Jiangsu Deli Metal & Mineral Co., Ltd.

Indonesia Annual Output 2L,450 tons

Ferronickel New ESCO furnace Smelting
Project

Feasibility Study Report

Sichuan Metallurgical Design & Research Institute

Chengdu, Sichuan
.tranuarY 2015
 Jiangsu Deli Metal & Mineral Co., Ltd.
Indonesia Annual Output 211450 tons
Ferronickel New ESCO furnace Smelting
Project

Feasibility Study Report

Job No.: 1887K

President: Gao Xiaojun

Vice.president in charge Fei Xi

Chief Engineer Guo Jianriu

Chief Designer: Guo Jianxiu

Sichuan Metallurgical Design & Research Institute

Chengdu, Sichuan
January 2015
CHAPTER I
1.I PROJECTPROFIL!,....-

I.8CoNSTRUCTION SCALE AND PRODUCTSLAaE........ -6 -

CHAPTERII M/,RKET ANALYSIS.. ...'.." "" """-8-

2.2MANUFACTURI OI NICKIL AND NICKELA]-LOY,.' ''"''""'''-'' ' 9 '

CHAPTERIII RAW MATERIAL PROCBSS..,.. .........,............ ....,....,."."""" -16-

3l

3.4R{w NIATIRIAL AND FUEL CONSUMPTLONS Of RAW MATERIAL SYST!M.. - . . . .,.... " " -17-
,.. - " " - - 18 -
3.SWoRKING SYSftiM Ol' &{W MATERIAL SYS]EL ..

CHAPTER rV NEW ESCO trURNACE SMELTING PROCESS -- - " " """ - 19 -

4.2 PRODUCTION AND TIICHNICAL INDICATORS OF ESCO FURNACI, ..'. ,..... " ' -19-
4,3CoNsuMlTION OF RAW MATERL,ILS AND l'Lilrl-s (FEED QUANIIrY) , ..- . _ 20 -

:1.5CoNDITIONS Or R W MATERIALS AND FUliLS, ,.. , " " - 2l -

4.6 TEcHNoLocY AD\'nNTACE oF NEw EIICO rLrRNAcr sMElrlNc.. .- ,.. .- . ,. " " - 2l _

4.8lHEr\4ANEQUIPMINTANDCOMPONINTLISToFESCOFI,'RN'\CESN1ILTINC ,.. '- '- ""' ,, " "_23-

CHAPIIRV AUXILIARY SYSTf,MS ". " "" " "',-26-

5.2WATE{ suPPlY AND DRAINAGE lAclllrlEs .. ..- . , - ' - " ,' _28-

CHAPTERVI
6.1
6 2 GFNER.AL LA]OUT,...,.
6 ]VERTICAL LAYOUT AND RANW,\TL'R I}R-AINACE''".
-36-
f, 4 TRAN\PORi^FO'1....
- 36,
6.5 sAF]]T\',......,.....-.
16,
...- 36 -
6.6 LANDSCAP!N(;.....,.,.......,.,.,............... .-37- ...
6 7MA]N TECI'{NICAL AND ECONOMIC INDICAIORS tI'] THF CENEtuALLA\t)UT......
CTIA?TER VII ENVIRONMENTAL PRO'IECTION AND COMPRtrT{f,NSIlts UTTI'I7'A ION"""""'"' ' 38 -
-38-
-38-
7 2ENVIRoNMENTAL TROTF,CTION STANDARDS','..''...'''.,'
MEASUR!:S".-'"- -38-
T. SPRIMARY POILU1'ION SOURCES. POLLUIAN]IJ AND CONTROL
-38-
MON]TORI\O''""'-' ,3R -
T.5ADMINISTRATIVE ORCANIZATION FOR ENVIRONMENTAL PROTICNON AND ENVIRONMENTAI

CTTAPTER VIII OCCUPATIONAL SAFE] ! HYCIENtr AND IiIRE CONTROL " " -- """ " ""-40-
8'ISPECIFICATIoNS,coDEsjSTANDARDS,ANDRIGULAT]oNsAPPLIID]Nl.l]El]ESIG|l(AsPERCHTNDSEST,\NDARDS)'40-
 8.2ANA!YSIS ON UNSAFE FACTORS AND @CUPATTONAL HAZARDS N IHE PROJECI............,...................................- 40 -
8,3MAJoR pREcMoNs aDopraD IN DEstcN.........................
...,,..,........,,....................... -,t0 -

8.SCoNsTRUcroN of saFEry AND SEALTH oR6.{Nt2ATroN...........,,,.....--........................................................,,......-,14 -

CEAPTER tr INVESTMENT ESTIMATI".-..- -6-

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NZjll!3llsfi!]lfgflrf ! Institute Feasibiijry Studv Repod
tesearch

ChaPter I Overview
1.1 Project profile
> Project title: Indonesia Anrual Output 21,450 tons Fenonickel New ESCO lirmace
Smelting Proiect ofJiangsu Deli Metal & Mineral Co , Ltd.
> Production capacity: annual production of fenonickel (containing L0% nickel) ofabout
21.450t.
> Construction content: Nickel iron smelting production line (one 8.59m2 New ESCO
smelting fumace), and power supply and distribution systom, water supply and
drainage system, environmental prctection facilities, fire saf€ty facilitios, etc
> Total Project investments: 11.77 million USD ( 7.3 million RMB)
> Construction investment: 10.97 million USD ( 68 million RMB)
! working fund: 0.8 million USD ( 5 million RMB)
> Constnrction Peiod: 6 months
> ConstnLction location: Sulawesi lsland oflndoresia.

1.2 Preparation basis

Relevant basic design data and the power of attomey for feasibility litudy submitted to
Sichuan Mctallurgical Design & Research Institute by Jiangsu Deli Metal & Mineral Co,
Lrd.

1.3 Project introduction

Jiargsu Deli Metal & Mineral Co., Ltd takes the nickel-beaxing pig ircn as the end product
and implements tbe upsheam a1ld downsteam integrated operation.
Laterite-Nickel Ore New ESCO furnace smelting technology product line include:

' one ESCO frfiIacc of8.59 square meters;

' Ilaw materia! processing systom such as crushing, drying and pelletizing;

' on€ pfeheater

Late te-Nickel Ore annual conslunption: 210,000 toas; Annual output: 21,450tons
ferronickeL with content I 0oZ.
Laterite nickel ore after cmshing, drying, undressed ore moistue to l5-207o, Combine the
lateite iickel orc and coal, Iimestone and so on, pressed into pellets to vertical preheater,
New ESCO furnace used for trellet preheating, high temperature flue gas to 800
'C and
into ESCO fumace. Injection oxygen-enriched rat€ between 70% and 80% of air and
coal,through a series oicomplicated severe chemical physical r€actioN,. iron slag melting
and s"parition, to co-plete the whole process of smelting Finally, liquid i'on
nickel metal
is cast into bread iron by pig-casting machine to obtaifl nickel ilon goods'

process flow diagram as follows:

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orgccn HerEratisr station

LltaitFtricl€l pattcrn cutrr PrelEater

Ore Drj/er
r-r Iftt
Mx-rrr;r-q*- r-4+-;tr!i
I

llickel Irmr Die nachins slas-iron Se?aatidr lSiltr t r-. i rr:',

1.4 Profile ofthe Owner

Jiangsu Dcli Metal & Mineral Co., Ltd. is an intemational company committed to integratc
thc upslream aod downsaeam resourccs in thc nickel indusfy. At prescnt. its main busincss
includcs local nickel mining and production in Indonesia, international orc tade, domestic
smclting and sale of nickel-bcaring pig iron.
Since 1999, Jiangsu Deli Group has lcd to produce various kinds of iron alloy and
accumulated rich experience iri smclting and production ofiron alloy. Dcli Group went into
the indusuy of nickel-bearing pig iron in 2006, and cstabljshcd the smellery which adopted
thc electric lirmace to produce nickel-bearing pig iron firstly in Clrina and is one of thc
largcst private enterprises ofsmelting ofnickel-bearing pig iron in China.

1.5 Project investment highlights

1) Domestic shortage of nickel ore and rapid development of downstream
nickel-be.ring pig iron/strinless steel industry in favor of controlling the model
of upstream aIrd downstream integrated o]peration
Now, China is the world's largest stainless steel consumer. In 2010, the yield of
stainless steel amounts to about I1.3 million tons, occupying 37% of global market
share. On the other hand, our country is in short ofnickel resource and has depended
on impo( to solve the supply ofraw mate als for a long time. For the nickel-bearing
pig iron smelted by thc electric fumace and blast fumace has obvious competitive
price in comparison with pure nickel, the proportion of nickel meial supply in China
has rapidly risen Aom 25% it\ 2009 to near 50% in 2010, and the market share of
nickel metal continues growing. Domestic smelting of nickel-bearing pig iron mainly
takes late te-nickel ore imported from Indonesia and the Philippines as the raw
material. Domestic shortage of nickel ore and rapid development of downstream
nickel-bearing pig iron/stainless steel industry is in favor of the stability of price of
nickel metal and also provides favorable conditions for controlling the model of
integrated operation ofupper nickel ore resource.
2) International leading technolog!, has considerable economic benelits
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New ESCO fumace Nickel smelting is a ncw tcchnoJogy ofnickel iron production in
high efficiency and erergy saving. This lechnology uses oxygen to strcngthen
srnclting and tlscs coal as fucl instcad of cokc. So this prccess has high production
cfticiency. energy conscnatioll and cnvitonnent prolcction. /\nd bccause of the
stnrcture of equipment is simple and the naintenance for cquipmcnt is less. thc
investment and prodlrction cost is low, It has obvioLLs cost compctitive advantagc.
3) Energy conservation and emissions reduction, lo$' consumption and
environmental protection, has obvious cost advantage
Ucring ncw ESCO smeltil]g funace in heal of reaction and physical hcat to prcbeat
bcfore thc raw materials Into the fumace. So it can makc full use of the prchcating.
reduce overall encrgy consumption. And meanwhilc during this proccssing, the
matedals have furthcl filte'rcd. so that reducc the wastc heat of carbidcs. nilfidcs. dusl
to achieve thc purpose ofcmission rcduction and environmental protcction.
4) Integration strategy of ore origin in conlormity with strategic dcvelopment
requirements
Indonesia has abundant latcrite-nickel ores, but the minc d€velopmenl and
dorvnstrcan smelting is still a1 the initial stagc of dcvelopment Apad from a small
niunbcr of intcmational large mining gro ps opcrating locally, other lnincs arc mostly
subject to small scalc opcration, which are rarely extcnding downstream for
csl0blishflent of sintering or smelting plant. Indonesian Mining Law enacted in 2009
stipulates that, 2014 later, cach important bulk commodity (including nickel orc) can
bc cxponed only aflcr prclinrinary processing or decp proccssing locally. Indoncsian
nickel minc owners all hope to fonn an allianoc with thc enterpriscs with the smelting
and proccssirg ability. so as to solvc thc problcm oflong-term orr sales.

