IsaMill Carbon Presentation BHPB Nov 07

8/13/2019 IsaMill Carbon Presentation BHPB Nov 07

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Xstrata Technology

IsaMill and thePotential for Carbon Credits


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Agenda

Brief Introduction to Xstrata Technology

IsaMill Introduction Background

How it works Advantages including Energy Efficiency IsaMill Case Studies

Carbon Credit Potential

Next Steps


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Xstrata Technology

Small independent group in Xstrata.

All technologies developed on site, and key to our ownoperations

Full technology solutions in our areas of expertise

70 people - strong technical/operations focus

Deliberately different business model

A technology transfer group


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Specialist Products in all Areas ofProcessing

Tankhouse Technologies producing most of the

worlds refined and EW copper. Expert tankhousedesign.

ISASMELT high intensity smelting process with lowcapital cost, energy efficient, flexible scale. The newbenchmark in Copper smelting.

IsaMill step change in grinding technology. Muchhigher energy efficiency. Metallurgy improvementsfrom inert grinding media.

JAMESON CELL - high intensity flotation. Ideal incombination with conventional flotation for low costcircuit expansions and higher concentrate grades.

ALBION PROCESS simple, low cost atmosphericleaching for refractory concentrates .


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A deliberately different approach Only market our 5 core technologies

Aim to be expert in these Each installation should be better than the last

Provide full package for those products Process design

Associated engineering (but not EPCM) Equipment supply Process control system Specify and supply associated equipment Training, Commissioning Ongoing support process, spares

Results in fast start up, successful installations

Combination of depth and breadth of expertise Grinding, flotation, smelting, leaching, refining


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IsaMill

3.0MW

M10,000

3.5mm ceramic


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Developed for Ultra Fine Grinding

IsaMill originally developed for UFG duties

Conventional grinding technology Too energy intensive Media cost too high

Poor flotation response due to high kg/t steel consumption

Ultra Fine Grinding needed a step change in technology

McArthur River

0 40 micron

Broken Hill

0 40 micron


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Concept from Manufacturing Industry

Solution found in manufacturing industry High value products paint pigments, ink, pharmaceuticals

Significant testwork programs conducted

Development program with Netzsch to crossover thetechnology to minerals industry:

Needed to be much bigger scale

Needed to be able to use cheap media

Needed to be easy to maintain

Needed to be continuous (retain fine low SG media, but passwater and ground slurry)


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Enabling Technology

IsaMill M3000 1.1MW developed with Netzsch Enabling technology for McArthur River, 1995 Significantly more Energy Efficient than Tower Mills

Inert grinding environment = selective flotation, high recovery


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Now Developed for Coarse Grinding

3.0MW M10,000 IsaMill Developed with Anglo Platinum

Coarse ceramic media developed with Magotteax

Same benefits for Coarse Grinding Improved energy efficiency

Process benefits from inert media


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IsaMill: A Step Change in Technology

Open Circuit, No Cyclones - Sharp PSD High Intensity Small Footprint

High Efficiency Fine Media

Inert Media Downstream Benefits

Scaleup Maintenance


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IsaMill: Internal Layout

Grinding chambers in series no short circuiting

Product separator retains media without fine screens

Product Separator

Grinding Discs


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Sharp size distribution


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Scaleup Maintenance


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IsaMill A Step Change in Size

Tower Mill

Max 1.1MW after 50 years 40kW/m3

Closed circuit cyclones

Media handling

IsaMill M10,000 3.0MW 300kW/m3

Open circuit no cyclones

Media under mill platform


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IsaMill A Step Change in Size


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Scaleup Maintenance


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IsaMill: A Step Change in Efficiency

Fine media is key to energy efficiency better transfer ofdrawn energy to slurry

2,220176,500,0002IsaMill

370818,00012Tower Mill

222177,00020Ball Mill

Surface Area(m2/m3)No. Balls / m3Media Size(mm)

Results in lower kWhr/t


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IsaMill: A Step Change in Efficiency

At P80 35um:

Tower Mill = 32 kWhr/t

IsaMill = 18kWhr/t

IsaMill uses up to 45% less power

F80 = 110um


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Scaleup Maintenance


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IsaMill: Inert Media

Typical Plant Size Recovery Curve

Momentum

Surface area / mass

Surface coatings steel media


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AMIRA P260

Improved Recovery

with ceramic

Due to higher fines recovery


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MIM Cu Concentrator

Grano et al, 1994

Reduction in surface Fe coatings

Improvement in Size by SizeRecovery


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IsaMill: A Step Change in Flotation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

C7 C6 C5/C4 C3-C1 38/53

75Size fraction

Z i n c

R e c o v e r y

i n s i z e

f r a c t

i o n

%

0.0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0-4um 4-8um 8-16um 16-38um 38-75um

Recovery

Size Dist ribut ion

MIM Pb/Zn Concentrator IsaMill Stage Grind


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Open Circuit, No Cyclones - Sharp PSD

High Intensity Small Footprint



Scaleup

Maintenance


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IsaMill: Accurate Scaleup 4 10,000L

0

10

20

30

40

50

60

70

80

90

1 00

0 .1 1 1 0 100 10 00Size (um )

% P

a s s

i n g

M4 Product - May 2001

M10,000 Feed - April 2005

M10,000 Product - April 2005


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Scaleup

Maintenance


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IsaMill: Maintenance

Shell slides back formaintenance access


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Discs removed from shaftusing crane


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Disposable Shell Liner12 months

Disposable Disc6-12 months

Reusable Disc Hub


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Can change the way plants are designed

