The Sino Iron Project is being developed by CITIC Pacific and the China Metallurgical Group Corporation (MCC) at Cape Preston, 100 km southwest of Karratha. With all key approvals received, the project is forging ahead to meet its first production scheduled for the fourth quarter of 2010.

When operational, the project will be one of the world’s largest mines. It will produce approximately 28 MMt/a of a mix of pellets and concentrate. The energy required to do this will come from the project’s 450 MW gas-fired power plant. The pellet plant also uses gas in its process. Two pipelines are being built to service the power plants.

The Sino Iron Project contracted OSD Pipelines as designer, procurement manager and superintendent, and KT Pipelines for construction of both these gas pipelines.

Gas pipeline support

Article continues below…

The gas supply system comprises a 14 km DN450 Class 600 pipeline running from the Dampier to Bunbury Natural Gas Pipeline (DBNGP) to deliver 100 TJ/d of gas to the Sino Iron power station, as well as a 28 km DN150 Class 600 pipeline running from a location near the power station to deliver 10 TJ/d to the pellet plant.

The inlet station of the DN450 pipeline includes custody transfer metering, a remotely operated shutdown valve, and pig launching facilities from the inlet to the pipeline. The delivery station includes a pig receiver and remotely operated shutdown valve, filtration, metering, gas heating facilities and pressure regulating facilities. The delivery station will terminate at a flange connection upstream of the power station gas connection facilities.

An intermediate offtake on the DN450 pipeline will provide gas to the DN150 pipeline inlet station. The DN150 pipeline and inlet station has a pig launcher and remotely operated shutdown valve, filtration, metering, gas heating facilities and pressure regulating facilities. The DN150 delivery station includes a pig receiver and remotely operated shutdown valve, filtration, metering, gas heating facilities and pressure regulating facilities and will terminate at a flange connection upstream of the pellet plant gas connection facilities. This pipeline also includes an intermediate mainline valve (MLV) with a manual shutdown valve with bypass and blow down facilities.

The DN150 pipeline is designed, constructed and operated in accordance with AS2885 and the pipeline licences issued pursuant to the Petroleum Pipelines Act 1969.

A recognised team

CITIC Pacific Mining said OSD was selected to manage the construction of this project, having been involved in most of the recent Western Australian gas pipeline developments.

A contract for the DN450 portion of the work was awarded to KT in early 2009, and work is now well underway, with the mainline due for completion in early October.

KT’s construction work is being managed by Alan Cornell with the assistance of Construction Manager Phil Gleeson. The OSD site team comprises Construction Manager Steve Horne, Inspector Wayne Dickinson and Project Engineer Anthony Cicchini.

DBP is providing the DBNGP offtake, which includes a hot tap connection just south of MLV 9 (KP 82.497). The offtake is expected to be completed in December, which will allow OSD to commission the pipeline in January 2010.

Challenges in the pipeline

The pipeline development has provided the usual challenges including in the areas of design and terrain. The initial optimal route avoided most problem areas, but the route finally adopted closely parallels the straight main access road that is yet to be constructed. Although this route minimises the project disturbance ‘footprint’ it did introduce steeper grades, cross slopes and some challenging rock outcrops, some more obvious than others. The construction contract provided for rock requiring drill and blast at an extra-over rate, but KT was able to develop a more cost effective method for removal, utilising larger excavators and hammers that ultimately provided a commercial benefit to both parties.

CITIC Pacific Mining said although the DN450 pipeline system will be up and running in the next few months, the pipeline project will continue into 2011 with the development of the DN150 pipeline system for the pellet plant.