PROPOSED ALUMINIUM PECHINEY SMELTER WITHIN THE COEGA IDZ CHAPTER 2: DESCRIPTION OF THE PROPOSED PROJECT

Transcription

1 CHAPTER 2: DESCRIPTION OF THE PROPOSED PROJECT

2 Contents 2. DESCRIPTION OF THE PROPOSED PROJECT Introducing the project proponent Aluminium Pechiney Selection of the Coega IDZ as a potential site for the aluminium smelter Proposed location of the aluminium smelter within the Coega IDZ Overview of the aluminium production process of the Aluminium Pechiney smelter Import, transport and storage of raw materials The potline The carbon plant and rodding shop The casthouse By-products and waste Export of aluminium ingots Electricity Supply Water Use Transport infrastructure specific to the Aluminium Pechiney site Overview of the Construction Phase Overview of the Start-Up Phase Overview of the Decommissioning Phase Direct employment created by the project Construction workforce Operation workforce Project schedule 2-16

3 List of Figures Figure 2.1: Map of the Coega area showing the Aluminium Pechiney smelter site and associated infrastructure 2-5 Figure 2.2: Aerial view of the proposed Aluminium Pechiney smelter within the Coega IDZ 2-7 Figure 2.3: Aluminium production process 2-10 List of Tables Table 2.1: Main raw material requirements of the proposed Aluminium Pechiney smelter 2-8 Table 2.2: Employment during construction phase: Table 2.3: South African Skills Classification 2-16 Table 2.4: Proposed project schedule for the Aluminium Pechiney smelter 2-17

4 2. DESCRIPTION OF THE PROPOSED PROJECT 2.1 Introducing the project proponent Aluminium Pechiney Aluminium Pechiney is a French company listed on the French Commercial Register. Aluminium Pechiney is one company within The Pechiney Group, focussed on the production of primary aluminium and aluminium products. Other core business of The Pechiney Group includes the production of packaging materials, production of ferroalloys and international trade. Aluminium Pechiney is the fourth largest primary aluminium producer in the world, and the world leader in design and supply of aluminium production technology. The company conducts bauxite mining, alumina refining and aluminium smelting operations in a total of five countries. Pechiney s guidelines for Environment, Health and Safety 1. To ensure transparency in issues concerning environmental protection, health and safety, in particular by evaluating and publishing achievements and performances measured by selected indicators applicable to the Group s activities. 2. To ensure regulatory compliance of operations and facilities, as well as compliance with the internal standards the Group is developing to align its practices. 3. To ensure continuous improvement of employees health and safety conditions and those of Group subcontractors. 4. To continue to reduce the environmental impact of the Group s past, current or future activities as well as of its products, by limiting emissions and waste, optimising processes, managing the risk of accidents, remediating any damage done, and developing partnerships with customers and suppliers. 5. To develop products that are more considerate of the environment by analysing their life cycl es, from design to recycling. 6. To implement the best available and most economically viable technology in new investments and the best environmental practices throughout the Group. 7. To manage industrial risks through efficient identification and ranking procedures, as well as by the implementation of appropriate prevention and protection measures and their ongoing adaptation. 8. To organise a scientific health watch activity to detect and control new risks. Source: Pechiney, 2001, Environment, Health & Safety Report page 2-1

5 Aluminium Pechiney has committed to the following: Application of the ISO Environmental Management System (EMS) Development and implementation of multi-year Environmental Health and Safety (EHS) Action Plans A Corporate Continuous Improvement System integrating Environment, Health and Safety policies A Corporate greenhouse reduction commitment under the Partnership for Climate Action. Pechiney has committed itself to reduce its direct emissions of greenhouse gases globally by 15% in 2012 compared with Selection of the Coega IDZ as a potential site for the aluminium smelter A screening process was undertaken by Aluminium Pechiney to identify suitable international locations for constructing and operating an aluminium smelter. Eleven potential sites were identified, located in: Southern Africa Australia North America Central America South America Arabian gulf. Each of these sites has been subjected to an initial screening process, based on available information and informed assumptions. The main criteria used in this initial screening process were: Energy supply source (hydroelectric, gas, other) size of the energy resources commercially available power (including aspects such as availability, security of supply and length of supply contract). Site topography, ground quality, climate port and road infrastructure. Environment flora and fauna impact existing situation (other industry in the area) impact on employment social impact. page 2-2

