DILIP GAUR, ADITYA BIRLA GROUP(HINDALCO INDUSTIRES), INDIA. Copper Smelting Industry : Profile and Value Drivers

Transcription

1 1 COPPER CUSTOM SMELTING IN INDIA- Challenges DILIP GAUR, ADITYA BIRLA GROUP(HINDALCO INDUSTIRES), INDIA Oct 12 Presentation Flow Aditya Birla Group : An introduction Copper Smelting Industry : Profile and Value Drivers Feedstock Security Key challenges facing Copper Smelting Industry 2

2 2 ABG is a global conglomerate, with operations across 27 countries 50 companies across 6 continents in 27 countries Revenues of $ 40 billion Grew 15 times over last 15 years Over 100 state-of-the-art manufacturing units Over 60% revenues from international operations Anchored by 133,000 employees Ranked 4 th Globally and 1 st in Asia Pacific in the Top Companies for Leaders 2011 study by Aon-Hewitt. 1.5 million shareholders Australia Bahrain Bangladesh Brazil Canada China Egypt France Germany Hungary India Indonesia Italy Korea Laos Luxembourg Myanmar Malaysia Philippines Switzerland Singapore Sri Lanka Thailand UAE UK USA Vietnam GLOBAL PECKING ORDER The largest aluminum rolling company 2 nd largest single location copper smelting capacity. The largest producer of viscose staple fibre The largest producer of carbon black The 4 th largest producer of insulators The 5 th largest producer of acrylic fiber The 9 th largest cement producer Among the top 15 Business Process Outsourcing (BPO) companies Among the most energy efficient fertilizer plants

3 3 Social Responsibility A Caring Corporate Citizen ACTIVITIES In India Works in 2500 villages, reaching out to 7 million people annually Runs 42 schools (18,000 children receive free education) Operates 18 hospitals (500,000 patients get subsidized medical care) FICCI Aditya Birla CSR Centre for excellence Egypt Adopted two schools Tailoring Centre for Women Hospital in collaboration with government Involvement with two orphanages Thailand Aditya Birla Knowledge Centre for vocational training US Recycling education programs Partnerships for Fund Raising, suchaswithunicef Sustainability with a Low Carbon Focus 1 Energy Efficiency 3 Carbon Foot Printing Completed energy audits for our offices in metro cities in India and plans for energy conservation Evaluation of LED lights in comparison to the traditional to reduce electric consumption 2 Green Energy & Water Some of our businesses have developed Wind Energy farms Evaluation of renewal energy sources - Solar Municipal Waste to Energy Water Consumption Reduction for the manufacturing processes Low Carbon Initiatives Measurement of the carbon emissions for the Group companies Cement business - member of Global Cement sustainability initiative and has one of the lowest carbon footprints in the industry 4 Carbon Foot print reduction Initiatives Evaluate and implement several carbon emission reduction initiatives Algae Waste Heat Recovery 6

4 4 Copper Smelting in India : Profile 7 Primary Copper Industry in India : Profile Current capacity ~ 1 million mt 900kt in Custom smelting domain. Rapid growth in domestic production providing self reliance on this critical input. Pivotal role in development and growth of downstream industries multiplier effect on economy. Global scale and World Class Technology exports inherent part of business model. Strategically located to serve 3 key markets having significant deficit SEA, Middle East and Far East One of the largest exporting industry- US$2 bn annually. Facing Significant erosion in traditional Value Drivers Global ranking : 4 th in smelter production and 8 th in refined consumption 8

5 5 Milestones in Indian Copper Industry : ICC Set up Smelter and Refinery in Ghatsila 16 KTPA Sterlite Set up Smelter in Tuticorin and Refinery in Silvassa Sterlite Acquired copper mines in Australia Debottlenecked Capacity to 180 KTPA Commissioned 300KTPA of Smelter and Refinery at Tuticorin Debottlenecked Capacity to 400 KTPA HCLSet up Smelter & Refinery at Khetri 30 KTPA BirlaSet up Smelter & Refinery at Dahej Debottlenecked Capacity to 180 KTPA 2003: Acquired Nifty & Mount Gordan Copper Mines in Australia 2004: Commissioned Ausmelt 70 KTPA 2006: Commissioned Mitsubishi Copper Smelter- 250 KTPA Massive growth within a decade : Gearing for next growth phase 9 Refined Copper Production Capacity : Kt Cu Birla Sterlite HCL Jhagadia 10

6 6 Capacity and Technology details : Plant Technology Capacity in MT Year Of Installation Status HCL, Ghatshila Reverboratory 16, In operation HCL, Khetri Flash 31, Mothballed Sterlite, Tuticorin Isamelt 400, Birla, Dahej Flash 180, In Operation In Operation Birla, Dahej Ausmelt 70, Mothballed Birla, Dahej Mitsubishi 250, In Operation Total (MT) Keeping pace with technological development Survival strategy : Focused Value Extraction Extract Value from By-Products and Captive Infrastructure Cu Conc. Smelter Cu Anodes Refinery Cu Cathodes Sulphuric Acid Anode Slime Rock Phosphate Phosphoric Acid Plant Precious Metals Refinery Ammonia Phosphoric p Acid Di- Ammonium Phosphate (400 ktpa) Gold (15 ktpa) Silver (150 ktpa) Captive All-Season Jetty Captive 135MW power plant Captive Oxygen Plant

