SLURRY PIPELINES: A VIABLE ALTERNATIVE FOR BULK TRANSPORT OF

IRON ORE

By Roy G. Betinol

Director Latin America

BRASS Engineering International, Inc.

MODES OF TRANSPORT FOR MINE PRODUCTS

1. Pipeline

2. Trucking

3. Railway

SLURRY PIPELINE TRANSPORT SYSTEMS

• Concentrate – Iron – Copper – Zinc

• Tailings – Conventional – Thickened – Paste

• Mineral Ore

KEY PARAMETERS OF A PIPELINE SYSTEM

• Transport Capacity Refers to the amount of concentrate to be transported expressed in dry tonnes per annum.

• Route and Profile This parameter has the greatest impact on capital cost. It can command up to 70% of the total project cost. For every kilometer of distance saved substantial savings can be realized.

• Slurry Property Defines the operating limits of the pipeline. The coarser, heavier and more viscous slurry will require more energy to transport.

PIPELINE ROUTE

PARTICLE SIZE DISTRIBUTION

VISCOSITY

YIELD STRESS

PROFILE AND GRADIENT DIAGRAM

PUMP STATION

INTERMEDIATE VALVE STATION

TERMINAL STATION

PIPELINE COST ESTIMATE 6 in. 8 in. 10 in. 12 in.

2,972,137 1,698,364 785,493 4,352,058

28,727,280.00$ 35,366,760.00$ 48,323,620.00$ 54,916,287.87$

18,000,000.00$ 20,000,000.00$ 23,000,000.00$ 29,000,000.00$

500,000.00$ 500,000.00$ 500,000.00$ 500,000.00$

1,500,000.00$ 2,000,000.00$ 2,500,000.00$ 3,000,000.00$

2,000,000.00$ 2,500,000.00$ 2,800,000.00$ 3,000,000.00$

17,513,434.12$ 20,702,611.62$ 22,870,619.36$ 22,993,815.20$

17,060,178.53$ 20,267,342.90$ 24,998,559.84$ 28,352,525.77$

85,300,892.64$ 101,336,714.52$ 124,992,799.21$ 141,762,628.84$

CIVIL WORKS

DIAMETER

OTHER

TOTAL CAPEX

PIPELINE

PUMP STATION

SFM STATION

VALVE STATION

TERMINAL STATION

THROUGHPUT CAPACITY (dtpa)

OPEX 6" 8 10 12"Energy Cost 1,213,908$ 2,527,831$ 4,076,655$ 4,626,627$

Water Cost 466,032$ 1,007,750$ 1,763,563$ 2,582,273$

Spare Parts 4,050,000$ 4,050,000$ 4,050,000$ 4,050,000$

Personnel 3,392,000$ 3,392,000$ 3,392,000$ 3,392,000$

TOTAL 9,121,940$ 10,977,581$ 13,282,219$ 14,650,900$

6 in. 8 in. 10 in. 12 in.

162,961,108.40$ 194,795,053.36$ 238,071,812.84$ 266,494,001.70$

1.35 0.74 0.52 0.40Cost per dtpa per km pipeline, $/T-km

NPV

PIPE DIAMETER

Trucking

For long distance cross country hauling, trucks may be restricted by the following parameters:

a) Design capacity of existing infrastructures such as roads and Bridges

b) City or Municipality ordinances related to noise and dust pollution

c) Traffic regulation

• Truck Haul carriages must be specially built to:

– Avoid loss of product

– Contain residual water leakage

– Ensure ease in loading and unloading.

TRUCKING CONSIDERATIONS

• For this study, a truck with capacity between 24 T and 28T is considered.

• A hauling rate of US$ 0.119 per km-T is used which includes personnel cost, maintenance cost, Fuel, toll and port fees.

• Trucking cost does not include any capital expenditure for infrastructure development.

• Unit rate is valid for paved road at a maximum distance of 800 km.

TRUCKING COST

Railway Transport

Railway transport may be restricted by the following parameters:

a) Design capacity of existing infrastructures such as rails and unloading facilies.

b) City or Municipality ordinances related to noise and dust pollution

c) Port unloading traffic

RAILWAY CONSIDERATIONS

• The evaluation of the railway freight transport system is based on observed data from Brazil.

• Unit cost used Railway transport study is at US$12.00 per tonne.

• The unit rate is applicable up to 500 km transport distance.

RAILWAY CONSIDERATIONS

• Unit cost does not include any capital expenditure for infrastructure development or rail and freight cars upgrade.

• Freight cars must be specially built to:

– Avoid loss of product

– Contain residual water leakage

– Ensure ease in loading and unloading.

RAILWAY TRANSPORT COST

CONCLUSION

• For a transport capacity exceeding 2.8 million dtpa, the pipeline mode of transport is economical compared to either trucking or railway transport.

• If Trucking or Railway transport will require infrastructure expenditure, the cost difference with pipeline transport will widen.

• However, the final selection of a viable transport mode may be affected and influenced by environmental, community and political issues.