6 Tax conditions corporate tax, metal sale tax depreciation rules, exemptions. Raw materials and metal logistics transportation cost market location, finished product grade and shape. Risks inherent to the country political stability safety of people and goods. Aluminium Pechiney used a model to convert the above factors into costs, which were then used as a basis for comparing the sites. At present, all 11 sites are still considered as potential sites, however, the results of the modelling exercise led to more detailed feasibility investigations at three of the sites. These are: Coega, South Africa Australia Argentina. For these three sites, Aluminium Pechiney commenced with site engineering studies to obtain accurate figures that can be used in their economic model, in order to check the assumptions. Due to recent economic instability in Argentina, the more detailed studies for this site were stopped. At present, engineering, planning and environmental studies are underway at the South African and Australian sites. South Africa (within the Coega IDZ) is currently the preferred site, due partly to a strategic agreement having been reached with South Africa s electricity provider, Eskom, in March 2002 to secure energy supply for the project. Ongoing negotiations and investigations are, however, still underway to source additional information and obtain strategic agreements to enable Aluminium Pechiney to make a final selection decision. This includes the information and decisions provided through the Environmental Impact Assessment process. 2.3 Proposed location of the aluminium smelter within the Coega IDZ The aluminium smelter is proposed to be established in an area demarcated for metallurgical industries within the Coega IDZ, which is located approximately 15km north-east of Port Elizabeth in the Eastern Cape Province of South Africa (Figure 2.1). The closest residential areas are Motherwell (located approximately 5 km west of the smelter site) and Blue Water Bay (located 10km southwest of the site). A small community consisting mostly of riverside holiday homes is located at Sundays River Mouth, approximately 11km east of the proposed site. page 2-3

7 The N2 national road bisects the IDZ and separates the smelter site from the Port of Ngqura which is currently under construction at the mouth of the Coega River. Within a 50km radius of the IDZ are extensive citrus growing areas (along the Sundays and Coega River) as well as the Addo Elephant National Park. This Park is in the process of being expanded to create the Greater Addo Elephant National Park which will in future link the existing Addo Elephant National Park and the Woody Cape Nature Reserve, located to the north-east of the IDZ along the coastline. Located along the coastline, and surrounded by the IDZ, is the Marine Growers abalone farm. The future of this farm is currently under negotiation between the owner, the National Ports Authority (NPA) and the Coega Development Corporation (the organization responsible for planning and managing the IDZ). A saltwork is located in the Coega River valley between the N2 and the sea. Negotiations are underway between the NPA and the current saltwork owners, Cerebos, as to the future of the saltworks. The proposed site for the smelter lies within an area in the IDZ identified as a metallurgical cluster. The CDC is currently negotiating the purchase of the land that would be required by Aluminium Pechiney. page 2-4

8 Figure 2.1: Map of the Coega area showing the Aluminium Pechiney smelter site and associated infrastructure page 2-5

9 2.4 Overview of the aluminium production process of the Aluminium Pechiney smelter The proposed smelter would be operated on a continuous basis (24 hours, 365 days per year) using new generation smelting technology (AP50) developed by Aluminium Pechiney. AP50 smelting technology operates at amperes of electricity in comparison to the previous AP30 and AP18 technology which operated at and amperes respectively. The proposed smelter is being designed to produce approximately tonnes of aluminium metal per year. AP50 smelting technology has been selected as it represents significant capital and operating cost advantages. In addition, the smelter footprint in terms of land area required per tonne of aluminium produced is reduced as the AP50 technology produces the equivalent volume of aluminium more efficiently than older technologies. Summary of the Aluminium Pechiney smelter project Smelter plant area Approx. 80 hectares Construction laydown area Approx. 30 hectares Number of potlines 1 Number of potrooms 2 Length of potlin e 1200 meters Number of electrolysis cells ( pots ) 336 Production capacity Approx t/year Alumina consumption Approx t/year Petroleum coke consumption Approx t/year Liquid pitch consumption Approx t/year Aluminium fluoride consumption Approx t/year Heavy fuel oil usage Approx t/year Electricity demand Approx. 860 MW Electricity supply 3 x 275 kv lines Water usage Approx m3/year The plant area of 80 hectares comprises 25 hectares of buildings, 25 hectares of hardened surfaces (roads and paved areas) and 30 hectares of landscaped grounds. In addition, during the construction phase, an additional 30 hectares of land will be used as a construction laydown area at the northern side of the site. The overall area which will be leased or purchased by Aluminium Pechiney will comprise 110ha to take into account the requirement for an electromagnetic buffer zone. page 2-6