5) Controllable project risk, rich cash flow alrd high return olt investment
With laterite nickcl ore as raw nlatcrial, with ESCO nickel snrclting fumace as the
main picduction cquipmcnt. thc projcct is of relative small investoent scale and
corLtrollablc projcct development risk. Rcfirring and reliable proiect proccss, without
being Jinrited by thc size. dynamic lcvei is hi8h, workcrc labor intensity is low. The
Projcct has rich cash flow. low dcbt and high anti-risk capability by intcgated
opcration.

1.6 Major d€sign principles

In accordance with national policies and guidclines conccming economic construction
of Indorresia and in con'rbination with the actual conditions ol the P.oject, following
construction principles are detcrmined:
(l) The design ofall discjplilres shall comply with the tequirements of rclevant national
design spccrfications in lndonesia:
(2) Mature. reliable and ad!anced technology shallbe adopted;
(3) Prcject design shall be carefully calculatcd to try to save inveshrenl under the prcmise
of meeting the process requirements;
(4) Environmcntal protection shall follow the principle of " three simultaneities
(Environmertal protection & pollution prevention facilities of a constluction plojecl
must be designed. constructed and put into use simultaneously wirh the main patt of
thc proiect) " , and all pollutants shall be discharged after being treated Lrp to the
standard-

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1.7 Site and construction conditions

1.7.1 Site
l) Site location
Thc sitc ofthis Project is located within SuLawesi Island, satisrying the requirement of
local industry development plan.
2) Overviervofconstructionlocation
Sulawcsi Island of Indon,lsia is bctwcen contincntal shclves of Australian mainland
and Asian mainland, covering an arca of 179,000krn']. It is locatcd at the mcrge belt of'
Sunda Islands and Pacific island arc. with activc tectonic movcment and a lot of
volcanocs and carthquakes. Tlrc island shape is peculiar, with four peninsulas rcaching
out to llrc north, northeast, southcast and thc south- It is full of high mountains and
deep vallcys but shoft ofplains, whiclt is thc island with the iargest mountain area in
Indoncsia. There's plateau with thc clcvation of 2,000m in the middle and mo.e than
l0 volcanoes in the nonh with the pcak morc than 3,000m higlr. Rarltckombola in the
middle of $outhwest pcninsula has an altitude of 3,455m, which is thc highcst
mountain in thc whole island. On thc island. there're densc rivers in short flow and a
lot ol gorgcs, watcrfalls and graben lakcs, so thc watcrpower resollrce is abundant, in
favor of irrigation but not for shipping purpose. Tlre coasts are stcep and winding,
with thc line of 5,478km in total. It l€s deep gulfs and narrow coastal plains. Coral
reefs spread along the sca. Therc's a widc variety of mineral resou.ces, including
fretal, gold, coal, petroleunr, sulfur. adamas, etc., among which, thc nickel ores are thc
most abundant. The island is in the cquatorial rainforest climalc zone, with annual
prccipitation of more than 3,300rnrn and well-distributed rain nt most arcas. As
al'lbcled by thc tcuain, thc mountains have coel and pleasant climale, and the coast at
Gulf of Boni bas 53% forcst covemgo. The island is locatcd at thc transjtional zonc o1'
Asian mainland and Australian mainland, so the biota includes the species from the
two mainlands, such as dcer, anoa! pafl:ot, crocodile, etc. The coastal rcsidents are
engagcd in farrning, fishjng or Darine t.adc. while the inland rcsidents work on
shifting cultivation, fishing & hunting. logging and harvesting- Agricultural products
include rice, cassava, colocasia, indica type rice, coffee. spices. tobacco leaf and
coconut, which play an impofiant rol€ in the whole oountry. Feeding of oxen and
horses and fishing ofpearls, turtle eggs, sea cucunrbers and seawceds are also done on
the island. Tbe forest products arc ironwood, ebony, cane and resin. The industry
covers textile, sawmilling, shipbuilding and gold and silver process. There's a
highway e:work in total length of 2,500kf1 throughout the whole island. The major
cities and pofis include Bitung, Manado. Ujung Pandang, etc.
Sulawesi lsland is the rvorld's eleventh larggsl island according to the area. which is
located in the east of Indonesia arld to the liouth of the Philippine$. Its shape is very
special, similar to the big lefter K. It has four peninsulas. The middle of the island has
dangerously deep mourtain tenain. thercforc, there's little contact among the four
peninsulas, and it is more convenient ofconnection by sea than by land.
i
The administrative region of Sulawesi lsLand is divided to 6 proln1ces: West Suiawesi,
North Sulawesi, Middle Sulawesi, South Sulawesi, Southeast Sula$esi and Gorontalo-
The largest city is Maknssar in the southwest, and in addition. Manado in the north is
also a larger city.

There're lots of mountains on the island, some ofwhich are active volcanoes. In the

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south ofthe peninsula, there's large plain. and in the south-central area, rice is grown.
Rintekombola (or cailed Mario) is the highest mountain in an elevatior of 3,455m
(11,335ft).Tte main dcep-water lakcs are Towuti, Poso and Matana. It is mcasured
that the Matana Lake is -s90m (1,936ft) decp. The rivers on thc island are short and
small. of little importance. T}is island and adjacent islands are divided into 4
provinces. The most ecololnically devcloperd rcgions on the island arc the southem
peninsula and the tip of nofthgast peninsula. Rice, comj cassava, taro and bean are
grown in the soulh; tobaccos are cultivated and sea salt is prodrrced along thc coast;
grains ale grown on the alluvial plains around the Tcmpe and Sidenreng lakcs;
hydropower stations are built on the Sawito Rivcr to the cast of Pareparc. Dcsiccated
coconut. forcst products arrd some sulfttr are output fiom the northeast, as well as a
considerable scale of fishcry. Most of the eastcm peninsula hasn't been devclopcd,
where the populalion is sparse and subsistence agriculture is prcdominant. Tte
southwcst penihsula and thc middle pafi of the island are the center for national
migration program, according to which, the ccntral government makcs an attcmpt to
movc tho massivc population from Java Island and Bali Island to hcrc for settlcmcnl
so as to reduca the popuLation pressurc on thosc islands, As a result, the econony ot
tllese place dcvclops increasingly, and the cconomic secton also gradually becomes
divcrsification. Major citics and towns on the southwcst peninsula are connected by
highways. but in othcr placcs, highways (except Manado-Kcma, Kcndari-Kolaka and
Tomja Plateau Ilighway) arc only distributed iI the coastal areas. lt4ain airporis are at
Makassar, Manado, Gorontalo. Kendari. Poso and Palu.
1.7.2 Construction conditiods
l) Supply of main ralv matcrials
Latcrite-nickel orc: it is to bc supplied from local mincs in Indonesia (nines owned by
Jiangsu Deli Mctal & Mineral Co., Ltd.).
2) Power supply
Power for construction ofPhase I and project production is to be supplied by sclf-built
diesel generator set or neu,typc ofgas-clectric sct.
3) Water supply
Water for p.oduction, living and fire fighting in the Project will be from self-built
watgr supply station. The water will source from local river, which will be purified for
application. Water supply can cornpletel)' meet the water deln^rlds by project
construction and project production.
4) Transpoitationcondition
The geographic location of the plant area is ordinary, but the marine trat'tic is
convenient. The plant area is located alone the coast in the island, and the plant is near
the wharf constructed.
5) Meteorological conditions and seismic intenslty
LocaL temperature (Morowali) is relatively high, almost the same as the temperatltre at
other beaches in lndonesia. Average monthly temperature is 26.5 - 27.0'C.
For the dry season and rainy season i11 this area have little difl'erence in moisture
content in the whole yei[, the average annual regional temperature is almost the same.
For example, the highest temperature in one noon in November once reached 3l-goc,
while the lowest temperature at night in May was 22.6'C.
See the table below for the montllly record oflocal meteorological conditions.
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Clinatc Jan. Feb. Mar. Mav JLm. Ju). SeD. Oct. Nov, Dec,
Rainfall
264 265 334 3t0 345 too 27) 284 239 248 105 271

2 Rainy day 20 l4 21 l8 l8 20 20 20 l0 lt l2 I8
Mcan
3 26.5 26.1 2(, s 26.9 26.<) 26.6 26.5 26.9 27 2',1 27 26.8

4 Humiditv (%) 86 88 88 85 84 84 8l 85 8l 82 86 86
5 1.',7 1.8 1.5 2.0 1.',7 I.8 25 1,9 21 23 l8
Max. wind '7.6
6 9.2 10.2 t0.6 8.0 9.6 6.9 8.5 9.0 10.0 to.7
sDeed
Wind
7 S E E E E F] NW
dircction
Local air humidity is 81-88%. The mean lowcst humidity occurs in Scptembcr, and
the highcst is in February and March.
Thc basic earthquakc intensity is \41.
6) Ceology and landform
Thc plant sitc planncd in thc Projcct has fiat tcnain and gound in an elcvation of
l-4m. The located arca belongs to thc zone of"basically stable". Within the plant area,
thc crustal stability is good and no obvious activc fault struchrre is found. Thcre's no
hazardous cnginccring geological phcnonenon in l|rc plant area. This arca is subject
to thc, rclative stable go,llogic body (the specific condition is to be adjusted according
to the survey report),
From thc analysis of preliminary survey data, the foundation soil in the plant area is
uniformly distributcd and stratigraphically stcady, with most bcing silty clay. The site
has good stability. This construction site is cLassified to mid soft ground soil. The
plant arca has simple hydrogcology, of which, the ground watcr bclongs to pore
pbrgalic waler of Quatenlary systen and has depth of 3.5-4.5m in general, yea y
amplitude of2.0-3.0m and highest depth of l.Sm.Atmospheric rainfall is thc make-up
watcr sou.ce while thc evaporation fiom land is thc major discharge way. Ground
water at thc plant area has wcak - moderate co[osivonoss to the concrete.

1.8 Construction scale and product slate

1.8.1 Constructiol contents and scale
This project is planned to build one nickel iron smelting production line and nratched
power supply and distribution system, water supply and drainage system, environmental
protection faciiities, fire safery facilities, etc.
Main construction contents;
(l)Nickel iron smeltiDg production line: one 8.59n2 New ESCO snleiting furnace, Raw
material pret.eatment system, Preheating system and The iron slag system.
(2) Public auxiliary facilities: Power supply and distribution system, Water supply and
drainagc system, Environnrental protection facilities, Fire safety facilities, Road al1d
Stockyard, Machine repair shop, Quality gxamination room and Living quaners, etc.
1,8,2 Product slate
Phase I
is mainly to produce ferronickel ingot; and the annual production of ferronickel
(containing l0% nickel) amounts to about 21,450 tons.

