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Processing of Magnetite Iron Ores Comparing Grinding
Options
B McNab1, A Jankovic2, D David3 and P Payne4
ABSTRACT
Although the majority of current steel production is supported by iron ore
sourced from high-grade haemetite deposits, the long-term growing
demand for steel has led to higher raw material prices and opened the
way for many new magnetite deposits to also be developed.
There is a rich and long history of magnetite ore processing in Western
countries, including large operations such as Cleveland Cliffs in the USA
and LKAB in Sweden, as well as smaller operations like Savage River in
Tasmania. The challenge for virtually all magnetite operations is to
minimise operating costs, which is dominated by the cost of power
required to fine grind the ore in order to achieve acceptable concentrate
iron grade together with low impurity content. This remains the case
today and will be even more important in the future when a carbon tax is
expected to become a significant addition to the operating costs for
magnetite deposits.
Historically, the lowest operating cost was achieved by multistage fully
autogenous grinding with integrated magnetic separation steps between
the stages. The major benefit of fully autogenous grinding is the
elimination of steel grinding media costs and the need to discriminate
between steel and magnetite in coarse magnetic separation. The
separation step between grinding stages progressively reduces the amount
of material to be ground.
Application of more efficient grinding technologies developed in the
last 20 years, including high pressure grinding rolls (HPGR) for fine
crushing and stirred milling for fine grinding, has provided opportunities
to further reduce the operating costs associated with comminution. Both
technologies are already implemented in some magnetite processing
operations, although in limited capacity.
The results of a theoretical option study for high capacity processing of
a hard, fine-grained silica-rich magnetite ore is presented in this paper,
with the emphasis on comminution circuit options. Several circuit options
are ranked based on a net present value analysis incorporating an estimate
of carbon tax added in the operating cost. The study demonstrates the
significant advantages of applying more efficient autogenous grinding
technologies.
INTRODUCTION
World iron ore resources are estimated to exceed 800 billion
tonnes and world iron ore production in 2006 was 1690 Mt. New
iron ore mining capacity taken into operation in 2007 reached
almost 130 Mt globally (United Nations Conference on Trade
and Development, 2008). In Australia, magnetite is mined at the
Savage River mine with reserves of 22 Mt of magnetite ore at
52 per cent Fe and the Iron Magnet deposit which has 300 Mt of
magnetite ore reserves grading 37 per cent Fe. There are at
least 4.5 billion tonnes of magnetite resources grading 33.5 -
36.5 per cent Fe in Western Australia, 1.5 billion tonnes at 31 -
50 per cent Fe in South Australia and 700 Mt at 25 - 52 per cent
Fe in Tasmania and Queensland (Clout et al, 2004).
1. MAusIMM, GRD Minproc Limited, GPO Box Z5266, Perth WA
6831. Email: brian.mcnab@minproc.com.au
2. MAusIMM, GRD Minproc Limited, The Precinct 2, Level 2,
10 Browning Street, West End Qld 4101.
Email: alex.jankovic@minproc.com.au
3. MAusIMM, GRD Minproc Limited, GPO Box Z5266, Perth WA
6831. Email: dean.david@minproc.com.au
4. GRD Minproc Limited, GPO Box Z5266, Perth WA 6831.
Email: phil.payne@minproc.com.au
Iron Ore Conference Perth, WA, 27 - 29 July 2009
Compared to direct ship haemetite ores mined from the upper
regolith, magnetite deposits require significant beneficiation,
which typically involves grinding to a particle size where
magnetite is liberated from its silicate matrix. Many banded iron
formation deposits in the Pilbara and Yilgarn cratons within
Western Australia and the Gawler craton within South Australia
are very fine grained, often requiring a final concentrate grind
size P80 (80 per cent passing size) of 25 - 35 m. The amount of
energy required to produce a magnetite product suitable for sale as
pellet plant feed is substantially more than an equivalent direct
ship lump (<32 mm >6 mm) and fines (<6 mm) haemetite project.
MAGNETITE ORE GRINDING OPTIONS
Various magnetite ore grinding flow sheets have been
implemented in the past, including:
conventional three (and four) stage crushing followed by
primary and secondary milling,
primary crushing followed by wet semi-autogenous grinding
(SAG) or autogenous (AG) milling and ball or pebble
milling, and
air swept AG milling (for coarse grinding).
Historically, the lowest operating cost for fine-grained ores
was achieved by multi stage fully autogenous grinding
(Koivistoinen et al, 1989) with integrated magnetic separation
steps between the stages. The major benefit of fully autogenous
grinding is the elimination of steel grinding media costs and the
need to discriminate between steel and magnetite in coarse
magnetic separation ahead of pebble crushing. The separation
step between grinding stages progressively reduces the amount
of material to be ground and in many cases reduces the abrasive
properties of the concentrate.
Four North American subsidiaries of Cleveland-Cliffs Inc
employ autogenous milling. The original autogenous milling
circuit, consisting of an AG mill followed by cobber magnetic
separation of pebbles, pebble milling of the magnetic
concentrate, a finisher magnetic separation stage and silica
flotation, was installed at Empire Mines in 1963 and had six
individual concentrating lines with a capacity of 1.6 Mt/a of
pellets (Weiss, 1985). There have been three expansions since
and, in the 1990s, Empire Mines had a total of 24 individual
concentrating lines and a total plant capacity of 8 Mt/a of pellets.
The target grind size of the circuit varies between the 90 -
95 per cent minus 500 mesh (32 m) depending on the ore and
operating conditions (Rajala, Suardini and Walqui, 2007).
LKABs Kiruna is the worlds largest, most modern
underground iron ore mine. Ore is mined using sublevel caving,
with sublevels spaced at 28.5 m vertically. After primary
crushing and hoisting to surface, the ore is processed in Kirunas
complex consisting of a sorting plant, two concentrators and two
pellet plants to give pellet and sinter fines products (see
http://www.lkab.com/). Magnetite ore is ground using AG mills
followed by cobber magnetic separation and pebble milling of
the magnetic concentrate (Hahne, Palsson and Samskog, 2003).
The target grind size is around 80 per cent minus 45 m
depending on the ore and operating conditions (Tano et al, 2006).
Application of more efficient grinding technologies developed
in the last 20 years, including high pressure grinding rolls
277
B McNAB et al