10 There exists the potential for a second potline to be constructed at a later stage. However, Aluminium Pechiney has stated unequivocally that a single potline is economically viable and the economic feasibility of the smelter does not depend on a future expansion. At this stage, there is no proposal to establish to establish a second potline. If at some stage Pechiney decide to investigate the feasibility of a second potline, then a separate EIA will be required. Figure 2.2 provides an aerial view of the proposed smelter reflecting its location relative to the N2 highway and the proposed Port of Ngqura and indicating the main components of the aluminium smelter. Figure 2.2: Aerial view of the proposed Aluminium Pechiney smelter within the Coega IDZ The aluminium production process, as applying to Aluminium Pechiney s proposed operation within the Coega IDZ, is shown in Figure 2.3 and is described in more detail below. page 2-7

11 2.4.1 Import, transport and storage of raw materials The main raw materials that would be required for the Aluminium Pechiney project aluminium smelting process, as well as the materials handling, transport and storage requirements, are presented in Table 2.1. Table 2.1: Main raw material requirements of the proposed Aluminium Pechiney smelter RAW MATERIALS AND OTHER INPUTS Alumina Petroleum coke Liquid pitch Aluminium (AlF3) fluoride Heavy fuel oil (HFO) AMOUNT (per year) t t t t t NOTES Imported to the Port of Ngqura in dedicated ships as fine, loose, solid dry-bulk material. The alumina would be delivered approximately every three weeks. Vacuum/suction unloaded at the port and transferred onto an enclosed belt conveyor to be transported to sealed, 40 m high dome-shaped holding silos at the smelter site. Imported to the Port of Ngqura in dedicated ships as fine, loose, solid dry-bulk material. Vacuum/suction unloaded at the Por t then transported to an A-frame coke storage shed at the smelter site by enclosed conveyor belt. Imported to Port of Ngqura as hot liquid bulk, and off loaded using a liquid pitch off-loading facility. Stored at the port in a specialised storage vessel and transported to the smelter site by 24 tonne insulated road tankers. Imported to either Port Elizabeth or Port of Ngqura as break bulk (1 ton bulker bags or 25kg layer bags). Off loaded using general cargo facilities and then transported to the smelter site by 24 tonne truck for storage and use. Stored at the Port Elizabeth harbour in existing storage vessels. Transported to the smelter site by 24 tonne tankertruck. The conveyor belt is covered and entirely enclosed to minimise material losses through wind, dust and waste generation and stormwater and groundwater contamination risks. It is fitted with dust filters at each transfer point to further minimise dust creation. The silo storage of raw materials and intermediate products (e.g. bath) are enclosed and operated under negative pressure provided by dust filters. The layout of the smelter has been designed to minimise transport distances of raw materials and intermediate products. A fully enclosed pneumatic system is employed for the internal transport of alumina and bath products. This includes the transfer of alumina from the plant silos to the gas treatment centre before being fed into the pots in the potline. Overall, the materials handling facilities employed by the project incorporate best practice integrated emission control systems within their design. page 2-8

