24 January 2014 TO ALL MEMBERS Dear Sirs Iron Ore Fines/Iron Ore Cargoes – Early Implementation of recent changes to the IMSBC Code – Australia and Brazil Executive Summary A new iron ore fines (IOF) Schedule to the International Maritime Solid Bulk Cargoes (IMSBC) Code governing the carriage of IOF by sea, and an amended iron ore Schedule, were agreed at the IMO DSC 18 meeting in September 2013, subject to final approval by the IMO Maritime Safety Committee at its 95 th session in 2015. In accordance with the attached recently issued IMO circular DSC.1/Circ.71, which contains these changes to the Code, both Australia and Brazil have now given early effect to the new Schedule. As a result, certain IOF cargoes exported from these two jurisdictions are now reclassified as Group A cargoes under the Code (cargoes which may liquefy if shipped at a moisture content in excess of their Transportable Moisture Limit (TML)), depending on the characteristics of the material. This circular explains the criteria determining the classification of the cargo for the purposes of the IMSBC Code and the subsequent certification and declaration requirements of the shipper. Introduction The new IOF Schedule was presented to the IMO DSC meeting as a joint proposal by the Governments of Brazil and Australia and was supported by an industry group 1 led by the International Group of P&I Clubs. The Schedule is the product of a wide ranging research project undertaken by Rio Tinto, BHP Billiton and Vale which analysed the behaviour of IOF cargoes carried by sea. The research was independently reviewed by Imperial College, London and Minton, Treharne and Davies (MTD), in order to ensure that the basis for the Schedule was based on sound and impartial scientific research. The International Group co-ordinated the Imperial College/MTD review of the research work and also led the industry representation on this matter. The Schedule will be mandatory in all SOLAS States Parties from 1 January 2017, but the IMO circular DSC.1/Circ.71 invites States to voluntarily implement the Schedule and a new test procedure as soon as possible. Background The changes to the Code categorise certain types of IOF as Group A cargoes and also amend the current IMSBC Code Schedule for iron ore, which is categorised as a Group C cargo (cargoes which are neither liable to liquefy nor to possess chemical hazards). A new IOF test procedure, in the form of a modified Proctor Fagerberg (P/F) test, for determining the TML of IOF cargoes has also been agreed. This new test applies only to IOF cargoes. The existing tests contained in Appendix 2 of the IMSBC Code remain valid for IOF cargoes as well as for all other cargoes. 1 The International Group of P&I Clubs, Intercargo, ICS, IFAN and BIMCO. - 2 Goethite content and particle size Whether an iron ore cargo falls under the new Schedule for IOF or the amended Schedule for iron ore will be determined by the particle size distribution and goethite content of the material (an iron bearing oxide mineral). The research concluded that iron ore cargoes with a goethite content of 30% and greater were not liable to liquefy, but that the same could not be said for material with only 25% goethite content. A minimum goethite content of 35% for categorising IOF as a Group C cargo was therefore agreed as a conservative criterion. In terms of particle size distribution, iron ore cargoes containing both 10% or more of fine particles less than 1 mm and 50% or more