Nickel Production Demonstration Program

Transcription

1 DIRECT NICKEL LIMITED ACN LEVEL TEN YOUNG STREET SYDNEY NSW 2000 AUSTRALIA T +61 (0) F +61 (0) DIRECTNICKEL.COM Nickel Prductin Demnstratin Prgram Summary Reprt fr Direct Nickel Sharehlders DNi Test Plant, Australian Minerals Research Centre, Waterfrd, WA March 2014

2 EXECUTIVE SUMMARY Successful Nickel Prductin Demnstratin Prgram Direct Nickel Limited s (DNi) cmpletin f its successful Nickel Prductin Demnstratin Prgram is a majr step in the Cmpany s strategy t becme a leading glbal nickel prducer. During , DNi built and perated a ne tnne per day Test Plant at the CSIRO s Australian Minerals Research Centre in Waterfrd, Western Australia. The successful utcmes f the 2013 Prgram are cntained in this summary reprt. Significantly, the cmpletin f the prgram psitins DNi fr its first Cmmercial Plant and supprts its aims t becme a leading glbal nickel prducer, using the prprietary DNi Prcess t access and prcess nickel laterite resurces. The Cmpany s primary fcus is Suth East Asia, where there are abundant, knwn, high-grade resurces, and where Direct Nickel has partnered with a diversified mining cmpany and Indnesia s largest nickel miner, PT ANTAM (Perser) Tbk (IDX: ANTM; ASX: ATM; ANTAM ) t develp a DNi Prcess Plant. Cinciding with the successful results frm the Nickel Prductin Demnstratin Prgram at the DNi Test Plant, a Feasibility Study has cmmenced n a DNi Prcess Plant at ANTAM s Buli peratin in Halmahera, Indnesia, adjacent t Antam s new ferrnickel smelter which is under cnstructin. The plant will be the first cmmercial prcessing plant t utilise the revlutinary prcessing technlgy develped by DNi and is likely t prduce 10-20,000 tnnes per annum f nickel in cncentrate. Highlights f the 2013 Nickel Prductin Demnstratin Prgram The DNi Prcess has prved t be simple and safe t perate n a cntinuus basis High standards f ccupatinal health, safety and envirnment demnstrated Recveries fr pay metals Ni, C, Fe and Mg match labratry results with +90% fr Ni +95% recycling f nitric acid achieved A wrking, accurate prcess mdel has been develped and verified Cmmercially available 304 stainless steel remains the cnstructin material f chice Water and energy balances have been cnfirmed A simplified flwsheet has resulted in reduced prcess plant capital csts Prcess perating csts f US$2.00 t $3.00/lb (befre credits) have been cnfirmed MHP grades f 32%Ni were achieved, with scpe t further imprve identified 02

3 De-risking the scale-up t the first Cmmercial Plant Thrugh the successful Nickel Prductin Demnstratin Prgram and by testing the DNi Prcess with a highly experienced team at pilt scale fr a full year, Direct Nickel has established the fundamentals t manage the risks invlved with the cmmercialisatin f its new technlgy as it scales-up fr a Cmmercial Plant. The cmmitment f ne f the regin s leading nickel prducers t supprt the new technlgy, thrugh its partnership with Direct Nickel and plans t review the feasibility f the first Cmmercial Plant, further underlines the success f the demnstratin prgram and the derisking f the ptential t scale-up the DNi Prcess fr cmmercial applicatin. TEST PLANT VALIDATION The DNi Prcess The DNi Prcess is an atmspheric hydrmetallurgical prcessing rute able t treat all types f nickel laterite res t prduce a number f final saleable prducts. The key t the Prcess is the use f nitric acid as the leaching agent and the subsequent use f a patented recvery and recycling prcess returning +95% f the nitric acid fr re-use. Figure 1: Simplified Prcess Flwsheet 03

4 Test Plant Operatins The Test Plant included all the key prcess unit peratins in the flw sheet and cmbined them such that cntinuus peratin was achieved fr lng perids f time allwing the cllectin f imprtant perating data. The Test Plant perated thrughut 2013 and cmpleted nineteen campaigns. The feed material was supplied by PT ANTAM frm its Tanjung Buli peratins (Buli), Halmahera Island. Table 1: Variability f Plant Feed Cmpsitins Element % Design Basis Buli Limnite Buli Saprlite Buli 75%S and 25%L Buli 50:50 Ni C Al Fe Mg Cr Si Mn Prcess Perfrmance During the peratin f the DNi Test Plant, prcess data was cllected t cmpare with earlier bench scale results and t assist in the preparatin f a prcess mdel. The bjective f prcess mdelling was t establish a baseline mdel, grunded n chemical and thermdynamic fundamentals, t prvide verificatin f the Test Plant Prcess and its mass and energy balances. Specific bjectives f the mdelling prcess included the fllwing: Simulate full clsed lp prcess Verify mass balances f key cmpnents Generate water balance Understand energy requirements Identify infrmatin gaps Prvide a baseline fr cmmercial scale-up Prvide a baseline fr ptimisatin and sensitivity testing 04

