McArthur River Mine
McArthur River Mine, Australia

Reference case

Wärtsilä + EDL – A  continuing and long-lasting partnership

The McArthur River Mine in Australia, is one of the world’s largest providers of zinc in bulk concentrate form. Global energy producer EDL is responsible for supplying power to the mine. Wärtsilä has been a trusted partner for EDL for many years now, delivering gas engines and providing lifecycle services for condition-based maintenance to the power plant. The end result is better fuel efficiency, a low levelised cost of electricity, lower OPEX and guaranteed availability.

A challenging environment

The McArthur River Mine in the Gulf of Carpentaria in the Northern Territory of Australia, is one of the world’s largest providers of zinc in bulk concentrate form.

The mine produces approximately three percent of the world’s total zinc resources used by all types of smelters each year.

The plant is located in an area where temperatures can hit 45°C. The environmental conditions, combined with a need for high fuel efficiency and a low levelised cost of electricity, made gas engines a natural choice as they do not suffer significant derating at high ambient temperatures. In addition, the use of multiple units means that the plant can adjust to load variations while maintaining maximum overall efficiency.

The mine uses a ball mill – a large rotating mill containing steel balls for crushing and grinding rocks into a fine powder – driven by two 5750 kW electric motors, which are started simultaneously to get the ball mill into motion. This leads to a high load acceptance requirement that presents a demanding challenge for the power plant engines.

A continuing partnership

Under an equipment delivery contract, Wärtsilä delivered six Wärtsilä 20V34SG gas engines to EDL’s McArthur River power plant, which supplies electricity to the McArthur River Mine. Delivery included the engine hall, associated exhaust stacks, radiators, control system and related engineering services. The engines in the power plant have a total output of 53 MW at site conditions. EDL selected Wärtsilä’s solution based on its technical and economical merits Wärtsilä offered the highest fuel efficiency and the lowest levelised cost of electricity over the required term. The delivery was done with a fast-track schedule of just 12-14 months – the ability to work with a tight deadline was also an important consideration. 

Wärtsilä also ensures reliable operation through a 10-year maintenance agreement with EDL, including a guarantee for the plant’s availability to generate power. The original maintenance agreement was based on scheduled maintenance, but after several years, this arrangement no longer met the customer’s needs. EDL and Wärtsilä together decided to change the agreement to a Wärtsilä Guaranteed asset performance agreement, which allows for a condition-based maintenance approach. 

The renewed agreement includes technical support as well as condition monitoring and maintenance planning to ensure maximum availability. Wärtsilä has two service personnel on site at the power plant on a continuous basis. A condition-based and predictive approach to maintenance allows for targeted intervention when needed to maximise efficiency, optimise the maintenance and reduce operating costs. The plant is also connected to Wärtsilä Expertise Centres for remote monitoring and support.

This is what we achieved

53

MW of electrical output

45°C

High ambient temperature

12

Months fast-track delivery

EDL is committed to delivering on our customers' expectation for reliable, cost-effective and environmentally sustainable energy and Wärtsilä's approach should help us achieve this. We expect the new agreement will help us to increase efficiencies, which in turn benefits our customer with greater reliability and reduced downtime.

Geoff Hobley, General Manager, Remote Energy at EDL

How we did it

Challenge icon

Challenge

  • To ensure reliable electricity supply in an environment with high ambient temperature (+45°C) and large load acceptance requirements of varying quality
  • To ensure high power generation availability and optimised OPEX of varying quality
Solution icon

Solution

  • Wärtsilä’s efficient and proven 20V34SG gas engines, and a multi-unit plant
  • A 10-year service agreement for technical support, condition-based maintenance and maintenance planning, renewed as needed to meet the customer’s changing needs
Benefit icon

Benefit

  • High power output and efficiency resulting in the lowest levelised cost of electricity over the mine’s lifetime of varying quality
  • Maximised availability, ensured reliable electricity supply and reduced operating costs of varying quality

The main details

   Customer  EDL (IPP) 
   Type  Wärtsilä 34 gas power plant
   Operating mode  Baseload
   Gensets  6 x Wärtsilä 20V34SG
   Total output  53 MW 
   Fuel  Natural gas
   Scope  EEQ (Engineering & Equipment)
   Delivered  2014             
   Lifecycle solution  A 10-year maintenance agreement, renewed and extended in 2019   
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Related press releases

Wärtsilä signs landmark long-term service agreement for Australian power plant

Dec 17, 2014, 00:40 by Wärtsilä Corporation

Wärtsilä, a leading global supplier of flexible and efficient power plant solutions and services, has signed a long-term service agreement with Energy Developments Ltd (EDL) of Australia to maintain the McArthur River Mine power plant. The ten year agreement includes a guarantee for the plant's availability to generate power based on pre-planned scheduled maintenance periods. This is Wärtsilä's first major service agreement in the country.

The 53 MW power plant is located in Australia's Northern Territory. It supplies power to the McArthur River zinc mine, which is owned by the international mining resources company Xstrata plc. Electricity is generated by six Wärtsilä 34SG engines running on natural gas. The power plant will be fully operational by the end of 2013.

The agreement includes technical support as well as condition monitoring and maintenance planning to ensure maximum generating availability. Wärtsilä will have two of the company's service personnel on site at the power plant on a continuous basis.

"It was a logical choice to select Wärtsilä as the service provider for this facility. The company not only provided the generating equipment, but also has enormous global experience in efficiently maintaining power plants. We are confident in Wärtsilä's competence in this area," says Shane Mclaughlin, EDL Executive General Manager, Project Delivery.

"This is a landmark agreement. By providing availability guarantees for a power plant located in a remote area of Australia, we are highlighting the efficiency and reliability of the Wärtsilä equipment, as well as our ability to supply prompt and effective service support," says Steve Jones, General Manager, Services sales, Wärtsilä Australia.

Wärtsilä Services
Wärtsilä provides support for its customers throughout the lifecycle of their installations by optimizing efficiency and performance regardless of the equipment make. The company's service solutions range from basic support, installation and commissioning, performance optimization, upgrades, conversions and environmental solutions, to service projects and agreements focusing on overall equipment performance and asset management.
Wärtsilä delivers its services through a network of service stations, workshops and ship repair centres in 70 countries worldwide.

Wärtsilä press release 23 August 2012: Wärtsilä to supply Australian mining site with 53 MW gas power plant expansion

For further information please contact:

Steve Jones
General Manager, Services sales
Wärtsilä Australia Pty. Ltd.
Tel. +61 4 08496955
steve.jones@wartsila.com

John Sydney
Managing Director
Wärtsilä Australia Pty. Ltd.
Tel. +61 2 9672800
john.sydney@wartsila.com

Tuula Franck
Senior Manager, Media and Stakeholder Relations
Wärtsilä Corporation
Tel: +358 400 267555
tuula.franck@wartsila.com

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2012, Wärtsilä's net sales totalled EUR 4.7 billion with approximately 18,900 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com

Energy Developments Ltd in brief
Energy Developments Ltd is an international provider of safe, clean, low greenhouse gas emissions energy and remote energy solutions. The company currently manages an international portfolio of over 700 MW of power generation facilities in Australia, the United States and Europe, utilising a range of fuel sources.

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