Technological challenges faced

in a modern state of art

precious metal refinery

© MMTC PAMP, August, 2013 CONFIDENTIAL 1

 TRADITIONAL REFINING METHODS

Ø Chemical – Aqua regia refining/ parting. This is a batch process normally

used by small level refiners. Output quality is inconsistent.

Ø Heat - This involves heating of the metal sufficiently to melt it and then
removing impurities by means of flux and oxidizing agent like chlorine
(Miller process). The resulting Gold is 80-98% pure. Enables faster
turnaround time but raises serious issues related to safety of operations,
and does not fully address residual elements.

Ø Electrolytic refining – 21st century refining technology.

© MMTC PAMP, August, 2013 CONFIDENTIAL 2

 MODERN DAY REFINERY SETUP

Security

Ecology Vaulting

Refinery
LABORATORY Melting

Gold &
Bullion Silver
refinery

© MMTC PAMP, August, 2013 CONFIDENTIAL 3

 SECURITY

Ø Transportation of Dore & refined gold / silver.

Ø Plant security is more intense.

Ø Surveillance of plant operations & employee entry / exit.

Ø Evaluate risk on a 24-hour round the clock basis, both within and
outside the plant.

© MMTC PAMP, August, 2013 CONFIDENTIAL 4

 CONTROL ROOM

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 VAULTING

Ø Vaults as per RBI standards

Ø Security surveillance of vault operations.

Ø Document operating procedures.

Ø Computerized recording of all incoming & outgoing material.

© MMTC PAMP, August, 2013 CONFIDENTIAL 6

 MELTING

© MMTC PAMP, August, 2013 CONFIDENTIAL 7

 MELTING

Ø Define procedures for mining company authorized representative who

will oversee:
ü Weighment
ü Melting
ü Sampling

Ø Melting department layout, equipment, support systems, safety

precautions etc with special focus on:
ü Handling deleterious element
ü Homogenizing molten melt to assure proper sampling
ü Achievement of consistent purity in the refined output,
specifically its dilution to 995, 999 etc. purity.
ü Recovery of metal from slags

© MMTC PAMP, August, 2013 CONFIDENTIAL 8

 GOLD REFINERY

© MMTC PAMP, August, 2013 CONFIDENTIAL 9

 SILVER REFINERY

© MMTC PAMP, August, 2013 CONFIDENTIAL 10

 REFINING

Challenges faced during refining of Gold and silver

Ø Presence of deleterious elements
Ø Recovery of metal in solution
Ø Metal deposition rate
Ø Treatment of fumes
Ø Ecology & environment sensitivity
Ø Safety equipment
Ø Material handling
Ø Funding - In-process duration
Ø Output: input ratio

© MMTC PAMP, August, 2013 CONFIDENTIAL 11

 PERIODIC TABLE

© MMTC PAMP, August, 2013 CONFIDENTIAL 12

 1KG GOLD CAST BARS

© MMTC PAMP, August, 2013 CONFIDENTIAL 13

 1KG SILVER CAST BARS

© MMTC PAMP, August, 2013 CONFIDENTIAL 14

 30KG SILVER LARGE BARS

© MMTC PAMP, August, 2013 CONFIDENTIAL 15

 END PRODUCT DELIVERY
Ø Bullion products normally delivered by a refinery include:
ü Gold – 1 kg /100 gms and 50 gms bar, in 9999, 999, 995 &
customised purity
ü Silver – 30 kg & 1 kg bars
ü Gold and silver grain

Ø The manufacturing processes range from manual to semi-automatic to

fully automatic.
Ø Consistency in weight & purity are key parameters, and need dedicated
process control and systems.
Ø Environment control is a significant factor to be considered.
Ø Quality certification & avoiding duplication of individual bar serial
numbering are of crucial significance.