1.9 Supply of crude fuels

See Table 1-1 for the consumption of main cn.rde fuels.
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Tablo l- l: Consumption ofcrude fuels in ryorkshop

Raw material
Raw material
User workhop consumotion User work5hop Source
description
l0ar/al
For ncw ECSO
Supply by
21 smeltiDg
mines

For ne$ ECSO

Raw marketing
2.1 smelting
material purchase
8.59m']nickel Droduction line
area for
ircn prod ction For new ECISO
smelting of marketiDg
linc Coal 4.3 smeltine
new ESCO purchase
fumacc
For nc\l ECSO
oxygon gas 3.91 smelting Self-supply

Srbtotal 31.34

1.10 lnYestmentestimate
Thc construction investmcnt estimate value of the Project is 68 million RMB (10.97
million USD) ($t = 6.2 RMB). Liquidity of 5 miltion RMB (0.8 million USD) for
production. The annual profit is 91.197 million RMB (14.71 rniilion USD) whcn
completed and the investmcnt retum period is 9 months,

f.11 Techno-economic€valuation
The Project has strong financial profitability, sufficient debt paying ability and financial
viability, thcrefbrc, the Project is feasible financially.
Please sec table l-2 for summary of main techno-cconomic indcxes.
Tabl€ l-2: Summtr) of main techno{conomic inderes
S/N Unit Olv Remarks
Product and oulDut
fenonickel 2145C) Includinq l0% Ni
2 Raw and auxiliarv mateial
tla 0000
2 r
Lla 43000
la 39400
tla 21000
3 Fuels and Dower
Kr.r h 16632000
r08000
4 Plot Dlan
Floor area ofthe Dlaut 20000
Construction f'actor o/^ 46 98
Ratio of sreen sDace t8
5 Mannins 100
Includins: ProductionStaff 83
Manaeement and suDDort staff 17
6 Maior economic inderes
6.1 Toral inveshents lor Proiect evaluation I Ol RMB 7100 L 177x l04USD

Includinp: Constructioninvestnrent I']T RMB 6800 1097x loIUSD

Liouiditv IU RMB 500 80! l0rUSD

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Chapter II Market AnalYsis

Nickcl is a silvet metal. featured in high mechanical strenglh, good ductiliry, rejiactory qualiry and
non-oxidizability in air. Stainless sleel and various t'?es of alloys made from it arewidcly applied in fieids like
airplanes, tanks; naval vessels, radars, missiles, space€rafts and civilian industries like machinery manufaca'e.
cemnric pigmcnts, pennanmt magnetic marerials and electronic remote control elc. Nickel is usually used as
hydrogenation cataist in chemical industry. In recent years, its application in domestic and communicatjo.
appliances also grows raPidlY

2.1 Nickel resources in the world

Nickol resources are dch in the wodd According to the infomation ofthe United States
Geological Sur.rey in 2009, the world's reserve .rf nickel is 70 milljon tons and the basic
,","*" i, 150 million tons, which are mainly distributed in Australia, New Caledonia,
Russia, Cuba, Canada, Brazil, South Aliica and Indonesia The sum-up teseNe ofnations
or regions ranked in the top ten takes up 93olo of the world's total rcser'/cs, in which, 60%
are literite-nickel ores and 407o are nickel sulphide ores. See Table 2- l and Fig 2- l
Colufibia China

Fig. 2-1 World's nickel reserves and basic reserves

Table 2-l World's nickel reserv€s and basic reserves tJnif: l0{ t
Nation or reeion Reserve Basic reserve
Rankine
2600 2900
I Aurttrafia __ 710 1500
2 New Caledonia
660 920
Cnba s60 2300
4
490 l5Lr(.)

Brazil 450 830

6
1 Seed'A!.ree
37O ._ I125
320 1300
8 Indonesia
9 Coluntbia 140 tt\t
110 '760
China
94 520
ll ?! lhjrine. '72 100
12 Doninican ReDublic
13 I&!go9la ..--.-. 49 92
14
49 90
t5 Grcece
16 ZinrbtLbwe
t5 26

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17 Othcri 220 610

The !'rorld s total (be accurrte lo million tons 7000 15000

Latcritc-nickel ores are mainly distributcd in two areas within intenropical zonc: onc
includes Ncw Caledonia and East Australia in Occania and stretchcs northward to
Indoncsia and Philippincs, and thc other is thc Caribbean in Central America. Nickcl
sulphide ores are mainly distributed in thrce areas, i.c. Five Lakcs Area and Hudsor Bay
coast ofCanada. Norilsk and Kola Peninsula in Nonh Russia, and wcst area ofAustralia.
Thc world's nickcl recourses are rich with grcat prospection potentials. The world's
famous ni,:kel ores include ores at northcast area ol Cuba, Sudbury of Canada. Norilsk of
Russia, Ncw Caledonia and Surigao of Philippincs ctc. The estimated world's top 5 nickel
manufacturcrs are Russia Norilsk Nickel ( l8%), \/alc S.A. (17%), BllP Billiton (l l%).
Xstrata PL,C (10%), Jinciruar Ciroup Co. (8%), while ether ores take up 37%.
The rcsource of nickel ores in China is rich with 7.6 million tons of rescrve. which are
mainly distributcd in Northwcst. Soutlrwcst and Northcast China, and their rcscrve
percentagcs to the state total rcsen e arc respoctivcly 76.8%, 12.1yo and 4.l0Vo. In the total
nickel rcscrve of China, Gansu Prcvincc has thc rnost capacity (62%), followcd by
Xingiiang (11.6%), Yunnan (8.10%), lilin 9A%), Hubei (3.4%) and Sichuan (3.3%)
provinccs successivcly.
The nickcl resourccs of our country arc nainly coppcr-nickcl sulphidc ores, which ate
about 85-90% oftotal reserves. where rich nickel sulphide orcs with average nickel contcnt
grcater than l7o taking up approximately 44.1o/o ot the state total rescrvcs. Nickel oxidc
orcs are rclatively fcwcr and lower in grade, thcrelbrc uncompetitjve. Cencrally spcaking,
the total nickcl resource ofchina is not abundant, and mosl orcs are snall lean ores exccpt
Jinchuan.

2.2 Manul'acture of nickel and nickel alloy

2.2.1 Manufacture of nickel
According to statistics, the nickel yicld of u'orldwidc nines was about 1.369 million tons
in 2009, reduced by 7.1lo on yezf-on-ycar basis. Thc main manufacturing countrics are
Russia, Canada, Australia, Iodonesia and New Calcdonia etc., whcre thc yield of Russia
was 274,800 tons in 2009, which was lbovl2OV. of global yield of thal year and also the
top one. lndonesia and Australia taken the second and third places with their yields
respectively being 13.10% and ljyo of 2009 global yield. See Table 2-2 for yields of the
world's main nickel ores.
The world's refined nickel yield was about 2.78 million tol1s in 2009, reduccd by 2.3yo on
year-on-ycar basis. The main manufacluring cormtries are Russia. China, Canada, Japan
and Australia etc., where the production voLume of China had increased mpidly to 246,700
tons, taking up approximately 18.7% of total global production volLLme in that year and
being the largest one. See Tablc 2-3 for refined nickel yields ofmain countrics.
Since 2010. with thc stabilization and rising trend c,fnickel price, conlpanies whjch had to
reduce or stop product during the financial crisis have resumed their production, and also,
as the strike at Vale's nickel ore project in Canada lras come to an end, the world's nickel
leld will be apparently increased in this year. INSG'S statistical data indicate that, the
world's 2010 nickel yield was about 1.42 million tons, increased almost 110,000 tons than
2009, ard. as many new nickel projects under construction will be plt into production in
2011 graduauy, the world's nickel yictd in 2011 uill increase significantly to 1 6 million
tons, 180,000 tons more than hst year. See Table 2-4 for estimated production information
ofthe world's new nickel projects for 201 l.

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Table2-2 Yield ofthe rvorld's mai nickelor€sin 1999-2009

Unit: t03 t

I t73 I r9ii I198 r 218 I 291 11)6

9l.t%

Table 2-3 Refined nickel yield ofmrin conntries in 1999-2009

Llnit: 10r t

86 l 1073

83.1% 80.7va M.4y.

1130 r3r8a
-0.4% 3.4u.

Table 2-4 fstimsled production information ofthe $orldwide new nickel projects for 2011
Estimated production
Projecr Country
!!\!!e
15,000 tons
5,0!q torlt_
I

20.000!q!s
15.000 tons
llPgo !cr.l
000 tons

In 2009, there were 4 newly-built nickel mines in the world,2 in Canada, I in China and I
in Finland, wbich are all nickel sulphidc deposits. The total rcserve <l1'thc iour mines is
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54,000 lons, \"-ith total resource volume at 2.9076 nillion tons and tolal annual production
capacity to be 56.700 lons. The expansion of5 minos in rhe world during 2009 and 2012,2
in Chjna ard I in Australia, South Alrica and Finland respsctjvcly. havc bccn announccd.
Ehich arc all nickel sulphide deposits. Thc total rescrve ofthc five mines is 865,000 tons,
with total rcsource voiumc at 3.292 million tons and increascd production capacity to bc
59.500 tons- lt is foreseeablc the world's nickel vicld will ce ainlv increase in the next two
years.

Manulacture of nickel allo)

Nickcl products manufacturcd in the world mainly include mctallic nickcl, nickel alloy,
nickel block and othcr products.
Nickcl alloy is produced from laterite-nickcl ores through pyromctallulgical process and
con)plctelv uscd to produce stainlcss stecl.
In lbnrcr years, the world's main nickei manufactLrring countries and rcgions were Japan,
New Calcdonia. Columbia, Domiuican Rcpublic and Grcece. Laterjtc-nickcl ores rcquired
by manulircturc of nickcl alloy were all impofled in Japan, while otirer countdes and
regions manutacturcd with loca.l orss.
With thc increasing expansion ofstainless stcel productio! capacity in China and raising of'
nickel price, cnterpriscs at coaslal area ofChina producing nickel alloy fronr latcrite-nickcl
imported from Southwcst Asia have incrcased rapidly in recent years. Howevcr, with thc
move-ahead ol'national cnergy conservancy and cmission lcduction work. and dlre to tl]c
limitation ofunicity ofnickelalloy user, thc compctition among nickel alloy nranufacturers
will be increasingly ficrce.

2.3 Consumption of nickel

Consumption of nickcl can be summarizgd as: stainless steel (609/0), nonferrous alloy
(14%), alloy stcel (10%). nir;k,:l plating (6%), casting (3%) ard othen (8%). Considcring
from the structurc ofconsumption, the lcading consumption market of tlre world's dckcl is
the metallurgy industry. taking up more than 809'0 of total consumption. in which, thc
consurTrption by stainless steel accounts for morc than 60% oftotal ickel consurnptir-'n. as
shown in Fig.2-2. Thercforc, thc consurnption dcrrand for nickel is extrcmcly rclatcd to
the yield of stainless steel. According to the data publishcd by the lntemational Iron and
Steel InstitLLte, tbe yield of wo:ld's slainless steel was increased in 2007 by 5.1% than lasl
year, which was 29.8 million tons. The yield ofworld's stainless steel will still increase at
-fhe lnstitute
an annual growth rate of 69i' by 2012. said, the increase will mainly come
from China and China's prodrrction volume of stainlgss steel far exceeds that of other
countries. The The world's stainless steel yield was 28.4 nlillion tons in 2006, increased
16.770 ihan 2005. China is the largest stainless steel consumer in the world now, and its
consulllption in 2008 was the total of oonsumptions of U.S.A and Japan in the last two
years.