(HPGR) for fine crushing and stirred milling for fine grinding, A minimum set of ore comminution properties are required for
has provided opportunities to further reduce the operating costs a conceptual design. An example is provided in Table 1 and is
associated with grinding. At Empire Mines a HPGR is installed used as the basis for this theoretical study.
for processing crushed pebbles and its introduction has resulted
in a primary AG mill throughput increase in the order of TABLE 1
20 per cent (Dowling et al, 2001). Application of Vertimill fine
Ore design parameters.
grinding technology at Hibbing Taconite Company enabled
processing of lower grade ores and increased the concentrate Ore grade % FeT 32.2
production (Pforr, 2001). Drop weight index (DWi) kWh/m3 11.1
The Whyalla magnetite plant in South Australia is specific
Ore specific gravity 3.40
because it utilises the HPGR technology for comminution of the
primary ore. The HPGR circuit is closed with a 3 mm aperture Concentrate specific gravity 4.30
wet screen with the undersize reporting to the rougher magnetic Bulk density t/m3 2.01
separators (RMS). Banded iron formation (BIF) ores at Whyalla Bond ball mill work index (BBWi) kWh/t 17.2
allow a relatively large silica rejection to the RMS tailings stream
and so are well suited to the particle size that can be effectively Bond abrasion index (BAi) 0.3
generated by a commercial size closed circuit HPGR system. Bond rod mill work index (BRWi) kWh/t 17.7
Figure 1 shows the plant feed bin (left of photo) and the high Bond crushing work index (BCWi) kWh/t 20.6
pressure grinding rolls.
Point load index (PLI) MPa 14.8
Unconfined compressive strength (UCS) MPa 355
Fibrous mineral content Nil

The magnetite concentrate weight recovery, specific gravity

(SG), predicted Bond abrasion index (BAi), iron and silica
content were based on the following relationships:
Concentrate weight recovery% = 10.737 ln(P80) - 3.0945
Concentrate iron content Fe% = -8.4667 ln(P80) + 98.455
(% Fe 518
. ) % Fe 3.0
Concentrate SG = 0.84 + 1
724 724