7 7 Survival Strategy : Overcoming Technology Scale Imposed Challenges USD/PMT Cost effective debottlenecking Capital-light Mitsubishi technology Comparable Benchmark - Gresik/Onsan kt 180 kt 250 kt 500 kt One of the lowest capital expenditure per mt of output. Sterlite s new 400kt/a smelter further optimises on capex Production by Indian Smelters : Refined (KT) Capacity FISCAL YEAR Production in recent years impacted by lower concentrates grades besides capacity mothballing. 14

8 8 Refined Copper Consumption Growth (Kt Cu) 2083 I Further smelting capacity addition needed to support growth beyond Copper Smelting in India : Key Challenges - Feed stock security - Operations - Sustainability 16

9 9 Copper Concentrates : Dependent on imports (Kt Cu) Requirement Domestic Mines Imports Global majors are key supplier to Indian smelters 17 Concentrates Sourcing : Global Supply Chain 5% 2% 5% 4% 3% 2% 1% 26% Jairaj to update 10% 10% 12% 20% Australia Chile Iran Indonesia Brazil S Africa India Peru Thailand PNG Canada Oman 8 out of World s 10 largest mining companies are supplier to Indian smelters

10 10 Copper : Global Supply Chain Complex Supply Chain encircles the whole world. Captive Copper Mines in Australia : Hindalco Copper mines are situated in Australia and are being operated by ASX listed Aditya Birla Minerals Ltd. (Hindalco s current holding - 51%). Nifty Copper Mine (Western Australia) Located in Great Sandy Desert about 1250 km North East of Perth in Western Australia Acquired in March 2003 with a small open pit & tpa Cu Cathodes production capacity Sulphide project was in Scoping study level at the time of acquisition. Fastest mine development globally from scoping study to production in 35 months It is one of the largest Underground mine commissioned in this decade. Concentrator commissioned in March 2006 to produce TPA Cu-in- Concentrate. Life of Underground mine: years. Mt Gordon Mine (North West Queensland) Nifty Located 120 km north of Mt Isa in northwest Queensland Acquired in November 2003 Short mine life of 3.0 years, when acquired. Cathode facility replaced with concentrator to produce TPA Cu-in-Conc. Life of Underground mine has been further extended to +12 years now High Exploration potential Mt. t Gordon

11 11 Nifty Sulphide Project.. Post drilling of about 5000 meter in sulphide ore, development of the underground mine below the existing open pit and commissioning of the Concentrator Plant was completed within a record time of 32 months. Site operation included : Trucking / Conveying of the blasted & crushed ore from the underground (max depth of ~ 450 m below surface) upto the surface (@ 7000 tpd) Paste filling of void stopes in UG Milling of ore in SAG/Ball mills before it s treatment through h conventional floatation process (@ 2.5 mntpa) Filtration of the concentrate to produce final concentrate (~ 28% cu), which is trucked for 350 km to Port Hedland for shipping to Dahej Smelter. FLOATATION Circuit Mt.Gordon Copper mine In 2003, when we acquired, Esperanza open pit was operating, but nearly exhausted its high grade ore which was treated in a high temperature pressure leaching process to produce copper cathode. A new concentrator plant (@ 1.5 mntpa) was commissioned within 7 months and the Mammoth underground mine was extended deeper upto 800 m below the surface to extend the mine life. Ore is accessed via a Decline and mined by sub level caving. Ore mined is trucked up to the surface. Filtered concentrate trucked & railed to Townsville port (about 850 km from site) for shipment to Dahej Smelter. Esperanza Open Pit

12 12 Key Challenges : Operations 23 Key Challenges (1/2): Securitizing access to feedstock to support growth of copper smelting in India : Acquisition of mining assets abroad Resource nationalism in copper rich countries poses significant risk to supply Development and growth of copper semis industry to meet domestic requirements : Access to capital and technology on competitive terms Skill development and quality certifications Up-gradation of smelting technology and processes : Capability to process low grade and complex concentrates in a cost effective manner Driving Sustainable Growth : Technology, feed stock & Renewable energy focus. 24

13 13 Key Challenges (2/2): Raw materials quality : a. Declining grades b. Higher Impurities c. Wide variation Energy efficiency i : Key for cost optimization Process efficiency : Particularly precious metals stream Environment protection : SO2 capture Impurities recovery/ neutralization Waste management 25 Key Challenges : Sustainability 26

14 14 Air quality preservation : Installation of Water cooled Double hood system to improve the S capture and Improve the S Recovery Installation of 3+ 2 catalytic converter in the sulphuric acid plant to maximize the Sulphur Capture Use of Cesium based catalyst for better conversion efficiency Air quality preservation: Installation of Alkali Scrubbing system for scrubbing the fugitive captured during copper smelting Installation of tail gas scrubber to reduce the Emission level to less than 1 Kg/ T of Sulphuric acid.

15 15 Ground water quality preservation : Effluent treatment Plant to treat the effluent generated from Sulphuric acid plant and Scubbers. Reverse Osmosis Plant to purify the treated water from ETP Ground water quality preservation : Secured landfill to store the hazardous waste Rain water harvesting facility to conserve water

16 16 Waste to Wealth : Copper slag Granules & Filling Material Ballast Material & Abrasive River Embankment Pavement Blocks Cement & Concrete making Tile Making Waste to Wealth :Phosphogypsum Road Base Layer Gypsum Bricks Portland Cement Copper Anode mould Coating Fertiliser & Soil Correction

17 17 Waste to Wealth : Fly Ash Replacement of portland Cement River embankment Soil stabilization Fly ash river embankment Flowable fill Asphalt concrete Bricks Metal matrix composites Fly ash Bricks Thank You