Fig.2-2 Schemrlic diagram ofworld's nick€l consumption structure

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ESlainless steel

steel
EAlloy

nNonferrous
alloy
1.304
PlatinC
E
63% Casting
E

EOthcn

Compared with electrolysis nickcl used in stainless steel production, as nickel alloy
contains iron itself and it is generally in pill or flakc shape, the production clficicncy of
AOD converter can be improvcd, so it is well rcccived by stainlcss sLcel lranufacturing
cnterprises.
Since 2005, China has becomc the largcst nickel consumcr in the world. Othcr main nickel
consumlhg countries include Jdpan. U.S.A, Germarry, Taiwan of China, and South Korea.
In the following ycars, the consumption of nickcl has increased steadily until the eruption
of global financial crisis in 20118. Duc to thc influence of thc crisis, the global cconomies
suffered setback, and thc consumption of nickel fell drarnatically as a result of dcmand
slump of stainless steel. The world's nickel consumption was 1.297 rnillion tons in 2008,
which was 124,000 tons lcss than 1.421 million tons in 2007, reduced by 8.8% on year on
year basis. In 2009, thc worid's nickel consumptiol was incrcased slightly than last year to
I.306 million tons, incteascd by 0.7Vo on year on ycar basis, ln respcct of consumption
variation of each country or region, the nickel consumption of China incrcased
significanlly on year on year basis, while the consumption of many traditional large nickel
consuming countries dropped.
See Table 2-5 for consumption statistics of main refined nickel consuming countries.
Trbl€ 2-5 Nickel consumptions of m:rin nickcl consuming countries/regions
ljnit: 10r t

The world's past supply and demand for nickel indicates that, the nickel consumption of
the whole world was 1.306 million tons in 2009, increased 168-100 tons than 2001 with an
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annual growth rate of 1.8%. The world's nickel yield was 1,327 million tons in 2009,
increased 169,600 tons than ?001 wjth an annual growth rate of 1.8%, Therefore, the
consumption and produclion ol'nickel in the world increase in thc same pace on tbe whole-
According to the supply and demand statistics, China's nickel consumption was 541,000
tons in 2009, incrcased 456,000 tons than 20ll with an annual growth rate of 29.1%0,
higher than thc annual produclion growth rate ?6.4% of nickci, and thc demand gap in
China increases cvery ycar. In rcccnt ycars, with thc fast development ofChina's economy,
thc demand fo. stainless stecl has grown supcr last, which is thc main rcason for
continuous increase of nickel consumption.
According to the analysis of relevant institutes, the world's stainless stcel productio.
volume reaclred 30.15 rnillion tons in 2010. 20.59i, morc than 25.03 million tons of last
year, and the production volumc is estimatod to reach 33 million tons in 2011. China's
stainless stsel production volumc reached 10.8 rnillion tons in 2010, taking up 35.8% ofthe
world's volume, and incrcased 18.4olo on ycar on year basis. The stainless stcel production
volumes of othcr main countrics and regions tike U.S.A., Europc, Japan and Taiwan of
China also had big increases, which had respectively grotvn 37o/o, 23:h, 28.'7Vo and l2.8yo
on year-on-ycar basis. It is thus gvidcnt that, with dlc inprovcment of global cconomy, thc
production volume of stainless steel is increasing in a great-lcap-forward way. The fasl
dcvelopment of stainlcss steel industry promoted tlre increase of nickcl consumption, and
the dcmands for nickel by othcr non-stainless steel fields also showed significant
improvemcnl. Nickcl consdrncd by non-stainless stccl fields incrcased around l0-137o in
2010 on ycar on ycar basis. and the world's nickel consumption also increased to 1.46
million tons. See Table 2-6 for balance between supply and dcmand of thc world's nickcl
market.
Tabl€ 2-6 Supply and demand of$orld's nickel mark€t
Unit: l0r t
2001 2002 200J 2004 .1005 2000 200? 2n08 2009
'
--
Global corisgr4lion
'a!11!1l1"'l -
--lllYv1r ':l 1138 Illio t:47 1247 l2o7 ll-- 142, |'-'lo7 ll0o
'::)!)!
.

Q1s!9! y!!!.{_. r57 18? 1)tt t?51 : r2e6 r jjo L L450 tl!14 ll]]
andiernan,lb-alance
Clobil supply and
Clob€l demantlb-alance - 20 tt
1:.. -jb
;; --io
,,. 5 -l -2 -17-47 lc) 57 -,
;." - 54
,".-I
:l
.,
. ( on.u p(.on or
ClMlrption cl,ina_.
olllli E5
I \0 84-] ll.1 144 201 . 12< 328 105.l
Yield t)fchina ... 5_2_ r'5 70 q5_- 108 , 220 , l1l ... 247
and dcmand balance ofchina -36 -32 -68 -68 -117 l-108 l-ll5
i-106 -295

From no\4 to 2012. the world's stainless steel production capacify will increase 360,000
tons by nrines planned for construction. and in the next few years, the groMh of China's
stainless steel yield will not naintain the super high speed as in th€ last decade. So,
considering from supply and demand point of view. supply shortage is unlik€ly to occur in
thc market ofnext few years.
The world's retined nickel consumption was 1.297 million tons in 2008, and the average
grofih rate of refined nickel consumption in the last decade was about 3.47o. The rnain
nickel consuming countries or regions in the world iDclude China (305,000t), Japan
(185,0000, U.S.A. (121,000t, Taiwan of Clrina (69,0000, Carmany (90.000t) and South
Korea (76,0001). ln 2008, the total consumption of the above six countries and region took
up more than 657o of world's total consumption. China's nickel consumptiol has growo
rapidly in recent years, and its consumption took up 23.570 of the world's total
consumption in 2008, ranked first. The main nickel consuming areas has changed from
westem developed counties and rcgions to Asiar emerging economie!, such as China,
South Korea- Taiwan ofchina and so on.

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2.4 Nickel price

2007 was an unordinary year lor nickel market. for both the daily price (on May 10, the
thrcc-month fi(urc nickelprice reached 52.000 USD/t) and thc annualpricc (36.825 USD/I)
of nickcl had rcached historic high. The hickel price dropped dramatically in May 2008
and to hisloric low in Octobcr of thc sanc yearNew constructjon ptojects of nickel alloy
rlso phdscd oLrt or dclaycd for operarjon.
In 2009. due to the influcnce ofovcmll economic cnvironment. thc demand for nickel was
at a lo\r' ebb, almost haif of nickcl mines stoppcd production in thc first half of ycar, the
ovcrall trcnd of LME rickcl price was upward with oscillation, and the rccovery of global
stainless steel industry placcd a loundation for raising ofnickcl pricc. From the end ol'
Fcbruary 1o early March, the price once l'cll below 9,000 USD/i during fading. the nickel
pricc prcscntcd an uprush trcnd at mid of tlre ycar and broke 20.000 USD/I aller reperitive
oscillation. though the price dropped after that. it rc(rrned to a high position of 19,000
USD/I at cod ofthe year. In 2009, thc avcrage three-month future price of LME nickcl was
14,690 USD/I, droppcd 36% on ycar on year btsis, and the averago physical price was
14,662 USDit. droppcd 35olo on year on year basis.

With thc background of significant improvemcNrt ol macroccononic cnvironment, thc

LME nickcl markct showcd a nragniticent bullish trend in 2010. Thc nickcl price rose 347o
in the first quarter, fcll abnlptly in the sccond quarter. and resumcd thc rising trend as a
result ol lillfillmcnt ol'cncrgy consenation and cmission rcduction goals by China and
drop of USD. Thc avcrage three-month LME Iilture price ol the ycar was 21,900 USD/I,
incleascd 4107o tlran 14.690 USD/1 of 2009. See Fig. 2-3 lor the average annual
intcrnational nickcl (LME) physical price oflast decadc.
Thc global ecoDomy will go upward jn cun'e. IMP prcdicted thg growth ratc of global
economy will bc 4.2Yo in 201L. falling 0.6% than 2010, and the dcvelopcd countdes and
countries with emerging market will gow 2.2% and 6.4% rcspectively. According to the
prcdiction ofrelcvant institute, the GDP acceleration rate ofChina will reach 9.6% in 201 l.
Thc su$taincd dcvolopmcnt of the world's economy and the ihrprovcnent in living
standards in largc dcveloping courtrics likc China and India will dri\'€ the global metal
dcmand to incrcase firnher, prLrviding a strong supporl tbr maintaining thc nickcl pricc at a
high level.
Fig. 2-3 Chart of LNIE physical nickel price

.llrflirar
Average price ofcu(enl year
liN[0
Five-year avenge price
'a Ten-year,average price
ll L)1,t,
.9i
llicrr.la.r

li.1-1r0

tIararrl

I
t001 tiio: t0il:r t0trl t'rtrj tlirl ll_r0.' 10C! t01ar

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The main manufacturgrs, investment banks and consulting institutes of the world estimate
the nickel price of next I or 2 years every year, but as the price is subject to the effect oi'
multiple factors, for example, the supply-demand relations, exchange rates and spcculative
funds etc., it is very difficult to accurately predict thc nickel price. From thc historical
prediction data of various institutes, the fluctuation of nickel price is still small and within
thg ptedi(]ilOn range 0f mgst in$itutes, if the fluctuation range is big, it will almost exceed
le
to prcdicttne
tlre prediction range ofallrnrtituhs, Nevefiheless, variousin51itut95 51iJJtry
nickel price with various prediction methods.
According to the rulc ofcconomic development and historic data, the nickel price will not
maintai at high or low level for a long period of time but present a periodic fluctuation. A1
present, the nickel price is in the rising trend and not likcly to excced the historic high point
as there will bc no slrortagc in the supply end in the ncxt few years. Howcvet, as
devalualion of USD, the main international currency, will continuc in the next few years.
and the cost of latcrite-nickel orc is higlrer than that of nickcl sulphide ore, space for
desccnding of nickel price is limitcd to a certain degree. ln the next few years, thc
reasonable nickel prico will be fluctuatcd bctwecn 15,000 30,000 USD/1.

As regard to the nickel pricc used for investment project, thcoretically, thc estimated
long-term avemge price shall be used, which may havc certain differcnc€ with thc currcnt
pricc, this is espccially the ca$e when the cursnt price is at thc valley or peak value of
periodic variation of nickcl price.

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Chapter III Raw Material Process

3.1 Overview
The project raw material s),stcm mainly is the raw material preproccssing. that mainly
serves the 8.59m2 new ESCO smclting fumace and is cquippcd with auxiliary facilitics
such as cmshing, drying, priLling and the preheater system.

