A MULTI PHASE RECLAMATION PROJECT WITH COMMODITY …

A MULTI PHASE RECLAMATION PROJECT WITH COMMODITY RECOVERY:

Recovering Value from a Chemical Processing Waste

by Wastes Ecotech Srl (WET), Tarnaveni, Mures County, Romania

Wastes Ecotech Srl – Project Presentation Update Mar 2019 – v7 1 08/03/2019

MgO Mures County

Bucharest

Cr2O3

CaCl2

NH3

Target Waste Material 1.95m m3 3,5m t

45% vol reduction

Commodities

Final Waste

Material

CONFIDENTIALITY AND DISCLAIMER STATEMENTS This document is strictly confidential and may be legally privileged. It is intended solely to be received by the person(s) or organisation(s) to whom it is addressed. If you are not the intended recipient of this document retaining, using, disseminating, distributing, copying or taking any actions in reliance upon any information or documents contained in it is strictly

prohibited and will constitute a breach of confidentiality. If you have received this document(s) in error, please immediately inform the owner : Wastes Ecotech Srl – [email protected] and delete it.

Denotes a CONTROLLED document

mailto:[email protected]

Former State Owned Fine Chemical (multiple) production site – operating from

1916 – 2006

1916 – 1922 - Gases & explosives 1922-1948 - Nitrates & fertilisers 1939- 1948 - Ceramics, Gold, Silver, Copper and Lead refining 1950 – 1975 - Bichromate 1 (built 1959-1955) & closed 1978 1968 – 1986 – Zinc Oxides, Barium salts, Formic & Hydrofluoric acid, Creolite,

Freon 11 & 12 1971 - 2006 - Bichromate 2 (built 1971 – 1972) WSF built at the same time

Located in Mures County, central Romania. Assets purchased (130ha site) via public auction in Oct 2012. 3 years spent uniting the 110 land parcels – separation into new plots ongoing All plant has been demolished. Clean up of demolition wastes ongoing. 100% private ownership & unencumbered. No Royalties apply to the Project Phase 1.

08/03/2019 2

History of Site / Current Ownership


1

Wastes Ecotech Srl – Project Presentation Update Mar 2019 – v7

08/03/2019 3

Background Dichromate Process


2


Chromite ore is roasted

4FeCr2O4 + 8Na2CO3 + 7O2 → 8Na2CrO4 + 2Fe2O3 + 8CO2

Lime is also added to ensure the products do not agglomerate

However, at Bicapa a local Mg rich dolomite was utilised

Soluble chromium salts are then mobilised and further refined by either:

2Na2CrO4 + 2CO2 + H2O → Na2Cr2O7 + 2NaHCO3 or

2Na2CrO4 + H2SO4 + 2O2 → Na2Cr2O7 + Na2SO4 + H2O

Wastes are in the form of insoluble components such as iron, aluminium, calcium, magnesium and silicon oxides or hydroxides

http://en.wikipedia.org/wiki/File:Dichroman_sodn%C3%BD.JPG

http://en.wikipedia.org/wiki/File:Chroman_sodn%C3%BD.JPG

Target Asset for this project : 1.95m m3 of Sodium Dichromate Waste Tailings (“COPR”) - Chromium Ore Processing Residue – stored in 2 purpose built Waste Storage Facilities (WSF) 18.7 ha (510 x 320m & ave. height @ 12m)

COPR contains Hexavalent Chrome (Cr6+) hence the asset has a environmental liability (on an RO/EU watch list) > previously resulted in caution from others when wanting to deal with the site. Options for the site are : Cap WSF (Do “nothing” approach) > risk remains > costs estimated at EUR

20m Reprocessing, Reclaim and Monetise (WET option).

BENEFITS : from this novel approach of remediation through reprocessing.

