Iron Ore Source of the world's most useful metal
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Capability brochure December 2012 Iron Ore Our iron ore business Rio Tinto is a leading international business involved in each stage of metal and mineral production. The Group combines Rio Tinto plc, which is listed on the London Stock Exchange, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. We are the only iron ore producer with a truly global production and growth platform, with operations and projects across four continents. 1
Capability brochure December 2012 Iron Ore Example of raw iron ore. Cover image Our global iron ore business is an important part of Our integrated iron ore operations – including mines, Skyscrapers and our asset portfolio. We are the only iron ore producer rail, ports and related infrastructure – are designed to infrastructure. with a truly global production and growth platform, with respond rapidly to changes in demand. We’re expanding Demonstrating an operations and projects across four continents, building our operations in Western Australia to epic proportions end product of iron ore communities and legacies worldwide. while introducing next generation technologies to and the use of steel in deliver greater efficiency, lower production costs and infrastructure. We’re also the second largest supplier to the world’s improved health, safety and environmental performance. Above iron ore trade. Iron is a key ingredient in the production Our Pilbara operations of steel – an essential part of modern living from Through these global projects, expansions and include the largest buildings to cars, machinery to appliances. Vital to innovations, we are further extending our leading privately owned rail the modern world, it is also crucial to the growth of role in the global iron ore sector. network in Australia some developing regions like Asia and India. 1,500 kilometres long. Our major operations are in Western Australia and Canada and we’re investing in new projects in west Iron is a key ingredient in the Africa and India. From these locations, we are well positioned to take advantage of demand for iron ore production of steel – an essential part in both developed and developing regions. We also of modern living from buildings to cars, operate an ocean freight business, Rio Tinto Marine, machinery to appliances. which services our global operations. 2
Capability brochure December 2012 Iron Ore Iron ore We find and extract iron ore from beneath the surface rock; crush and sort the ore; then ship direct to customers or to smelters where they extract iron metal from the ore. We produce a range of lump and fines products from our Western Australian operations for use in integrated steelworks as sinter plant feed or direct blast furnace feed. Our Canadian operations produce concentrate for sinter plant feed and iron ore pellets for direct reduction processes and blast furnace operations. Most of the iron ore we sell is smelted by our customers in blast furnaces. Fuel, iron ore and flux are continuously supplied through the top of the furnace, so that chemical reactions take place throughout the furnace as material moves downwards. The end products are usually molten metal and slag phases tapped from the bottom, and gases exiting from the top of the furnace. Our HIsmelt® process (Rio Tinto: 60 per cent) is a cleaner, low cost and more efficient alternative to the traditional blast furnace. The world’s first commercial direct smelting process, it produces premium quality pig iron directly from iron ore, with no slag. The process allows iron ore fines with significant impurities to be used, and cheaper, non coking coal instead of coke. HIsmelt® licences are available to steel producers throughout the world. 3
Capability brochure December 2012 Iron Ore Steel cog, bolt and drill bits demonstrate an end use of steel. Left Glossary of terms and processes Direct reduction: High grade iron ore (as pellets, lump Autonomous haul trucks Lump ore: Consists of coarse particles, with a specified and sometimes fines) is heated below its melting point have been deployed at lower size limit in the range of 10mm to 6.3mm. in the presence of the reducing agents (H2 and CO) from two fully operational processed natural gas/syngas/coal to remove the oxygen autonomous pits and Fines ore: Consists entirely of small particles, with a from the ore. The aim is to obtain a product with the we expect about 150 specified upper size limit in the range of 10mm to 6.3mm. highest proportion of “metallised” iron as possible. driverless trucks to be in operation across our Processed ores: Treated by physical or chemical Using iron Pilbara mines by the processes to make them more suitable for subsequent Iron is the most useful metal in the world. It is used end of 2015. production of iron and steel making. in a variety of forms and in a multitude of applications in everyday life. Concentrates: Processed ores in which the iron content has been raised. Cast iron is partly refined iron containing up to five per cent carbon. It is very hard, but brittle and is ideal Agglomerates: Processed ores formed into a coherent for moulded parts like car engine blocks. piece substantially larger than the original particles. Steel is the most common form of iron. It contains Sintering: A process that turns iron ore fines into around one per cent carbon and has thousands of uses. agglomerates through combustion at high temperatures. Stainless steel contains chromium, making it very Pelletising: A process that turns iron ore fines (generally rust resistant. Stainless steel is ideal for vehicle parts, finer than 100µm) into spherical agglomerates by balling hospital equipment and cooking utensils. the fines with various additives, followed by hot or cold bonding induration. Tool steel is extremely hard, heat-treated steel that is used in metalworking tools. Blast furnace: Fuel, iron ore and flux (limestone) are continuously supplied through the top of the furnace, while air is blown into the lower section, so chemical reactions occur throughout the furnace as material moves downward. End products are usually molten metal and slag phases tapped from the bottom and gases exiting from the top. Iron is the most useful metal in the world. It is used in a variety of forms and in a multitude of applications in everyday life. 4
We produce 237 million tonnes of iron ore each year from our Pilbara operations. We’re currently undergoing a major expansion programme to increase this to 290 million tonnes per year by 2013 and then 360 million tonnes per year in 2015. 5