5 Stainless steel 304L and 316 are the main materials f cnstructin used in the DNi Test Plant. Other materials used in the plant fr piping and cnnectins are Tefln and HDPE. The leach tanks and irn hydrlysis vapur space were the nly tw areas f the plant that raised any questins abut the suitability f 304 stainless steel as the chsen material f cnstructin. The cupn testing fr crrsin cnducted during the prgram prvided simple and cst effective answers t these tw areas and apprpriate materials will be further evaluated in Occupatinal Health and Safety (OHS) Key OHS risks identified fr the Test Plant peratins were: Use f Nitric acid at strengths frm 5% t 68% Use f heat in several sectins f the Prcess The presence f mlten salts and steam at temperatures frm 160 C t 220 C Oxides f nitrgen in gaseus frms, with temperatures up t C Ptential fr dust frm re and prducts Vehicles (in the case f the Test Plant specifically frk lifts). Frm an OHS perspective the Test Plant prgram demnstrated beynd dubt that the Prcess can be perated in a safe and healthy manner. Similar risks are satisfactrily managed elsewhere in the prcessing f nickel laterites and ther base metal res and cncentrates. Envirnment The unique feature f the Prcess is that the leach reagent, nitric acid, is recvered and recycled frm the waste streams. The efficient capture f nitrates frm slutins and gases is an ecnmic requirement f the Prcess, and this fact assists in reducing envirnmental impacts. Furthermre, in additin t the main MHP prduct the DNi Prcess can make saleable byprducts. These include an irn rich prduct (60% Fe) and magnesia (+95% MgO). This feature results in the slids waste being limited t an acid insluble residue and an aluminium prduct. Tgether these tw slid waste streams will represent less than 50% f the riginal mass f feed material t the Prcess. This is a small amunt cmpared t ther hydrmetallurgical prcesses fr nickel laterites where the quantity f slid waste is well in excess f the initial mass f feed. The waste slids will be inert in the envirnment. Sluble nitrates are nt welcme in the envirnment. The safe level f nitrates in drinking water is 10ppm and it is anticipated this will be the effluent standard required fr any slutin discharges. Whilst the prcess water balance indicates a zer discharge peratin, the issue f nitrate dispsal has been addressed in the fllwing manner: Prir t discharge, effluent will be treated with alkaline Al rich slutin, which will prduce inert hydrtalcite that will fix nitrate anins. The effluent will be further plished by bilgical denitrificatin. Bth prcesses are used cmmercially. Nitrgen xide (NOX) gaseus discharges are very lw in vlume due t the +99% capture f NOx int useable nitric acid. The gas assays <100ppm NOx and meets regulatry requirements. 05

6 DNi Prducts The DNi Prcess will prduce an intermediate nickel prduct, either a mixed hydrxide prduct (MHP) r a mixed xide prduct (MOP). Table 2 belw shws prduct quality achieved during the last Campaign cmpared t the requirements f cnventinal refineries. DNi prducts will target a market in the cnventinal refinery sectr r amngst stainless steel prducers. Since MHP r MOP prduced frm a DNi plant will be the first f its kind cnsiderable marketing effrt will be required t achieve acceptability amngst cnventinal refiners and the material may need t be placed with mre than ne custmer s that it can be blended with their ther raw materials. Acceptance within the stainless steel sectr may be easier as the Al and Mg that cncerns refiners is nt an issue t them. It is relatively straightfrward t cnvert MHP t metal and test wrk t d s is in prgress. Table 2: DNi Nickel Prducts MHP Test Plant MOP Bench Test Refiners Target %Ni %C %Fe %Mg <1.5 %Al %Mn <1.0 %Zn %NO nne <0.01 % LOI n/a The unique features f DNi s c-prducts, in terms f purity and lack f deleterius elements, have yet t be fully develped fr marketing. In additin t a nickel/cbalt prduct ne f the unique features f the DNi Prcess is that it als prduces saleable Fe and MgO prducts. The specificatins f these prducts are shwn in Table 3 belw. Fine, chemically reactive MgO is sught after in the chemical and water treatment industries and lwer qualities are used in agriculture. In general Fe prducts arund 60% are readily marketable. 06

