSI– Batch pumping (pellet feed & sinter feed) is not included by PSI

Progress

Date Scope of Work Amount Remarks

Change Order 4

20-Apr-11

Capacity change from 6 MTPA to 12 MTPA

US$ 103,930 Not approved


Progress from Feb 2008 to June 2011

Throughput Decisions

• Project delayed due to: – IPICOL water requirement– 70% pellet & 30% sinter feeds– Carrying capacity decisions

• Time Spent – 41 months• Amount Spent – US$ 780,330

Output - ?


Changed Design Parameters July 2011

• July 11,2011- Rethinking process started due to changed requirements

• 12 MTPA capacity upgraded only for pellet feed and not with sinter feed.

• Pump back water with same pipeline• Batch pumping (pellet feed & sinter feed)• Broad range in operating turn down ratio • Based on the changed requirements, enquiry made to PSI,

USA & OSD Pipelines, Australia• PSI, USA is not responding to our enquiry• OSD Pipelines has submitted the offer


OSD Proposal – Current Status• The present design assumes a single 6 MTPA concentrate

pipeline for pellet feed (only) and turndown capacity to approximately 4 MTPA

• The permission for water rights for the project require a water management strategy to account for the potential recycle of 200 m³/hr to 900 m³/hr of process water. This is not addressed in the PSI design

• The concentrate pipeline design philosophy requires to accommodate the transport of sinter feed concentrate in addition to pellet feed

• The plant ramp up schedule from 5 MTPA to 12 MTPA needs to be addressed within the design of the concentrate pipeline


Way Forward• The design for the concentrate pipeline requires to be

optimized and provide a Customized Tailor made design for our proposed operation.

• The design approach requires to consider the following optimization:• Sufficient turndown capacity to minimize water usage• Consider the ability to transport pellet feed and sinter feed

concentrate• Demonstrate the feasibility of returning 200-900 m³/hr of

water through the same pipeline


Action Plan • OSD visited Angul on September 8th and 9th and reviewed the

existing 6 MTPA design and outlined a path forward to optimize the design to a 12 MTPA pipeline with a 7.8 MTPA potential turndown capacity


Path forward

• OSD provided a path forward to address the optimization of the existing design and deliver a comprehensive slurry transport solution to JSPL including the following:• Auditing of the existing design with the objective of

upgrading to 12 MTPA• Slurry characterization test work in Perth for Sinter feed and

validation of pipeline transport solution (batch operation)• Revise/update existing system drawings as necessary to

correlate with 12 MTPA outcome and turndown requirements.

• Exclusions: route selection, capital and operating cost estimating, bid evaluation and material requisition


Who is OSD Slurry Pipelines Group• Privately held pipeline consulting with 180 employees based in

Australia, Canada, Chile, and New Zealand.• 50+ years of collective slurry pipeline design and operating

experience worldwide.• Involved in the design and operation of over 1500 km of

successfully operating concentrate pipelines worldwide including the Essar Iron Concentrate Pipeline in India.

• Specific concentrate design and operational experience in current operation:• 267 km, 24 inch iron concentrate pipeline (Essar, India)• 170 km, 9 inch iron concentrate pipeline (Da Hong Shan, China)• 398 km, 14-16 inch iron concentrate pipeline (Samarco, Brazil)• 302 km, 8 inch copper/zinc (batching) concentrate pipeline (Antamina, Peru)


Comparison of PSI & OSD Attributes PSI OSD Pipelines Remarks

Scope of work

a) Offered for 6MTPA of Pellet plant feed (need reworking to enhance the capacity to 12 MPTA)

a)Offering for 12MTPA includes feed for both plants i.e Sinter & Pellet .

With PSI- extra time & cost involvement for revised parameters.

b) No water returning facility with same pipe line

b) Provision of water returning facility with same pipe line

With OSD- Better provision of water conservation

c) Process for only one type(pellet plant ) of feed

c) Process for two types of feed (pellet plant & sinter plant )

With OSD- Better utilization of facilities.

d) No desirable range in turn down ratio

d) Have desirable Range in Turndown ratio varies from 6MTPA to 12 MTPA

With OSD- Better flexibility of resource utilization .

Option study

Techno-commercial comparison of 2 x 5MTPA with 10MTPA for pellet feed resulted in delay in project proceedings and cost escalation

Option has been freezed by JSPL and offer has been made for the same (no further study is required)

Additional cost is paid for option study with PSI. With OSD- offer is customized & economical in terms of cost & time .


Comparison of PSI & OSD (continued)Attributes PSI OSD Pipelines Remarks

Quality of delivered offer ( Time & quality prospective)

Basic engineering is not meeting JSPL requirement even after working of 24. months).

Offer for finishing the basic engineering in 5 weeks only

>With PSI- Still need more time & money for customized delivery. OSD will study the work done by PSI ,to incorporate positive aspect of it in the project.

Quality of delivered offer ( Cost prospective)

US$ 6450,000 (for BE) + $106,000 (Revised Scope) + $ extra to be paid for third revision

A$320,000 + $60,000 + $20,000= Total 4000 US$ (Provision of progressive payment)

With PSI- Cost involvement is 2.39 times more than OSD.

Availability of Supplier

Availability is not easy. Committing for the completion of job.

Even after long association ,PSI is not responding recently, hence availability can't be confirmed.

Scope of IPR & Technology ownership & royalty

Not clear in offer Scope of mutual discussion & finalization


Recommendation for OSD Pipeline• Integrated technology for both type of slurry feeds in single pipeline• Use of existing PSI work to reduce the CAPEX• Broad operating range of turndown capacity from 12 to 6 MTPA• Saving of US$ 60,000 by minimizing the site visits• Optimized Design for pumping back water with the same pipeline• Minimum allowable velocity of 1.3 m/s against 1.6 m/s of PSI• Lower cost of per hourly working rates than PSI• Customized design with lower CAPEX (A$ 400,000)• Offered duration to complete the job is in 16-20 weeks• OSD offers a long term relationship and a lower risk profile to the

design and sustainable operation of the concentrate pipeline• The OSD Slurry Group is the fastest growing slurry group in the

industry and is currently working with tier 1 mining and engineering firms worldwide

Status as on 15.11.10

Copyright © 2010 Jindal Steel & Power Ltd.15 Copyright © 2010 Jindal Steel & Power Ltd.

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Barbil Angul Slurry Pipe line