• Monetisation of the remaining minerals. • Eliminates the contaminant materials – inert waste returned to WSF • Reduces the volume by 48% & mass by 76% • Providing a fully EU compliant revamped WSF (dangerous wastes) • Provides long term employment for up to 360 direct FTE’s

08/03/2019 4

The Asset


3


Environmental Remediation Project

Project consists of a 2 phase approach :

Phase 1 (years 1-9) > Environmental remediation of cca. 3.5m tonnes (1.95m m3) of COPR on fully

owned company property. Project involves reprocessing the stored wastes and extracting the minerals

as Chrome Oxide Green, Fused Magnesia, Calcium Chloride and Liquid Ammonia (as a by-product).

Phase 1 has followed the JORC reporting method which will result in a JORC 2012 format report expected end April 2019.

Based on 100% debt finance…i.e. for the exercise no new equity has been assumed

Environmental topic resolved via reprocessing of waste, conversion of Chrome 6 > Chrome 3 and renovation of the Waste Storage Facility over Phase 1 project life.

Strong local and federal government support for the project.

08/03/2019 5

Short Project Introduction



4

Phase 2 (years 10-20) Continue processing locally sourced micronized dolomite into the existing

plant (minor mods req’d) post reprocessing to produce FM or MgO (only). All required plant will be in place from Phase 1 – assumed FM output of 3,85

t/hr on a 24/7 & 330 day yr. basis. Project Plan assumes additional 11 year processing life but 20 + year plant

life is possible. Additional Phase 2 EBIT of cca. 250m USD for the period with flat product

pricing but inflation adjusted OPEX. Continued employment for 85% of staff. Keep paid for assets working.

NB – Pinch analysis and detailed design still to be done on Project Phase 1&2

hence costs are not as yet optimised.

08/03/2019 6




5

Approach and Status

WET followed the JORC Reporting path to obtain a Certified JORC 2012 Report based on Estimated Resource, Probable Reserve. Inferred JORC obtained in 2014 Current work aimed at upgrade to Estimated – Bankable Feasibility

Study

Drilled 50 x 50m grid (72 holes) and at 1m intervals (902 samples to ACME Vancouver for assaying).

3D modelled the resource. Pilot work done over past 5 years on simple pilot plant on site BFD for plant design including 3D layout completed. Excavation (“Mining”) planning done – to month by month level. TEM (Techno Economic Model) done. Urbanism Certificate in place. EIA submittal will be done end March 2019

08/03/2019 7




6

08/03/2019 8

Drill hole locations - WSF

Project Summary - Key Financials

Exploratory drill holes only. Not in model

WSF Nr 1

WSF Nr 3

WSF Nr 2

WSF denotes Waste Storage Facility

(Batal in Romanian) Project includes :

WSF 2&3 - 18.7 ha


7


A B

08/03/2019 9

Project Site Plan - WSF & Plant


Wastes Ecotech Srl – Project Presentation Update Dec 2018 – v6

8

N

Plansa Nr.

Faza

SF

Beneficiar:

SC WASTES ECOTECHSRL BUCURESTI

Scara Proiect de inchidere dupa post utilizare la nivel de studiu de fezabilitate

1:2000 (SF) pentru batalurile de deseuri nr. 1, 2, 3 si a batalului rezultat dupaprocesare - Bicapa - Tarnaveni

PLANDEAMPLASARE VARIANTA V_6

REVIZIE APRILIE 2018

S.C. GEOCONS EXPERT PROIECT S.R.L

BUCURESTI

Ing.Vlad Radulescu

Numele Semnatura

Proiectat Ing. Andronache I.

Desenat Ing. Andronache I.

Verificat Ing. V lad Radulescu

Aprobat Ing. Luca Daniela

Data

04.2018

Fila1/2

Tabel 1 - Cladiri

Tabel 2 - Drumuri de incinta, exterioare si parcari

Tabel 3 - Platforme betonate, piatra sparta si spatii tehnologice

Tabel 4 - Constructii Industriale

WSF 2&3

WSF 1

Coffer Dam line

Logistics Sites

Admin

Process Site

WET Dam site

Clear zones = WET property

(eg)

08/03/2019 10

Project Site Plan - WSF & Plant



9

N

DESCRIPTION Nume Semnat Nume Semnat Nume Semnat Nume SemnatDES/DESENAT BY/PROIECTAT CHK'D/VERIFICAT APP'D/APROBAT

REV.