7 Table 3: DNi MgO and Fe Prducts Element Units MgO Prduct Fe Prduct Mg % MgO % 93.0 nr Ca % 1.05 <0.01 Fe % Fe 2 O 3 % nr 85.4 Ni % Mn % Cr % Al % Si ppm Cu+C+Zn ppm <10 <200 N % NO 3 % LOI % nr 6.3 Full Scale Cnsideratins The DNi Prcess can be cnstructed and perated with cmmercially available ff-the-shelf equipment using well-prven technlgy, thus significantly reducing scale up risks. The Test Plant peratin has demnstrated the perability f the DNi Prcess as an integrated circuit. It has als cnfirmed the perfrmance f a range f prcess cntrl schemes acrss the plant, which can be further refined and built upn in a full-scale peratin. Overall, the DNi Prcess is cnsidered t be significantly less arduus frm an perability and maintenance viewpint cmpared t a fully integrated High Pressure Acid Leaching (HPAL) Ni plant, Nickel Pig Irn r Ferr-Nickel smelter. The Nickel Prductin Demnstratin Prgram in 2013 has generated a large amunt f valuable infrmatin and has cnfirmed the expectatins f the DNi Prcess, including highlighting areas that can and need t be imprved. Key amngst these relate t cmminutin, MHP quality, fcus n marketing Ni, Fe and MgO prducts, energy management and vendr cperatin. 07

8 These activities have been built int the 2014 prgram, when it is expected t run the Test Plant fr a further three mnths n mre representative samples f Buli material frm Indnesia t prvide data fr a feasibility study. The 2014 Test Plant prgram will be supprted by a cntinuing labratry and research prgram aimed at further enhancements t the Prcess ecnmics. Lw-cst Implicatins Whilst the key purpse f the Test Plant was t demnstrate the efficacy f the DNi Prcess, the results can be used t cnsider if there has been any new infrmatin, which may significantly impact n capital and perating csts. The base case fr cst cmparisn is the 2009 PFS2 study by Aker Slutins fr an Australian prcess plant treating 3Mt per annum f laterite re at 1.22%Ni, 14.3%Fe and 8.6%Mg, prducing 34,182 tnnes f nickel as a mixed xide prduct. The impact f changes made t the flw sheet since PFS2 represent arund a 10% reductin in prcess plant capital cst n a like fr like basis still using 2009 csts. The key cmpnents f the PFS2 perating csts were natural gas (53%), cnsumables (reagents and maintenance 24%), labur (9%), electric pwer (8%) and miscellaneus (6%). Fr 100% saprlite Buli material the Cmmercial prcess mdel estimates Prcess Energy at 640 GJ/t Ni prduced, cmpared t 572 GJ/tNi in PFS2 The Ttal Grss Energy required fr 100% saprlite is 864 GJ/t Ni with the additinal 224 GJ/t Ni related t the peratin f a cal fired pwer and steam generatin plant, which was nt included as part f PFS2. The Cmmercial Prcess mdel als demnstrates Grss Energy demands f 1065 GJ/t Ni prduced fr the 50:50 Blend. At a cal cst f US$70/t this represents a cst reductin frm US$1.70 t 1.40/ lb Ni prduced, when changing feed type frm 50% saprlite and 50% limnite blend t 100% saprlite. This cmpares with an energy cst figure quted in PFS2 f $0.98/lb Ni prduced. In summary, with the changes predicted in labur and energy csts a cmparative figure t the PFS2 ttal prcess plant perating cst f US$1.84/lb Ni prduced befre bi-prduct credits, will increase t a range f $2.41 t $2.71/lb Ni fr the anticipated range f Buli res. An Indnesian setting fr labur and further ptimisatin f energy demand can be expected t trim this cst t sme degree. CONSIDERATIONS FOR THE FIRST COMMERCIAL PLANT Cmmercialisatin The DNi Prcess prvides the step change the nickel industry needs t vercme high capital and perating csts in a lw cmmdity price envirnment. It delivers: Elegant prcess chemistry where reagents are regenerated and recycled within the Prcess Ability t treat limnite and saprlite res and blends withut lss in nickel recvery 08

