Nickel Laterite v Sulfide: The Hard Sustainability Challenge Remains

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1 Dr Gavin M Mudd Environmental Engineering, Monash University, Australia Nickel Laterite v Sulfide: The Hard Sustainability Challenge Remains nd eng.monash.edu.au/enveng March 1 nd Euro Nickel Conference, London, UK nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1

2 Nickel: A Vital Infrastructure Metal Overview Nickel Prod n n Resources, Ore Types Sulfide versus Laterite Current Global Nickel Mining Key Mega-Trends Environmental Sustainability Costs Implications for the Future? nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 3 Nickel: Sulfide v Laterites Nickel is a reasonably abundant known metal resource, found in mainly in sulfide or laterite (oxide) deposits Ni sulfides: eg. pentlandite, (Fe,Ni) 9 S 8 Ni laterites: eg. garnierite ( NiO( NiO complex!) In general, Ni is more difficult to process than copper, especially Ni laterites Historically, most Ni came from sulfides, with increasing Ni now from laterites Major uses: stainless steel,, alloys, etc nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge /

3 1.6 Global Nickel Production #1 Annual Nickel Production (Mt Ni/year) Linear Trend Line (195-8 only) ~.5% growth/year nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 5 Global Nickel Production # Annual Nickel Production (fraction) Rest of the World Philippines Botswana South Africa Brazil Colombia Dominican Republic China Cuba Indonesia New Caledonia Australia Canada Russia nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 6 3

4 Global Nickel Production #3 1,75 1 Annual Nickel Production (kt Ni/year) 1,5 1,5 1, Ore Type by Fraction.8 Laterite.6. Sulfide Miscellaneous Sulfide Australia (sulfide) Laterite Canada Laterite Russia (sulfide) (sulfide) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 7 Ni Case Study: Canada Ore Grades (%Ni, %Ni+Cu, as milled) Canada (%Ni) Sudbury Field (%Ni+Cu) Voiseys Bay (%Ni) Lynn Lake (%Ni) Sudbury Field (%Ni) Thompson (%Ni) Voiseys Bay (%Ni+Cu) Lynn Lake (%N+Cu) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 8

5 Ni Resources: Inco / Falconbridge Metal Resources (Mt Ni+Cu) / Ore Grades (%Ni+Cu) Inco (Sudbury, Thompson, Voisey's Bay) Metals (Mt Ni+Cu) Ore (Mt) Grade (%Ni+Cu)? Ore Resources (Mt Ore) Metal Resources (Mt Ni+Cu) / Ore Grades (%Ni+Cu) Falconbridge (Sudbury, Montcalm, Raglan) Grade (%Ni+Cu)? Ore (Mt) Metals (Mt Ni+Cu) Ore Resources (Mt Ore) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 9 Sudbury Mine Type & Depths Sudbury has mostly been underground mining, some moderate scale open cuts Now at major UG mining depths (~ km) Similar issues globally Operating Underground Mine Depth (m) , 1,5,,5 Typical Range Creighton Crean Hill Levack Garson Falconbridge Inco Sudbury McCreedy East Average and minimum/maximum (Inco Sudbury, 1998) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1 5

6 New Caledonia Like Sudbury, rich ore mined first, but now at considerably lower grades Existing and future projects based on large, low grade ores Nickel Ore Grade (%Ni) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 11 Australia s s Nickel Ore Grade (%Ni) Open Cut Ore (%ore) %Ni Open Cut Ore (%ore) Economic Resources Sub-Economic Resources?? Disseminated & Laterite ores included in economic resources Economic & Sub-Economic Nickel Resources (Mt Ni) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1 6

7 Australia s s Nickel: Ore Types 1 Murrin Murrin 18 Laterite 15 Nickel by Ore Type (kt Ni) Kambalda Greenvale Laterite Mt Keith Sulfide 3 Sulfide nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 13. Australia s s Nickel: Kambalda Cumulative Production (Mt Ni) Cumulative Production + Remaining Resources (Mt Ni) Ore Grade (as milled) (%Ni) Ore Milled (Mt).8 Nickel Production-Resources (Mt Ni) Ore Milled (Mt) / Ore Grade (%Ni) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1 7

