Sintering of Laterite ores
description
Transcript of Sintering of Laterite ores
Sintering of Laterite ores
The technology & economics of Reduction Sintering
Confidential
19th June 2010
GITS Sintering Services Inc.
The issue facing most Nickel Laterite producers in the Philippines is…
How to Add Value to a large resource of low grade laterite?
Ore Coke Flux
The Philippines has a large resource base of laterite nickel…
GITS
The majority of nickel laterites is exported to China for processing…
4
13%
8%
11%
7%
16%
17%
23%
3%2%
World Nickel Laterite Resources
Philippines [2189 [email protected]% Ni] Indonesia
[1576 [email protected]% Ni]
Carribean[944 [email protected]% Ni]
C & S America[1131 [email protected]% Ni]
Africa[996 [email protected]% Ni]
Australia[2452 [email protected]% Ni]
Asia & Europe
12,622MillionTonnes
Other Australasia
New Caledonia [2559 [email protected]% Ni]
4
Approx. 16Mt laterite imported into China in 2009 Imports are equivalent to > 110,000 t Ni metal For higher grade Ni ores, Indonesian ore is preferred over Philippine ores Philippine exports are mainly lower Ni grade ores
0.00
0.50
1.00
1.50
2.00
2.50
3.00
J'06 A J O
J'07 A J O
J'08 A J O
J'09 A J O
J'10 A
Mill
ion
Tonn
es O
re
China Laterite ImportsPhilippines New Caledonia Indonesia
GITS
Ore Coke Flux
Direct shipping of Nickel laterite ore is of low intrinsic value…
Laterite NickelGrade, % Ni
Chinese PurchasePrice, US$/t
1.0% US$12/t1.5% US$20/t1.75% US$30/t2.0% US$50/t
>30% “water” shipped to China with every tonne exported
GITS
Ore Coke Flux
Traditionally, value added processing has been too expensive…
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Eur
opea
n N
icka
l -C
alda
g
Rus
ina
-HL
BN
C -
HL
or A
L 25
kt
Cor
al B
ay-S
t 1
Min
ara
-Hea
p Le
ach
Vale
-Ve
rmel
ho
Met
allic
a M
iner
als
Cor
al B
ay-S
t 2
Sky
e -F
enix
Sky
e -F
enix
HPA
L
Nic
kelo
re -
Can
egra
ss
Hig
hlan
ds P
acifi
c &
MC
C
-Ram
u
BH
PB
-R
aven
thso
rpe
Min
ara
-HPA
L
Gla
dsto
ne P
acifi
c
She
rritt
-Am
bato
vy
Her
on R
esou
rces
Xst
rata
-K
onia
mbo
Vale
-G
oro
($U
S C
apita
l Cos
t) / (
t Ni p
a)
World Lateritic Nickel Operations Capital Intensity The Y axis values are based on total nickel production - not just payable nickel amount.
Heap Leach HL
HPAL
Agitation Leach Al
Electric Arc Furnace
GITS
Ore Coke Flux
Sintering is significantly cheaper & has significantly lower barriers to entry
Sintering is the intermediate step in producing either- laterite nickel feed for an EAF/Blast Furnace [Ni PI], or iron ore feed for the steel industry
Capital Costs for a sinter plant are low- Approx. US$4M per 100,000 tpy production module
Sintered products command a higher price then DSO- Laterite nickel sinter @ ~1.8% Ni = US$130/t FOB Iron ore feed @ ~60% Fe = US$85 to US$100/t FOB
GITS
Ore Coke Flux
What is Reduction Sintering?
A process of heating laterites to 900oC – 1,200oC, under reducingconditions, to induce a phase change of hematite to magnetiteresulting in a semi-fused metallic sinter which can be furtherupgraded by simple magnetic means.
Nickel Laterites: Upgrades Ni content in sinter product & eliminates water
Iron Laterites: Upgrades 40% to 50% Fe in limonite to>60% magnetite sinter & eliminates water
GITS
Ore Coke Flux
Why is Reduction Sintering economic today?
Historical low iron ore prices (<US$30-US$40/t @ 60% Fe) have prevented the industry from expanding, until recently. As iron ore prices increase, the economics of sintering improves The Chinese are a ‘test-bed’ and very innovative when it comes to seeking alternatives to high grade iron ore prices
GITS
(Nickel) Laterites&
Processing Options
ChineseBlastFurnaceProcess
AlloyStreamProcess
Ore Coke Flux
1% Ni to 1.5% Ni Ore 3% to 5% Ni Pig Iron
1% Ni to 3% Ni Ore 3% to 50% Ni Pig Iron
Requires high Fe lateriteLow Capital...but environmental issues
ElectricArcFurnaceProcess
>1.5% Ni to 2% Ni Ore 5% to 15% Ni Pig IronRequires low Fe lateriteHigh electrical consumption
No constraints on Ni or FeLow electrical consumptionUntested – only ferromanganese
Ferronickel technologies suitable for nickel laterite ores… [Pyrometallurgy]
GITS
Leaching technologies suitable for nickel laterite ores… [Hydrometallurgy]
12
HighPressureAcid Leach[HPAL]
AtmosphericAgitation Leach[AL]
HeapLeach[HL]
ProcessingPlant – same for all Tech.