12 2.4.2 The potline The smelting process uses electrical energy to break the bonds between aluminium (Al) and oxygen (O) in the alumina (Al2O3) in order to produce liquid aluminium. 2Al2O3 + 3C? 4Al + 3CO2 This process occurs in large steel containers called reduction pots, which are arranged in long buildings called potrooms. Two potrooms constitute a potline. The potline proposed for the Coega IDZ would consist of two elongated potrooms measuring 1200m x 30m, which run parallel to each other. Each room would house a line of 168 pots in two groups of 84 pots, electrically connected. There would be 336 pots in total in the potline. Each pot represents one large electrolytic cell. They are lined with carbon blocks and refractory bricks to insulate the pots and contain the heat. This potlining also forms the positive contact (the cathode) for the electric current that is passed through a molten bath of sodium aluminium fluoride (cryolite), alumina and aluminium fluoride in the pots. Carbon anodes (made of petroleum coke and pitch) are used to conduct electricity into the pots. The anode block is consumed during the smelting process. The heat generated by passing the electric current through the cell maintains the bath in liquid form at about 950 C. A steel-reinforced structure supports the overall pot including the anodes, cathode shell, a hooding system and the alumina supply hopper. The supply hopper automatically feeds fluoride enriched alumina from the Gas Treatment Centre into the pots where it is dissolved in the molten cryolite. Liquid aluminium is tapped periodically from the pots by vacuum suction and transferred to the casthouse and holding furnaces in refractory lined steel crucibles. These crucibles are transported to the casthouse on specialised trolleys. Associated with the potline are two Gas Treatment Centres (GTC's) positioned between the potrooms to receive emissions from the pots. In addition to carbon dioxide (CO2), emissions consist primarily of fluoride, sulphur dioxide and dust. The GTC s are dry scrubbing units, having the primary role of recycling almost all the fluoride and dust captured from the pots. Alumina is used as a scrubbing agent to extract the fluoride from the emissions. The fluorinated alumina is then directed into the pots. The dry scrubbing system is, however, not efficient at SO 2 abatement. Particulates are removed by means of bag filters. page 2-9

13 Figure 2.3: Aluminium production process page 2-10

14 2.4.3 The carbon plant and rodding shop The carbon anodes are gradually consumed during the smelting process. The expected life of an anode is approximately 640 to 770 hours, so they are replaced on a rotating schedule. Due to this high demand for anodes, they would be manufactured on site in a carbon plant by a 3 -stage process: Paste plant - Green (unbaked) anodes would be produced by crushing petroleum coke and spent anode butts (the remainder of the anode which was not consumed in the potline) then mixing it with liquid pitch to form an anode paste and compacting the paste into anode blocks. Baking furnace - The anodes are baked at about C in one of two heavy fuel oil-fired furnaces for several weeks in order to give them mechanical and conductivity properties; and Rodding shop - Anodes are then attached to electrical conducting rods in the rodding house and transported to the potline. Associated with the anode-baking furnace is a fume treatment centre (FTC) to extract and recycle fluoride, poly-aromatic hydrocarbon (PAH) containing tar and dust from emissions created by the anode baking process. This is a dry scrubbing unit, also utilising raw alumina as the scrubbing agent with the resultant enriched alumina being recycled into the pots resulting in PAH destruction. There is also a pitch fume treatment centre (PFTC) associated with the paste plant. This is a dry scrubbing unit that treats PAH containing tar and dust emissions from the paste plant, using particulate coke as the scrubbing agent. This enriched coke is recycled into the paste plant. Particulates emitted from both the anode baking process and the paste plant are removed by means of bag filters in the FTC and the PFTC The casthouse Molten aluminium metal is extracted from the pots by a vacuum and siphoned into large ladles. Specific vehicles transport ladles to the casthouse. Metal is siphoned from the ladles into holding furnaces in preparation for casting the liquid aluminium metal into solid aluminium ingots. At this stage various alloying elements can be added to the liquid metal to attain specific qualities and strengths (for differing customer requirements). The metal is then cast into ingots and bundled for shipping. Aluminium dross or skimmings is a by-product of the casting step due to some re-oxidation of aluminium. page 2-11