9 Lw prcess intensity nt requiring high temperatures r pressures Off-the-shelf equipment with a well-knwn design and scale up methdlgy N extic materials f cnstructin Lw vlume, benign tailings that can be dispsed as landfill Valuable by-prducts f MgO and hematite These features abve all cmbine t ffer attractive perating and capital csts and simple perability benefits. DNi, by perating its new Prcess at pilt scale fr a full year with a highly experienced team, has put in place the fundamentals t manage the inherent risks invlved with cmmercialisatin f a nvel prcess technlgy. DNi has enhanced the Prcess thrugh the Test Plant prgram and is n track t successful cmmercialisatin by fcussing n the fllwing. Peple maintaining cntinuity f knwledge Nvelty De-Risking Prcess Chemistry Managing scale up risk thrugh data cllectin and integrating full-scale design int the Test Plant prgram Cmmercialising a new apprach Over the past seven years DNi has develped and implemented a plan that addresses the risks assciated with cmmercialising a new apprach t treating nickel laterites. By testing the DNi Prcess at pilt scale during the Nickel Prductin Demnstratin Prgram fr a full year, Direct Nickel has develped and tested the fundamental steps and cnsideratins required t manage the inherent risks invlved with cmmercialisatin f a new technlgy. In summary, there are tw majr aspects f risk; first the prcess chemistry risk and secnd the equipment scale-up risk. The prcess chemistry risk has been addressed in the labratry and in the Test Plant. Take-uts frm the Nickel Prductin Demnstratin Prgram have shwn that this risk can be managed whilst perating at a relatively small scale, as lng as the pilt plant is treating the target re, in a fully integrated circuit that cntains all steps f the prcess, and is running in steady state fr a sufficiently lng time t btain all prcess design data. Fr the secnd area f risk, DNi has apprached the equipment scale up risk with specific fcus n (i) peple, (ii) prcess nvelty and (iii) equipment scale-up. (i) Peple maintaining cntinuity f knwledge The cre technical team, which includes strng representatin frm DNi and CSIRO, has been cnsistent frm prcess inceptin t date. This team has many years f experience in designing, cnstructing and perating mineral and hydrmetallurgical plants. 09

10 (ii) T Address Prcess Nvelty DNi has A crprate culture that supprts thrugh scientific cnfirmatin f all prcess claims and design parameters; Cmpleted a series f disciplined and well-designed develpment phases, with apprpriate stage gate and risk review at the cmpletin f each phase; Run a ne-year, well-funded, Test Plant prgramme t thrughly test the Prcess n a cntinuus basis n a variety f re samples and blends; Prcessed representative material frm the Buli resurce, where the first cmmercial plant may well be based and Develped and verified a Prcess simulatin mdel during the Test Plant prgram. (iii) Equipment Scale-Up N first-f-a-kind equipment will be used in a cmmercial plant. Implementatin f high quality data cllectin and interpretatin by experienced prcess engineers. The prcess is simple and elegant with the bulk f the equipment simple stirred tanks, thickeners and filters. Equipment vendrs, wh are skilled at scaling up equipment frm small-scale test wrk results, have been engaged. All aspects f the design criteria have been thrughly researched and are supprted by hard data frm labratry r Test Plant. The thermal decmpsitin unit supplier, Therma-Flite, has been invlved in the decmpsitin prcess with DNi since 2010, including the 2010 Acid Recycling Pilt wrk in Charltte NC, USA, and the recent Test Plant prgram in Perth. Using 304 stainless steel as the majr material f cnstructin has been cnfirmed. The viability f the nitric acid recvery system has been recnfirmed. 10

11 Next steps tward cmmercial prductin Direct Nickel s strategy t becme a leading glbal nickel prducer has prgressed materially as a result f the successful Nickel Prductin Demnstratin Prgram cmpleted during 2013 at the DNi Test Plant at the CSIRO s Australian Minerals Research Centre in Waterfrd, Western Australia. Imprtantly, and as clear cnfirmatin f interest as cnfidence in the results and the take-uts frm this prgram, a Feasibility Study has cmmenced n a DNi Prcess Plant with Direct Nickel s partner and Indnesia s largest nickel miner, PT ANTAM (Perser) Tbk (IDX: ANTM; ASX: ATM; ANTAM ). The prpsed plant is being cnsidered fr ANTAM s Buli peratin in Halmahera, Indnesia, t be situated next t Antam s ferrnickel smelter. The DNi plant is likely t prduce 10-20,000 tnnes per annum f nickel in cncentrate and will be the first cmmercial prcessing plant t utilise the revlutinary prcessing technlgy develped by DNi as tested in the Nickel Prductin Demnstratin Prgram. The cmpletin f this prgram nt nly psitins DNi fr its first cmmercial plant, and the Cmpany s bjective t becme a leading glbal nickel prducer using the prprietary DNi Prcess, it will als serve t increase awareness within industry f the availability f a cmmercially viable slutin t access and prcess nickel laterite resurces t meet a range f industrial demands. 11