FIG 1 - High pressure grinding rolls at Whyalla magnetite
concentrator plant (Morgan, 2007).
STUDY OPTIONS
An option study for a 10 Mt/a ore processing plant for a
consistently hard, fine-grained silica-rich magnetite ore was
carried out, with the emphasis on comminution circuit options. A
capacity of 10 Mt/a was selected to simplify the comparison by
keeping within the current single processing line limitations of the
worlds largest AG mill capabilities. In practice, GRD Minproc
has undertaken studies of Australian concentrators from 10 Mt/a
up to 80 Mt/a, whereby the level of design, layout and operation
complexity significantly appreciates when multiple trains of
worlds largest equipment need to be integrated.
For the purpose of the study, the concentrator was assumed to
be located in the Pilbara of Western Australia within 100 km of a
port suitable for facilitating equipment delivery. It was assumed
that there were no restrictions on spatial layout and that the
process facility would be built on ground of a sound geotechnical
character. Any subsequent differences in tailings disposal, water
recovery, operation and cost were not considered.
The approach taken in comparing various flow sheet options
was in line with GRD Minprocs typical conceptual or scoping
level assessment methodology and delivers a plus or minus
35 per cent capital and operating cost accuracy. Such an exercise
is recommended at the commencement or prior to the
prefeasibility study phase of a magnetite project. To enable a
meaningful study a minimum required level of comminution and
beneficiation test work should have been undertaken beforehand.
Concentrate Ai = 0.05(%Si020.4332)
Concentrate silica content Si02 % = 9.6966 ln(P80) - 29.571
The fine-grained nature of this hypothetical ore results in a
relatively late release or liberation curve as illustrated in Figure 2.
This fundamental property of a magnetite ore is generally one of
the most salient drivers of flow sheet design and therefore flow
sheet option generation. For example, it is not uncommon for
magnetite banded iron formation ores to exhibit two distinct
liberation zones, a coarse size consistent with the inherent silica
banding width and a finer size related to the unlocking of
silicates within the magnetite bands.
For the ore considered, only 20 - 30 per cent of feed mass can
be rejected magnetically in the size range typical for closed
circuit HPGR operation. Conversely, significant mass up to
approximately 50 per cent can be rejected to tails at a P80 of
150 m which could be achievable with a closed circuit AG mill
operation.
FLOW SHEET OPTIONS
Four circuit options were considered for comparison with the
following acronyms used to identify the primary unit process
within each:
COS coarse ore stockpile,
SC secondary crush,
HPGR high pressure grinding roll,
AGC autogenous mill in closed circuit with cyclones and
pebble crusher,
RMS rougher magnetic separation,
CMS cleaner magnetic separation,
CMS2 second cleaner magnetic separation,