0

0 15.10.2018

REV. DATE/DATA

SHEET/FILA

1/1

DWG. NUMBER/NUMAR DESEN

WET-1604-MIN-001

C.C. D.R. I.P. D.R.

Name Signed Name Signed Name Signed Name Signed

DWG'S LEGAL OWNER/PROPIETAR LEGAL DESEN

ALCONEX METROLOGY & SERVICES S.R.L.

SCALE/SCARA

1:1000

WET MINING PLAN

FINAL WASTE MATERIAL(FWM)

FOR REWIEW

WASTES ECOTECH S.R.L.

CONVEYOR LENGHTS

C1=29.5 m

C2=59.5 m

C3=103.5 m

C4=107.8 m

C5=55.4 m

C6=103.5 m

C7=107.8 m

C8=136.4 m

C9=103.5 m

C10=107.8 m

HAUL ROADS

A=2292 m2 A=327 mB=2350 m2 B=336 m

C=2180 m2 C=311 m

Haul road

08/03/2019 11

Trenching locations – post DPT work



10

T 5

T 3

T 1

T 4

T 2

T1-5 ARE TRENCHES FROM JAN 22 2019

08/03/2019 12

Trenching Exercise



11

Original Angle of repose

Disturbed Angle of repose

Trench – 4,7 m

T3 T2

COPR

Clay Basal Layer

Working Face

35o

Hydrema

922F

JCB JS160

10m Haul

Road

JCB 457

For the JCB JS160 assuming a cycle time of 40 seconds and a

bucket size of 0.85m3.

Assuming 85% utilisation of a 9 hour shift and that the

excavator can move waste for 90% of the time, 10% to allow

for repositionable movements, then the JS160 can move (0.85

x 3600 x 90% / 40) m3/hr or 69 m3/hr. And 527 m3 in a shift.

The Hydrema 922F has a payload capacity of 12m3, therefore

need 5.7 trucks per hour and 10min 30sec turnaround time.

Pre-Excavation Works – Haul Road A 12

Long Term Face

26o

08/03/2019 13



Clay Basal Layer

Rented

LRE

Hydrema

922F

10m Haul

Road

JCB 457

Hitachi ZX670 LRE has a cycle time of 40 seconds, from

YouTube video

Assuming 85% utilisation of a 9 hour shift and that the

excavator can move waste for 90% of the time, 10% to allow

for repositionable movements, then the ZX670 can move (3

x 3600 x 90% / 40) m3/hr or 243 m3/hr. And 1,859 m3 in a

shift.

The Hydrema 922F has a payload capacity of 12m3,

therefore need 20.3 trucks per hour and 3min turnaround

time.

35o

Face


COPR

Working Face

35o

Long Term Face

26o

08/03/2019 14



COPR

Clay Basal Layer

Rented

LRE

Working Face

35o

Hydrema

922F

10m Haul

Road

Long Term Face

26o

JCB 457

With both units working simultaneously

and assuming a split between the JS160

and the ZX670 of 5% and 95%,

respectively, the excavation would

require 25 shifts


35o

Face

08/03/2019 15



Clay Basal Layer

JCB JS160

10m Haul

Road

JCB 457

The JCB JS160 would also be used to clean the northern

perimeter dyke

Hydrema

922F

Level of N Perimeter

Dyke Level of N Perimeter

Dyke

Working Face

35o

Working Face

35o


08/03/2019 16



08/03/2019 17

Basal Layer Effectiveness


16


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 5 10 15

De

pth

(%

)

Cr2O3 (wt%)

F01F02F03F04F05F06F07F08F09F10

Clay base is effective barrier

Cr is mobilised within the WSF

08/03/2019 18

Basal Layer Effectiveness


17


08/03/2019 19

Mining Progress



18

08/03/2019 20

WSF Images



19

Original Clay Dyke Overfill Dyke (COPR)

08/03/2019 21

WSF Images



20

08/03/2019 22

WSF Images



21

6m

08/03/2019 23

Key Project info


22


Key Financial Info - Impact on EBIT (Phase 1 only)

100

150

200

250

300

350

400

450

500

550

600

-20% -15% -10% -5% 0% 5% 10% 15% 20%

EBIT

USD

Mill

ion

Percent Variation

CAPEX OPEX Revenue MgO Cr2O3 CaCl2 NH4

Project Summary – Key Tech Points

Simple form of exploitation using Long Reach Excavators, Wheeled Loaders and low ground pressure dump trucks . “ Mining” study completed by Belevion (RO) Srl with review by SRK UK Ltd.