15 2.4.5 By-products and waste Solids Inherent in the primary aluminium smelting process is the total internal recycling and re-use of dry scrubbers, consumed anode butts and bath products. The total amount of waste produced is therefore reduced substantially. The solid waste generated by the smelter which would require external re -use, recycling or disposal would consist of general waste and hazardous waste. Aluminium Pechiney has indicated that the smelter will be serviced by a waste management contracting company that will be responsible for the off-site removal of waste streams to the final destinations (e.g. waste disposal sites, recycling centers or cement kilns). It must be noted that even though the waste contracting company is responsible for the transportation of the waste, Aluminium Pechiney will still remain responsible for the environmentally acceptable recycling and disposal of the waste. The new generation AP50 technology is expected to realize reductions in solid waste generated. For example, it is expected that the Aluminium Pechiney smelter will generate a lower rate of spent potlinings (SPLs) per tonne of aluminium produced through enhanced economies of scale. Furthermore, the technology is designed to maximise pot life and furnace refractory life leading to further reduction in SPL and refractory waste generation. SPLs are classified as hazardous waste and will therefore be stored in a licenced, watertight, well ventilated temporary storage facility at the smelter before being sent to a final destination for processing. The two components of SPLs (first cut is the carbon fraction and second cut is the refractory fraction) will be stored separately, as will the specialised treated quantities (e.g. crushed SPL). Stored SPLs will be sent for re-use or recycling under the principle of firstin-first-out. Gaseous According to the World Bank Pollution Prevention and Abatement Handbook (1998), gaseous emissions from aluminium smelters include dust, gaseous and particulate fluorides, sulphur dioxide (SO 2 ), carbon dioxide, poly-aromatic hydrocarbons (PAHs), tars, and perfluorinated carbons (PFCs). Other substances that are potentially released in small quantities from aluminium smelters are persistent organic pollutants (POPs) including poly-aromatic hydrocarbons (PAHs), dioxins and furans. page 2-12

16 Liquid The main wastewater streams that will be generated at the Aluminium Pechiney smelter are domestic wastewater (sewage), process wastewater and stormwater. The design and management of process water for the smelter includes the following Best Available Technology (BAT) features: Closed circuit water cooling are systems for metal casting, anode production and compressed air systems. Application of dry scrubbing emission control systems in place of wet scrubbers for air quality management, in that this avoids the generation of slurry that results from the wet scrubbing process, and then needs to be disposed of to a waste site. Increased undercover handling of process materials contributing to reduced stormwater contamination Export of aluminium ingots The final product of the aluminium smelting process would be in the form of aluminium ingots. The ingots would be stacked and trucked to the port from the casthouse at the smelter. A metal storage site would be established within the port for interim storage of the aluminium ingots prior to ship loading and export Electricity Supply The operation of an aluminium smelter within the Coega IDZ would require 860 MW of electricity. An agreement has been reached with Eskom to supply power to the smelter, although details are still to be finalised. To meet the requirements of the smelter the existing electricity supply capacity will need to be expanded. This will involved the construction of three 275 kv transmission lines from the Grassridge substation to the smelter site, as well as the construction of a substation at the smelter. Electricity requirements at Aluminium Pechiney s facilities at the Port of Ngqura will be supplied by the transmission lines to be constructed to meet the demands of the IDZ. Details of the EIAs which are underway for the proposed construction of the powerlines to the IDZ and the smelter site are provided in section Water Use The aluminium smelter would require approximately m 3 /year during operations. An agreement has been reached between the CDC and the Nelson page 2-13

17 Mandela Metropolitan Municipality (NMMM) for the municipality to supply water to the IDZ Transport infrastructure specific to the Aluminium Pechiney site The Aluminium Pechiney site will be served by two access roads during the construction phase. The first will be provided from Road 435 and will serve heavy vehicles only. The other access will be from Road 450 (St Georges Road) via Ranger Road extension and will serve passenger traffic such as private cars, taxis and buses. Figure 2.1 shows the locations of these roads. As part of the construction of the Port of Ngqura, a dedicated temporary haul road will be constructed to transport construction materials from Coega Kop to the port. This road will cross the access road provided for construction workers to the AP site (the extension of Ranger Road) as well as Road 435 to the east of Road 450. CDC has developed temporary arrangements (check) to manage the conflict between passenger vehicles, construction vehicles and pedestrians crossing the haul road by means of a pedestrian bridge and boom-controlled intersections. During the operational phase of the AP plant, access will be gained through Ranger Road extension. Ranger Road extension is still in the design phase but is likely to consist of six lanes (three lanes per direction), of which two lanes will be dedicated to heavy vehicles. The same design is planned for Neptune Road between the proposed harbour and the intersection with Ranger Road. The layout of the smelter site includes a large parking area with a public transport terminal. The layout further allows for separate four-lane access roads for heavy vehicles and passenger vehicles. 2.5 Overview of the Construction Phase The construction phase will take approximately 26 months and will involve the transportation of personnel, construction material and equipment to the site, and personnel and waste away from the site. The origin of the construction material will depend on the cost at the time of construction, and will be the responsibility of the General Construction Manager (GCM), who will be appointed by Aluminium Pechiney for the construction period. One can expect that construction material such as steel and concrete will be sourced within the NMMM region. The specialised material and equipment needed for the smelting process would probably be imported via Port page 2-14