Replace tower/ball mills

Simplify flotation circuits

Produce higher grades to smelters


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IsaMill Anglo Platinum


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IsaMill Anglo Platinum

Mainstream Inert Grinding F80 120um to P80 53um grind

Concentrate Regrinding shift grade

Production ExpansionShift in Grade has potential to postpone major smelter expansionA fraction of overall energy consumption by grinding than smelting

22 IsaMills in production / on order


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IsaMill McArthur River

Rougher

Cleaning

Prefloat

Concentrate

SAG Mill4MW

935 kW Tower Mill

Sand Media

Current Circuit includes SAG Mill and Tower MillPlan to increase throughput by 30%Testwork conducted and IsaMill selected for expansion


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IsaMill McArthur River

IsaMill M10,000 treating screened SAG dischargeF80 300um to P80 45umOpen circuit operation

Rougher

Cleaning

Prefloat

Concentrate

SAG Mill

4MW

7 micron grind

Tower Mill andcyclones r emoved

45 micron


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IsaMill BHPB Leinster

3.5 unit increase in Ni grade


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30% reduction in MgO to concentrate

Significant implications for smelter performance


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XT anticipate an order in the next couple of months

Pre work has all been done, prefeasibility, feasibility, etc etc

First stage of project engineering drawings have alreadybeen provided


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IsaMill Phu Kham

12-16mtpa Copper Concentrator 2.6MW M10,000 IsaMill replacing Tower Mills

Relatively coarse primary grind

Regrind 168tph rougher cons from106 microns to 38 microns in 2.6 MW

IsaMill


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IsaMill Oxiana Prominent Hill

8mtpa Copper Concentrator 3.0MW M10,000 IsaMill replacing Tower Mills

Relatively coarse primary grind

Regrind 138tph rougher cons from125 microns to 25 microns in 3 MW

IsaMill

Single Jameson cell backed

with conventional cellsSimplified circuit

Energy efficient

Small footprint


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IsaMill Growth


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Potential for Carbon Credits (CER)

IsaMill TM has potential to generate carbon credits under the CleanDevelopment Mechanism (CDM) of Kyoto Protocol

Under Kyoto Protocol, Annex 1 countries have mandatory targets to reduceGHG emissions by 2012

Annex 1 countries can offset their domestic emissions with credits (CertifiedEmission Reductions - CERs) earned by investing in non-Annex countries (forexample - Chile)

Xstrata Technology working with consultant SigmaGlobal to proveaccreditation for IsaMill TM

Hypothesis : IsaMill - new efficient technology currently not used in Chilereduces power requirements and improves grade / recovery for regrindingcopper


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Annex 1 Countries

CO 2 Cap

Carbon Trading Basics


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Annex 1 Countries

CO 2 Cap

Increased CO 2Emission

Offset (CER)

Required



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CERs

Non-Annex 1 Countries

(includes Chile) Annex 1 Countries

CO 2 Cap


Offset (CER)

Required


CDM Projects


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CERs

CERs

CERs

Non-Annex 1 Countries

(includes Chile) Annex 1 Countries

CO 2 Cap


Offset (CER)

Required


CDM Projects


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CDM Market well established and growing


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Breakdown of CDM Projects

Country Spli t (2006 Projects)

Project Types (2006 Projects)


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CER Trading

CER prices increasing

Growing interest from financial institutions


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Creation of CERs by CDM


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Potential IsaMill Project at BHPBilliton

Replace 20 Tower Mills @ 1.1MW = 22MW

With 5 IsaMills @ 3.0 MW = 15MW

Power Reduction = 7MW

30% Power Reduction

Assuming Power Reduction 6.5MW

Plant Availability (NOT IsaMill) = 90%= 5.85 MW

Conversion MW to CO 2 Equivalents = 0.59 (Chile)

= 3.45 t CO 2/hr

Convert to Annualised CO 2 Tonnage = 30,235 t CO 2/year

Convert to CER @ $25 AU/T CO 2 = $755,878 AU/year

Convert to US $ @ 0.86 Exchange = $650,000 US/year for 10 years

TOTAL CER POTENTIAL = $6.5M US


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Why IsaMills for BHP Billiton in Chile?

Standard copper regrind circuits (in Chile) use Tower Mills for

regrinding

XT perceive there is a barrier to the introduction of IsaMillsinto Chile are none installed yet, and certainly not in copper

Business as usual is to continue to do the same

XT understand that there are some issues with BHP Billiton(along with a lot of other companies) and compliance inEurope (an Annex 1 Region)

PR value one of the first mining projects to get CERs


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To Qualify and Maximise the Benefit

Consider a project concept Use IsaMills in BHP Billiton ingeneral Copper Circuits or just at Escondida

Reason for doing it is get carbon credits, which will allow theproject to proceed. If its business as usual then no credits.

Need to look at the big picture if there is one, to maximisethe benefit. Not just replacing one tower mill with an IsaMill.Doesnt matter if the project falls over, or if you only use 1IsaMill, but to get proposal approved after IsaMills are installedin Chile then would be more difficult


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Some projects already accepted

Nestle Chile - switching from burning coal to naturalgas in production facility

Mitsubishi Corporation reduction in N2O gained822,000 CER credits

Ball mill replacement in Israel


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What Next?

BHP Billiton to decide if this is a goer or not

If decision is made to proceed then in parallel

Set up a program to validate the hypothesis

M20 pilot plant comparison to existing flow sheet Install one IsaMill in parallel with existing Next concentrator to include IsaMills

Start work with XT and SigmaGlobal on the proposal

IsaMill Carbon Presentation BHPB Nov 07

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