Automated return of Final Waste Material post processing via Portal Reclaimer, Conveyors & Tracked Stacker in WSF.

08/03/2019 24

Key Project info

Moveable Road matting to be used

where humidity may impede vehicle movement

HEPA Air Filters to be retrofitted to equipment in the work front (HSE)


23

Wastes Ecotech Srl – Project Presentation Update Mar 2019– v7

Project Summary – Key Tech Points

All possible measures to be taken for site / environmental safety are planned. Dry misting water to suppress dust, remote monitoring stations, Phonic protections where needed. LGP type vehicles

Labour required 292 FTE Direct Plant, 28 FTE External contractors, 27 FTE Exploitation Contractors (“mining” planned to be outsourced) employed over a 10 year operating period. Expected 2:1 additional employment ratio for other support parties (further 714 FTE external supplier support). > Project will provide employment for Circa 1000 people (direct / indirect) when in full operation.

Environmental cost est. of USD32M over Life of Project (LOP) + post closure monitoring period (30 years). Post closure costs allowed for in TEM Phase 1.

Logistics, Admin and parts of the site post decontamination will be repurposed post closure.

08/03/2019 25

Key Project info


24


Project Summary – Salient talking Points

No mining required (all material above “ground” hence simple loader/truck exploitation) hence certified by ANMR (Romanian Mineral Resource Authority) as not under the RO mining law (no royalties).

WET process tech eliminates current environmental concerns (Cr6+) while producing multiple product streams. Appealing option by Local EPA / authorities vs std remediation. Full EIA submittal in June 2018, initial stage EIA visa received.

The Project has strong local / state authority support due to WET continued forward momentum and EU pressure on RO to clean up historical sites. Its profile benefits the level of support not normally seen on such projects.

Site utilities, road, rail and water infrastructure (WET owns a dam on the River) in place or at boundary

Provides significant long term employment

Presents itself as a model method for elimination of dangerous wastes.

Model is repeatable on other sites – but we have learnt some clear (and costly) lessons along the way.

EU needs to look harder at support methods to such projects.

08/03/2019 26

Key Project info


25


08/03/2019 27

Key Project info

Block Flow Diagram – prior to introduction of Fused Magnesia (FM) step. Presently being updated and initial development underway in a PFD.

Plant has multi product potential on Cr, MgO & Ca product streams with simple changes.

WET will look to submit for an applications Patent based around the the Cr module upgrade.

Data pack includes significant pre-feasibility engineering done

Significant Plant unit relocation possible post completion of the .


26


08/03/2019 28

Full BFD Overview


27


PRODUS FINIT FP1

MgO

05010502

0503

0506

0504

Process Utilities Legend:

0501 - Preparation of Process Grade Water

0502 - Preparation of NH4OH (aq) Regenerant Solution

0503 - Preparation of HCl (aq) Activation Solution

0504 - Preparation of NH4Cl (aq) Reagent Solution

0505 - Preparation of Tehnical Grade Water

0506 - Recovery & Storage of CO2 (as gaseous CO2)

0507 - Preparation of Lime Solution

0508 - Recovery & Storage of NH3 (as liquid NH3)

0509 - Waste Water Treatment (W.W.T.)

