Australia, renowned for its rich resources, is the world’s largest refiner of bauxite – monopolising around 40 per cent of global production; the second largest producer of uranium, zinc and nickel; and the third of iron ore. With the mining sector developing new deposits as demand for mineral products increases, the power generation that supports this thriving industry must also increase supply and is looking increasingly at natural gas.

The mining industry is embracing cleaner power generation with a number of up and coming projects utilising gas including BHP Billiton’s Worsley Alumina Refinery, with the development of its $500 million multi-fuel cogeneration power plant; Rio Tinto’s planned gas-fired cogeneration plant for its Yarwun Alumina Refinery; and, Alcoa has partnered Alinta to develop cogeneration plants at their Western Australian refineries. Alcoa said that a year’s electricity from each cogeneration unit saves approximately 450,000 tonnes of greenhouse gas emissions compared to a similar sized coal-fired plant.

Sino signs up for gas

CITIC Pacific Mining’s Sino Iron Project – the largest planned magnetite project in Australia – is to be supported by a combined-cycle gas-fired power station that will be the first of its kind in the Pilbara, Western Australia.

Located at Cape Preston, the power station will produce approximately 40 per cent less emissions than an open-cycle gas-fired plant. With an initial capacity of 450 megawatts (MW), the design has allowed for possible future expansions.

The power station’s current configuration will consist of three power blocks and one gas turbine in open cycle operation. Each power block comprises two 47 MW gas turbines, one 58 MW steam turbine and two 29 MW heat recovery steam generators. The seven gas turbines are to be supplied by Siemens and the steam turbine by Shin Nippon Machinery.

AE&E Australia has been selected to provide design, supply and installation services for the power plant. CITIC said that the bulk of earthworks on the power station are now complete, civil works have commenced and the first of the gas turbines has recently been installed. First production for the Sino Iron project is scheduled for the second half of 2010.

The Sino Iron Project will be supplied by gas from the offshore Reindeer field being developed by a joint venture between Apache and Santos. Gas will be supplied over seven years commencing in the second half of 2011.

Commenting on the benefits of utilising gas in power generation, a CITIC spokesperson said “Available close to the project in the Pilbara, gas makes an efficient, clean energy source for power generation.”