The nickel and cobalt extraction from the laterite ore is divided into three operating units: the

Ore Preparation Plant (2200 to 2400) located at the mine, the Pressure Acid Leach unit (3100 to
3600-6000/6900/9600) where several metals are dissolved from the ore, and the Refinery
(3900 to 4900) that removes undesirable dissolved metals and produces the final product, the
metallic nickel, cobalt and ammonium sulphate, a fertilizer.

The extraction and purification process uses different chemical products that are produced
locally, such as: sulphuric acid (6700), hydrogen sulphide (6400), hydrogen (6300), limestone
slurry and milk of lime (6900), pure oxygen and nitrogen (6600). Other production units provide
utilities, such as electricity, compressed air, steam and various grades of water.

The Ore Preparation Plant (OPP) is located in the vicinity of the mine, approximately 220 km
away from the Process Plant in Toamasina.

The laterite ore is mainly composed of limonite (a structure similar to soil) containing some low
magnesium saprolite rocks. The saprolite rocks surface is rich in nickel and cobalt, however, the
interior of these rocks is considered barren because of its low nickel and cobalt concentrations.

The ore preparation process consists of preparing a limonite slurry that includes the nickel and
cobalt rich saprolite rocks surface.

The process includes three main steps:

1. Ore Slurrying
2. Screening
3. Thickening

The ore from the mine is delivered by trucks and is prepared for transfer, by conveyor, to the
first scrubber, where water is added to the solid ore. The first ore scrubber produces the ore
slurry and a first step in saprolite rock abrasion. The discharged slurry is directed towards the
product screening while the larger limonite aggregates, and saprolite rocks, are directed to the
second ore scrubber.

The second ore scrubber completes the ore slurrying and the saprolite rocks surface abrasion.
The second scrubbing step slurry outlet is directed towards screening, while the larger particles,
mainly barren saprolite rocks, are directed towards a reject pile, from where they are returned
to the mine.

The screened slurry is sent to two parallel thickeners, to increase the solids content up to
approximately 40%. The thickened slurry is then directed towards three large storage tanks.

The stored ore slurry is first diluted to a solid fraction of approximately 33%, and then, pumped
to the process plant (Toamasina) via a 220 km pipeline.