Fortescue initiates legal action over Iron Bridge pipeline defects

Mining giant Fortescue has kicked off legal proceedings over what it claims are defects in the pipeline connecting the Canning Basin to its multibillion-dollar Iron Bridge magnetite project in WA’s Pilbara region.

However, the company maintains the issues relating to the faulty pipes have not impacted the major magnetite project and its production guidance remains unchanged.

The Andrew Forrest-led company is one of three plaintiffs heading legal action filed in the WA Supreme Court this week seeking damages from faulty pipes.

Iron Bridge is owned under a joint venture between FMG Magnetite and Formosa Steel.

The Pilbara operation comprises a magnetite iron ore mine and associated infrastructure, including a processing plant, non-process infrastructure, pipelines and port infrastructure in the Pilbara.

Raw water used in the Iron Bridge processing plant is supplied by a pipeline which runs for approximately 145 kilometres and connects it to a bore field in the Canning Basin.

IBO, an agent for the operation, entered into a contract with Clover to supply and manufacture glass-fibre reinforced polyester line pipe and fittings for the Iron Bridge project.

Through its Clover Pipeline operation, Clover engaged a third company, Superlit, to manufacture the pipe sections as part of a subcontract.

However, according to claims made in the writ, the pipe sections supplied by Clover and manufactured by Superlit are defective because they are degrading, they leak, and the pipeline cannot be operated at its design capacity.

In a statement, a Fortescue spokesperson said the company has commenced legal proceedings in relation to a defect in the Canning Basin raw water pipeline at Iron Bridge.

“Ramp-up at Iron Bridge continues, and production guidance remains unchanged,” the spokesperson said.

“We have operational controls and solutions in place to support safe and reliable operations, including our innovative water banking strategy, which continues to perform well.

“The strategy uses the existing Return Water Pond within the Tailings Storage Facility, which has capacity to store around 0.8 gigalitres of water. This helps reduce the operation’s reliance on the pipeline during a leak event.”

IBO and the joint venture partners are seeking damages and indemnity from Clover for the breach of the supply contract in addition to damages for breach of duty of care.

The three plaintiffs are also seeking damages from Superlit as well as cost and interest from all three defendants.

Clover has been approached for comment.

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