Bulk Materials Handling 2013

Port Hedland Port Authority

Utah Point Project

Contents

1 Port Hedland Overview

2 Utah Point Development (Stockyard 1)

3 Utah Point Expansion (Stockyard 2)

4 Lumsden Point Project

Port Hedland Overview

PHPA – Who Are We

Vision

To be the world’s leading Port, helping to create a

sustainable region.

Mission

To safely, profitably, sustainably, efficiently and

innovatively operate the Port to

promote, facilitate and expand regional trade.

June 1995

May 2012

Port Hedland Iron Ore Export Berths

• 2004

o 4 Cape size Iron Ore Berths

• Current

o 11 Cape Size Iron Ore Berth (+ 3 under construction)

o 1 Multi-User Mini-Cape Bulk Berth (Utah Point)

• Approved (inner harbour)

o 19 Cape Size Iron Ore Berths (incl. South West Creek)

o 1 Multi User Mini Cape Bulk Berth (Utah Point)

• Outer Harbour planned

Iron Ore Growth

• 105 mtpa 2005/06

• 246 mtpa 2011/12

• 487 mtpa 2016/17 (forecast)

Historic and Projected Growth

-

50

100

150

200

250

300

350

400

450

500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mill

ion

s

12

13

3 4

4

5

6

9

16

Growth in Iron Ore Exports through Port Hedland is

Higher than the Overall Australian Growth Rate

0

100

200

300

400

500

600

700

800

900

1000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Australia Port Hedland (+ Outer Harbour)

LH : Tonnage Australia & Port Hedland

CAGR 7.5 %

CAGR 12.5 %

Source: CRU/PHPA

Port Records and Achievements

1 Million Tonnes on a Tide:

• 1,059,740t (15/1/2013)

Single Largest Ship:

• Abigail N – 297,430 dwt

Single Largest Shipment:

• PSU 7th – 255,816 dwt

Highest Tonnage Month:

• December 2012 – 26.7Mt

Utah Point Development – SY1

Stockyard One

Utah Point Recognition

• 2011 WA Engineering Excellence Award

Resource Development Category

• 2011 National Engineering Excellence

Award

• 2012 Bulk Materials Handling Award

• 2012 Port of the Year

Utah Point Development – SY1

Discussion Points

• Project overview

• Positive outcomes

o Economic benefit

o Community benefit

o Environmental

• Project implementation

Utah Point Multi-User Bulk Export Facility

Key Statistics

• 9 Mtpa approved capacity (road haul)

• Expandable to 20Mtpa

• Multiple products including iron ore,

manganese and chromite

• Purpose built 10km access road

• 13 independent stockpiles over 24ha

• Capable of handling 120k DWT vessels

• 20 month construction period

Economic Benefits - New Export Opportunities

New and emerging junior miners have access to public berthing facilities

with the construction of the Facility.

Nameplate capacity was

achieved within 6 months,

delivering 9Mtpa of trucked ores

worth an estimated export value

of $1.5 billion.

Future expansion of the Facility

has been considered in the

design of Stockyard II.

Economic Benefits – Operational Efficiency

The Facility enhances existing Port

Hedland port services to grow WA’s

export potential via:

• Smaller vessels to access the inner

harbour during low tides without

impacting other harbour users.

• Smaller vessels allowed to berth due to

construction over tunnel.

• Cavotec Mooring System to improve

moor & release times, while increasing

available berth length.

Import Replacement

Travelling shiploader & tripper conveyor

• A unique PCM strategy bound by complex,

schedule critical project requirements.

• Multiple contractors to erect the structure

• Opportunities for local suppliers in major

• Capital equipment manufacturing

Originality & Ingenuity

Innovative engineering practices are evident across the Facility:

• 9Mtpa trucked multiple ore products.

• Stockyard constructed on marine mud.

• Original load out system.

• Cavotec Automatic Mooring System.

• Water conservation & recirculation.

