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Confidential. GITS Sintering Services Inc. Sintering of Laterite ores. The technology & economics of Reduction Sintering. 19 th 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?.
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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?
The Philippines has a large resource base of laterite nickel… GITS Ore Coke Flux
The majority of nickel laterites is exported to China for processing… GITS • 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 4
Direct shipping of Nickel laterite ore is of low intrinsic value… GITS Ore Coke Flux Laterite Nickel Grade, % Ni Chinese Purchase Price, US$/t 1.0% US$12/t 1.5% US$20/t 1.75% US$30/t 2.0% US$50/t • >30% “water” shipped to China with every tonne exported
Traditionally, value added processing has been too expensive… GITS Ore Coke Flux
Sintering is significantly cheaper & has significantly lower barriers to entry GITS 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
What is Reduction Sintering? GITS 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
Why is Reduction Sintering economic today? GITS 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
Ferronickel technologies suitable for nickel laterite ores… [Pyrometallurgy] GITS 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 1% Ni to 3% Ni Ore 3% to 50% Ni Pig Iron AlloyStream Process No constraints on Ni or Fe Low electrical consumption Untested – only ferromanganese
Leaching technologies suitable for nickel laterite ores… [Hydrometallurgy] GITS Intermediate Product -Ni Hydroxide Autoclave High Pressure Acid Leach [HPAL] High Temp High Pressure $$$$ Recovery > 90% >75% Ni Pay Agitation Tanks Atmospheric Agitation Leach [AL] Low Temp Low Pressure $$$ Recovery 70%-85% Processing Plant – same for all Tech. Laterite Ore Heaps Low Temp Low Pressure $$ Recovery 60%-75% Heap Leach [HL] 100% Ni Pay Cathode Nickel
The laterite ore types will dictate the processing routes… GITS Traditional Processing Routes New Processing Routes Schematic Laterite Profile • Heap • Leaching • Turkey [ENK] • Phil. [Rusina] • HPAL • Coral Bay • Goro • Revensthorpe Limonite Ni < 1.3% Fe > 30% • Agitation • Leaching • Toledo Mining (TMC) • Ferro-nickel • - Chinese Blast Furn. • Elect Arc Furnace • Reduction process Saprolite Ni > 1.8% Fe < 20% Bedrock
Sintering is an intermediate step in the value-added chain… [Pyrometallurgy] GITS Intermediate Products Schematic Laterite Profile A Sintered Iron Ore >60% Fe A Sinter Reduction Ni < 0.9% Fe > 40% Limonite B B BF or EAF Feed >3% - 6% Ni PI Ni < 1.2% Fe > 30% C Saprolite C EAF Feed >10% Ni PI Ni > 1.8% Fe < 20% Bedrock
Reduction Sintering is a proven technology and is widely used around the world? GITS 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
Sintering is a relatively simple process with basic inputs… GITS Product
Plan view and layout of a typical Reduction Sintering plant… GITS Ore Coke Flux
Total cash operating costs are approx. US63/t sinter product… GITS ‘Margin’ over current SP of US$130/t = ~US$67/t
Annual cash flow [US$M] is healthy in all years [500,000 tpy SP]… GITS P & L US$M Cash Flow US$M Assumes BOI income tax holiday for 6 years
The modular nature of the plant allows for financial flexibility… GITS