3.2 technical program

The ESCO fumacc smclting raw malefial area nrainly servcs the 8.59ft2 new ESCO
smclting fumace and is equipped with auxiliary facilities such as crushing, drying, prilling
and the preheater system. Thc production capacity of new ESCO furnace is 21.450 ya
(nickel content of product is l0%). Thc raw matcrial preprocessing area is designcd to
proccss 210,000 t/a lateritc-nickel ores (wct ore with moisture content 3070-35%) with w€r
latcritc-nickel ore storagc, sieving and crushing processes and is ecluipped with drying,
fceding and prehcating dcvice.
3.3 Process rdesign
33.f Raw material preprocessing area
3.3.1.1 Main raw materials & fuelli and their sources
Thc main raw matcrials and fuels for ESCO fumace smclting raw material prcproccssing
area are lalcdte-nickel orcs. limestone a:rd coal and so on. Main sourccs and chemical
compositions ofall raw materiais and fuels are as follows:
1) Latciitc-nickelore
The alnual dcmand ofESCO fumacc is 210,000t/a, which are all supplicd by thc mine
in Indonesia. The orcs will b€ transporlcd to the latcite raw orc storage yard for
storage. Thc dcsigned storage period is 15 days- Scc Tablc 3-l for compositions of'
lateritc powder orc.
Trble 3-l Composltion of laterite powder or€ rrw materlal

Description !Fe H10 Sio:

Ni Mgo Cao
Laterite ore ls-200a 25- 35-45 <25 <0.01 <3.0
-18 35

2) Limestone
Limestones are delivered by vehicies (outsou.ced) and mainly used for buming lime
and as ESCO fumace smelting flux. The annual consumption is approximately
21.000t/a. See Table 3-2 for is main technical indices.
Trble 3-2 Mrin compositions of limeston€ powd€r

DescriptioD CaO Sio: MBo ALOr COr H:o

Limestone 53.1 I 30 0.70 0R0 42.81 2.0

3) Coal
All from the market purchase, anlual consumption of 43000 tia. Purchase dilectly
from Indonesia-

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3.3.1.2 Process c0mposition

The raw nraterial preprocessing area is designed to process 210,000 t'a late.it€-nickel ores
(we| wlth wet laterite-nickel ore storagc, sieving and crushing processes and is equipped
with drying, feeding and prcheating devicc.
Since the Lnoistule content of this kind of ore is high, after arrival, layeritc-nickel ores will
be dried by drying equipmcnt to lower the tnoistlLrc content to aboot l5o6-2oyo.

I ) Open lateritc ore storage yard

The local sourccd laterite.nickcl ores will be delivcred to the raw ore open storage
yard by vchicles for storage.
Retaining wall may bc addcd and scmi-mcchanical piling may be laken at the open
storagc yard.
Thc main opcrating cquipment at thc storagc yard includes forklift and nrobile belt
convcyor.
2 ) Crushing system

The lateritc-nickel ore crushing systcm is sat in thc raw material clrying shcd, wherc
the open type procass is employed to sieve and thcn cnlsh. Thc natural sizc of lateritc
sintering ores is 0-600rntr, and largc ore blocks are uscd by mandibles crrLsher in the
open storagc yard.
As coal and flux are dclivercd in qualiticcl grain sjzc, they are lcd to the fecding
hoppcr by forklift and then transponcd to the blcnding bunker through belt conveyor
cquipped bclow.
3 ) Raw marcrial drying shcd
Thc raw matcrial drying shcd is used to store not only processcd latcrite orcs but also
thc reductive coal and flux etc. To mcet thc (lemand for material storage, compartmcnt
walls are used at the shcd to sepantc difl'erent materials, cooperate with rclcvanl
operalions offorklift and mobile belt convcyor.
Matcrials are transpofied to thc drying shed by forklifr or vehicle, which can meer the
production requirement on the whole.
3.3.1-3 Configuration of process equipment
To meet tlre need ofraw ore crushing and sieving system with daily p.ocessing capacity of
600t. loaderc, excavator, multiple short-distance ttansportation vehicles and multiple beh
conveyors are provided.

3.4 Raw material and fuel consumptions ofraw mat€rial system

Sec Table 3-3 for the rarv material and flrel consumptions ofraw material system.

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3-3 Consumption ofcrude fuels in workshop

Raw material
Raw material
User workshop User workshop
description tr 04f/r)
For new ECSO
Wel iateite Supply by
21 smelting
Droduction line
For new ECSO
Raw marketjng
2.1 smelting purchase
8.59m? nickel Droduction line
iron production For new ECISO
of marketing
smelling
line Coal 4i smelting purchase
new ESCO Droduction line
For new ECSO
oxygen gas 3.94 smelting Self-supply

Sublolal 3t.34

3.5 Working system ofraw material system

The ESCC) furnace smelting raw matcrial system is opemted 330d a year, three shifts a day,
and 8lr a shift.

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Chapter IV New ESCO furnace smelting Proces;s

4.1 General
The ESCO smelting fumace is a modem and cfficient smelting tcclmology, The new
technology can improve the production cfficienc,r, Make full use of encrgy, savrng energy
and protecting environment, meanwhile, simple pr.occss, high automation level.

Laterite nickel ore after cruslring, drying, undressed ore moisturc to 15-20%, Combine the
laterite nickel ore and coal, limcslone and so on, pressed into pellets to vcrtical preheatcr,
New ESCO furnacc used for pollet preheating, high temperature flue gas to 800 anci !
into ESCO fumace. Injection oxygen-enriched rate between jOoA dnd BOyo of air and
coal,through a series of complicated severe chemical physical reactions, iron slag melting
and separation, to complete the whoie procass of smelting. Finally, liquid iron nickel mctal
is cast into bread iron by pig-casting machine to obtain nickol ircn goods.
process flow diagram as follows:

oxygen gFrreratisr station

c{

;4

Lat*itrtriclpfole }ryer cL*" Pattem d,t*

^ffi I

ffi-ffi-ffi-
nickel Irmr pig nachirc slas iron Separatisr lSCn i:rrarc.:

4,2 Production and technical irrdicators of ESCO furnace

See Tabte 4-1 for the production and technical indicators ofESCO furtlace.

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Table 4-lP.oduction and technical indicators of SSCO furnac€

No. Item Unit Index Notes

1 Production capacity tln"ld 50-70
rate
2 Tons of feed coal ks^ 205 Including drying
consumrtion
3 o/o
Oxyqen- enriched air 65-90

4 Blast pressure MPa 0.1-0.12

5 Tons of feed oxygen Nm3/t 160-200

consumDtion
6 o/o
Burden metal 15-25

7
Burden aqueous Vo <8
I Ferronickel grade
o/o 10ut
9 mm s00
lron layer depth
10 mm 1300
Slaq layer depth

11 Melting zone C 1500-1550

temoerahrre
t2 slag release c 1500
temDerature
13 Ferronickel release c 1550
temDerature
t4 Baked flue gas c 1400
temDerature
15 o/o < 1.5
Soot rate
16 Flue dust 9/m3

17
Roof negative Pa 0--30

18 Kurh/t 145
Per ton of
Power consumption
naterial
19
Water Consumption vh 15 Hourly pay

20 Production cost Yuan/Ni 480

4.3 Consumption ofraw materials and fuels (feed quantity)

See Table 4-2 for the consumption ofmw materials and fuels.

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Table 4-2consumption ofraw materials and fuels

Unit consumption per Annual consumptjon
SN Descripiion
ton ofiron &s)
Lirerite'nickel ore {containing l5% $ater) 9340 210000
2 Limeston0 1000 21000
3 Coal 2050 43000
1836 39400

4.4 En€rgy consumption per ton ofiron

See Table 4-3 for energy consumption per ton ofiroD.
Table 4-3Energy consomption per ton ofiron (rotary kiln sectioo)
S/N DcscriDtion Uit
I100
Power supply (electricily power) kwh/t fenonickel ( Containing oxygen generation
electricitv)

4.5 Conditions ofraw materials and fuels

Table 4-4 Contents of laterite-nickel ore (%)

Desciption Ni lIc HtrO sio, Mgo P CaO

Laterite-nickel ore .'1.8 15-20% 35-45 <25 <0.01 <3.0

-35

4.6 Technology advantage of new ESCO furnace smelting

High efliciency and energy conserr'ation, New ESCO fumace technology is a major reform
for metallurgical industly.
(1) The adaptability of material is stong, and the efficiency of smelting and production is
higher
(2) Make fuil use ofwastc heat to rgduce onergy consumption.
(3) Good sealing in the whole production process to reduce the pollution of the
environnelt.
(4) Equipment has simple structure and less operation failure, so it costs low maintenance
fee.
(5) High level automation to reduce labor costs.

1.7 Technologyprocessingdescription
1.7.1 Raw material preprocessing stage
(l) Overview
The new ESCO fumace smelting require the water contenting of the raw material less than
8olo when into the kiln. Laterite-nickel ore through coarse crushing, drying, cushing and
mixed with limestone, coal powder, and thel press the ball to the pafiicle size to meet the
material requirements.
(2) Tecbnology processing and main facility
According to the requirements on material of the preprocessing stage, the raw material
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processing part adopts mechanized mining, sieving and feeding, so that reduce the amount
of operating personnel and improve the opelatiIlg conditions The whole section is
composed by ore yard, jaw crusher, feedet rotary dryer, vertical composite ctusher,
singleJayer sicve, mixing machine, belt conveyor and high-pressure ball machine.
Nickcl ore yard is used to storc the qualified raw wet oro transported from mining. The
area ofthe yard is about 2170n2 and the ore storage is about 75001, which can guarantee
the production with ore nearly 15 days during the raw material preprccessing smelting pa
Laterite nickel wet ore is transpo{ed to the matcrial pit by forklift, and then conveyed by
belt conveyor to coarse crushing with jaw crusher, after sieved by single-deck vibrating
screen, the nickel orc will be transported to burden with blender mixer, finally' the mixed
material will be conveyed by bclt conveyor to pressing into ball with Higl pressure ball
machine.
The bell conveyor, crusher and mixer are all installed propylaea in light structure to prcvent
wind, rain and dust.
(l) Design basis data
Jaw Crusher PE600X900 I set
Double-shaft Mixer L=4000 2 sets
Rotary Dryer d, 3.0 X 25m 1 set

Vertical Combination Cru$her O 1250 I set

Sin glc-deck Vibrating Screen YK2060 I set
High Pressure Ball Machine d,850x550 l set
(2) Energy conditions
Electricity:
Low voltage 380V 50HZ

Circulating cooling water: 400ttr

supply water temperature 35-45c
retum water tempenture 50-70"c
pressure of supply water 0.3MPa

4.7.2 New ESCO furnace nickel smelting stage

Laterite nickel ore after crushing, drying, undressed ore moisture to 15-20%, Combine the
laterite nickel ore and coal, linestone and so on, plessed into pellets to vertical preheatel
New ESCO fumace used for pellet preheating, high temperature flue gas to 800 C and
into ESCO fumace. Injection oxygen-enriched rate between lOoA ^rd 80yo of air and
coal,through a series of complicated severe chemical physical reactions, iron slag melting
and;eparation, to complete tle whole process ofsmelting. Finally, liquid iron nickel metal
is cast into bread iron by pig-casting machine to obtaifl nickel iron goods-

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4.8 The main equipment and component list of ESCO furnace smelting

