Mines and Quarry – Page 15 – Ying Hui International

Tesla targets $1bn investment in Australian EV minerals

Tesla chair Robyn Denholm has declared the company plans to spend more than $1 billion on Australia’s minerals supply to cater for growing electric vehicle (EV) demand.

Denholm, who spoke at the Minerals Council of Australia’s minerals week, said each electric vehicle has around $5000 worth of minerals with Australia capable of supplying almost all of it.

“Australia is the only country in the world with resources in all three of the critical battery metals, as well as other minerals required for the clean energy transition,” she said.

“By 2030, the value of the global lithium-ion battery market is forecast to be $400 billion. That’s eight-times the revenue generated by Australia’s coal exports in 2020.”

Tesla has also valued Australia’s environmental social governance (ESG) practice and investor confidence in mining.

“In short, a values-led mining industry has greater value to Tesla and to an increasing portion of the global marketplace,” Denholm said.

“…Australia has the potential for some of the lowest emissions resources in the world.

“This is critically important over the next 30 years, because manufacturing as a whole has to decarbonise very quickly and this means that low-carbon minerals will be at a strong advantage in the new supply chains being created for renewable energy.”

According to Denholm, Australia has a competitive opportunity to enhance its environmental, social and governance (ESG) practices for the future.

“Tesla is the world’s largest manufacturer of electric vehicles and battery storage systems,” Denholm said.

“At the heart of everything we do in our quest to accelerate the transition to sustainable energy is the lithium-ion battery – one of the most important technologies of the century.

“There is a global transition to sustainable energy underway and this presents a huge opportunity for Australia.”

Denholm said Australia should also prioritise onshore refining of its lithium to save costs and reduce emissions.

“There’s another reason for Australia to prioritise onshore refining; it’s a huge economic opportunity,” Denholm said.

“Tesla estimates that last year, Australia supplied approximately 49 per cent of the world’s lithium ore – spodumene – but zero per cent of the refined product suitable for battery cells. That lithium sold for about $100 million US Dollars – but if it was processed on shore in Australia the value would have been more like $1.7 billion dollars.

“So that’s a $1.6 billion annual opportunity and growing.”

Australian gold down but not out in 2021

Australian gold production fell by nine tonnes for a total of 74 for the March quarter, down 11 per cent on the previous period, according to gold consultants Surbiton Associates.

The output was worth $5.5 billion at the quarter’s average gold price and Surbiton director Sandra Close said the drop was nothing to worry about.

“While gold output for the quarter was down considerably, this is no cause for concern,” Close said.

“Production was about three tonnes or four per cent less than the corresponding March 2020 quarter and such variations are not uncommon.”

Surbiton said while the period was usually victim to cyclonic weather in northern Australia, this had less of an impact than other years.

Close said China’s gold production was more noteworthy, as the world leader produced 74.44 tonnes of gold for the March quarter.

“Chinese production figures need to be treated with caution,” Close said.

“Australia may even be on the way to overtaking China as the world’s largest gold producer, but it is far too early to draw any real conclusions.”

In Australia, Kirkland Gold’s Fosterville mine in Victoria fell from third to fifth on the country’s list of largest gold producers, with a decline of 55,000 ounces on the last quarter.

Retaining top spot was Newcrest Mining’s Cadia East mine with 179,546 ounces of gold for the quarter.

Close said while some larger mines fell, other up-and-coming operations will look to challenge them over the next few years.

“Fosterville, Tropicana and Boddington together accounted for a reduction in output of 116,000 ounces, or 3.6 tonnes of gold, which was more than one third of the total reduction for the March 2021 quarter,” Close said.

“Novo and Ora Banda will increase output as they ramp up to full capacity over the next few months.

“Also, Capricorn Metals’ Karlawinda is due to start up mid-year and Wiluna Mines’ expansion project is underway.”

Close had no worries for the future of Australian gold, as prices and expenditure in exploration have uplifted the sector significantly.

“Thanks to higher gold prices in the last couple of years, the gold sector has continued to raise considerable capital and there is a tremendous amount of exploration going on, with excellent results being reported,” Close said.

“The chances of Australia’s gold output declining sharply in the next few years is unlikely.”

Australia’s largest gold producers for the March 2021 quarter were:

Cadia East 179,546 Newcrest Mining Ltd

Boddington 152,000 Newmont Inc.