High TempHigh Pressure$$$$Recovery > 90%
Low TempLow Pressure$$$Recovery 70%-85%
Low TempLow Pressure$$Recovery 60%-75%
Autoclave
Agitation Tanks
Laterite Ore Heaps
Intermediate Product -Ni Hydroxide
Cathode Nickel
>75%
Ni P
ay10
0% N
i Pay
GITS
Bedrock
Saprolite
Limonite
TraditionalProcessing
Routes
HPAL- Coral Bay- Goro- Revensthorpe
Ferro-nickel- Chinese Blast Furn.- Elect Arc Furnace- Reduction process
NewProcessing
Routes
HeapLeaching-Turkey [ENK]- Phil. [Rusina]
AgitationLeaching- Toledo Mining (TMC)
Ni > 1.8%Fe < 20%
Ni < 1.3%Fe > 30%
SchematicLaterite Profile
The laterite ore types will dictate the processing routes…GITS
Sintering is an intermediate step in the value-added chain… [Pyrometallurgy]
Bedrock
Saprolite
LimoniteNi < 0.9%Fe > 40%
SchematicLaterite Profile
Sintered Iron Ore>60% Fe
BF or EAF Feed>3% - 6% Ni PINi < 1.2%
Fe > 30%
Ni > 1.8%Fe < 20%
A
B
C
A
EAF Feed>10% Ni PI
C
B
IntermediateProducts
Sinter Reduction
GITS
Ore Coke Flux
Reduction Sintering is a proven technology and is widely used around the world?
Krupp Renn in Germany: 1930-1940 Nippon Yakin in Japan: currently processing Ni laterites Minnesota low grade iron ores (35% Fe – 50% Fe) Chinese - today
GITS
Sintering is a relatively simple process with basic inputs…
Product
GITS
Ore Coke Flux
Plan view and layout of a typical Reduction Sintering plant…GITS
“The Size of the Prize”
The economics of the sintering process are compelling…
Project Life 12 YearsProduction Rate 500,000 tpy Sinter ProductCapital Cost US$20 M [5 Units @ 100,000 tpy]NPV10% US$133 M [BOI Incentive]IRR % 129%Payback 10 Months
Laterite Tonnage 1.021 M wmt/yearLaterite Price US$12.00/wmtPlant Recovery 90.00 %Electricity Consumpt. 1.71 MW/Yr [@US$0.13/kwh]Sinter Selling Price US$130 /tCost of Production US$62.96/t Sinter Product
GITS
Total cash operating costs are approx. US63/t sinter product…
‘Margin’ over current SP of US$130/t= ~US$67/t
Direct Site Costs 50.21Overhead Costs 3.00S & Mkt Costs 0.65Excise/Royalties 9.10
Total[/t SP] 62.96
Operating Costs:
Mining 24.51Processing 21.48Maintenance 1.60Site Labour 2.62
Total[/t SP] 50.21
Direct Site Costs:
Limestone 2.04Coal 11.71Coke 0.48Water 0.39Power 4.00Fuel Oil 1.67Beneficiation 1.20
Total[/t SP] 21.48
Processing Costs:
GITS
Assumes BOI income tax holiday for 6 years
Annual cash flow [US$M] is healthy in all years [500,000 tpy SP]…
P & LUS$M
Cash FlowUS$M
Year 2 Year 7Gross Revenue 65.00 65.00- Operating Costs 31.48 31.48= EBITDA 33.52 33.52- Deprec & Amort 2.00 2.00= EBIT 31.52 31.52- Income Tax 0.00 9.46= Net Profit 31.52 22.06
Net Profit 31.52 22.06+ Deprec & Amort 2.00 2.00- Sustaining Capital 5.00 5.00- WC Increase 0.00 0.00= Cash Flow 28.52 19.06
GITS
The modular nature of the plant allows for financial flexibility…
1 Unit 3 Units 5 UnitsNPV10% US$M 26.62 79.87 133.11IRR % 129% 129% 129%
Project Life Yrs 12 12 12Sinter Product tpy 100,000 300,000 500,000Capital Cost US$M 4.00 12.00 16.00
Laterite Feed wmt 204,248 612,745 1,021,242
P & L [Year 2] 1 Unit 3 Units 5 UnitsGross Revenue US$M 13.00 39.00 65.00Op. Costs incl Depr. US$M 6.30 18.89 31.48EBITDA US$M 6.70 20.11 33.52Income Tax US$M 0.00 0.00 0.00Net Profit US$M 6.30 18.91 31.52
Cash Flow [Year 2] 1 Unit 3 Units 5 UnitsNet Profit US$M 6.30 18.91 31.52+ Depreciation US$M 0.40 1.20 2.00- Sustaining Capital US$M 1.00 3.00 5.00- WC Inc. US$M 0.00 0.00 0.00Cash Flow US$M 5.70 17.11 28.52
GITS
0 25 50 75 100 125 150 175 200 225
Exchange Rate [45] +/- 10%
Laterite Ore Price [US$12/t] +/- 10%
Capital Cost [US$20M] +/- 10%
Plant Recovery [90%] +/- 10%
Discount Rate [10%] +/- 10%
Operating Costs +/- 10%
SP Selling Price [US$130/t] +/- 10%
Philippine Corp - Tax Regime[US$118M]
PEZA Tax Regime - Pioneer [US$183M]
PEZA Tax Regime - Non-Pioneer [US$181M]
BOI Tax Regime - Pioneer [US$162M]
BOI Tax Regime - Non Pioneer [US$150M]
Change in NPV10% - US$m
Base Case NPV@10% = US$162M IRR=151% Payback=<1 Year
Sensitivities indicate a robust project is achievable…GITS