Iron ore weakness to continue into 2025 and beyond, says Fitch Solutions’ BMI
Looking beyond 2024-2025, BMI analysts maintained their view that iron ore prices will likely follow a multi-year downtrend.
FLSmidth is being awarded a contract worth approximately EUR70 million by Afcons Infrastructure, India who signed a contract worth approximately $200 million with Jordan Phosphate Mines Co (JPMC) for a new phosphate rock terminal. The terminal will be located about 25 km south of Aqaba – Jordan.
The work comprises a land terminal where the phosphate rock is unloaded at the truck unloading facility, suitable for self-tipping or bottom-discharge trucks comprising also tippling platforms for fixed-trailer trucks from where the phosphate rock is conveyed by means of chain conveyors, trough belt conveyors and reversible shuttle belt conveyors with a capacity of 1,800 t/h into the covered bulk flat store with a storage capacity of 240,000 t. From there it is discharged and transported by collecting belt conveyors and overhead two parallel pipe conveyors 1,800 t/h each to a marine terminal with two rail mounted ship loaders having a loading capacity of 2,200 t/h each.
FLSmidth’s scope of supply will include design, engineering, manufacture, supply, transportation of mechanical and electrical equipments to the site, fabrication, erection, testing, commissioning as well as training of the terminal’s personnel and performance testing.
“International demand for phosphate is high and this order highlights the fact that FLSmidth can offer our customers single source solutions, not only within metal mining but also in various other markets like steel, port facilities, the energy sector, industrial water treatment and in this case – phosphate for fertilizer products,” Group CEO JÝrgen Huno Rasmussen comments.
In the wider picture, JPMC will develop, build and operate a new phosphate port over 30 years under an agreement signed with Aqaba Development Corp (ADC). The $240 million agreement stipulates that the port will be ready for operation by mid 2012 and that it will operate in accordance with international best practice and in line with the Aqaba Port development master plan. ADC, the central development and investment arm of the Aqaba Special Economic Zone Authority (ASEZA), and JPMC signed a memorandum of understanding in 2008 setting the basic terms for the development and operation agreement including granting JPMC the right to undertake the preparatory works necessary for the implementation of project.
ADC Chief Executive Officer ‘Shadi Ramzi’ Majali, who signed the agreement with JPMC Chairman and Chief Executive Officer Walid Kurdi, expressed satisfaction saying: “The agreement is indeed key to ADC’s plans to develop, rehabilitate and transform Aqaba’s ports into world class transport and infrastructure facilities, through public private partnerships, which alleviate the financial burden on the government for funding such infrastructure projects and in turn utilises private sector know-how and expertise in managing strategic assets.
“Upon completion, the project will ensure the continuation of the exportation of phosphate, which will in turn allow ADC to close the current phosphate terminal within the main port for its redevelopment with Al Maabar.” He indicated that JPMC will finance the project through a direct loan agreement signed with the International Finance Corporation noting that $110 million will be through debt, and the remaining $130 million through JPMC’s own resources.
The new phosphate port, which will have an average annual handling capacity of approximately 4 Mt, will include a 280-m long berth equipped with handling equipment. The ADC said in a statement: “The berth will be connected to a state of the art storage/handling facility with a long haul pipe conveyor all completely equipped as part of JPMC’s obligations whether during construction or operation with the necessary environmental, safety, general security and health equipment and precautions and according to the environmental laws of the ASEZ.”