© MMTC PAMP, August, 2013 CONFIDENTIAL 16

 ECOLOGY

The ecology department shall be capable of the following:

Ø Treatment of air

Ø Treatment of solid , liquid and gaseous wastes

Ø Treatment of water

Ø Recovery of precious metal from the waste

© MMTC PAMP, August, 2013 CONFIDENTIAL 17


Air & water parameters to be tested as per Central Pollution Control Board
Air
1. Carbon Monoxide (CO)
mg/m³
2. Lead (Pb) µg/m3
3. Nitrogen Dioxide(NO2),
µg/m3
4. Sulphur Dioxide (SO2),
µg/m³
5. Particulate Matter (size less
than 2.5µm) or PM 2.5 µg/m3
6. Particulate Matter (size less
than 10µm) or PM10 µg/m³
7. Arsenic (As), ng/m³
8. Nickel (Ni), ng/m³
© MMTC PAMP, August, 2013
ECOLOGY
1. Suspended solids mg/l,
Max
2. pH Value
3. Oil and grease mg/l Max.
4. Biochemical Oxygen
demand 1[3 days at 27oC]
mg/l max.
5. Arsenic (As ), mg/l, max.
6. Oil and grease mg/l Max.
7. Total residual chlorine mg/l
Max.
8. Ammoniac nitrogen (as N),
mg/l Max.
CONFIDENTIAL
Water
9. Total Kjeldahl Nitrogen (as 17. Particulate size of
NH3) mg/l, Max. suspended solids
10. Free ammonia (as NH3) 18. Suspended solids mg/l,
mg/l, Max.
11. Biochemical Oxygen
19. Total chromium (as Cr.)
demand 1[3 days at 27oC]
mg/l, Max.
mg/l max.
12. Chemical Oxygen 20. Copper (as Cu) mg/l,
Demand, mg/l, max. Max.
13. Mercury (as Hg), mg/l,
21. Zinc (As Zn.) mg/l, Max.
Max.
22. Selenium (as Se.) mg/l,
14. Lead (as Pb) mg/l, Max.
Max.
15. Cadmium (as Cd) mg/l,
23. Nickel (as Ni) mg/l, Max.
Max.
16. Hexavalent Chromium (as 24. Cyanide (as CN) mg/l
Cr+6), mg/l max. Max.
18
 LABORATORY

Ø Refinery Laboratory should be equipped with the following instruments

ü Spark Spectrometer – For checking purity of gold above 995
ü Inductive coupled plasma – For checking in process and spent
solution
ü Fire assay by cupellation – For checking impure gold
ü Hand held XRF – This gives a rough idea on the content of the
input metal
ü Silver potentiometer – To test the silver purity

Ø Consistent results require

ü Highly trained personnel

ü Proper calibration of equipments
ü Meticulously following the testing procedure

© MMTC PAMP, August, 2013 CONFIDENTIAL 19

 LARGE SCALE REFINING

Ø Limitation of lot size for refining on stand-alone basis

Ø Smaller lot size refining is time consuming and recovery is low
Ø Maintaining a uniform homogeneity in smaller lots is an issue
Ø Interaction with agencies specializing in recovery of precious metal in
sludge, sweeping & crushed crucibles.
Ø Special emphasis on Loss control
Ø Since refining is a 24*7 operation and even a single shift loss results
in reduction in output and inability to maintain the electrolytic
bath/scrubbers.

© MMTC PAMP, August, 2013 CONFIDENTIAL 20

 CHALLENGES

OPERATIONAL

REGULATORY CREDIT

CHALLENGES

LIQUIDITY
MARKET

© MMTC PAMP, August, 2013 CONFIDENTIAL 21

 CONCLUSION
Ø Every large modern scale refinery needs highly trained chemical and
metallurgical engineers

Ø It should set up a in-house research and development laboratory to carry

out various trials on day to day basis

Ø Dore from mines is complex due to its impurities ; each refinery should be
well versed in treating all the elements in the periodic table

Ø Responsible sourcing of Dore

Ø Refinery is an ART and it should be mastered by firm analysis and testing

Ø Any refinery should strive on main 3 parameters to gain trust of the

consumer
1. Purity
2. Weight
3. Finish

© MMTC PAMP, August, 2013 CONFIDENTIAL 22

 THANK YOU

© MMTC PAMP, August, 2013 CONFIDENTIAL 23