278 Perth, WA, 27 - 29 July 2009 Iron Ore Conference


90
80
Mass % of feed to magnetic concentrate
70
60
50
40
30
10
FIG 2 - Grind versus liberation.
PM pebble mill,
PC primary crusher,
SM stirred mill, and
TSF tailings storage facility.
Option 1 PC/AGC/RMS/PM/CMS
Primary crushing AG milling in closed circuit with
hydrocyclones and pebble crushing rougher magnetic separation
pebble milling cleaner magnetic separation (see Figure 3).
Option 1 resembles the well known fully autogenous LKAB
and Cleveland Cliffs style operations. Absence of steel grinding
media significantly reduces the operating cost. Pebble mill
control and pebble transport and handling requirements add
complexity to the design and operation. A P80 of 250 m was
nominated for the RMS feed.
Option 2 PC/AGC/RMS/BM/CMS/SM/CMS2
Primary crushing AG milling in closed circuit with
hydrocyclones and pebble crushing rougher magnetic
separation ball milling cleaner magnetic separation tertiary
milling using stirred mills second cleaner magnetic separation.
(see Figure 4)
Option 2 has an additional grinding and magnetic separation
stage compared to Option 1 and is considered to be simple in
design and operation. In respect to the grinding flow sheet, it is
similar to the Savage River operation although the AG mill is
closed with hydrocyclones rather than screens, there is no
hydroseparator and a third stage of comminution has been added
in respect of the finer liberation requirement. For reasons of cost
estimation and layout simplicity hydrocyclones have been
selected rather than screens to close the AG mill circuit for both
Options 1 and 2.
A P80 of 250 m was nominated for the RMS feed, 75 m for
the CMS feed and 30 m for the CMS2 feed.
Option 3 PC/C SC/C HPGR/RMS/BM/CMS1/SM/
CMS2
Primary crushing closed circuit secondary crushing closed
circuit HPGR rougher magnetic separation ball milling first
cleaner magnetic separation tertiary milling using stirred mills
second cleaner magnetic separation (see Figure 5).
Iron Ore Conference
PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS
y = 10.737ln(x) - 3.0945
R = 0.9705
100 1000 10000
P80 Size (m)
In Option 3 secondary crushing and HPGR effectively replace
AG milling with pebble crushing. Application of HPGR, stirred
milling and additional magnetic separation stage reduces the
power requirements compared to Options 1 and 2. The flow sheet
is similar to that applied at Project Magnet south of Whyalla in
South Australia and the proposed Gindalbie Project east of
Geraldton in Western Australia.
A P80 of 2300 m was nominated for the RMS feed, 75 m for
the CMS feed and 30 m for the CMS2 feed. This would
necessitate wet screening to close the HPGR circuit.
Option 4 PC/SC/O HPGR/PM1/RMS/PM2/CMS1/
SM/CMS2
Primary crushing secondary crushing screening open
HPGR coarse pebble milling rougher magnetic separation
fine pebble milling first cleaner magnetic separation tertiary
milling using autogenous stirred mills second cleaner magnetic
separation (see Figure 6).
Option 4 is an attempt to design a circuit with the lowest
operating cost through increased grinding energy efficiency
using three stages of magnetic separation, traditional
autogenous milling, HPGR and stirred milling technology. In
this conceptual flow sheet steel grinding media is eliminated.
Circuit complexity is partially reduced by open circuit
secondary crushing, HPGR grinding and stirred milling
operation although recovery, storage and control of three
separate sized media streams is introduced. It is assumed that a
magnetic selection process is applied to collect each media
stream thereby maximising the power drawn thus capability of
the downstream autogenous grinding unit.
A P80 of 500 m was nominated for the RMS feed, 75 m for
the CMS feed and 30 m for the CMS2 feed.
ENERGY COMPARISON
With the exception of the primary crushing module, which is
consistent between options, estimates were developed for the
total power drawn in the comminution, classification and
magnetic separation areas of each circuit. Energy consumed by
material transport machinery related to pumping between areas
was not considered at this level of study. A summary of the
resultant unit circuit energy for each option is shown in Figure 7.
Perth, WA, 27 - 29 July 2009 279
B McNAB et al

FIG 3 - Option 1 flow sheet.

FIG 4 - Option 2 flow sheet.

280 Perth, WA, 27 - 29 July 2009 Iron Ore Conference

 PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

FIG 5 - Option 3 flow sheet.

FIG 6 - Option 4 flow sheet.

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B McNAB et al

35
33.0
31.6

30

25.0 24.7
25

Circuit Energy (kWh/feed tonne)

20

15

10

0
Option 1 Option 2 Option 3 Option 4

FIG 7 - Circuit energy comparison.

