Pearl Project

Nickel Overview
Contents
• Introduction
– BHP Billiton Stainless Steel Materials
– Pearl Project
• Nickel
– Products and Uses
– HSEC Aspects
• Nickel Processes
– Ore Types
– Process Routes
• Challenges
– Project Challenges
– Industry Challenges

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What is Nickel?
• Metallic element
• Making up 0.008% of the Earth's crust
• The fifth most common element
• Part of the natural environment
– Nickel in soil = 5 - 500 ppm
– Nickel in natural river water = 0.3 ppm
• Used as material in stainless steel

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 Stainless Steel Materials CSG
SSM is a CSG that primarily services the stainless steel industry through its wide range
of nickel products.
Aim: To be the lowest cost producer, with the highest operating margin

Base Metal 6.9 billion

SSM 3.7 billion

Petroleum 3 billion

Iron Ore 2.7 billion

Aluminium 1.85 billion

Metallurgical
1.25 billion
Coal
Energy Coal 484 million
Diamond &
261 million
Specialty products
Manganese 253 million

Source: BHP Billiton Annual Review 2007

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World’s Primary Finished Nickel Production

Source: SSM
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SSM Nickel Assets
QNI Yabulu Refinery
32 ktpa nickel
Hallmark Project

Pearl Project

LEGEND
Operations
Major Project

Cerro Matoso, Colombia

50 ktpa nickel

Nickel West
110 ktpa nickel products

Ravensthorpe

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Pearl Project Locations (Indonesia)

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Our Nickel Products
SSM primarily services the stainless steel industry through its wide
range of high quality nickel products.

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Product Uses
We supply nickel and cobalt to other markets including the speciality
alloy and chemical industries.

Source: Nickel Institute, 2007

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 Nickel End Uses

Source: Nickel Institute, 2007

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 HSEC Aspects
• “Zero exposure” to nickel is not possible:
– Prevalent in natural environment
– Contained in everyday objects, from stainless steel to coins
• In industrial context, sources of exposure are:
– Nickel containing substances
– Nickel-containing dust present in nickel mines, concentrators, smelters,
refineries and other nickel processing plants
• Aim to minimise contact and avoid potential health effects

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 Nickel Life Cycle
Life cycle of our business and products
Products
Exploration Engines, medical,
Other Ore utensils, batteries,
Suppliers building, electronics

Ore Supply

Refining
(e.g. Yabulu)
Responsibility
Smelting
(e.g. CMSA) Customers Recycled Ni
Stainless Steel mills
Europe Korea Taiwan
US Japan India

Environmental outputs to Benefits

Air Water Land People Ecosystem

Corrosion resistant goods Social development Recyclable products

Employment Economic prosperity Improved quality of life

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Global Nickel Resources and Production

Nickel Resource
20-40% 60-80%

Limonite

Saprolite

Sulfide Laterite
Ni Production: 60% Ni Production: 40%
Laterites are a key source of nickel.
Even more important in the future!
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 Nickel Processes

Nickel Processing

Pyrometallurgy Hydrometallurgy

Thermal treatment of ores / minerals for the Use of aqueous chemistry for the
recovery of metals recovery of metals
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 Pyrometallurgy – Electric Furnace

Molten
nickel
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 Hydrometallurgy

Lixiviant Neutralising agent

Acid ● Water/ Brine Lime ● Limestone ● Magnesia

Ore Leaching PLS Downstream Products

precipitates/ metal

Tailings ● Effluent

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 Ammonia Leaching – Caron Process

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 Tank Leaching

Atmospheric Leach Enhanced Pressure Acid Leach

AL Pilot Plant EPAL facility – Ravensthorpe

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 Heap Leaching

Ore agglomeration Heap with ‘rain coat’

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 Downstream Processes – New Technologies

ISEP cRIP

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 Project Challenges
• Ensure safety transportation from and to the site
• No readily available infrastructure
• Very remote ore resources location – difficulties in logistics
• Endemic disease – malaria
• Environmental challenges (adjacent to coral community habitat)
• Lack of human resources
• Permits and bureaucracy
• Presidential General Election in 2009

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 Process Challenges – Pearl Project
Site Conditions
• High rainfall on Gag and Halmahera islands
• Seismic activity

Tailings Management
• Different leach processes produce different tailings
• Tailings risks:
– Heavy metal release to environment
– Long-term stability
– Geotechnical properties

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 Industry Challenges
• Predict the future (price, product type)
• Keep up with demand (Nickel from laterites instead of sulfides)
Million tonnes

Year
Source: Graduates e-Learning for SSM
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Thank you