Nobuhiro Matsumoto

Sumitomo Metal Mining Co.,Ltd.

Philippines Nickel

3-4 November, 2015

Nickel Business of SMM

HPAL Operation in the Philippines

Problem and Prospect of HPAL

Conclusion

NC

Philippine

Saprolite

Hyuga Smelter

Fe-Ni

21kT-Ni/A

PI Vale

others

CBNC THPAL

Nickel Matte MS

Harima DivNiihama Ni Refinery

E-Ni

65kTt-Ni/A

NiSO46H2O

11kT-Ni/A

CBNC

Commissioning

CBNC

Expansion

THPAL Commissioning

MANILA

CBNCTHPAL

CEBU

SMMPH

Capital: US$ 487 M (Line1:180 + Line2:307)

Product: Mixed Sulfide (Ni : 55 - 58% , Co : 4 - 5%）

Capacity: 24,000Ni-t/year，1,700Co-t/year

Technology

Operation

Mixed Sulfide

Ore & Limestone

Share: 10% Share: 18%

Share: 18%Share: 54%

Technology

Operation

Laterite Ore Supply

Mixed Sulfide

SHARE 15%

SHARE 62.5%

SHARE 22.5%

Capital: US$ 1,590 M

Product: Mixed Sulfide (Ni : 56 - 58% , Co : 5 - 6%）

Capacity: 30,000Ni-t/year，2,650Co-t/year

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

CBNC THPAL

YEAR

Ni P

rod

ucti

on

/ K

T

Nickel Ore

Ore-Prep.

H2SO4, Steam

H2S

Mixed Sulfide(NiS/CoS)

Final

Neutralization

Tailings Dam

Leach Residue

Limestone

CCD

Neutralization

HPAL

Zinc Removal

Sulphurization

Barren Liquor

Pre-Neutralization

High Quality for Production of E-Ni

Selective Sulfurization of Zinc

High Nickel Recovery

Prevention of Scale Formation

*MS Reactors

*PAL Autoclave

Controllability of Heat Recovery System

Utilization of Low Grade Nickel Ore

0

0.01

0.02

0.03

0.04

0 20 40 60 80 100

Temperature(℃ )

Zn

Co

nc.(

g/L

)5.0

5.1

5.2

5.3

5.4

Ni

Co

nc.(

g/L

)Zn(g/l)

Ni(g/l)

ZnS = Zn2+ + S2- : 7 × 10-26

CoS = Co2+ + S2- : 7 × 10-22

NiS = Ni2+ + S2- : 7 × 10-21

Successful Removal of Zn

Low Temperature < 60 ℃Homogeneous Reaction

Ni loss in Zn ppt < 1% (CBNC)

Energy Conservation

High Recovery of Nickel

High Partial Pressure of H2S

Prevention of Scale Formation

Operation Temperature (℃) Pressure (kPaG)

Moa Bay 120 1000

Murrin Murrin 95 100

CBNC 80 270

THPAL 70 350

Tie-In Pipe

Lines

Tie-In Lines

between 2

PAL Trains

Cost Saving Reduce Construction Cost for Tailings Dam

Hematite Production

Dry Stacking System

Long Life of Maintenance Parts

Chromite Recovery

Technological Advantage Recovery of Bi-ProductC

Scandium Recovery

Generation of Tailing Residue : 120-150m3/T-Ni

⇒ Hematite Production from Leach Residue

2007:Collaboration with Japanese Steel Mill

Capability of Chromium <0.01% for Blast Furnace

Application of Reduction Furnace

Utilization of Hematite for Stainless Mill

Element (%) Fe Si Al S Cr

Steel Mill 56-63 <2.7 <1.4 <0.1 <0.01

Stainless Mill >56 <2.6 1.3 - -

Leach Residue 33.3 2.8 1.5 NA 1.5

Hematite Residue 62.4 1.7 1.1 1.4 1.2

6 M USD Pilot Facility of Hematite

Mechanical Completion: Aug, 2014

10 kT-Hematite/Year

Chromite Promote Erosion of Facility Materials

⇒ Chromite Production from Feed Ore

Apply Gravity Separator

such as Cyclone, Density separator and Spiral

Mechanical Completion in August, 2013

Capacity: 9000 T/Year

Construction Cost: 5.2 MUSD

Presence of Scandium in Laterite Ni Detection of Trace Amount of Sc in Nonoc MS

Intensive Investigation of Sc Recovery in 2005

Scandium MarketDemand: 10-15 Ton in the World

Usage: SOFC, AL-Sc Alloy

Price: 1,500 - 2,000 USD/Kg Sc2O3

2006-2010:Laboratory Scale Study

Jan.,2014: Integrated Pilot Facility

Capacity of 100 kg-Sc2O3/Year

Sc2O3 (%) Si (ppm) Al(ppm) Fe(ppm) Ni (ppm)

>99.9 30 20 20 120

Scandium Oxide

Scandium Hydroxide

SMM produce 100kT/Year of Nickel, will expand

to 150kT/Year in the future

Our HPAL operation succeeds in the Philippines

We have to dilute fixed cost to gain further

profits, such as CAPEX of Tailings Dam

We will begin production of by-product to secure

competitiveness and superiority

Thank You …