A significant circuit energy reduction is predicted with

Options 3 and 4, which include HPGR and stirred milling. Some
33 per cent of additional energy separates the most energy
efficient option (Option 4) from the least efficient, the two
stage AGC Pebble circuit, Option 1. In todays market and the
projected energy market during the life cycle of a typical
magnetite concentrator the magnitude of this difference is
significant unless the cost of power is negligible (<$20/MWh),
which is very rarely the case.
Interestingly if weighted averages are calculated for the
combined tailings from each circuit the outcomes for Options 3
and 4 do not parallel the energy consumption comparison.
Option 3 with the coarse feed to the RMS has an average tail P80
of 736 m and Option 4 284 m. Some economic advantages
may be realised by the coarser tails product although are beyond
the scope of this comparison.
According to Seidel et al (2006), the basic comminution
energy requirement for the Boddington HPGR circuit option was
14 per cent lower than the SAG option; however, the overall
energy requirement including conveying, screening, etc, was
only five per cent lower. The Boddington copper gold ore is of
similar rock competency to that selected for this study and so
provides a good contrast between comminution processes
designed to liberate minerals for flotation, in which the whole
ore is ground to fine size, and comminution designed to reject
silicates via magnetic processes. In the latter case energy
efficiency between flow sheet options can be far more extreme.
PROCESS OPERATING COST
Albeit a high-level comparison, a fairly rigorous approach was
taken to the development of operating costs for each option.
Consumption rates for power, wear and other consumables,
labour and maintenance and materials were generated
considering each process flow sheet from the COS reclaim
feeders to either the final magnetic separator concentrate
discharge or the magnetic separator tailings discharge. As such,
no concentrate or tailings handling, filtration or storage costs
were considered. For simplicity, some minor operating costs such
as metallurgical test work and analysis, which is considered
common to all options, have been omitted. Unit costs for power,
grinding media, wear consumables and labour were referenced
from average values within the GRD Minproc database for
similar sized and located projects. A factoring approach from
direct capital cost was used to develop cost estimates for
maintenance materials. Key assumptions are listed in Table 2. All
costs are estimated in Australian dollars and are presented as first
quarter 2009 costs.
TABLE 2
Key operating cost inputs.
Power $/MWh 120
Ball mill steel media $/t delivered 1501
Stirred mill steel media $/t delivered 1814
Labour on-cost % 50
Total HPGR cost $/t of HPGR feed 0.35
The estimates as summarised below are judged to have an
accuracy of 35 per cent. Unit cost breakdowns are presented
and shown graphically in Figure 8:
Option 1 $6.17,
Option 2 $6.42,
Option 3 $6.66, and
Option 4 $5.38.
The most significant operating cost variables between options
are those relating to power, media and liner consumption. The two
options including AG mill circuits have between 27 - 32 per cent
higher power consumption cost relative to Option 4. Or looking
from the other perspective, application of new technologies
resulted in an average 25 per cent energy consumption reduction.
Grinding media and wear lining costs range between $0.41/t
and $1.82/t. Option 3 has the highest media and wear lining cost
as two ball mills of 8.8 MW installed power are required to grind
8 Mt/a of RMS concentrate from P80 2.3 mm to P80 75 m. This
is the largest ball milling duty of all options being some 2.8
times larger than the Option 2 requirement.
A carbon tax is expected to be introduced in the near future
and would add a significant cost to the operation. For this
exercise a simplified estimate of the effect of carbon tax is
considered. It was assumed that the carbon tax would be applied
to total circuit energy and steel consumption relating to media
and comminution equipment wear liners. The following criteria
were applied for the carbon tax estimate:
CO2 emission, 5 t per 1 t of steel media (Price et al, 2002); and
CO2 emission, 1.0 kg per kWh of electricity, CO2 tax, $23 per
tonne of CO2 (Australian Government, 2008).
Table 3 shows a summary of calculations related to carbon
emission and carbon tax effect on OPEX. It can be observed that
the introduction of carbon tax at $23/t would increase OPEX in
the order of nine to 11 per cent. The majority of carbon emission

282 Perth, WA, 27 - 29 July 2009 Iron Ore Conference

 PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

00
7.
00
6.
Operating Costs ($/feed t)

00
5.
00
4.
00
3.
00
2.
00
1.
00
0.

Option 1
Option 2
Option 3
Option 4

Option 1 Option 2 Option 3 Option 4

MISCELLANEOUS 0.17 0.18 0.17 0.17
LABOUR 0.80 0.85 0.87 0.90
MAINTENANCE MATERIALS 0.83 0.86 0.81 0.79
GRINDING MEDIA & WEAR LINERS 0.41 0.74 1.82 0.66
POWER 3.95 3.79 2.99 2.86

FIG 8 - Operating cost comparison.

