Sintering of Laterite ores
Download
Report
Transcript Sintering of Laterite ores
Confidential
GITS Sintering Services Inc.
Sintering of Laterite ores
The technology & economics of
Reduction Sintering
19th June 2010
The issue facing most Nickel Laterite
producers in the Philippines is…
How to Add Value to a large resource
of low grade laterite?
GITS
The Philippines has a large resource
base of laterite nickel…
Ore Coke Flux
GITS
The majority of nickel laterites is
exported to China for processing…
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
China Laterite Imports
New Caledonia
Indonesia
3.00
2.50
2.00
1.50
1.00
0.50
A
J'10
O
J
A
J'09
O
J
A
J'08
O
J
A
J'07
O
J
A
0.00
J'06
Million Tonnes Ore
Philippines
World Nickel Laterite Resources
Asia & Europe
New Caledonia
[2559 [email protected]% Ni] 23%
Other Australasia
Australia
[2452 [email protected]% Ni]
3%2%
13%
12,622
Million
Tonnes
Africa
[996 [email protected]% Ni]
11% C & S America
[1131 [email protected]% Ni]
7%
17%
Philippines
[2189 [email protected]% Ni]
8%
16%
Carribean
[944 [email protected]% Ni]
Indonesia
4
[1576 [email protected]% Ni]
4
GITS
Direct shipping of Nickel laterite ore is
of low intrinsic value…
Ore Coke Flux
Laterite Nickel
Grade, % Ni
1.0%
1.5%
1.75%
2.0%
Chinese Purchase
Price, US$/t
US$12/t
US$20/t
US$30/t
US$50/t
>30% “water” shipped to China with every tonne exported
Vale - Goro
Xstrata - Koniambo
Heron Resources
Sherritt - Ambatovy
Gladstone Pacific
Minara - HPAL
BHPB - Raventhsorpe
Highlands Pacific & MCC
- Ramu
Nickelore - Canegrass
Electric Arc Furnace
Skye - Fenix HPAL
$40,000
Skye - Fenix
Agitation Leach Al
Coral Bay-St 2
$50,000
Metallica Minerals
Vale - Vermelho
Minara - Heap Leach
Coral Bay-St 1
BNC - HL or AL 25kt
Rusina - HL
European Nickal - Caldag
($US Capital Cost) / (t Ni pa)
GITS
Ore Coke Flux
Traditionally, value added processing
has been too expensive…
World Lateritic Nickel Operations Capital Intensity
The Y axis values are based on total nickel production - not just payable nickel amount.
$70,000
$60,000
Heap Leach HL
HPAL
$30,000
$20,000
$10,000
$0
GITS
Sintering is significantly cheaper & has
significantly lower barriers to entry
Ore Coke Flux
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
What is Reduction Sintering?
Ore Coke Flux
A process of heating laterites to 900oC – 1,200oC, under reducing
conditions, to induce a phase change of hematite to magnetite
resulting in a semi-fused metallic sinter which can be further
upgraded 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
Why is Reduction Sintering economic today?
Ore Coke Flux
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
(Nickel) Laterites
&
Processing Options
GITS
Ferronickel technologies suitable for
nickel laterite ores… [Pyrometallurgy]
Ore Coke Flux
Chinese
Blast
Furnace
Process
1% Ni to 1.5% Ni Ore 3% to 5% Ni Pig Iron
Requires high Fe laterite
Low Capital...but environmental issues
Electric
Arc
Furnace
Process
>1.5% Ni to 2% Ni Ore 5% to 15% Ni Pig Iron
Requires low Fe laterite
High electrical consumption
AlloyStream
Process
1% Ni to 3% Ni Ore 3% to 50% Ni Pig Iron
No constraints on Ni or Fe
Low electrical consumption
Untested – only ferromanganese
High
Pressure
Acid
Leach
[HPAL]
Atmospheric
Agitation
Leach
[AL]
Autoclave
High Temp
High Pressure
$$$$
Recovery > 90%
Agitation Tanks
Low Temp
Low Pressure
$$$
Recovery 70%-85%
Intermediate
Product -Ni
Hydroxide
>75% Ni Pay
GITS
Leaching technologies suitable for
nickel laterite ores… [Hydrometallurgy]
Processing
Plant – same
for all Tech.
Heap
Leach
[HL]
Low Temp
Low Pressure
$$
Recovery 60%-75%
Cathode Nickel12
100% Ni Pay
Laterite Ore Heaps
GITS
The laterite ore types will dictate the
processing routes…
Traditional
Processing
Routes
Schematic
Laterite Profile
HPAL
Limonite
Ni < 1.3%
Fe > 30%
Ferro-nickel
Saprolite
Ni > 1.8%
Fe < 20%
Bedrock
- Coral Bay
- Goro
- Revensthorpe
- Chinese Blast Furn.