Tanami 117,000 Newmont Inc.

Super Pit 111,278 Northern Star Resources Ltd

Fosterville 108,679 Kirkland Lake Gold Inc.

Copper explorers back record price run

Two Australian companies are confident that copper prices will continue to set records, with the red metal reaching a new high of $US10,724.50 ($13,682) on the London Metal Exchange (LME) overnight.

The red metal’s previous all-time high was recorded on May 7, where it reached $US10,361.

Junior explorers Kincora Copper and QMines started trading on the ASX in March and May, respectively, with both companies aiming to develop their copper assets.

QMines executive chairman Andrew Sparke said 11 straight months of decreased copper supply in Chile and COVID-19-related labour issues in South America have raised demand.

“The amount of copper we need to green the world is enormous,” he told Australian Mining.

“Where all this copper supply is going to come from is certainly yet to be determined. That backdrop is causing declining investors on the LME.

“It’s a really nice environment to be a copper explorer or company transition into copper development.”

Copper has been in high demand due to increases in economic stimulus from COVID-19.

Strained supply of the commodity has driven the copper price upwards, off the back of economic stimulus spending and copper’s importance in clean energy technology.

Sparke said ageing mines in South America, a country that has historically been a major supplier of the red metal, caused resources to be harder to extract as mines were forced to go deeper underground.“My view is demand will increase when supply is quite challenged. That is supported by many groups – Goldman Sachs is expecting a 600-900 per cent increase in copper demand until 2030,” he said.

QMines is developing its copper projects in Queensland, with its ASX listing aiming to fund a large exploration program at its Mt Chalmers copper-gold mine, a historic site that was operated between 1898 and 1982.

Its existing inferred resource is 3.9 million tonnes at 1.15 per cent copper and 0.81 grams per tonne of gold.

“In terms of unlocking value, we’re going to use those proceeds from the capital raised to roll out an exploration program that has an aim of increasing the resource,” Sparke said.

Kincora Copper president and chief executive officer Sam Spring said the push for decarbonisation and stimulus packages has increased copper demand.

“It’s a tailwind for the junior sector,” he told Australian Mining. “The improving copper price increases investor sentiment and that filters down to the junior miners who increase exploration with brownfield and greenfield projects.”

Kincora Copper has assets both in Australia and Mongolia, with the company listed on the ASX and the Toronto Stock Exchange (TSX).

Spring said copper was vital to a clean energy future due to its conductive properties.

“One thing about copper is that it’s the most cost-effective means to conduct electricity, both powering the vehicle, and getting power to the charging point. The shift from carbon cars to electric vehicles will see an increase in copper demand,” he said.

“It’s the same narrative for energy use at home from traditional power to solar and the likes. The foundation for this move in copper price has been in place for quite some time.”

Records rain on South32 in 2021

By Henry Ballard

*Illawarra Metallurgical Coal. Image: South32*

South32 has met or exceeded production expectations across its Australian operations, not allowing inclement weather to diminish a strong March quarter.

Worsley Alumina, in which South32 owns 86 per cent, is on track to achieve nameplate capacity of 4.7 million tonnes at its bauxite mine in Western Australia.

One of the world’s largest sources of alumina, the mine has undergone planned maintenance to its calciner which allowed nameplate to be achieved.

South32 has set a year-to-date production record for its Australian manganese operations at the Groote Eylandt Mining Company operation (GEMCO) in the Northern Territory.

The 4.329 million wet metric tonnes of high-grade manganese produced were a 5 per cent increase on last year’s prior corresponding results.

Despite this, production guidance of 3500 wet metric tonnes for the manganese operation will remain unchanged in consideration of the effects of the wet season.

“We set year to date production records at Brazil alumina and Australia Manganese,” South32 chief executive Graham Kerr said.

“We increased our production guidance for South Africa manganese as we continue to respond to market conditions and at Cannington off the back of continued strong underground performance.”

At the Cannington silver and lead mine in north west Queensland, South32 increased its production guidance by 10 per cent for the 2021 fiscal year, despite also being hit with torrential rain through the March quarter.

Silver production was almost 3.5 million ounces for the March quarter, an 11 per cent increase on the previous period, while lead jumped by 6 per cent on the last quarter to 33,000 tonnes.