Indirect costs
TABLE 3
Carbon emissions and carbon tax summary. Indirect costs are those expenditures covering engineering,
procurement and construction management (EPCM) services
Option 1 Option 2 Option 3 Option 4 together with the supervision of the commissioning of the works.
Power CO2 t/a 329 503 315 768 248 757 238 328 Contract works and goods in transit insurance have also been
included. Temporary construction facilities have been included in
Steel CO2 t/a 5804 18 256 37 300 8306 Indirects.
Total CO2 t/a 335 307 334 023 286 057 246 634
CO2 tax $/t 0.77 0.77 0.66 0.57 Contingencies (growth allowance)
OPEX $/t (no CO2 tax) 6.17 6.42 6.66 5.38 Contingencies have been assigned as an overall percentage to the
CO2 tax % OPEX 11.1 10.7 9.0 9.3 total estimate. Contingency has been applied to the estimate to
make allowance for the following risks:
is from electrical energy consumption while indirect contribution minimal design input,
from steel consumption (dominated by grinding media) is in preliminary scope definition,
the order of five to 16 per cent for Options 2 and 3 that utilise
ball milling.
quantity survey errors and omissions,
material and labour rate accuracy,
PROCESS CAPITAL COST equipment budget costing, and
The scope of the estimates follows the work breakdown structure incorrect bulks factor application.
developed specifically for the study and considers each flow
sheet from the COS reclaim feeders to either the final magnetic Estimation methodology
separator concentrate discharge or the magnetic separator tailings
An industry standard methodology for a conceptual level
discharge. As such, no concentrate or tailings handling, filtration estimate has been applied for the cost comparison and includes,
or storage was considered. For simplicity some equipment or bulk quantities, equipment and platework, freight, capital
costs considered common to all options have been omitted. spares, temporary facilities, indirect costs, temporary facilities
The estimate is developed based on the premise that the process and EPCM and contingencies (growth allowance).
is located inland in north-west Western Australia. All costs are A detailed equipment list has been prepared and imported into
estimated in Australian dollars and are presented as first quarter the estimate. For each item of equipment costs have been entered
2009 costs. They are judged to have an accuracy of 35 per cent, as per the basis outlined above. Budget quotes have been received
which is commensurate with the accuracy requirements for a high for certain items of major equipment. GRD Minprocs database
level options study of this nature. information (or allowances) has been used for other equipment
The capital cost estimates have been structured into three items appropriately factored and escalated where necessary.
major categories, detailed below. The estimates are summarised and tabulated in Table 4:
Option 1 $346.6 M,
Direct costs
Option 2 $356.9 M,
Direct costs are those expenditures that include supply of
equipment and materials, freight to site and construction labour Option 3 $321.3 M, and
relevant to the particular option. Option 4 $312.6 M.

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B McNAB et al

Total estimated capital costs for each circuit are within 14 per
cent, which does not infer any one option is a standout from a
capital cost perspective. Due to the higher power drawn by
Options 1 and 2, which include AG mill circuits, a lower capital
cost to power consumption ratio results. Option 1 offers the
lowest ratio with $8.4 k/kW consumed, Option 2 has $9.0 k/kW
consumed and Options 3 and 4 with $10.3 k/kW $10.1 k/kW
respectively (refer Table 4).
FINANCIAL COMPARISON
Applying a ten per cent discount rate over 12 years of operation,
high level, pre-tax, net present value (NPV) determinations were
calculated for Options 1 to 3 relative to the base case, Option 4,
which returned the lowest capital and operating cost. Figure 9
compares these outcomes.
Options 1 and 3 have a similar NPV outcome ranging between
negative $94 - 95 M relative to Option 4. A $1 M variance is
viewed as being immaterial relative to the accuracy of the study.
Option 2 shows the least favourable outcome with a $118 M NPV
deficit relative to Option 4. This option is disadvantaged by both
high capital and operating cost.
The all autogenous Option 4 flow sheet is $94 M lower than
the next best option, Option 1. The conclusion drawn from this
financial evaluation is that highly energy efficient autogenous
processing routes can offer significant benefits for competent
magnetite ores requiring fine grinding. Were this hypothetical
process design to be advanced, piloting test work would be well
justified to explore the validity of the key autogenous unit
processes proposed within Option 4.
Having established a relative NPV comparison a variability
analysis was undertaken to understand each flow sheet options
sensitivity to two key operating cost inputs namely power and
ball mill media. The outcomes are presented graphically in
Figures 10 and 11.
Not surprisingly, Options 1 and 2, which are the most energy
intensive circuits, are found to be highly sensitive to power cost
when compared relative to Option 4. Only in the case that power
could be supplied at a zero cost could Option 1 (AGC/RMS/
PM/CMS) approach the NPV value of Option 4.

TABLE 4
Capital cost comparison.