Capability brochure December 2012 Iron Ore Our iron ore operations Our major operations are in the Pilbara region of Western Australia where we own and operate 14 mines, three ports and 1,500 kilometres of railway – all from our Operations Centre some 1,500 kilometres away in Perth. Left Pilbara operations, Western Australia Other innovations include autonomous haul trucks, Our Cape Lambert We produce 237 million tonnes of iron ore each year from trialled at our West Angelas mine since 2010 and port in the Pilbara our Pilbara operations and we’re currently undergoing recently deployed at Yandicoogina mine – by 2015 the is undergoing major a major expansion programme to increase this to 290 fleet will grow beyond 150. And we’re using technology expansion works million tonnes per year by 2013 and then 360 million to increase the automation of our train operations, with to support our tonnes per year in 2015. This represents the largest the first phase of the AutoHaulTM project being installed Pilbara-wide growth integrated mining project in Australian history and will by 2014 – this implementation will create the first long to 360 million tonnes. mean, when we reach our end goal, we’ll be producing distance, heavy haul system of its kind in the world and almost one million tonnes of iron ore each day. will be a key enabler of our expansion programme. Our Pilbara growth programme includes further We’re also implementing remote controlled drills to development of existing mines and the establishment enable drill-and-blast extraction of ore, tele-operated of new mines, as well as the expansion of port and rail shiploading at our ports and ore sorting technology infrastructure to get our products to market. among many more projects. In particular, development activity that has been These initiatives, and others, will help reduce our approved and underway includes: environmental footprint and operating costs, provide • Cape Lambert port and rail greater efficiency and offer our staff more flexible • Hope Downs 4 mine working conditions and career options. • Western Turner Syncline mine • Brockman 4 mine phase two Iron Ore Company of Canada • Marandoo mine extension Iron Ore Company of Canada (IOC) has been Canada’s • Nammuldi mine extension leading supplier of iron ore for more than 50 years. • Wickham town expansion Iron ore is mined in Labrador City, in the province of • Other infrastructure, such as power, water and Newfoundland and Labrador, and then processed to gas networks. produce iron ore concentrate and pellets, which are railed to the port at Sept-Iles, Quebec, then exported to As a business we don’t just mine ore, we lead in major North American, European and Asian steelmakers. technology and innovation for our industry, we own property, pastoral stations and provide utilities and IOC is also the subject of expansion activity, with the first facilities to a number of towns in the Pilbara. phase of expansion lifting capacity to 22 million tonnes per annum, and the second phase to 23.3 million tonnes Our purpose-built Operations Centre in Perth is the on a pathway to 26 million tonnes. primary control centre for our Pilbara network. Home to more than 200 controllers and schedulers, and Rio Tinto Marine another 230 employees in related functions, it provides As the largest shipping user in the Rio Tinto group, Iron complete system visibility and integration, allowing more Ore is also responsible for Rio Tinto Marine, which owns efficient decision-making and control. It is one part of and charters vessels for the transport of Rio Tinto’s bulk our Mine of the Future™ programme – introducing new products, including iron ore. and improved ways of mining through automation and remote operation. 6
Capability brochure December 2012 Iron Ore Our iron ore projects In addition to the expansions in Western Australia and Canada, we have an exciting portfolio of projects in Africa and Asia. Right Simandou, Guinea Our Simandou mining Simandou is a world class iron-ore mining project project is estimated as located in Guinea, West Africa, in one of the best capable of producing up undeveloped major iron ore provinces in the world. to 95 million tonnes per The project will consist of a mine, approximately year once complete. 670 kilometre trans-Guinean railway and a port south of Conakry. At full production, Simandou will export up to 95 million tonnes per year of high-grade sinter fines. The first shipment of ore is expected by mid-2015. The mining concession and project is a joint-venture held by Rio Tinto, with a majority interest, Chinalco’s subsidiary Chalco and the International Finance Corporation, a member of World Bank Group. The Republic of Guinea will have the right to take a stake in the mine and in the project infrastructure (rail and port). When the mine goes into full production, Simandou will be the largest integrated iron ore mine and infrastructure project ever developed in Africa and will generate sustainable social and economic gains and growth for Guinea. Orissa, India Rio Tinto has a joint venture with the state owned Orissa Mining Corporation, which is seeking to develop iron ore leases in Orissa – one of the key iron ore regions of the world. With expectations of significant infrastructure and industrial development in India in the medium and long term, Rio Tinto is keen to contribute to the development of the Indian iron ore sector. 7
Capability brochure December 2012 Iron Ore Iron ore operations and projects Left Iron ore operations† Iron ore projects† 1 Pilbara operations 3 Orissa (51%) Steel bridge – illustrates an end use of iron ore Hamersley Iron mines Simandou (majority interest in joint venture) 4 and its contribution to Brockman 2 † Locations on the map are indicative. Operations and projects are wholly the basic infrastructure Brockman 4 owned unless otherwise shown. of modern life. Channar (60%) Eastern Range (54%) Hope Downs 1 and 4 (50% joint venture) Marandoo Mt Tom Price Nammuldi Paraburdoo Western Turner Syncline Yandicoogina Robe River mines (53%) Mesa A/Warramboo Mesa J West Angelas 2 Iron Ore Company of Canada (58.7%) 2 3 4 1
Rio Tinto plc Rio Tinto Limited 2 Eastbourne Terrace 120 Collins Street London W2 6LG Melbourne, Victoria 3000 United Kingdom Australia T +44 (0)20 7781 2000 T +61 (0)3 9283 3333 riotinto.com Capability brochures About Rio Tinto Aluminium Copper Diamonds Energy Exploration Industrial minerals Iron Ore Technology & Innovation 0019 V1 ENG IRON ORE DECEMBER 2012 PDF
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