South32 expects weather-related disruptions to Cannington’s rail logistics to be resolved over the coming quarter, making March’s strong results all the more impressive.

On the company’s length of positive results, Kerr said they only strengthened confidence in the future for South32.

“Looking ahead, we expect the global economic recovery combined with fiscal stimulus to continue, driving a rebound in metal demand and sustaining higher prices for many of our key commodities,” Kerr said.

“We continue to reshape our portfolio, moving closer to the divestment of South Africa Energy Coal while progressing studies for our base metals development options.”

At South32’s Illawarra metallurgical coal operation in New South Wales, the company reported a 17 per cent increase in year-to-date production.

It produced 1.57 million tonnes of metallurgical coal during the March quarter, which was a 12 per cent increase on the previous quarter.

This increase was thanks in part to the Appin project’s longwall reconfiguration in late-2019, allowing for improved efficiencies.

The coal operation will now look to the June quarter of 2021 for the next stage in its longwall reconfiguration, in hopes that further efficiencies can allow for greater production and less resource waste.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.

Infrastructure priority list promises record investment

More than 40 new proposals have been added to the national project pipeline, now worth $59 billion.

Infrastructure Australia has released its priority list for 2021, with a record number of new investments included across the country.

Forty-four new proposals have been added to the project pipeline, now worth $59 billion, while 10 projects have been moved off the list and into the construction phase.

Infrastructure Australia chief executive Romilly Madew said regional investment became a focus for the list this year.

“More than half of the investment opportunities on the 2021 Priority List benefit our regional communities, as we continue to draw focus on equitable service delivery and investments that will deliver affordable and quality infrastructure services for all Australians, regardless of where they live,” she said.

Among the 44 new projects to make the List were the Parkes Bypass to connect Melbourne and Brisbane, Parramatta’s outer ring road capacity, and Melbourne to Adelaide freight rail improvements.

With 180 projects on the list, chief executive officer for Cement Concrete & Aggregates Australia (CCAA) Ken Slattery said there’s a bottleneck between the government’s words and its capacity to act on them.

“There is a concern that the list is fine, but how such a record level of investment actually gets translated into constructed projects is unclear,” Slattery said.

Chief executive officer of the Australian Constructors Association (ACA) Jon Davies said the list plays a key role in supporting the nation up from its knees, post-COVID-19.

“With this record number of new investment opportunities, all levels of government need to work with industry to ensure that projects are delivered in a timely and efficient manner that maximises the social and economic benefits of the government’s investment,” Davies said.

“This will be vital in a post COVID-19 world with high levels of government debt but no less of a requirement to construct productivity enhancing infrastructure.”

Slattery agreed, if the industry could survive COVID, it’s exactly what the nation needs to renew itself in the coming years.

“One of the things we’ve seen is a strong and viable construction sector represents the backbone of the economy and the fact the construction industry has been able to operate throughout [COVID-19] has meant there has been a strong level of support for businesses and employees,” Slattery said.

“We’re talking something like 1.1 million people employed by the building and construction sector who stayed in work and continue to pay taxes and continue to support the economy more broadly, which is vitally important.”

Slattery said the CCAA was pleased its direct consultation with Infrastructure Australia was seen in the list’s considerations.

“We are encouraged by Infrastructure Australia recognising the role of the supply chain in all of this, which is a relatively recent development,” Slattery said.

“In the past we’ve simply seen that big projects were identified, supported and pursued without any real thought on where the materials were going to come from.

“We’re of the view that Infrastructure Australia really are paying due consideration to that. What we need is that to translate in approval processes and approval times.”

Included in the 10 items to leave the list for the construction phases were Nowra Bridge (NSW), the M1 and Bruce Highway works (Queensland), and METRONET works (WA).

Metso Outotec wins Lynas rare earths contract

Lynas Corporation has signalled the start of development of its Kalgoorlie rare earths processing plant in Western Australia by awarding a contract to Metso Outotec.

The newly-merged company will supply the processing plant’s kiln – the largest and longest lead time piece of equipment required for Lynas’ operation.

The contract for the kiln, which measures 110 metres and weighs 1500 tonnes, will fetch around $US15 million ($21.6 million) for Metso Outotec. It will involve discharge housing, combustion chamber and burner, motor control stations and delivery to Kalgoorlie.

