Barbil Angul Slurry Pipe line

Copyright © 2010 Jindal Steel & Power Ltd.1
Barbil Angul Iron Ore Concentrate Slurry Pipe Line
Dr. Rakesh Saxena
Associate Vice President
Barbil Angul Iron Ore Slurry Pipe Line Team

Historical Perspective – PSI, USA
Progress Date Scope of Work Amount Remarks
LOI 30-
Apr-08
Design, Tech. Specifications, and
Procurement assistance for
a)10 MTPA, 225 km 8 MTPA, 200km
b)Feasibility study for less or greater than 10 MTPA
capacity.
c)Techno-commercial study for 2 x 5 MTPA and 1 x 10
MTPA
US$ 645,000 a) 70% pellet
& 30%
sinter feeds
b) 12 MTPA is
also
possible
Work
Order
05-
Jun-08
Based on the Techno – Commercial study, Capacity fixed
at 10 MTPA, with feed size (45 microns)
US$ 645,000
Change
Order 1
17-
Feb-09
On-site testing for iron ore fine samples US$ 23,880
Change
Order 2
01-
Oct-09
Change in pipeline route from 225 km to 181 km US$ 38,780 Capacity
uncertain
Change
Order 3
25-
Feb-10
Capacity change from 12 MTPA to 6 MTPA US$ 72,670 Sum up to
Change Order
3 - US$
780,330
Change
Order 4
20-
Apr-11
Capacity change from 6 MTPA to 12 MTPA US$ 103,930 Not approved

Summary of Payment to PSI
S.No Description Amount in % Amount Paid (US$)
1 Original WO price
a) Advance against bank guarantee 10% 64,500
b) Tests, Optimization & Design basis 20% 129,000
c) Steady state hydraulics 20% 129,000
d) Long lead items specs & MRs 20% 129,000
e) All other deliverables and specs 20% 129,000
f) Against performance bank guarantee (valid till 6 months
from the actual commissioning)
10% 64,500
2 Change Order 1 Full 23,880
3 Change Order 2 Full 38,780
4 Change Order 3 full 72,670
Total amount paid . WO closed 100% 780,330

PSI – Change Order 4
• Total value paid to PSI (up to change order No. 3) US$ 780,330
• If change order 4 shall be issued to PSI, then the total order value to
PSI shall scale up to US$ 884,260
– 12 MTPA is included
– Water pump back through the same pipeline is not included by
PSI
– Broad range of turndown ratio is not included by PSI
– Batch pumping (pellet feed & sinter feed) is not included by PSI
Progress Date Scope of Work Amount Remarks
Change
Order 4
20-Apr-
11
Capacity change from 6 MTPA to
12 MTPA
US$ 103,930 Not approved

Progress from Feb 2008 to June 2011
Throughput Decisions
• Project delayed due to:
– IPICOL water requirement
– 70% pellet & 30% sinter feeds
– Carrying capacity decisions
• Time Spent – 41 months
• Amount Spent – US$ 780,330
Output - ?

Changed Design Parameters July 2011
• July 11,2011- Rethinking process started due to changed
requirements
• 12 MTPA capacity upgraded only for pellet feed and not with
sinter feed.
• Pump back water with same pipeline
• Batch pumping (pellet feed & sinter feed)
• Broad range in operating turn down ratio
• Based on the changed requirements, enquiry made to PSI,
USA & OSD Pipelines, Australia
• PSI, USA is not responding to our enquiry
• OSD Pipelines has submitted the offer


OSD Proposal – Current Status
• The present design assumes a single 6 MTPA concentrate
pipeline for pellet feed (only) and turndown capacity to
approximately 4 MTPA
• The permission for water rights for the project require a water
management strategy to account for the potential recycle of
200 m³/hr to 900 m³/hr of process water. This is not addressed
in the PSI design
• The concentrate pipeline design philosophy requires to
accommodate the transport of sinter feed concentrate in
addition to pellet feed
• The plant ramp up schedule from 5 MTPA to 12 MTPA needs to
be addressed within the design of the concentrate pipeline


Way Forward
• The design for the concentrate pipeline requires to be
optimized and provide a Customized Tailor made design for our
proposed operation.
• The design approach requires to consider the following
optimization:
• Sufficient turndown capacity to minimize water usage
• Consider the ability to transport pellet feed and sinter feed
concentrate
• Demonstrate the feasibility of returning 200-900 m³/hr of
water through the same pipeline


