Fluxo Soluções
 / August 2018

Pipes: safety, efficiency and low operating cost for ore transport

The project of an ore pipeline begins with the request for approval by government agencies, mainly in the environmental field, in addition to public hearings where the entire population surrounding the work is presented to the project. Only after obtaining the approval of the competent authorities can its construction begin.

Ore pipelines are designed and built following the most restrictive international standards, which brings enormous security to projects. In this context, the tubes represent a crucial part of this means of transport and, like the other equipment involved, they demand special attention, since their manufacture, when several performance and quality tests are carried out within the industry. Testing continues during all other phases: transport, storage, construction, simulation of operation and commissioning. It is only after the correct functioning of all the components of the pipeline that the ore slurry can be pumped and, finally, after the completion of the commissioning with slurry, the handover from the deployment team to the operations team.

During operation, integrity is an important issue, as it guarantees its safety and also controls the monetary value of the asset, through maintenance plans. Normally, the operating companies have their own team responsible for keeping the entire monitoring program up to date.

The greatest proof of the effectiveness of pipelines is the low rate of accidents recorded in Brazil and worldwide, and in Brazil we have some of the largest pipelines in the world, some in operation since the 70s, and no fatalities have been recorded in this type of modal. The risk of operating pipelines is much lower than the risks of other means of transport, such as railroads and trucks.

Did you know that the operating cost of a pipeline can be less than a dollar per ton transported?

Pipelines are a great alternative for transporting large amounts of product, with low environmental and visual impact along their route, as most of them are below ground level.

There are several aspects that influence the operational cost of pipelines. It is possible to mention that the main input for the operation of a pipeline, be it pipeline or tailings pipeline, is energy, followed by spare parts and the cost of labor. As well as the cost of implementing CapEx, the cost of operating OpEx must also be considered when choosing the means of transport to be used.

It is worth mentioning that a pipeline does not have a significant demand for the use of labor. An example of this is that the operation of a 500 km long pipeline with two pump houses can be carried out with around 120 professionals. This is relatively low when compared to other modes of transport.

Energy Consumption

Energy consumption is directly linked to the energy needed to make the fluid move from a starting point to an ending point. Depending on the topography of the land where the pipeline is implemented, the transport can be done by gravity, that is, without any energy demand, however, this is not very common in Brazil.

The energy consumption of a pipeline normally represents between 60 and 70% of the operating cost of the system, therefore, it is important to have an adequate control of this input.

The supply of energy for the transport of ore in Brazil comes, in most cases, from a renewable source, generated through hydroelectric plants, making it a more environmentally friendly alternative when compared to the use of non-renewable energy.

Spare Parts and Labor

Due to the equipment used in an ore pipeline having a high operating efficiency, the cost of spare parts is relatively small, being below normal in the mineral sector, something around 3% of the value of the equipment.

An important factor to consider is that although the operational staff is small, they need to be specialized and technicians must have a good knowledge of hydraulics and pumps. The equipment in general is differentiated and requires a specialized workforce also for its maintenance. Thus, if the workforce is well-structured and the maintenance is well-scheduled, the pipelines can have an operating yield in the order of 98%. Currently, most of the parts used can already be purchased in the national market, not having great demand for the international market.

What would be the energy consumption per ton transported by a hypothetical ore pipeline, leaving the iron quadrilateral in MG for the Southeast coast?

The answer depends on several factors. Taking into account a transport capacity of 20 million tons per year, energy consumption represents approximately 0.55 US$ per tonne transported.

The operational cost is a very important item in the decision making for the most appropriate means of transport for a product.

The financial risk of choosing a means of transport with a relatively low initial cost of implantation, however, with a high cost of operation, and this option, in a market of commodities as volatile as today, it could, in the future, be very harmful to the enterprise.

Be careful to select a specialized company with know how, a good track record of executed projects and cases success in all three areas is undoubtedly the main way to mitigate risk. Sometimes an engineering savings that normally cost about 4 to 5% of a total project value can cost more down the road. Choosing a non-specialized company will certainly lead to some error during this process and the impact will be felt directly in the financial return of the project. Engineering savings do not represent a significant value in the final investment, however, good engineering can represent an excellent result to the economic-financial model of the project.

 

Rafael Lima is a mechanical engineer and has about 15 years of experience in designing pipelines, tailings, water mains and pipelines for long and short-distance ethanol transport, participating from the initial definition of the process, through the conceptual design to the implementation and pipeline operation, including in international projects. As an executive at Ausenco since 2004, he has worked on projects in several industries and mining companies in the country: Vale, Bunge, Votorantim, Fosfértil, MVC, Anglo American, Samarco, MBR, among others. He currently holds the position of Director of Pipelines at Ausenco.

 

 

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