Logistics system fully in place at Dannemora Mineral

 

• Logistics system fully in place for planned deliveries of up to  1.5 million tonnes of iron ore
• Dannemora has completed 23 deliveries since production start. Six of them in February

The port's plans to deepen and widen the channel into the port  will save sea freight costs considerably

Following the recent rail car deliveries, Dannemora now has all resources in place to deliver up to the planned 1.5 million tonnes of iron ore. The logistics system can be divided into four parts: Finished goods warehouse, Rail logistics, Port and Sea transport logistics

Finished goods warehouse
Dannemora's finished goods warehouse consists of two 2,500 tonne-capacity tanks, one for lump ore and one for fines. The warehouse is fully automated and is monitored from the control room for the sorting plant.

Rail logistics
All the rail cars needed for the planned production of 1.5 million tonnes of iron ore have now been delivered, including the extra rail cars needed to conduct continuous maintenance without disruption to deliveries.

The train departs from Dannemora three times a day. The number of rail cars used is dependent on the volume of the deliveries. At present, 14 rail cars are used to ensure capacity for transporting 3,000 tonnes per day.

Port
Hargs Hamn AB is now completing the automatic rail car unloading facility which is being built for Dannemora Mineral. From 1 April 2013, investments in the port will be completed and the port will be equipped for fully automatic handling of fines and lump ore from Dannemora in the immediate future. Loading of ships will actually be via a weather-protected conveyor.

Now that the Environmental Court has approved the port's plans to deepen and widen the channel into the port, the port company expects the work to have been completed by spring 2015. This means that vessels up to 40,000 tonnes will be able to be loaded at the port, compared with 20,000 tonnes at present. This will represent a saving of almost half of the sea freight costs for Dannemora Mineral AB.  At the 2015 volume of 1.5 million tonnes, the total saving will be over USD 10 million.  

Sea transport logistics
Depending on customer and order size, ships of 20,000 tonnes, and sometimes 10,000 tonnes, are mainly used. Vessels are chartered on the spot market at the present time. There is good availability of vessels and no disruption has occurred, despite a harsh winter with much ice.

The feasibility of establishing a regular service to customers with regular deliveries will be investigated during spring.

 

Read Press release below

Press release 28 February 2013

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Source: Dannemora Mineral AB via Thomson Reuters ONE

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