New Nickel Processing Projects in Indonesia, The

case of Hanking Co,. Ltd

Lisbon
October 13, 2014
Wahyu Prasetiyo

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1 Indonesia Economic & Investment Nowadays

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 Plans for Indonesia’s GDP

The development so far achieved has

made Indonesia the 16th largest
economic power in the world in 2011.

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 Registered Investment of Economic Sector in
Indonesia

Total investment of metal industry sector in

Indonesia is more than 52 Billion USD with
the proportion of Nickel Processing facilities
is more than 15 Billion USD

Source : Industrial Ministry

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2 Development Of Nickel Processing Project in Indonesia

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INDONESIA NICKEL RESOURCES AND RESERVES

Source : ESDM Geological Agency 2012

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PLAN OF NICKEL PROCESSING AND REFINING FACILITIES IN INDONESIA

From 89 Proposal, until today only

2 company already in commercial
operation and 9 company with
construction progress realization is
more than 35%

Source : ESDM

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3 Hanking Nickel Smelter Project In Indonesia

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Hanking Ore Reserve :
Mineral Resource Summary of Block D, E and K as of November 2012 - JORC

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Hanking Ore Reserve :
Mineral Resource Summary of Block D, E and K as of November 2012 - JORC

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 Hangking Industrial Group
Investment
Karyatama Hangking Makmur
Konawe Utara Nickelsmelt

NPI Plant Feni Plant

Capacity Capacity
5.000 Ton Ni/Yr 10.000 Ton Ni/Yr

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NPI Molore Project Key Information
Key Information

Capital Expenditure Stage 1 MUSD 45.19

NPV USD 5.31 million

IRR 18.41 %

Payback Period 6.79 years

Construction Period Q3 2013 – Q4 2015

Commissioning Q4 2015

Commercial Operation Q1 2016

Project Summary
 Project Location : Molore district, Langgikima, North Konawe, Southeast Sulawesi, Indonesia
 Production Capacity : 50,000 tpa NPI
 Plant Life : 20 years
Resourcess Feeding Composition
Feed Ore Composition
Ni % Fe % MgO % SiO2 % S% P%
≥ 1.6 18-35 ≤ 20 10 -25 ≤ 0.04 ≤ 0.04
Limestone Composition
CaO/% MgO/% P/% S/% Moisture % granularity/ mm

≥50 ≤3 0.04 0.15 15 30~60

Coke Spesification
M40/% M10/% granularity/mm granularity>80mm granularity<5 mm CRI CSR

≥76 ≤8.5 30~80 <5% <4% ≤35 ≥50

NPI Product Spesification

Element C Fe Ni Si S P T

Content <3.0% 83% 10% <2.5% <0.03% <0.05% ≥1300℃

Feeding Ore Demand 550.000 WMT/YR

KKU NPI Process Flowsheet (Shaft Furnace Tecnology)

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Process Description :
PT Karyatama Konawe Utara as subsidiary of Hangking group recently conduct construction of
NPI plant with shaft furnace technology, the stage of construction currently is equpimnet
installation and will be finished in end of 2015.

Nickel ore as feeding of the plant will shaped ore to briquett (press ball) by 6 ball press machine
(each capacity 6.5 ton/hr) .The purpose of this process to make ore steady during smelting in the
shaft furnace. Together wilth flux (CaCO3 and Ferrosilicon) and coke, press ball will smelt in the
shaft furnace to produce NPI. During smelting process reduction of the ore, oxygen will blowing
to help this reduction. Molten metal and slag will separate each other because of density
differencess, metal will be in the bottom and slag will in the top. Frequently metal and slag will
be tapping from different holes.

