Nickel Desktop Study

19 May 2016
 Content

• Say ‘Hi’ to Nickel Processes

• Nickel Resources
• Nickel Heap Leaching
• Downstream: MHP and Ni Cathode
• Does the project worth it?
• Project Scope and Resources
• OPEX & CAPEX (desktop study level)
• And then..
• Conclusion
• Next Plan

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Say Hi to Nickel Processes

INTRODUCTORY TO NICKEL, MHP, AND

NICKEL CATHODE

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 Nickel Resource

20-40% 60-80%
Limonite

Saprolite
Sulfide Laterite
Ni Production: 60% Ni Production: 40%
 Nickel Processing

Pyrometallurgy Hydrometallurgy

Thermal treatment of ores / minerals for the Use of aqueous chemistry for the
recovery of metals recovery of metals
 Hydrometallurgy Process
Lixiviant Neutralising agent
Acid ● Water/ Brine Lime ● Limestone ● Magnesia

Leaching Downstream
Ore
~70%-75% rec
PLS ~90% rec
Products

Spent Ore ● Effluent

 Heap Parameter
Parameter Au Ni

Crushing Required Not required, boulder

usually screened out
Agglomeration Optional Mandatory
Agglomerate Cement Acid
agent
Heap operation Static/ dinamic Dinamic
>40m(static)
Heap height 5-6m(dynamic) 4m

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 Lixiviant Parameter
Parameter Au Ni
Lixiviant sodium cyanide sulfuric acid
Lix. Strength 100-350 ppm 25,000 - 100,000 ppm
Operating pH 10.5 - 11 Free acid
S/O ratio 3.0 – 5.0 > 8.0
Application rate 20-30 Liter/h/m2 6-12 Liter/h/m2
Leaching period 1 - 1.5 months 3 - 8 months

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 Downstream Process
Mixed Hydroxide route

MHP Product
Iron
PLS Precipitatio Drying and
Removal
n Bagging

Nickel purity : 30%-35%

Nickel Cathode route

Direct Nickel
Iron
PLS Solvent Electro-
Removal
Extraction winning

Nickel purity : >90%

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 What is the difference?
Ni MHP Ni-cathode
Intermediate product Final product
Need more process at the refinary for further
use in SS industry
Ni purity 38%-40% (international market), Purity >97%
Minimum 30%-Ni (Indonesia export regulation)
Co content is accounted Co is separated from Ni during process,
accounted as a different product
Example: CoS
Price 70%-78% Ni LME + 70%-75% Co LME Price is 100% Ni LME

Special characteristic: Special characteristic:

Expensive shipping cost due to ~40% moisture Not preferred for SS industry, used more for
content, limited refinary in the world to process high specialty tools & equipment
Ni-MHP
Does the Project worth it?

DESKTOP FINANCIAL STUDY

 Project Scope and Resources
• Production 25,000 ton Ni per year
• Tonne process per year 3.2 million wet ton (2.21 million – dry ton)
• Overall Ni recovery (ore to Ni in MHP): 70-75% x 90% ≈ 63 - 67.5%
• Feed Grade
Element Grade
Ni 1.9%
Fe 12.2%
MgO 27.1%

• Product quality
– MHP Ni grade 35%
– Ni EW: Nickel LME

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 Reagent Consumption
Reagent Unit consumption Annual consumption
Sulfuric Acid 500 kg/ dt feed 1,105,000 ton
Limestone 300 kg/ dt feed 663,000 ton
Quicklime 26 kg/ dt feed 58,500 ton
Magnesia 16 kg/ dt feed 34,400 ton

Sulfuric Acid Plant will require 0.32 ton Sulfur per ton Acid produced, and will
require 353,600 ton Sulfur per year

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 CAPEX Summary
  MHP Option Ni Cathode Option
(USD million) (USD million)
Process Plant 684 973
Utility & Power 375 514
Acid Plant 185 185
SUB-TOTAL 1,244 1,672
Contingency - 20% 249 334
Owner's Cost - 6% 75 100
TOTAL CAPEX 1,568 2,107

Exclude Infrastructure cost (road, bridges, air strip)

Ni Cathode have higher CAPEX due to complex process and higher energy demand
 OPEX Summary
MHP Option Ni Cathode Option
 
 
  With Acid Without Acid With Acid Without Acid
  Plant Plant Plant Plant

USD mio -
OPEX annual $ 214 $ 219 $ 259 $ 265

Unit OPEX USD/ton Ni $ 7,003 $ 7,170 $ 8,028 $ 8,195

Ni LME USD/ton Ni $ 8,500* $ 8,500* $ 8,500 $ 8,500

Product price 70%-78% of Ni price + 100% of Ni price

70% - 75% of Co price

Expensive to transport; Not preferred for SS;

Product characteristics Limited refineries can Use for specialty
treat this product equipment
MHP Sensitivity Analysis
LME Price $ 13,500/ ton Ni
BEP Resource size 58 Mt

LME Price $ 11,500/ ton Ni

BEP Resource size 115 Mt

LME Price $ 8,500 / ton Ni

Loss

Baseline assumptions:
- Feed = 3.2 wet-Tone per year
- Ni grade = 1.9%
- Ni overall rec = 73%
- OPEX with SAP = US$ 7,007 /t Ni

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Ni-Cathode BEP - Sensitivity Analysis
LME Price $ 13,500/ ton Ni
BEP Resource size 32 Mt

LME Price $ 10,000/ ton Ni

BEP Resource size 80 Mt

LME Price $ 8,500/ ton Ni

BEP Resource size >320 Mt

LME Price $ 7,600 / ton Ni

Loss

Baseline assumptions:
- Feed = 3.2 wet-Tone per year
- Ni grade = 1.9%
- Ni overall rec = 77%
- OPEX with SAP = US$ 6,690 /t Ni

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Next Plan..

CONCLUSION
 Findings so far..
• Baseline case provides small economic gain, thus requires longer
lifetime to achieve significant economical benefit
• Ni-cathode option gives better ecocomic figure than Ni-MHP, due to
better (25%-30% higher) product price
• Having SAP to provide H2SO4 is more economic than purchase H2SO4
• At 20 years average Ni-price of USD 13,500 per ton (USD 6.7/ lb Ni):
– Ni Cathode route achieved BEP after 10 years, with size of deposit greater
than 32 wet Mt
– MHP route achieved BEP after 21 years, with size of deposit greater than
67.2 wet Mt

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 Next plan..
• Cooperate with ANTAM to target Sangaji ore – which is not
economic for ANTAM’s Pomalaa smelter
• Agree to conduct column trials and downstream process to produce
crude Ni-MHP and commercial Ni-MHP grade.
• Crude Ni-MHP will be used for ANTAM low grade ore blending for
smelter feed
• Utilize the lab test results to refine Opex and procurement plan
• Optimize the design for leaner CAPEX

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