Project Magnet involves the conversion of the Whyalla Steelworks to produce steel from magnetite rather than hematite iron ore. Due to a delayed financial approval for the project, OneSteel Oil & Gas Pipe was required to work to extremely tight timeframes to deliver pipe for water and slurry lines to constructor Thiess Pty Limited.

The project includes a 60 km water pipeline to the mine and parallel slurry in return.

The water pipeline is 406.4 mm x 6.4 mm wall thickness API 5L grade X42 PSL2 pipe, while the slurry pipeline is 219.1 mm diameter in 8.2 mm, 5.6 mm and 4.8 mm in API 5L X65 PSL2 grade pipe. OneSteel Oil & Gas Pipe manufactured the pipe and subcontracted Bredero Shaw to HDPE coat the pipe.

The initial stages of Project Magnet are now well under way with Board approval for the development of OneSteel’s magnetite ore resource in the South Middleback Ranges in South Australia given late last year.

Article continues below…

It is expected Project Magnet will be operational in 2007 and will generate in excess of $A1 billion in revenue for OneSteel over the next 10 years.

The project has three main advantages, including extending the life of Whyalla Steelworks from the current hematite reserve constraint of 2020 to at least 2027.

It also provides OneSteel with major hematite sales opportunities and lowers the cost of producing steel at the Whyalla Steelworks.

In addition, converting to magnetite feed has an environmental advantage in that it is beneficiated and converted to slurry for transport via pipeline to the Steelworks. This process will replace the current hematite dry grinding process.

The magnetite concentrate pipeline is a direct line and is mostly downhill over its 62 km length. Water will be taken out of the slurry and piped back up to the mine in a continuous loop to minimise water requirements in an arid region.

The cost of Project Magnet, including mine stripping, will be approximately $A250 million with the project funded totally from internal sources.

The expenditure will cover the mine cut back, beneficiation facilities, the slurry pipeline, conversion of the Whyalla pellet plant, construction of a desulphurisation plant, the upgrade of port storage and handling facilities.

According to OneSteel National Projects Manager - Pipelines Ross McLauchlan, the supply of the pipe to Whyalla for Project Magnet demonstrated Oil & Gas Pipe’s supply flexibility when deadlines were tight.

“We were committed to supply quite late in the development program and needed to get the pipe to Whyalla very quickly,” Mr McLauchlan said.

“Once again our lead times were short, but we were able to be flexible in our manufacturing process and delivered quality product for the project when needed.”