Metso Outotec will manufacture the kiln according to Lynas’ design. It will be an improvement to the four 60-metre kilns currently in operation at the Lynas Malaysia plant.

“The kiln is the longest lead time item for our Kalgoorlie project and placing this order is an important milestone in the development of our new processing plant in Kalgoorlie,” Lynas chief executive and managing director Amanda Lacaze said.

“We are making good progress on the project, and we look forward to working with Metso Outotec on the engineering and supply of the kiln.”

Metso Outotec plans to commence work on the kiln immediately, with components to be manufactured in Australia and Europe.

“We are excited having been selected by Lynas as a key supplier for the development of its significant greenfield project in Western Australia,” Metso president – mining equipment, Stephan Kirsch said.

“The Metso rotary kiln system forms an integral part for the processing of rare earths.”

The Kalgoorlie rare earths processing plant earned major project status from the Australian Government earlier this year.

It will undertake cracking and leaching of rare earth concentrate from Lynas’ Mt Weld mine in Western Australia’s Goldfields region.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.

Australian lime market to reach more than $500 billion this decade

Three types of lime products are produced in Australia, including aglime, quick lime and hydrated lime.

There are good signs for Australia’s limestone segment, with the lime market expected to exceed $USD339.5 billion ($AUD510.8 billion) by 2027, according to a report by Coherent Market Insights.

An increase to lime’s demand in the agriculture and the steel industries is expected to drive profits up in the coming years.

“The Australia lime market was estimated to account for $USD290 billion ($436 billion) in terms of value in 2018 and is predicted to grow at a CAGR (compound annual growth rate) of 1.7 per cent during the forecast period (2019 to 2027),” the report stated.

Lime – or calcium hydroxide – is produced by heating limestone, and has widespread use across construction, industrial, chemical, environmental and metallurgical sectors.

Australia produces three types of lime products, including aglime (agricultural lime), quick lime and hydrated lime.

The steel industry, which contributes upwards of $16 billion to Australia’s GDP, requires lime for its activities.

While the nation faces a drop in construction activity, the use of lime in agriculture is expected to keep the market growing.

On basis of product type, in 2018, aglime accounted for the largest market share of 52.4 percent, with 778.5 kilotonnes, in terms of volume, the report stated.

“This is mainly due to increase in demand for aglime in farms as it is used to counter the high acidic content in soil and neutralise its pH factor to avoid any toxic contamination in plants.”

Major players in the Australian lime market include ADBRI (Adelaide Brighton), Boral, Sibelco, Omya Australia, Wagners and Lime Group Australia. New South Wales has the nation’s largest market share of lime at 31.3 per cent in 2018, with volumes predicted to reach 410.5 kilotonnes by the end of 2027.

Australian manufacturing’s ongoing industrial evolution focus for NMW

National Manufacturing Week (NMW), held at the Melbourne Convention and Exhibition Centre from May 14-17, will highlight the continuous growth and change the industry is experiencing.

NMW will feature a theme of ‘Industrial Evolution’ throughout the four days of the conference program and exhibition with a specific focus on driving further innovation in local manufacturing, continuing the evolution of the industry advanced technology solutions, sharing insights to stay ahead of the game, while celebrating Australian manufacturing’s resurgence.

NMW exhibition director Robby Clark said this year’s event promises to support the continuing high-tech and highly integrated evolution of the industry.

“There’s been a resurgence of late in Australian manufacturing, which is being generated by the industry’s collective realisation, active progression and evolution to being technologically advanced, highly integrated, automation and high-level engineering.

“Equally, we’ve also seen Industry 4.0 or the Internet of Things become a reality from technological forecast, which for manufacturing has manifested in operations – for example in smart factories where sensors are providing actionable intelligence or underpinning greater automation.

“Knowledge gathering and solution sourcing are critical steps for manufacturing professionals looking to navigate this industrial evolution that is currently underway. The exhibitors for this year’s event will provide manufacturers with the latest range of products and solutions designed to improve operations and operational performance, increase efficiency and resolve challenges, while the content within the conference program will offer specific advice and visibility into how industry leaders are managing change,” said Clark.

At National Manufacturing Week 2019, the exhibition floor will feature more than 200 leading industrial suppliers of game-changing solutions, new technology, advanced manufacturing products and operational services.