0510 - Preparation of Demineralized Grade Water

0511 - Preparation of H2C2O4 (aq) Initiator Solution

" "" "" "" "

Notes:

Continuous Processes Line

Discontinuous Processes Line (batch type)



Abbreviations:''WSF'' - Waste Storage Facility

''FWS'' - Final Waste Storage

''IEX'' - Ion Exchange

''FP1'' - Finished Product 1



''BP1'' - By Product 1

''BP2'' - By Product 2

HCl 35% (l)

0506

Quick Lime (s)

NH4Cl (s)

IEX 3

IEX 1

IEX 2

IEX 4

CO2

H2O

CO2

H2O

CO2

H2O

CO2

H2O

H2O

H2O

1.1.21.1.1

1.2.11.2.2

2.1.3

2.1.4

2.2.4 2.2.3

3.2.7

3.2.8

3.2.10 3.2.9

5.2.145.2.16

6.1.10

6.1.11

6.2.176.2.18

7.2.22

7.2.20

8.2.23

8.2.24

8.2.26 8.2.25

9.2.28

9.2.29

11.2.33 11.2.30

12.2.34

12.2.35

16.2.47

16.2.48

16.2.49

17.2.52 17.2.51

18.2.54 18.2.53

19.2.58 19.2.56

20.2.61 20.2.60

21.2.62

21.2.63

19.2.58

10.2.6

17.2.51

20.2.60

8.2.26

18.2.53

5.2.1411.2.30

4.2.11

1.2.1

6.2.17

5.2.16

7.2.22

1.2.2

CO2

H2O

9.2.27

H2O 18.1.20

H2O4.1.6

H2O10.1.5

10.2.6 10.2.5

4.2.12 4.2.11

7.1.12

11.1.15

19.1.21

NH4OH (aq) 6%

NH4OH (aq) 6%

NH4OH (aq) 6%

HCl (aq) 3%

HCl (aq) 3%

HCl (aq) 3%

HCl (aq) 3%

5.1.7NH4OH (aq) 6%

5.1.8

7.1.13

11.1.16 11.1.17

19.1.22

5.2.13

7.2.19

11.2.31

19.2.55

H2O

19.1.23H2O

5.1.9 H2O

7.1.14 H2O

11.2.32

7.2.21

19.2.57

5.2.15

3.2.10

10.2.5

CO2

H2O

0211

0212

0416

0417

0418

0419

0420

0421

0101

0302

0303

0304

0305

0306

0307

0308

0310

0309

0213

0214

0215

13.2.36CO2 H2C2O413.1.18

13.2.38

14.2.43

15.2.46

13.2.37H2O

15.2.45H2O 15.2.44 CO2

14.2.39 CO2

0508

NH312.2.64

14.2.41 NH3

NH4Cl (aq) 17.1.19 NH317.2.50

20.1.24 NH320.2.59

14.2.40 N2

14.2.42 H2O

0505

River Tarnava Mica

0509

SOW - P01

SOW - P02

SOW - P04

SOW - P03

SOW - P05

LEGEND:

Plants Legend:

P01 - Crushing/Milling & Hydration

P02 - Fabrication of Cr2O3

P03 - Fabrication of MgO

P04 - Fabrication of CaCl2 Anhydrous

(CaCl2 x 2H2O; CaCl2 x 6H2O)

P05 - Process Utilities

12.2.64

12.2.34

14.2.40

14.2.39

14.2.41

14.2.42

17.2.50

20.2.59

0507

0511

H2C2O4 (s)

