Bulletin Issue 01/14 6 January 2014 To all Members Early implementation of draft amendments to the IMSBC Code relating to the carriage and testing of iron ore fines – Australia. A new iron ore fines Schedule to the IMSBC Code governing the carriage of iron ore fines by sea was agreed at the IMO DSC 18 meeting in September 2013. The draft Schedule was presented to the DSC meeting as a joint proposal by the Brazilian and Australian competent authorities and a group of industry bodies led by the International Group of P&I Clubs (IG). The draft was based on the outcome of a wide ranging research project undertaken jointly by Rio Tinto, BHP Billiton and Vale on the behaviour of iron ore fines cargoes carried by sea, which itself had been independently reviewed by Imperial College, London and Minton, Treharne and Davies (MTD), in order to ensure that the new Schedule was based on sound and impartial scientific research. The IG co-ordinated the Imperial College/MTD review of the research work and also led the industry representation on this specific matter at the IMO DSC 18 meeting. The conclusion of this work represents a successful outcome to the concerns previously raised by the IG with regard to the carriage of iron ore fines by sea from certain jurisdictions. Although the new draft Schedule will be mandatory in all SOLAS States from 1 January 2017, IMO Circular DSC.1/Circ.71 invites States to voluntarily implement the new draft Schedule and test procedure as soon as possible. The draft amendments to the IMSBC Code include a modified Proctor/Fagerberg test procedure for determining the transportable moisture limit (TML) of iron ore fines and the recategorisation of certain iron ore fines, where the total goethite content is 35% or more by mass, such that there is a recognition that this cargo is to be treated as iron ore and shipped and carried as a Group C cargo.  The Britannia Steam Ship Insurance Association Limited Managers Tindall Riley (Britannia) Limited Regis House 45 King William Street London EC4R 9AN T e l +44 (0)20 7407 3588 Fax +44 (0)20 7403 3942 Britanniapandi.com The Club has now become aware of an exemption certificate being issued by the Australian Maritime Safety Authority allowing for the shipment and carriage of iron ore fines in accordance with the IMSBC Code as if it were amended by the draft amendments set out in Annexes 1 to 3 of IMO Circular DSC.1/Circ.71. The exemption applies from 1 January 2014 and is designed to give effect to the DSC Circular on early implementation of the draft amendments. While the IG is currently seeking clarification about the likely impact of early implementation by Australia, Members are alerted to the following likely consequences. A significant amount of iron ore fines shipped from Australia will meet the criteria of having a total goethite content of 35% or more by mass and therefore declarations made by the shippers may include the goethite content and a declaration that the cargo is to be carried in accordance with the individual Schedule for iron ore, which is a Group C cargo. Where the cargo is declared as Group A - Iron Ore Fines, it is possible that the shipper’s declaration will include a TML determined by use of the modified Proctor/Fagerberg test procedure for iron ore fines. The IG is also seeking advice from Brazil to determine whether early implementation will also apply to iron ore fines shipped from Brazil. The Club is not aware of the existence of mines in Brazil p