Visitors will be able to take advantage of six designated product zones to navigate through the exhibition floor, which segment the extensive range of products and solutions into key operational categories. The six product zones for 2019’s event are automation and robotics, engineering, Industrial Internet of Things, safety, welding technology, and manufacturing solutions.

Key exhibitors across these six product zones include:

Automation and Robotics – Pilz, Universal Robots, Wago; Engineering – Faro, Prytec, BE;

Manufacturing Solutions – Flow Power, Combilift, Intelli Particle;

Industrial Internet of Things – Epicor, ECi Solutions, Cadgroup; Safety – Vanguard Wireless, Atom, Axelent;

Welding Technology – BOC, Lincoln Electric and Supagas.

There will also be an extensive conference programme that will feature a line-up of more than 70 industry speakers and panellists, who will share their exclusive insights about current industry challenges and recommendations for operational success. With the program’s sessions segmented across two streams, each with their own dedicated theatre, of “Industry 4.0” and “Connected Manufacturing”.

“This year’s conference program will be our most extensive and in-depth to date, with delegates offered unprecedented access to industry leaders with the expertise, knowledge and understanding to develop the strategies and practices for generating further growth,” said Clark.

Must-see theatre programs

The Industry 4.0 Theatre program will offer attendees the latest opinions, developments and research about the impact of Industry 4.0 on businesses and operations. A key highlight of this program will be the opening keynote, which will be delivered by Australia’s chief scientist, Dr Alan Finkel, followed by an innovation and collaboration stories series run by the Advanced Manufacturing Growth Centre (AMGC).

Across days 2-4 of this stream’s conference sessions, other noteworthy speakers include Swinburne University director of Factory of the Future Dr Nico Adams, CSIRO Data61 principal research consultant Dr Elliot Duff, Innovative Manufacturing CRC CEO David Chuter, Siemens head of digital enterprise Christopher Vains, and AMCG managing director Dr Jens Goennemann.

The Connected Manufacturing Theatre program offers expert advice about business management, design and industrial challenges.

Conference sessions within this stream will focus on industry topics, including environment and energy policies, process improvement and optimisation, safety innovation, safety policies, safety management and culture, mental health and well-being, marketing and sales, additive manufacturing and design, and government grants and tariffs.

Industry leaders who will feature in some of these sessions, include Efic Business Development Director Philip Smith, Australian Packaging Covenant Organisation CEO Brooke Donnelly, and Fonterra Cooperative Group HR Systems Owner Toni Kennington.

Clark said this year is NMW’s most extensive program ever, in both speaker volume and industry experience. “We are really looking forward to seeing the best game-changing, innovative and high-tech solutions that our industry-leading exhibitors are planning to demonstrate and display.”

Industry support is key

Strategic partners and industry associations supporting NMW in 2019 include Weld Australia, AMGC, Innovative Manufacturing CRC and Engineers Australia. These respective partnerships strengthen NMW’s depth and relevance of insight sharing and cement the event’s status as a key hub for the manufacturing community to come together.

As a strategic partner of this year’s event, Weld Australia will have an interactive presence on the exhibition floor offering visitors deeper insight into the latest welding skills training available. Weld Australia marketing and communications manager Donna South said Weld Australia will have an advanced welder training hub on the exhibition floor. “[This] will showcase the augmented and virtual reality technology that is revolutionising welder training here in Australia, and around the world.

“Attendees will have the chance to see and try a range of different welding simulators, which are making welder training and upskilling safer, more cost-efficient and engaging for new and experienced welders,” said South.

Improving business by understanding challenges

With NMW featuring a variety of Industry 4.0 applications that are helping lead the way for a strong future for the manufacturing industry, Clark said implementing smart solutions is a must.

“Manufacturing is no different from any other industry, in terms of needing to understand the change and challenges ahead, develop strategies and acquire the knowledge or capabilities to manage these changes or evolutions, while ensuring their customer service and productivity are not detrimentally impacted during this management of change.

“IoT is understandably forcing rapid change across the industry from operational practices and execution, to higher integration, reconsideration of approaches to production or task completion and the requirement to plan for future change, which are typified by the increasing level of ‘smart factories’ or factories with smart solutions.

“Therefore, we know businesses within the industry are actively considering and working to improve their operational practices and refine their approach or strategy for continued success. Because improving a business isn’t a process where ticking a box or achieving that next milestone is the measurement of success.”