19.2.557.2.195.2.13

19.1.217.1.125.1.7

11.1.15

7.2.21 19.2.57

5.2.15

5.1.8

11.2.32

7.1.13 11.1.1619.1.22

11.1.17

19.1.23

16.2.48

1.1.1

2.1.4

10.1.5

3.2.8

4.1.6

5.1.9

6.1.11

8.2.23

8.2.24

6.1.10

2.1.3

9.2.28

9.2.27

3.2.7

21.2.62

20.1.24

16.2.47

7.1.14

11.2.31

18.1.20

13.2.37

13.1.18

1.1.2

17.1.19

16.2.48

0510DEMINERALIZED

GRADE WATER

Demineralized grade water

CO2

5.1.25

5.1.25

5.2.64 5.1.26

5.1.27

5.1.27

5.2.65

5.2.65

5.2.66

5.2.64

5.1.285.2.67 5.2.67

5.2.68 5.2.68

5.1.29

5.2.69

5.1.30

5.1.31

5.2.70

5.1.32

5.2.71

5.2.72

5.2.73

5.1.33

5.2.73

HYDRATION WSF

Water to

recirculation

WaterFeed

Filtrate Wet cake

Water to

recirculation

CONCENTRATION

MIXING

VACUUM HEATING

CALCINATION 3

FINISHED PRODUCT FP2

Cr2O3

CALCINATION 2

Calcinated cake

LEACHING - NH4Cl

Wet cake Filtrate

WASHING 3

Filtrate Final Waste

PURIFICATION CaCl2

Wet cakeFiltrate

Lime

CONCENTRATION

FINISHED PRODUCT FP3/3 (FP3/2; FP3/1)

CaCl2 Anhydrous

(CaCl2 x 2 H2O; CaCl2 x 6 H2O)

FWS

CARBONATION

FiltrateWet cake

WASHING 2

Wet cake Filtrate

PRECIPITATION 1

Filtrate Wet cake

WASHING 1

Filtrate Wet cake

RECARBONATION

Wet cake (Waste RC)Filtrate

PRECIPITATION 2

Wet cakeFiltrate

CALCINATION 1

Calcinated cake

BY - PRODUCT BP1

LIQUID NH3

NH3 RECOVERY

BY - PRODUCT BP2

AMMONIA WATERS

(NH4OH)

PROCESS GRADE

WATER

TEHNICAL GRADE

WATER

REGENERANT SOL.

PREPARATION

ACTIVATION SOL.

PREPARATION

NH4Cl (aq)

PREPARATION

INITIATOR

SOL. PREPARATION

W.W.T.

CO2 RECOVERY

CO2 STORAGE

CARBONATED

WATERS

QUICK LIME

PREPARATION

1:1 1/10 11

DWG'S LEGAL OWNER/PROPIETAR LEGAL DESEN SCALE/SCARA DWG. NUMBER/NUMAR DESEN SHEET/FILA REV.


BLOCK FLOW DIAGRAM

WET WSF - REPROCESSING PLANT


WET-1604-WRP-BFD-01_E

FOR REWIEW

REV.DATE /

DATADESCRIPTION /

DESCRIERE DRAFTED /

DESENATENGINEERED /

PROIECTAT

CHECKED /

VERIFICATAPPROVED /

APROBAT

11 09-2018 - I.Peleanu I.Peleanu D.Runciman

NAME /

NUME

NAME /

NUME

NAME /

NUME

NAME /

NUME

-

08/03/2019 29


Key Elements of TEM

• 100% debt finance basis for TEM • Discount rate of 7% • Assumed Int. rate of 9.92% on finance

(7% above USD LIBOR) • 15 year repayment of CAPEX • NO State Aid factored in • 30 year post completion funding

allowed for. • Full 4 months working capital assumed • 330 days / year operation (90%

efficiency assumed)


Key Financial Elements

Phase 1 EBIT = 422m USD Phase 2 EBIT = 250m USD CAPEX = 148m USD Phase 1 IRR = 32% OPEX not yet optimised Assumes 100% debt finance Possibility / probability of State Aid

& EU funding

EMPLOYMENT for circa 360 FTE

Preliminary TEM Assessment 28

Upside Potential / Risks

08/03/2019 30

Project Status

Strong probability to access significant (30-50m EUR) State Aid due to Project nature, size and location (employment).

Access to EU Funding pool for environmental projects (est 22m EUR of works to be done)

Optimization will lower CAPEX & OPEX and improve returns

Additional / other Mineral recovery made possible (Ga/Fe)

•Delays (highly unlikely) on permitting – WET in advanced state already and project has high profile.

Upward pressure on local economy causes price / wage growth – WET allowed 2% compounding inflation (not usual in JORC reports).

Staffing availability locally. WET has assumed high automation

Up

sid

e P

ote

nti

al

Risks &

Mitig

atio

n


29


A MULTI PHASE RECLAMATION PROJECT WITH COMMODITY …

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