Environmental Credentials

Environmentally Sustainable

Engineering in Practice

Through collaborative planning sustainable

technology initiatives and engineering

innovations, the new Utah Facility has:

• reduced dust and noise emissions to the

residents of Port Hedland,

• removed road train traffic from populated

areas,

• eliminated adverse groundwater and harbour

contamination risks, and

• committed to protecting and restoring

mangrove habitats.

Improvements in Quality of Life

Relocation of manganese and chromite

and export away from Port Hedland’s west

end to Utah Point.

• Reduced Dust to township

• Reduced Noise

• Reduced Heavy Vehicle Traffic in town

Environmental Protection

Water conservation and

quality

• 45,000m3 recirculation water

pond.

• Installation of bentonite

barrier layer and sub-surface

drainage system.

• Materials handling and truck

wash down facilities.

• Sealed concrete wharf.

Questions

Utah Point Development

Stockyard Two

Questions

Questions

Utah Point Stockyard 2 Development

Proponent Funded and Delivered

• Stage construction to match production ramp up

• Interim solution commissioning from late June

• Interim Solution replicates SY1

Lumsden Point Project

Lumsden Point Need

• There is a relationship between iron ore exports and general

cargo trade volumes.

• WA Freight Study (commissioned by the WA Department of

Transport) estimates general cargo trade volumes (including

port and road transport) are between 1 and 1.5% of iron ore

exports.

Iron ore Export Capacity Growth since 2004

175% From 4 berths to 11

Non-iron ore trade capacity growth since 2004

nil Remains 3 berths

Existing Eastside Facilities

Non Iron Ore Trade Overview

• Port Hedland Berths 1, 2 and 3 General & Non-Iron Ore Bulk

Cargo:

o Fuel

o Salt

o Copper Concentrates

o Containers

o General Cargo

o Project Cargo

• Lumsden Point is required to facilitate the growth in all these

cargoes

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

(500,000)

500,000

1,500,000

2,500,000

3,500,000

4,500,000

5,500,000

6,500,000

7,500,000

8,500,000

Tonnes

Tonnes

Berths 1 - 3 (excluding Salt) Lumsden Point Total Port Throughput

General Cargo Trade is Growing

Historical (actual)

Historical and Indicative Forecast Tonnage Throughput

Indicative Forecast

Notes:

- The chart above excludes salt (weather dependent)

- The chart above also excludes trades transferred to Utah Point in 2010/11

Source: PHPA Market Sounding User Surveys 2013

Lumsden Requirement Overview

• Cargo forecast, including general cargo, to grow from 4.9mtpa

in 2011/12 to 9.2mtpa 2016/17

• Efficient capacity at existing berths is around 6.5mtpa

o Capacity will be reached in 2013

• Significant congestion of the berths expected beyond this

timeframe

Berths 1, 2 and 3 Lumsden Point

Bulk concentrates (non-containerised) Bulk concentrates (containerised)

Petroleum products and bulk liquids Break bulk and project cargo

Salt Cement

Acid and caustic soda Scrap metal

Ammonium nitrate

Other containerised cargo

General cargo trade allocation after development of

Lumsden Point

Lumsden Concept

• Two berths

• 430m berth length

• 20 hectares immediately behind berth

• 30 hectares available to port users near Great Northern Highway

(GNH)

• Direct link to GNH with High Wide loads

Lumsden Concept Scope of Project

• Dredging to 12mCD o 2milllion m3 onshore

• 1750 m of dredge bunds o 1100m rock cored (offshore)

o 650m grits spoil (onshore)

• 430m Wharf Deck o Steel pile

o Precast Concrete Deck

• 2.7 km Access Road o Main Roads Standard

o High Wide Loads

o Direct link to GNH

• Utilities o Power

o Water

o Comms

Lumsden Project Status

Marine Geotechnical Studies Complete

Environmental Submission In progress

Access corridor detailed design In progress

Market sounding In progress

Questions