N0. Name Model Technical parameters Quantity

Sliding grid ba].s Borm

1 4000x5000 Between the 1

Handling capacity : 40-70t / h, notor

2 Jarv Crusher PE600X900 1
55k'/

3 Belt Conveyor 8650 belt Approxinrately 200 m 200n

Energy effjcient dryer, yield : 25 50t

n! o\bpo)Jlio. rtens-l) : 76-811.
m3, early noisture 28-40 % , 10-18 %
4 Dryer o3mX25nr final moisture , layout : do nstrean
sp cd :r.2 -"' poir... Il" "lop. :

100 : 3.5 , heating teroperature :

?50- 850 C
Drying Power : 90kv, \.oirase 380V, rated
5 Y3I5M_6
nachine motcr_ speedi 980 turn
Dryer ring n= 25, Z= 182, {ith lront whee} : @
6 o 4580 x 270
gear 3500 * 270. the rear beLt : @3500 * 270

7 Dryer reducor ZSY315 i = 22.4 1

Total filtration area: 2050n , q'ind

Long pul se
speed : 1-1.2rn / min, bag size : 130 +
dust YLC 84 2*5 1
B
6000 , air rolume | 123000-147600m3 /
collector: bag
h
Flow 54400m3 / h. total pressure
Hi sh
4978pa, speed ; 1450rpn, working
I Tenperature \Y5-:'1016 D
temperature : 450 "C, notor L80KW
I
type JS117,1,
moror.
Flow 64034m3 /' h, total pressure I
Room
6620pa, speed : 960rpm, wolkine
10 9 28 N016-D temperature : 150 C, notor 160K1V,
I

dust b I o,rer
mor:or type )1355\{1-6
Double tlandllng capacity | 25-90t / h, Nlotor :
11 movable jav PEX250*1200 22krv, feed size : 210mm, the material I
size : 15 50nrm,

12 Disc feeder D(80 Yield of 20t / h, the motor 2.2K\( 4

Length: 2200 , transnission capacitv :

13 Belt weichei: 8650 12 36t / h, Motor Type : 4

1SA 72-2.2K1V 64. 52 lv

t4 Biaxi al mixer 13000 o600x3000 2

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Vcrtical Handljng capacity : 40-50t / h, feed

l5 conpound PFI.-1250 sizc : <l00mm, the material size :
3 5mrr, spindle specd : 400r / min
Compound
16 crusher Y3i5V1-8\ Power:75kw
maohinc notor
Rollor diumeier : O800mr, p|essure
Rall press 800 bal I press
t7
rnachine
roller rvidth : 5i]5nl,.1l, yield : 20-30t /
nachine
h ( inlo a ball rate )90%)
Pressure the
18 bsll machine Y3r5S-6 Porver:75kn
niotor
Pressurc bal I Spindle speed : 12r / min, spindle
19 nach i ne 7Q1000-40. r?
bear-ings:24048
reducer
Piston
20 hydraulic B Pushing I
systcor
lvidth 650 , the inclination arsle of
21 S teep be11. DJ-650 60 ' , the po$er otor 18.skw, speed of
0. 5n / s, length 55ln
Vertical Volume 1lilnr3, material storage 169
22 @6000*4000
preheater tons
lyear rcs ist.ant
23 Castable Add 2-3 % steol fibers 165t
castable
24
Chai n
t]800
Lenglhof l2 mctcrs , th. chain pLate l
{ith heat-resistanx steel produclion
usc0
nickel-iron alea , suchas theprocessingof
8. 59m'
25 s8.59
raw materials 400 tons cliy basis
I
r-"duction

Copper v.Lter
26 jacket Copper Casting 94t
Mol ten steel
2? Boi ler plate ploduct ion 7.lt
1\{agnesia-chr
one bri ck
Chronium oxide ) 20% l85t
,() XCH furnace
SteeL p lates and profil€,s 84t

30 HRSC YR6l.-5000 I1RSC 5 tons

Mult i func:ri o Transport medium for oxygen erriched
31 cN0047.5 l4
n Burner air
Flow 780m' ./ nin, boost : 59Kpa,
Roots Blc,w€,r sR780
speed : 590rpm. motor 800($, 10KV lP44
I{et lloots li)thaust volurne > 6lsmr / injn, ultimate
sRzt(6r5 r-acuum : -55Kpa, speed : 590rpn, motor 2
machine 710t(lv, 1oKV IP44
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0xygen Flow 5500Nm' / h, discharge pressure :

34 turbine TPo1-55-1.5 I50(pa, speed > 21000rpm, notor 315K1{, I
10t(r TP44

Desul furi zat o3000 o3000x 4000 x6 Q2J5 A 1

35

Radial
36 adsorpti on o4200 @4200 x6800 x 16 0345R 2

Oxygen bulfer @ 3200-100 O:]200 x 142,10 x 10 0345R I

37

0xygen o3200x x 10
3B o3200 t00P 14240 Q345R 1

39 Separators o2400 o2400x4000x20 Q235-A 2

O3 5 columnar , black sulfur dioxide 6t

40 HXBC 3(]B
adsorPtion

HX
o2-2.5 c:/lindrical , white water
15t
41 Adsorbent B 13XB
adsorPtion
@1.6 2 colunnar white nitrogen
42 Adsorbent C HD-01 321
adsorpt ion
0xygen
automatic lncluding indusrrial machines,
43 s7 300 1

control nloni tors, printers, online llPS

Line oxygen
IJS NTRON I
44 NTRON 51OO
analyzer
Integratcd adjustabte balanced flov
0n1ine meter with di fferential Pressure 2
45 RCr\{ Cl{l64823S2
transmitter, three Yalves , welded
flange, etc.
Screrv Ar:r Pressure 800KPa 1
46 XL_4OA
Conpressor'
Net wind lyind 48. 2n3 ,/ min, pressure 39 ZkPa
1
47 SRi50
tur-bine 3oKlV

Conbusti on h. 5761pa motc,r

48 SR2()O tVind 145?6mr ,/ 22KiV 1

0pening drilling motor 5.5k{

49 DT106 21 Yf32S-4B35 type 1
machine

50 Stopp€r DT105 2
Four bar linkage , horizontal stroke I
2021
Rotary nrud By oblique base, hit the mud system ,

5t NPJ 08-0.04mr
gun turn the gun , hydraulic stations
Cast iron 30 meters of cast 0peratins speed: 6-t3 / min, motor
m
52
nachine iron machine povr'er : 3?kw, output : 20t / h

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Chapter V Auxiliary Systems

5.1 Power supply & distribution facilities
5,1.1 Design overview

l) Dcsign basis & applicable standards

Elcctrical design of lhe project is canicd out based on thc electrical load conditions
supplied by process and othcr relevant disciplincs as well as fundamental tcchnical data
provided by Indoncsia Integrated Nickel Smclting Project, following plant electrical design
manual and relevant spccifications & codcs.The applicable dcsign codes & standards used
includc mainly thc following:
I Codelbr Design of Elect'ic Power Suppl)' & Distribution Systezs (G850052-95)
I CodeJor Design of Low Voltage Elearical Installations (GB5OO54-95)
I Cocle.for Design ol Rela) Protectioll ol Poter Devi@s anl ,4utomdtic Devices
(cB 50062-92)
b Codelbr Design ol 6.3K1/ and under Electric Substations(G850053-94)
I Design Code./br 35- l IqkV Surslatlo,i.r (C 850059-92)
i> Design Code for 3- I I0 kV lligh Voltage Electrical lnstallations (GB5OO6O-92)
I Code of Design on Building Fit'e Ptotection and Prevalti)n (CBJ16-87, 2001
Edition)
> Code.for Lighting Design of Buildings (GB 5001 1-2004)
> Design Code for Prctection of Buildings against Lightnitg (G850057-94, 2000
Edition)
> Overvoltage Proteation and Insulation Arrangement of AC Elecftical Devices
(DL/T620-1997)
D Cocle lbr Design oJ Ovenoltage Prot.ctiok it1 Indlsttiul and Cit'il Pover
(GB!65-83)
In s ta I I ations

2) Scopo ofdesign
This project is mainly divided into mw material processing (drying, cnshing), new ESCO
furnace nickel sjmelting, Iron slag processing, tltilities and auxiliary domestic facilities
according to process point of!iew' Scope ofthe power supply design includes the general
electrical layout drawing of power supply, lighting and lightning protection for sections in
addition to outdoor cable routing & Iaying in the plant area, as well as elcctrical design oi
road lighting, power supply substation and power distribution rooms ofirldividual sections.
5.1.2 Loadcalculations

Most eleclrical loads in the project belong to second class, based on which, on€ 3.0MW
power stalion is to be built in the plant to supply 8 loops outgoing lines, ofwhich 2 loops
will st-rpply power for ESCO fumace section, 2 loops for the raw material preprocessing
section, 2 loop for the Oxygen preparation section and the other 2 fbr the utility & auxiliary
system.Each power supply loop can undertake 100% load.
5.1.3 Power supply and distributio.l

One 3.0MW power statiol is to be built in the plant to supply 8 loops outgoing lines. It can

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be considered that capacitor-based automatic reactive conpensation device will be

installed at 0.4KV side, LV power factor will be cotrpensated up to 0.94.
5.1.4 Technical specifications of main equipment

Power transfoflners in workshop are of S13 energy-$aving t!?e.

LV electrical cabinct/power receiving and tic cabincts are sPT drawcr type LV switchgears,
LV clcctrical componcnts are of loreigr well-known brands.
5.1.5 Electrical driving

l) LV power distribution mode

380V (220V) voltagcs is to bc used for LV distribution. Radial distribtLtion is to bc used
mainly and threc electrical users arc generally intcrlinked in casc chain{ype distribution is
required. All electrical users are provided with elcct city from LV switchgears and power
distribulion cabinets in workshops and distribution rooms of individual sections.All mobile
equipment are to bc providcd with electricity through sliding contact lines or flcxible
cables.Lorv-voltagc circuit breakers arc to be used for short-circuit protection lbr electric
motors.
Based on process rcquircmenls, programmable logic controller system (PLC system) is
planned to be used for such production systems as ncw ESCO f'umace smelting systeln to
perform centralized interlocking opcration and local operation beside individual devices
after renroval of interlocking (the latter is to bc used only for maintenancc and
commissioning).For cobtinuous ptoduction systems having bigh-capacity motoN or motors
having a larger total capacity, scctionalizcd (altcrnatc) starting mode is planned to be uscd
in order to resolvc ovealarge starting current. namely starting several (or one) motors at
ccrtain timc intewals.
2) Motor starting and speed regulation modc
According to proccss rcquirelnents and specific circumstances, most equipment of the
project will have full-voltage starting, while soft stafting modc is applicd to the motors
above 75kW so as to overcomc overlarge starting culacnt-Hv variablc frequency speed
regulation is to be used for dedusting blowers, whilc the motors ofthe electronic belt scale'
disk feeder and so on requiring speed regulation are to be provided wirh LV variable
frequency speed regulation.
5.1.6 Line laying

Cables will be used mainly for line laying. Power and control cables ate of copper-core
t)?e and shielded copper-core cables will be utilized fbr computers.
Cable bridge will be used mainly for cable laying.Some outdoor lines are considered to be
buried directly, while part of indoor lines should be laid $nderground through cable ducts'
or laid open along walls, beams and so on and some cables will be laid in suspended
canopies or in electrostatic floors.
Outside power cables will be laid mainly along cable bridges on pipe racks. For cable
laying ofsome lines, amored cables will be buried directly
5.1.7 Lighting

