TCM Copper Concentrate Storage and Load-Out Facility Risk Review in British Colombia - Assignment Example

The 1st phase of the concentrator started on August 15, 2013. The very next month, in September 2013 it entered into the production of copper-gold concentrate, leading to the first truckload consignment of concentrate to Mackenzie on September 24, 2013. From Mackenzie, the consignment of gathered copper-gold concentrate will be loaded to railcars destined for the port of Vancouver. From there it will be shipped to Asia for further processing (TCM).2. Logistics ChallengesThe logistics process of the concentrate includes various means of transportation, starting from truckload to rail-haul to ocean route before reaching its final destination for further processing.

During transportation, concentrate loss occurs because of moisture content, which is a big risk. As per the Technical Feasibility Report, moisture content should not exceed above 9% mark, as it causes concentrate loss of the net invoice value of 0.42% (Terrane 221).2.1 What is Liquefaction?Solid bulk cargoes such as iron ore fines or copper and gold concentrate generally have some moisture remaining within. This moisture remains there not only at the mine location, and when shipped to the terminal in open trucks or even closed racks, and loaded onto the terminal stockpiles during heavy rain, it causes a sudden increase in moisture levels (Spencer and Tilsley 3).

Liquefaction is a process caused by the recurring movement of the ship, reducing the space between the concentrate. It increases the water pressure at the pores, thus, weakening the total power of the concentrate. It results in the concentrate touching its flow moisture point. A stage of change-over begins when the concentrate becomes fluid due to the loss of friction between the particles of the iron ore or copper concentrate. As the ship moves, the cargo is more inclined to increasingly head towards one direction, without touching its center.

It loses the equilibrium of the cargo, flowing in any one position, which creates a risk for the ship, losing its stability and increasing the chances of drowning (Spencer and Tilsley 3). Therefore, it is necessary that the shipper provides complete information about the cargo, as per regulation 4.2.3 of the IMSBC Code. Master should check that the cargos identified as ‘which may liquefy’ must have a signed certificate of moisture content from the shipper along with a signed certificate of the shippable moisture extent, as per Section 4 of the regulation 4.3.2 of the IMSBC Code.