Action Plan
• OSD visited Angul on September 8th
and 9th
and reviewed the
existing 6 MTPA design and outlined a path forward to optimize
the design to a 12 MTPA pipeline with a 7.8 MTPA potential
turndown capacity


Path forward
• OSD provided a path forward to address the optimization of the
existing design and deliver a comprehensive slurry transport
solution to JSPL including the following:
• Auditing of the existing design with the objective of
upgrading to 12 MTPA
• Slurry characterization test work in Perth for Sinter feed and
validation of pipeline transport solution (batch operation)
• Revise/update existing system drawings as necessary to
correlate with 12 MTPA outcome and turndown
requirements.
• Exclusions: route selection, capital and operating cost
estimating, bid evaluation and material requisition


Who is OSD Slurry Pipelines Group
• Privately held pipeline consulting with 180 employees based in
Australia, Canada, Chile, and New Zealand.
• 50+ years of collective slurry pipeline design and operating
experience worldwide.
• Involved in the design and operation of over 1500 km of
successfully operating concentrate pipelines worldwide
including the Essar Iron Concentrate Pipeline in India.
• Specific concentrate design and operational experience in
current operation:
• 267 km, 24 inch iron concentrate pipeline (Essar, India)
• 170 km, 9 inch iron concentrate pipeline (Da Hong Shan, China)
• 398 km, 14-16 inch iron concentrate pipeline (Samarco, Brazil)
• 302 km, 8 inch copper/zinc (batching) concentrate pipeline (Antamina, Peru)

Comparison of PSI & OSD
Attributes PSI OSD Pipelines Remarks
Scope of work
a) Offered for 6MTPA of Pellet
plant feed (need reworking to
enhance the capacity to 12
MPTA)
a)Offering for 12MTPA includes
feed for both plants i.e Sinter &
Pellet .
With PSI- extra time &
cost involvement for
revised parameters.
b) No water returning facility
with same pipe line
b) Provision of water returning
facility with same pipe line
With OSD- Better
provision of water
conservation
c) Process for only one
type(pellet plant ) of feed
c) Process for two types of feed
(pellet plant & sinter plant )
With OSD- Better
utilization of facilities.
d) No desirable range in turn
down ratio
d) Have desirable Range in
Turndown ratio varies from 6MTPA
to 12 MTPA
With OSD- Better
flexibility of resource
utilization .
Option study
Techno-commercial comparison
of 2 x 5MTPA with 10MTPA for
pellet feed resulted in delay in
project proceedings and cost
escalation
Option has been freezed by JSPL
and offer has been made for the
same (no further study is required)
Additional cost is paid for
option study with PSI.
With OSD- offer is
customized & economical
in terms of cost & time .

Comparison of PSI & OSD (continued)
Attributes PSI OSD Pipelines Remarks
Quality of delivered
offer ( Time & quality
prospective)
Basic engineering is not
meeting JSPL requirement
even after working of 24.
months).
Offer for finishing the
basic engineering in 5
weeks only
>With PSI- Still need more
time & money for
customized delivery.
OSD
will study the work done by
PSI ,to incorporate positive
aspect of it in the project.
Quality of delivered
offer ( Cost prospective)
US$ 6450,000 (for BE) +
$106,000 (Revised Scope) +
$ extra to be paid for third
revision
A$320,000 + $60,000 +
$20,000= Total 4000
US$ (Provision of
progressive payment)
With PSI- Cost involvement
is 2.39 times more than OSD.
Availability of Supplier Availability is not easy. Committing for the
completion of job.
Even after long association
,PSI is not responding
recently, hence availability
can't be confirmed.
Scope of IPR &
Technology ownership
& royalty
Not clear in offer Scope of mutual
discussion &
finalization

Recommendation for OSD Pipeline
• Integrated technology for both type of slurry feeds in single pipeline
• Use of existing PSI work to reduce the CAPEX
• Broad operating range of turndown capacity from 12 to 6 MTPA
• Saving of US$ 60,000 by minimizing the site visits
• Optimized Design for pumping back water with the same pipeline
• Minimum allowable velocity of 1.3 m/s against 1.6 m/s of PSI
• Lower cost of per hourly working rates than PSI
• Customized design with lower CAPEX (A$ 400,000)
• Offered duration to complete the job is in 16-20 weeks
• OSD offers a long term relationship and a lower risk profile to the
design and sustainable operation of the concentrate pipeline
• The OSD Slurry Group is the fastest growing slurry group in the
industry and is currently working with tier 1 mining and engineering
firms worldwide

Barbil Angul Slurry Pipe line

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Barbil Angul Slurry Pipe line