To stay ahead of the game, Clark said manufacturers should acquire the latest insights, and collaborate and engage with industry peers.

“Whether your objective is to improve efficiency, productivity or increase quality, it’s crucial to take advantage of opportunities like NMW that support your business in its pursuit of future growth, by providing a forum to engage with industry leading solutions and operational experts.” said Clark.

Registration is now open for the 20th edition of National Manufacturing Week (14-17 May 2019), with free registration available at: www.nationalmanufacturingweek.com.au.

Lincom Group and McLanahan announce partnership

Original equipment manufacturers (OEM) Lincom Group and McLanahan Corporation have signed a contract that will see the former become the official Australian distributor of McLanahan’s sand and aggregates processing range.

This includes the distribution of McLanahan machinery designed for washing and classifying, tailings and water management and dewatering that will benefit both parties.

The collaboration will increase Lincom’s product offering while offering new distribution channels for McLanahan.

Lincom and McLanahan are both family-owned companies with extensive experience in the materials handling and material processing fields in the mining indudstry.

The partnership would bring more McLanahan products and installations in the market, according to Lincom chief executive Stephen Watterson.

“As a leading provider of material processing equipment, we are always looking into the best quality equipment for our customers and to machine plant that complement the range we already successfully provide,” Watterson said.

“McLanahan Corporation is a global provider with a reputation of top quality, with the highest standards for engineering and manufacturing, which is of huge importance to us.”

Fortescue approves $3.7bn Iron Bridge stage two expansion

Fortescue Metals Group subsidiary FMG Magnetite and joint venture partner Formosa Steel have agreed to the development of stage two of the Iron Bridge magnetite project in the Pilbara, Western Australia.

The $US2.6 billion ($3.7 billion) development includes a 22 million wet metric tonnes-per-year ore processing facility (OPF), an airstrip and expanded village, a 195-kilometre Canning Basin water pipeline and a 135-kilometre concentrate pipeline to Fortescue’s Herb Elliot port facility in Port Hedland.

The project will employ around 3000 people during construction and 900 full time positions once operations commence.

The development follows Fortescue’s $US500 million ($703 million) stage one construction of large scale pilot and demonstration plants, which have validated key equipment and magnetite production processes for the full-scale stage two OPF.

“The Iron Bridge project holds Australia’s largest JORC-compliant magnetite resource supporting a long mine life,” Fortescue chief executive Elizabeth Gaines said.

“The project is well progressed and ready for detailed design and execution with the majority of key approvals already in place. The innovative design, including the use of a dry crushing and grinding circuit, will deliver an industry-leading energy efficient operation with globally competitive capital intensity and operating costs.

“Our focus has been to create the most energy and cost-efficient ore processing facility, tailored to the specific ore we will mine.”

The Iron Bridge project is targeted to produce 22 million wet metric tonnes per year once full operational capacity is achieved.

First ore will be delivered in the first half of 2022, with ramp up to full production within 12 months at an all-in sustaining cost of $US45–55 per dry metric tonne.

This project will also deliver a premium product with iron content of 67 per cent, further enhancing the range of products available to Fortescue’s customers, according to Gaines.

When combined with the Eliwana development, the Iron Bridge expansion will increase Fortescue’s average product grade and provide the ability to deliver the majority of the company’s products at greater than 60 per cent iron, consistent with Fortescue’s long-term goal.

Coincidental to news of the approval, Fortescue has also updated the Iron Bridge’s magnetite mineral resource estimate, with ore reserves climbing up to 716 million tonnes on June 2018’s 705 million tonnes.

“This update supports the development of stage two of our Iron Bridge magnetite project announced today which holds Australia’s largest JORC compliant magnetite resource,” Gaines said.

“We are confident in the long-term demand for this premium product, supported by market fundamentals, including global supply conditions, investment in higher efficiency steel-making capacity, as well as the competitive advantage of proximity of the Pilbara to key markets in China and the region.

“We are ready to build this plant and develop this mine, and are confident that our early work will support rapid progress to full production.”

FMG Magnetite is a subsidiary of FMG IB, a Hong Kong registered company owned by Fortescue (88 per cent) and a subsidiary of Baosteel Resources International Company (12 per cent).