Area number Area description Option 1 Option 2 Option 3 Option 4

Direct costs $ $ $ $
001 Coarse ore feed 7 237 040 7 237 040 7 151 313 6 241 940
002 AG mill grinding 80 068 915 88 965 461
002 Secondary crushing 18 809 132 13 923 099
002A Tertiary crushing 11 969 442
003 Pebble recycle crushing 17 704 056 14 972 636
003 HPGR circuit 34 215 535 20 430 750
003A Pebble mill grinding and pebble storage 36 389 765
004 Rougher magnetic separation 2 272 362 2 272 362 3 282 300 2 524 846
005 Ball mill grinding 18 264 249 48 448 884
005 Pebble mill grinding 90 872 360 27 801 316
006 Concentrate separation and fine milling 76 680 928 76 680 928 66 959 736
006 Concentrate separation 2 758 989
Total process plant 200 913 722 208 392 675 188 588 092 186 240 895
Site preparation and improvements 2 098 103 2 083 927 1 885 881 1 862 409
Control aystems 4 552 915 4 586 582 3 668 577 3 463 224
Total plant infrastructure 6 651 018 6 670 509 5 554 458 5 325 633
First fill reagents and consumables (allowance) 0 2 646 705 3 413 705 0
Ocean freight 10 180 855 10 095 453 7 373 659 7 405 066
Spares 5 630 444 5 612 860 4 325 727 4 219 437
Mobilisation/demobilisation and preliminaries 6 447 027 6 287 927 6 554 941 6 759 735
Commissioning assistance 2 098 103 2 083 927 1 885 881 1 862 409
Total miscellaneous 24 356 429 26 726 872 23 553 914 20 246 647
Total direct cost 231 921 169 241 790 056 217 696 463 211 813 176
Indirect costs
Temporary facilities 19 265 417 19 343 204 17 415 717 16 945 054
EPCM 36 122 657 36 268 508 32 654 469 31 771 976
Total indirect costs 55 388 074 55 611 713 50 070 186 48 717 031
Total costs (net) 287 309 243 297 401 769 267 766 649 260 530 207
Growth, contingency, risk 59 241 158 59 480 354 53 553 330 52 106 041
Total costs (overall) 346 550 401 356 882 123 321 319 979 312 636 248
Delta total cost relative to Option 4 33 914 153 44 245 875 8 683 731 0
Total cost/kW drawn 8414 9041 10 289 10 108

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 PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

-140

-120

Delta NPV Relative to Option 4 ($M)

-100

-80

-60 -118

-94 -95
-40

-20

0
Option 1 Option 2 Option 3

FIG 9 - Net present value (NPV) (comparison).

$0

-$20,000,000

-$40,000,000
Delta NPV Relative to Option 4 ($)

-$60,000,000 Option 1

Option 2
-$80,000,000

Option 3
-$100,000,000

-$120,000,000

-$140,000,000

-$160,000,000
0 20 40 60 80 100 120 140 160 180 200
Power Cost ($/MWh)

FIG 10 - Net present value sensitivity to power cost.

$0

-$20,000,000
Delta NPV Relative to Option 4 ($)

-$40,000,000

Option 1
-$60,000,000

Option 2
-$80,000,000

Option 3
-$100,000,000

-$120,000,000

-$140,000,000
700 800 900 1000 1100 1200 1300 1400 1500 1600 1700

Ball Mill Media Cost ($/t)

FIG 11 - Net present value sensitivity to ball mill media cost.