- Elect Arc Furnace
- Reduction process
New
Processing
Routes
Heap
Leaching
-Turkey [ENK]
- Phil. [Rusina]
Agitation
Leaching
- Toledo Mining (TMC)
GITS
Sintering is an intermediate step in the
value-added chain… [Pyrometallurgy]
Intermediate
Products
Schematic
Laterite Profile
A
Limonite
Ni < 0.9%
Fe > 40%
B
A
Sintered Iron Ore
>60% Fe
B
BF or EAF Feed
>3% - 6% Ni PI
C
EAF Feed
>10% Ni PI
Sinter Reduction
Ni < 1.2%
Fe > 30%
C
Saprolite
Ni > 1.8%
Fe < 20%
Bedrock
GITS
Reduction Sintering is a proven technology
and is widely used around the world?
Ore Coke Flux
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
Plan view and layout of a typical Reduction
Sintering plant…
Ore Coke Flux
“The Size of the Prize”
GITS
The economics of the sintering process
are compelling…
Project Life
Production Rate
Capital Cost
NPV10%
IRR %
Payback
12 Years
500,000 tpy Sinter Product
US$20 M [5 Units @ 100,000 tpy]
US$133 M [BOI Incentive]
129%
10 Months
Laterite Tonnage
Laterite Price
Plant Recovery
Electricity Consumpt.
Sinter Selling Price
Cost of Production
1.021 M wmt/year
US$12.00/wmt
90.00 %
1.71 MW/Yr [@US$0.13/kwh]
US$130 /t
US$62.96/t Sinter Product
GITS
Total cash operating costs are approx.
US63/t sinter product…
Operating Costs:
Direct Site Costs 50.21
Overhead Costs
3.00
S & Mkt Costs
0.65
Excise/Royalties 9.10
Total[/t SP] 62.96
Direct Site Costs:
Mining
24.51
Processing
21.48
Maintenance
1.60
Site Labour
2.62
Total[/t SP] 50.21
‘Margin’ over current SP of US$130/t
= ~US$67/t
Processing Costs:
Limestone
2.04
Coal
11.71
Coke
0.48
Water
0.39
Power
4.00
Fuel Oil
1.67
Beneficiation
1.20
Total[/t SP] 21.48
GITS
Annual cash flow [US$M] is healthy in
all years [500,000 tpy SP]…
P&L
US$M
Cash Flow
US$M
Gross Revenue
- Operating Costs
= EBITDA
- Deprec & Amort
= EBIT
- Income Tax
= Net Profit
Year 2
65.00
31.48
33.52
2.00
31.52
0.00
31.52
Year 7
65.00
31.48
33.52
2.00
31.52
9.46
22.06
Net Profit
+ Deprec & Amort
- Sustaining Capital
- WC Increase
= Cash Flow
31.52
2.00
5.00
0.00
28.52
22.06
2.00
5.00
0.00
19.06
Assumes BOI income tax holiday for 6 years
GITS
The modular nature of the plant allows
for financial flexibility…
NPV10%
IRR
US$M
%
1 Unit
26.62
129%
Project Life
Sinter Product
Capital Cost
Yrs
tpy
US$M
12
100,000
4.00
12
300,000
12.00
12
500,000
16.00
Laterite Feed
wmt
204,248
612,745
1,021,242
US$M
US$M
US$M
US$M
US$M
1 Unit
13.00
6.30
6.70
0.00
6.30
3 Units
39.00
18.89
20.11
0.00
18.91
5 Units
65.00
31.48
33.52
0.00
31.52
US$M
US$M
US$M
US$M
US$M
1 Unit
6.30
0.40
1.00
0.00
5.70
3 Units
18.91
1.20
3.00
0.00
17.11
5 Units
31.52
2.00
5.00
0.00
28.52
P & L [Year 2]
Gross Revenue
Op. Costs incl Depr.
EBITDA
Income Tax
Net Profit
Cash Flow [Year 2]
Net Profit
+ Depreciation
- Sustaining Capital
- WC Inc.
Cash Flow
3 Units
79.87
129%
5 Units
133.11
129%
Sensitivities indicate a robust project
is achievable…
GITS
Base Case NPV@10% = US$162M IRR=151% Payback=<1 Year
BOI Tax Regime - Non Pioneer [US$150M]
BOI Tax Regime - Pioneer [US$162M]
PEZA Tax Regime - Non-Pioneer [US$181M]
PEZA Tax Regime - Pioneer [US$183M]
Philippine Corp - Tax Regime[US$118M]
SP Selling Price [US$130/t] +/- 10%
Operating Costs +/- 10%
Discount Rate [10%] +/- 10%
Plant Recovery [90%] +/- 10%
Capital Cost [US$20M] +/- 10%
Laterite Ore Price [US$12/t] +/- 10%
Exchange Rate [45] +/- 10%
0
25
50
75
100
125
150
175
Change in NPV10% - US$m
200
225