8 Major Nickel Miners Vale Ltd The Big Brazilian through takeover of Inco Ltd (major Ni sulfide in Ontario), plus Ni laterites in Pacific (New Cal., Indo.) BHP Billiton The Big Australian takeover of WMC Ltd (major Ni sulfide in WA), plus Ravensthorpe Ni laterite (WA; now First Quantum) Xstrata Ltd The Big Cheese (Swiss/SA) takeover of Falconbridge Ltd (major Ni sulfide in Ontario), interest in Koniambo Ni lat., & Australia Eramet Ltd/SLN The Big Frenchmen mainly Ni laterite mines, New Caledonia nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 15 Nickel Sulfide Miners (8) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 16 8

9 Nickel Laterite Miners (8) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 17 Cumulative Global Ni Prod. & Res. nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 18 9

10 Enviro. Sustainability Costs of Ni? Given the continuing demand for Ni, and abundance of resources, what are the environmental sustainability costs of Ni? energy, water and greenhouse costs of sulfide versus laterite Ni Since Ni mining is dominated by a handful of major mining companies, most of which report on their sustainability performance, it is possible to analyse Ni costs nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 19 Ni Laterite Mining, New Caledonia nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1

11 Results : Energy & Greenhouse GJ/t metal 5 3 Laterite Projects Inco Sudbury Thompson Murrin Murrin Sorowako Mt Keith Leinster Kambalda t CO /t metal Laterite Sulphide Inco Sudbury Thompson Murrin Murrin Sorowako Mt Keith Leinster Kambalda Doniambo 1 Sulphide Projects Ore Grade (%Ni±Cu±Co) 1 3 Ore Grade (%Ni±Cu±Co) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1 Results : Energy V Greenhouse 5 Sulphide Projects Laterite Projects t CO /t metal 3 1 Inco Sudbury Thompson Murrin Murrin Sorowako WMC Total Yabulu GJ/t metal nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 11

12 Trends v Time: Kalgoorlie Ni Smelter WMC Resources reported data on emissions, energy, water for a decade Kalgoorlie nickel smelter showed long-term trend of declining unit emissions Emissions Intensity (t SO /t Ni; t CO /t Ni) Greenhouse Gases (t CO /t Ni) Energy Intensity (GJ/t Ni) Sulfur Dioxide (t SO /t Ni) Energy Intensity (GJ/t Ni) nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 3 Ni Production: Key Mega-Trends Major shift from sulfide to laterites Declining ore grades also need to consider ore quality & impurities Increasing mine depth for sulfides Environmental constraints energy, water, CO and SO emissions, mine wastes, Sources of new Ni production increasingly in developing world, especially tropics including environmentally sensitive areas nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 1

13 Future Thinking: eg. Boliden A major future trend will have to be efficient recycling technology & systems Eg s s include computers & ewaste,, Pt in cars, Li batteries, urban infrastructure Boliden, 7, Sustainability Report. nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 5 Implications & Nickel s s Future? Nickel will continue to be a critical metal in infrastructure (no real alternatives ) Need for improved sustainability reporting Although there are relatively abundant resources compared to consumption: most Ni is in lateritic ores most new Ni mines are laterite Ni from laterites is clearly more environmentally costly than sulfides Env. costs for Ni will grow rapidly in future nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 6 13

14 Acknowledgements / References Mineral Policy Institute (MPI) Numerous Colleagues in mining circles, Institute for Sustainable UTS, CSIRO Minerals Futures Research Cluster Lori Janower (Manitoba Geol Survey), Bill McCutcheon (NRC, Ottawa) Numerous mining companies for info. Informa for the invitation & opportunity All work is in various papers, just me nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 7 The Hard Sustainability Challenge Remains nd Euro Nickel Conf : Nickel Sulfide v Laterite The Sustainability Challenge / 8 1