As LV power distribution system of the project is of 380/220V neutral point grounded

directly, so lighting and power supply shares onl: transformel All tighling source will be

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led and connected in the neighborhood. Voltage of lighting network is to be provided with
380/220V three-phase four-rrirc system, with 36V voltage for overhauling lighting and
l2V for padicula y moist placcs.
In the main production buildings and specified places in ielcvant codes" emergency
lighting will bc provided to keep working teftpora ly, cnsure safety and cvacuate thc
pcrsonnel in addition to working lighting, moreover, local ligiting and ovcrhauling lighting
will be installed in the placcs requircd lor the processes. Roads in thc plant area will be
equipped with road lighting. Moreover, chimncys will be provided with obstruction
lighting according to relevanr codes.
5.1.8 Lightening protection and grounding

According codes and provisions, Class II industrial buildings and structures are
to
considcred to bc equipped u,ith rclevant measurcs against direct lightning strokcs and the
induction lightning, with only measurcs against dircct lightning strokcs for Class III
industrial buildings and structurcs as wcll as chimneys.
Because 0.4kV distribution systern is ofthe neutral point grounded ditcctly, the cxposcd
conductivc part of the distribution unit and elecfical equipment in the system will be
provided with protcctivc grounding through PEN wire or PE wire basc,l on TN-C system
(TN-C-S systcm), the $ounding resistancc not larger than 4 o. Substation with both high
voitage and low voltage will bc provided with the common gro[nding dcvice. ofwhich the
grounding resistance is less than I Q .
Multiple grounding will be set at access point of powcr supply in cach workshop or
buildine.
Computer system will be provided with the separate protective grounding, with the
groundirrg resistance as pcr thc requirement.

5,2 Water supply and drainage facilities

5.2.1 General
This is the design of water supply and drainage fbl Indonesia Laterite-Nickel Ore New
ESCO fr.rmace smelting technology pmduct line (8.59 square meters of ESCO fumace ),
elgctric substation gtc.
5.2.1.1 Design basis
(I ) Basic design data provided by the Employer;
(2) Relevant design codes or rational standards on project construction;
Sanitarv Standartl li>r Dtitlking Wdter (GBsi4tt-2006)
Code for Design ol Oukloor Water Supply Etrgineering(GB500l3-2006):

Codefor Design of Outdoor Sev'erage Engineering (G8500I4-2006\:

Code oJ Desigh on Builtling Fire Protection arul Prevention (G850016-2006).
Code for Design ol Extinguisher Distribt, ion in Buildings (G850140-2005)
Code for Design of Building Water Suppl! ent Drainage (GB5OO|52009)
Inlegrateil Wasteh'ater Ditcharge Slahdad (C88978- 1998, 199|t Edition);
(3) Data and requirements lbr water supply and drainage supplied by the relevant
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disciplines
Water supply quantity, warer quality and pressure, standard ofwater supply

Production water supply is determined according to thc process requircmcnts.

Domestic watcr for the staffand workersr l5L for per person each day

Watcr lor showerbath: 40L for each person per shift

Watcr for the canteen: l5L for each pcrson pcr meal

Sanitary standard for the watcr source ofdrinking water shall conrply with provisions
of thc current national standard, Ilater Quality Stondard for Drinking lyater Sources
(CJ3020); drinking water shall accord with provisions of thc cunent national standard,
S.t itary Standard.for Drinking Water (G85149-85).
Watcr for vehicle washing: 400L for onc cach day
Watcr for road watering and greening I .0- 1.5L per squarc meter lbr each time
5.2.1.2 Requiremonts for watcr soucc
Fresh water for production will be supplied by the main pipc in the plant area and the
intersection is located outside thc new facility.Watcr quantity and pressure shall meet
requirenlcnts for watcr supply ofproduction and firc protection in the projcct.
5.2.1 .3 Requiremcnts for water supply
l) Water quality
Thc rcqrdremcnts for quality of thc makeup industrial water of circulating waler
systcnr are as follows:
PH value: 7-8
Suspcnded matter 320-30m9/l
Hardness: !l00mg/l (by CaCOt
Tolal soluble solid: <500mg/l
Thc quality of domcstic water nust meet Senitafi Standard for Drinking Watet
Quali0 (GB57 49-2006).
2) Water pressure

Fresh water tbr production: >0.30MPa

3) Water for the project and the indexes

Requirement fbr waler quantity, quality, pressure and temperatwe in accordance with
the process (sec the table below for water consrunption by each user)
According to the prccess and technical requircments for water utilizatior supplied by
all relevant disciplines, the following systems will be designedl
> Clean circulating water supply system
> Turbid circulating water supply system
> Fresh water system ofProduction
> Frcsh domestic water system
) Water supply system tbr fire protection

Quantities of water supply and drainage for production and living a.e listed as
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lollows:
Tolal water conslLmption of the whole plant is 425mr4r, of which 400mr,ft is to be
provided for circulating *,ater, l5mr,4r for nrakeup fresh water, 3.onr,ft for production
walcr dischargc, 4.5m3/h fbr domestic water supply and 3.0mr,fi for domcstic watcr
dischargc, circulation rate amounts to 94.4yo.
Clean circulating wrter supply system
The circulating water system of the project will bc thc open-t)?e circL ating
system.Cooling proccss belongs to indirect cooling. in which water quality docs no1 suffer
pollution only with water tcmperaturc being increascd. The circulating water treatment
system will be establishcd.Return water will flow automatically to the hot water suction
pond of pump station, and will be pumped up to the cooling towct then retum to the cool
water suction pond and is pumpcd to users.
In order tQ ensure long-tenr and stablc operation ol the circulaiing watcr syslem. the drug
adding room will be arangcd within the punp station. thc drug adding dcvica throws
corosion inlribitor, antisludging agent, gcrmicide and algicidc into thc system. Quantity
and kinds of the drug will be detemincd after the systcm has started and water cluality test
is implemented by relevant organizations trusted by the plant.
The systcm is to be cquippcd with the circulating water pump station, the cooling tower
and relevant supply and retum watcr pipclines.
5.2-3 TUrbid circulating water supply system
After blast fiirnace slag is washed into granulating slag by the pclletizer before the fumace,
granLrlating slag wiJl be glabbed by the travcling crare with grab buckct through horizontal
flow sedimentation method and storcd in thc slag yard, and then transporled outside by
automobiles.Slag washing water will be recyclcd through the dctritus tank, circulating
water pond, clean water pond and slag washing pump.
11.2.3-2 In order to improve thc working environment and implemcnt intcglated utilization
ofresource, floor washing water in raw matcrial, washcd coal and sintering $rorkshops will
be turbid circulatirg watcr.

Because floor washing water contains a great quantity of dust, so water collecting and
detritus clnmbers are to be built in main buildings of all workshops to collect waste
water.In order to prevent sundries in waste water from entedng the scdimentation basiu.
sludge at the bottom of water collecting and detritus chambers in all workshops will be
manually cleaned and recycled for integrated utilization.
5.2.4 Water supply system for production, living and fire protection
(l) Domestic water wil be diectly supp]ied for all workhops, offcc buildings and so on though
the pipe n€twork in the plant area.

Consumption standard of domestic water fbr workers of the plant area is 30L each
person per shift, with about 36.0mr water consumption every day (shower water
included) and about 1.5mlA avemge water consumption, 1.0 mr/h average water
consumptior for machine maintenance, inspection and lab test, 1.5m3/h for other
water consumption.Total domestic water consumption is avcragely 4.5mr/h.
(2) Fresh production water consuolption will sum to 15 ml,4l.Fresh production watel and
water supply for flre protection will share the same pipe netlvork system.
(3) According lo Code oJ Detign on Building Firc Ptotection and Prcventio
(G850016-200O, smelling shop belongs to CJass IV workshop building, for which
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the fire resistance is desigred as Grade II, with lsL/S water consumption and five
hyclraulic monitors. Fire lvater consumption is considered to be 20LlS for one fire
once in the plant area, Thc firc is thought to last for 2 hours, so total water demand
will be 252 m3stored in the pool.Makeup fresh water required for production and fire
water will be supplied through fresh water pipelines ofthe plant.
Thc mobile dry-chemical fire extinguishcrs will be provided in clistribution rooms,
offices and so on according to provisions and requirements of Code for Design oJ
Extinguisher D[stri bution in Buildings (G850 1.40-2005).
Drainage system for Production
In the drainage systcm ofthe project waste watq is to be separated from €inwa1er.
(l) Disposal sewerage (3m3,4r) from clean circulating waaer system will be pollution-free
and dischargcd until it rcach the standard.
(2) Domestic water dischargc is 3mr/h, fecal scwage will flow automatically to th€
domestic sewage trcatment station after treated in the septic-tank, .md then be treated
by the underground featment equipment for domestic sewage, tinally be discharged
until it reach the standard.
5.2-6 Safe water supply facilities
(1) Tho circulating water pump station is to bc supplied with two powor souroos, and their
reliability shall not be worse than pows supply requirement of the smelting
eqlLipmeirt.
(2) All pumping sets a.e to be provided with the reserved pumps, with automatic
switchover between tie working pump and the rcserved purnp.
(3) The safe water tower wiil not be built for Phase I in the plant ar€a.A diesel pump is to
be installed in the pump house for timely startup, thus ensuring nonnal operation of
the equipment.
(4) Two main water supply networks frotn the watcr purnp station are to be arranged in
the belt lbrm outside the workshop so as til provide mutual support in case of any
accident, lcd from the branch of the main rvater supply pipelinc to the watel supply
systern of individual flunace body.Measures to exhaust residual air are to be supplied
for the drairage pipeline.
(5) According to Code of Design on Building Fire Protection and Plerention
(GB50016-2006), the fire protection piping system for production is to be established
outside together with the above-ground fire hvdants in order to meet flre prctection
requirements of the whole plant, the protection diameter of each fire hy&ant will be
120m at most. Furtherrnore, fire hydrants and the fire-fighting equipment are to b€
provided as per relevant provisions, lsl/s and 201/s will be respectively coosidercd for
the indoor and outdoor fire water consumption.The pipe network system shared for
production and firc protecdon can meet the requirements offire water.
(6) The mobile fire-fighting equipment is supplied in such buildings as the main plant
building, HV or LV distibution toom and so on according to Code for Design of
Extinguisher Distribution in Buildings (GB 50140-2005).
5.2.7 Treatment facilities for water supply and drainage
Water supply and drainage treat&ent system are equipped with clean circulating pump
station, clean circulating water pond, glass st€el coolitg towe., integlated water treatet,
turbid circulating pump station, turbid circulating wafer pond, water tower and so on.

