23 January 2014 TO ALL MEMBERS Dear Sirs Iron ore fines/iron ore cargoes : early implementation of recent changes to the IMSBC Code in Australia and Brazil Executive summary We refer to our bulletin dated 6 January 2014 advising that a new iron ore fines (IOF) Schedule to the International Maritime Solid Bulk Cargoes Code (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 in 2015. In accordance with the IMO circular DSC.1/Circ.71 (copy attached), which contains these changes to the IMSBC 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 under the IMSBC Code as Group A cargoes (cargoes which may liquefy if shipped with a moisture content in excess of their transportable moisture limit (TML)), depending on the characteristics of the material. This circular explains the criteria for 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 Schedule was based on sound and impartial scientific research. 1 The International Group of P&I Clubs, Intercargo, ICS, IFAN and BIMCO.  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 www.britanniapandi.com The International Group co-ordinated the Imperial College/MTD review of the research and also led the industry representation on this matter. The Schedule will be mandatory in all SOLAS States 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 IMSBC Code categorise certain types of IOF as Group A cargoes and also amends the current IMSBC Code Schedule for iron ore, which is categorised as a Group C cargo (cargoes which are neither liable to liquefy or 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. 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 (an iron bearing oxide mineral) content of the material. 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 mi