lnternational Aspects of MineralsTransportation: Iron Ore, Coal, and Phosphate

Many mining engineers tend to think of the economic analysis of mining ventures and projects on an f.o.b. mine basis. This is especially true of mines that are operated in an established domestic mining district. Here, transportation costs are many times smaller in comparison to overall delivered prices. One has only to consider the development economics of taconite mines in Minnesota with production destined for lower lake ports to see the truism of this statement. In the international arena, however, with consumers such as Japan and Europe located thousands of miles from source countries such as Brazil and Australia, the situation is different because mineral transportation is often a critical factor in determining project viability. This article is being presented to provide a basic understanding of the factors that govern ocean transportation of the three largest bulk mineral commodities shipped around the world: iron ore, coal, and phosphate. The major dry bulk commodity trades as a percentage of volume shipped are iron ore, 45%; grain, 25%; coal, 20%; phosphate rock, 5%; and bauxite and aluminum, 5%. Most of these commodities are carried by bulk carriers rather than tankers. These are vessels that have cargo, usually in solid form, loaded directly into the hold of a vessel by shore-side materials handling facilities or, in the case of a geared bulk carrier by the vessel's cranes and derricks. Gearless bulk carriers are used in most cases for iron ore and coal. Geared bulk vessels are mainly used for minor dry bulk trades such as ore concentrates (copper, lead, zinc, etc.), fertilizers (phosphate, potash, etc.), cement, petroleum, and coke. There has been, however, a trend toward using more self-unloading ships in both iron ore and coal ocean transport. And large vessels, such as the Universe Kure of Japan, have been designed with a cargo capability of 157 kt (155,000 dwt (deadweight tons)). Trade patterns of major bulk commodities are influenced by the Panama and Suez canals. Both of these canals have draft limitations that prohibit large, deep-draft, ocean-going vessels from using them for shorter trade routes used by Panamax and Suex vessels. The shipping industry has developed two widely used vessel classes; the Panamax and Suex vessels. The former is the maximum size vessel that can pass through the Panama Canal, usually 51-61 kt (50,000 - 60,000 dwt), depending on the season and draft of the vessel. The Panama Canal is usually 0.6-0.9 m (2-3 ft) deeper in the winter than in the summer. Thus, less cargo can be carried by the same size ship in the summer through the canal than in the winter. The Suex vessel is in the 71-81 kt (70,000-80,000 dwt) class. This larger vessel is able to transit the Suez since Egypt deepened the canal following the Seven Days War. Recently, the Suez Canal has been deepened to accommodate vessels with drafts as deep as 152 kt (150,000 dwt).