18 Elizabeth Harbour since the Port of Ngqura will not be operational during the construction phase. The port facilities required for unloading and storing raw materials, and storing and loading the finished products, would be constructed in conjunction with the development of the Port of Ngqura. 2.6 Overview of the Start-Up Phase During commencement of initial potline operations, each individual pot undergoes a start-up operation over a period of approximately 48 hours. Generally, between 2 and 4 pots are started together each day, giving rise to the predicted start-up period of 8 months at a rate of 10 pots per week. 2.7 Overview of the Decommissioning Phase The expected lifetime of the plant is expected to be approximately 40 years. After this period, and based on Aluminium Pechiney s experience, the following options exist for the plant facilities: Extension of the lifespan of the smelter through technology upgrades Alternative use of the buildings and facilities by other industries De-commission plant removing structures and full site rehabilitation. 2.8 Direct employment created by the project Construction workforce The total number of constructions workers is still to be assessed according to the typical South African standard of construction. The workforce is expected to peak at approximately people for a period of 12 months during the construction phase, with the average workforce during construction estimated at workers (Table 2.2). The workforce would be sourced locally where possible, however, it is likely that some of the semi-skilled workforce would come from outside the immediate vicinity. An additional 170 highly skilled expatriates will also be employed. page 2-15

19 Table 2.2: Employment during construction phase: PEAK CONSTRUCTION SOUTH AFRICAN TEMPORARY WORKFORCE EMPLOYEES EXPATRIATES Unskilled Semi-skilled Skilled Highly skilled Total Employment categories are based on the South African skills classification, which is outlined in Table 2.3. Table 2.3: South African Skills Classification SKILLS LEVEL CLASSIFICATION CRITERIA Unskilled >16 yrs of age, schooling up to Grade 5 (5 years of schooling) Semi-skilled >16 yrs of age, schooling between Grade 6-11 Skilled Achieved Grade 12 (Matric) Highly skilled Grade 12 and tertiary education (technical diploma or university degree) Operation workforce Operation of the smelter would require approximately 750 full-time, permanent, long-term employees. About 550 of these positions would be occupied by semi-skilled and skilled waged employees, spread over three shifts of 8 hours per day. The minimum educational qualification for semiskilled positions would be Grade 10 or 11 and skilled positions would require a Matric (Grade 12) certificate or equivalent. There would be about 200 highly skilled technical and management positions. During operations the majority (if not all) of the non -core activities will be outsourced to external contractors. An additional 200 to 300 direct subcontractors would thereby be permanently employed for smelter operations. 2.9 Project schedule Aluminium Pechiney initiated the feasibility studies and the approvals process in early The commencement of construction is planned for early 2003 in order for the smelter to become operational in early 2005, as is detailed in the proposed project schedule below (Table 2.4). page 2-16

20 Table 2.4: Proposed project schedule for the Aluminium Pechiney smelter ACTIVITY SCHEDULE Preferred site confirmed 2002 Environmental Impact Assessment and approvals 2002 Construction 2003 / 2004 First metal Early 2005 Full metal capacity reached End 2005 Construction is anticipated to commence in early 2003 and last for a period of 26 months. The first metal production is planned for early 2005 and the plant is expected to operate at full capacity production 8 months later. The duration of the project from beginning of the construction to operation at full capacity is therefore expected to be 34 months. The life of the project is expected to be 30 to 40 years. The proposed site is currently uncleared and undeveloped, so initial construction would require the development of a suitable site upon which to build the smelter and an access road to the site. page 2-17