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Land Preparation
Manufacturing & Fabrication
FeNi Project Key Information
Key Information

Capital Expenditure 245 MUSD (Include Power

Power Plant)

NPV 212 USD

IRR 37.5

Payback Period 3.8 years

Construction Period 2 years

Commissioning Q1 2017

Commercial Operation Q2 2017

Project Summary
 Project Location : Molore district, of North Konawe, Southeast Sulawesi, Indonesia
 Production Capacity : 115.000 Tpy of FeNi (Nickel 12.84%)
 Plant Life : 30 years
Feed Ore Composition :
Assay (%) Indeks

Ni Co Fe SiO2 CaO MgO Al2O3 P2O5 Cr2O3 LOI SiO2/MgO MgO/SiO2 Fe/Ni

1.75 0.04 19 33 0.21 24.46 1.5 0.26 1.15 10.00 1.35 0.74 10.86

FeNi Metal Product Composition :

Component Ni Co C Si P S Cr Fe others

% 12.84 0.11 1.84 1.22 0.03 0.23 0.61 82.92 0.22

FeNi Slag Composition :

NiO FeO
Component SiO2 CoO MgO CaO Al2O3 Cr2O3 P2O5 other Basicity
T.Ni T.Fe
0.16 14.97
% 45.93 0.01 33.83 0.47 2.58 1.43 0.36 0.26 0.73
0.128 11.63

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Feronickel Plant Flowsheet

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Process Description :
Basically Ferronickel process in Hangking similar with other RK-EF plant, this process divided into 4 process :

1.Drying
Laterite ore consist of fine and lumps, with moisture content around 34% . The ore then is dried and screened
and the lump ore is crushed. The ore is feed to the drying and crushing process at the rate of 180 ton per hour
by means of shovel loader . Hot air from Hot Air Generator flows in the parallel current of the wet ore and
dries it into the moisture content of 23 % by direct heating. Then dried ore from rotary dryer mixed together
with coal and dust pellet charged into Rotary Kiln.

2.Calcining
Mix dried ore (dry ore, coal and briquette ) called conditioned ore charged into rotary kin. In addition to the 22
% moisture content, the conditioned ore contained 10% to 12 % crystallized water. Before charging into the
electric furnace, not only the moisture content but also the crystallized water has to be eliminated. This
crystallized water contained in the form of serpentine, goethite, etc.

The feed materials to the rotary kiln are fed at the inlet side,and moved to the discharge end by the rotation
and the gradient of the rotary kiln. At the discharge end side, the burners burn the pulverized coal. This flame
Heats the materials at the discharge end, and the hot gas thereby generated flows toward the inlet side of the
kiln. The materials are dried and calcined by this counter current of hot gas. The materials fed at the feed
section have first their adherent moisture evaporated . Then as the temperature of materials rise, the
crystallized wtaer starts to decompose. At the same time inherent moisture and volatile matters contained in
coal also evaporates.

After being dried in the drying zone of the rotary kiln, the charged materials enter the calcining zone where the
crystalized watter is removed and then completely calcined at the burner flame zone. During this process, 20%
of NiO and 80% of Fe2O3 conatined in the ore are reduced to Ni and FeO respectively.

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Process Description :
3.Smelting
The calcine from rotary kiln is supplied to the electric furnace by the hot charge system. This
calcined orehas temperature of around 700oC and its ignition loss is trace. Inside the rotary kiln,
20% of NiO is reduced to Ni and 80% of Fe2O3 is reduced to FeO by the reductant added to the
kiln. The calcined ore also contains the residual C, which is needed for reduction inside the
furnace. The heat required for melting the calcine ore and for chemical reaction is supplied by
the electric resistance heat created by the electric current flowing through the slag layer.

The calcined ore is reduced and melted by the heat. First, the calcined ore which is choke fed
reacts with the reducing gas (CO gas) which is generated in the lower molten zone, and parts of
nickel oxide and iron oxide contain in the calcined ore are reduced to Ni and Fe while the
reducing gas rise through the calcined ore layer. The clacined ore will melting down, metal and
slag will seperate respectively, molten metal will going down due to density differences, molten
metal and slag will tapping frequently through different holes. Molten metal will transported to
casting machine to become ingot product

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Investment Challenges of Establish Nickel Processing in
Indonesia
1. Low infrastructure for supporting smelter construction and operation
(i.e. Electricity, road and jetty)
2. Complex bureaucracy of smelter permit application
3. Unstable regulation

Challenges of NPI Producers Outside China

1. High Operation Cost Due to Cokes Import & Transportation Cost.
2. No integrating plant of NPI and Stainless Steel outside china (Producer
usually take advantage of NPI molten metal heat for operation cost
efficiency)

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Further Communication :
Wahyu Prasetiyo (wahyu@hanking.com)
Zhao Zhou (zhaoz@hanking.com)

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谢谢各位！