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B McNAB et al
Ball mill media cost is only relevant to Options 2 and 3 as the
other circuits include autogenous grinding. Figure 11 highlights
the high NPV sensitivity to ball mill media cost for Option 3,
which considers the largest ball milling duty. Although the NPV
relationship shown is steep, Option 3 would not become
economically equivalent to Option 4 even at a zero ball mill
media cost.
DISCUSSION
Some clear understanding of the economic merits of process
circuit options can be gleaned by developing a comparative study
as illustrated by this paper. In this case it was found that highly
energy efficient autogenous processing routes can offer
significant benefits for fine-grained competent magnetite ores.
The traditional AG mill and pebble mill style comminution
circuit or those requiring significant steel grinding media to
operate have been found to be suboptimal from a pure economic
perspective. Circuit options favouring multistage magnetic
separation and with energy efficient autogenous comminution
equipment are more likely to add project value.
The approach taken in this paper to compare flow sheet
options was purely economic and to a large degree simplified by
assumptions. In practice there are many other flow sheet
selection drivers that can become relevant or even exclusively
dominant. Some examples of these from recent GRD Minproc
experience include:
the identification of fibrous minerals within the ore;
the availability/cost of water;
the capability of the project owner to accept risk;
spatial layout constraints, ground slope and geotechnical
characteristics;
a prescribed study and development schedule that does not
allow sufficient time or budget for comparative test work
programs;
variability in rock competency or magnetite liberation;
social and environmental risks relating to dust and the costs
associated in dust collection and control;
the effect of moisture on HPGR performance and caking
properties of HPGR product;
long-term predictions for the cost of power and grinding
media; and
the cost impacts of tailings including capital, operating cost
and environmental risks.
To expand further on the final point other capital and operating
costs components related to different options for tails disposal
would need evaluation in the next phase of study. Options which
allow coarse RMS tailings, such as Options 3 and 4 in this paper,
offer the potential to be inexpensively dewatered and either
conveyed or transported by dump truck to be either comingled
with mining waste or dumped in a separate tailings storage
facility (TSF). Cost savings in process water consumption and
TSF capital may be realised with this approach.
The justification and value of this type of evaluation process is
reflected by the magnitude of the NPV delta produced. In this
case a $118 M delta resulted between the options considered. It
is therefore not unreasonable to expect that flow sheet selection
has the potential to vary project value by up to one billion dollars
for the worlds largest scale magnetite projects being considered.
In comparison, the total cost of sample collection, metallurgical
bench and pilot scale test work and engineering studies becomes
inconsequential for such projects.
GRD Minproc places a high importance on developing and
understanding geometallurgical relationships during the project
evaluation phase and as such would recommend that the
286 Perth, WA, 27 - 29 July 2009
requisite test work is completed prior to undertaking comparative
conceptual or prefeasibility studies. This approach infers test
work and study planning need to be suitably timed to ensure an
adequate basis is available at the commencement of a study
period. The rapid pace of project evaluation and development
experienced during the 2006 to 2008 mining boom did not
always permit this strategy and in many cases has led to higher
project risk, inefficient engineering practices and slow
commissioning and ramp up. Further information describing
GRD Minprocs approach to geometallurgy and analysis can be
referenced in David (2007).
CONCLUSION
The primary conclusion drawn from this financial evaluation is
that highly energy efficient autogenous processing routes with
multiple separation stages offer significant financial benefits for
fine-grained hard magnetite ores. For the ore type evaluated, the
application of HPGR and stirred mill technology is indicated to
reduce energy consumption by up to 25 per cent compared to
conventional flow sheets with wet tumbling mills.
Flow sheet design and option selection should be tailored to
the magnetite ore comminution and liberation characteristics. For
fine-grained ores the addition of a third grinding stage which
utilises energy efficient stirred milling benefits the economics in
two ways: reducing the amount of material that need to be fine
ground and grinding at high energy efficiency. The application of
HPGR technology significantly reduces the energy consumption
compared to AG milling. A synergy of HPGR and primary
pebble milling, as proposed for Option 4, can result in a very
effective circuit from a capital and operating point of view with
HPGR working in open circuit feeding the primary pebble mill
which in addition to grinding, generates grinding media
(pebbles) for the secondary pebble milling circuit. The product
from the primary pebble mill is much finer than what can be
practically obtained from a closed HPGR circuit and thus the tail
rejection at the RMS is higher which significantly reduces the
duty of the following pebble milling stage.
The magnetite market in general and the required scale of
magnetite concentrator capacity is rapidly expanding and as a
result will amplify the importance and value of sound
metallurgical investigation and process design. To this end a well
structured and scheduled study and evaluation period is of
considerable importance if the objective is to maximise life cycle
project value and mitigate financial and stakeholder risk.
An introduction of a carbon tax at levels indicated by the
Australian government is predicted to increase the operating cost
for this type of operation significantly, in the order of nine to
11 per cent or $0.57 - $0.77/t of ore.
ACKNOWLEDGEMENT
The authors acknowledge the permission of GRD Minproc to
publish this paper and the assistance of James Higgie in
compiling flow sheets and operating costs during his student
vacation work period.
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