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5.3 Ventil:rtion and dedusting facilifies

5.3.1 Design basis
Integroted Emission Standard oJ Air Pollutants (GBl629'7 -1996):
Enission Standard ofAir Po/lutantsfor Industrial Kiln and Furnace (G89078-96);
Dedusting Engineering Technical Specilication of lron and Steel hdustry (HJ435-2008);
Standard of Noise at Boundary oflndustrial Entetprises (G812j48-20A8);
Sanitar), Ste dard fot the Design of Industrial Entetprise (GBZ I -2010)
Assignmert commitments provided by different p.ocessing disciplincs.
5.3.2 General
Design ofventilation and dedusting includes Rotary kiln, crusl]ing systenl, etc.
5.3,3 Dedusting
5.3.3.1 Dedusting ofnew ESCO fumace srnelting system
Dedusting ofnew ESCO fumace smelting system mainly considers two pafis: finai product
screening and dedusting system and buming melt materials dedusting system.
l) Ingredients and raw malerial preprccessing dedusting
Final product scrcening and dedtsting system is mainly composed of sintering
product graded screening and air extraclion dedusting production points during
operation of material belt conveyor. Totil afu volume of dedusting system is
llx 104m3,4r(working condition). Long bag low pressure pulse dust collector is used,
with 1200n2 of filt.ation area and filtedng speed at l.0ntmin.Dedustirg efliciency is
99.59/o. The concentration of dust in the exhaustcd air afler dedusting is lower than
50me/mr.The filtration element of bag is made of anti-static, damp-proof and thermal
protection needed glass fibcr mat. Blowing rate of iledusting blowel is 12.5 x 1 oamr/ti;
the pressure is P:,1500Pa and motor power is l6okw.Dust-containing gas will be
exhausted to the atmosphere through the exhaust firnnel after being purified in the bag
dust collector and meeting rclated stalrdard.
2) Smelting site and slag iron dedusting
Batching dedusting mainly consists of the dust producing points during the receiving,
discharging and transfering processes of the batching bin composr:d of raw material,
fuel and flux material. Fuel crushing and dedusting nainly colsisls of fuel ciushing
ancL screening and the dust producing points of air extraction and dedusting during
operation of mate al belt conveyor. Dust eltraction points oflhe above two parts can
be combined into one set ofdedusting system. Total air volume ofdedusting system is
15x l0am3,4r (working cordition). Long bag low pressure pulse dust collector is used,
with 2500m'? of filtration area aod filtering speed at 1.0m/min.Dedusting efficiency is
99.59'0. The corcentmtion of dust in the exl'tausted air after dedusting is lower than
50m!y'ml.The filtration element ofbag is made of anti-static, damp-proof and thermal
protection needed glass fiber mat. Blowing rate ofdedusting blower is 16.5x 104m3,4r;
the pressrre is P=4200Pa and motor power is 280kwDust-containing gas will be
exhausted to tbe atmosphere through the exhaust funnel after being purified in fhe bag
dust collector and meeting related standard.

5.3.4 Ventilation
l) Local air supply for lowering temperature is adopted at the working places under
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high-temperature mdiation in the main workshop to improve the working conditions

ofworkers. A movable axjal air blower is provided for such purpose.
2) To ensure nolmal operation of elect cal equipment, low-noise axial air blowers are
provided at the substatioll and IIV/LV power distribution rooms for mechanical
ventilatiorl to guarantee that heat produced during operation of such equipment will be
eliminated promptly and thus maintain the cnvironmontal temperature of€quipment in
operation is within the safe range and avoid failures due to operation under high
temperature.

3) To ensure normal opcration of equipmeni in instrument cont.ol room and improve the
environment tcmperature in the room, cabinet air conditioner is provided to guarantee
safe and normal operation ofcoltrol equipment.

5.4 Inspection and testing

5.4.1 Design principl€
An inspection and testing center is to be established fbr thc whole company Establish a
water quality inspection roon1 at the water treatment plart ofthe company.
5.4.2 Inspectior atrd testing centor
Main tasks:
(1) In charge of random inspection and acceplance of received raw material and fuel;
regularly reporting the chemical components of received raw material and fuel to the
smelting plant;
(2) In clrarge of evaluating indicators of cheinical components of the product; issuing
qualification certificate and conducting instructions on smelting prucess based oII the
testing data;
(3) In charge of analysis and testing on fumace slag and other items dudng smelting
production.
(4) Chemical analysis room: coqducting chemical component analyses on raw material,
fuel, tinal product and fumace slag and tcsting orr certain physical properties.
Composition ofthe inspection and testing centerl
Sample preparatiol room: conducting sarnpling and sample prepamtion of raw
material, fuel, gas, final product and furnace slag.
5.4.3 Water quality inspection room
The water quality inspgcfion room undertakes iNpection, monitoring, testing and alalysis
of the tubidity, hardness ancl PH value ofwator from the plant intloducad water, domestic
water system, clear circulating system, turbid circulating water system and directs
treatment of water.
Water quality analyzing and testing lab is located at the comprehensive water treatment
plant. The area is about 18m2. The working system of4 shifts in 3 operations is adopted
Mdn conliguration of equipme[t: UV visible spectro-photometer, tu$idimeter, PH metet
Na ion concentration meter. infrared oil detector, etc

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Chapter VII General Plan

6.1 Genernl
6.1.r Overview ofplant site and surroundings
The plant of this project is located in Sulawesi Island of Indonesia.
Sularvesi Island is located between continental shelves of Australian mainland
and Asian mainland. lts area is 179,000 kn! and it is the ll'h largest island in
the world. Tectonic movements of the joining belt formed by Sulawcsi Island and
Pacific island arc are ftoquent. Volcanic activities and eafihquakes are common in this
arca. The island shape is pcculiar, with four pcninsulas reaching out to the north,
northeast, southeast and the south. It is full of high mountaills and doep valleys
but short of plains, which is tbc island with the la.gest mountain arca in
lndonesia.
The site ofthis Project is locatcd within Sulawesi lsland, satisfying the requirement of'
local industry developmcnt plan.
6,1.2 Hydrological, geological and topographical conditions
Terrain of the area for proposed plant is flat, with the altitude of 2-3m, belonging to
basically stable aroa.
Thc sbata of foundation in this area is mainly the alluvial deposit of the Quatomary.
Hardness of foundation soil medium to high. Classification of site: Il; distribulion of
soil layers (from top to bottom): clay soil, sandy soil, silty clay, lilty sand and silt,
with standard bearing capacity between 200 and 250Kpa. Strongth of upper
foundation is ideal. Arlificial foundation is supposed for mdn builditrgs and structures.
within thg plant area, the crustal stability is good and no obvious active falllt slructure
is lbund. There's no hazaldous engineering geological phenomenoll in the plant arca.
This area is subject to the relative stable geologic body. Therefore, based on
comprehensive judgnent, the planned construction site has ideal stability for building.
There is no soft soil layer and the site condition can meet the requirement for
building.
Frolr the analysis of survey data, the foundalion soil in the plant area is unifonnly
distibuted and stratigraphically steady, with most being silty clay. The site has good
stability. Classification ol the construction site is mediumlow hardness site soil.
Based on Earthquake Intensity Classification of Indonesia (2000), the basic intensity
ofLaterite source area is 6 degree; the designed basic seismic acceleration is 0.509 and
sei$mic classification is group 2.Hydrological and geological corditioos of the pla'nt
area are simple. The unde€round water belongs to the Quatemary por€ water Brried
depth of underground water is usually 3.5-4 5m, with annual change of 2-0-3 0m-
Buried depth of the shallowest utderground water is I 5m.Precipitation is the main
water supply and ground evaporation is the main drainage. Ground water at the plant
area has weak - moderate corosiveness to the concrete.

Basic seismic ittensity ofthe area where the new plant is to be looated is 6 degree'

6.1.3 Meteorological conditions

Thc site is located in equato al minforest climate arca. According to local
meteorological data, annual plecipitation is over 2500mm. Rainfall of most areas is
uniform.
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Characteristic nleteorological data (data not specified hercin is liom the rnaterials
before 1959-1980)
Tempcraturc:
Annual average temp erature'. 25-27 C ;

Extreme maximum tcmperature: 41.9C, 1959.8. I (1959- I 998);

Extremc minimum tempcrature: I 1.3C, I972.1.27 (1959-1998);

Air pressure:
Annual al,erage prcssure: I 0 I 6.2hPa

Precipitation:
Maximum sjngle-timc precipitation ov€r thc years: 199.5mm, 1996.7.30-31
(1959-1998)
Maximum precipitation ovcr the years: 2780mrn, l97l
Minimuln precipitation over lhe years; l89Olnnt, 1968
Avcrage rainy days ovcr the years: 89days, with precipitalion of 2500mm.
1978.8.31-9.

Annual average wild specd: 2.8m/s

6,1.4 L.nd use ofconstruction projcct
Total t'loor arca ofplant is approximalely 2 hcctares (30 mu).

6.2 General layout

6,2,1 Principles for the geleral layout
Based on the actual cotrditions such as process scheme, geographic and geomorphic
conditions as wcll as surrounding environmcnt of projcct site, thc following design
principles shall be followcd so as to make ge0eral layout reasonablc as far as possiblc:

O lhc plor plan arld transportation of the Projccr should be dcsigned in

combination of the cuftent landforms and local conditions while reservins thc
developrnent oonditions for the future.

O Under the condition to meet the process flow and reasonable transportation. its
layout should be characterized by compact arangement, short and convenient
transport Iine.

@ On the basis ofprocess production and environmenral protection, utilities

should be ananged in combination or lnultilayer and the pipoline should be better
laid in a same trench and tmy so as to reduce quantities and savc project
investment.
6,2.2 MaiD production facilities
Main production facilitres of the Project in this stage include the raw material yard,
rotary kiln smelting production line, etc.
6.2.3 General layoui
Conduct design of to the design principles, on-site
general layout according
conditions and environmental conditions and based on the process plan, conditions for
road junction, location of energy medium connection and main production facilities.
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Thg general layorLt is as follows:

Tbe raw material storage yard is located in the side of the plant area, which is tbe
planned land for workshop of new ESCO fumace smelting production line. Late te
oro, limestone storage yards and oxygen gene.ating plant are in this ar€a
The new ESCO fumace nickel smelting production line is located in the northwest of
the plant area, mainly including crushing, drying, pelletizing, preheating, and the new
ESCO fumace smelting production line, burderring system, bag drlst collector, etc.
See genetal layout for the details.

6.3 Vertical layout and rainwater drainage

Tiny slope is considered in tlte vcrtical design ofthe Project based on on-site topographical
conditions and requirements of production.
Rainwaler of construction site will be collected in the open trenches and drained to
adjacenl rivers.

6,4 Transportation
6.4.1 Traffic volume
According to tbe desi$ed capacity (phase I) ftrr the annual 21,000t nickel-bearing pig
iron production project, the total transpofiation volune is 313,400 t/a, among which
receiving volume is 113,400 t/a aod delivering volume is 21,450 t/a Main received
bulk materials include laterite-njckel ore, caustic lilne, limestone and raw coal. The
delivered product is nickel-bearing pig ion
6.4.2 Transportationmode
in the coastal aroa of the island. It is
ThD plant is located 11ear to the sea poft ard has
convenient marine and land traffiqs.
As a result, combined h?nsportation of marine and land traffics are considered for
extemal transportation of lio Project while truck is used for intcrnal transportation.
6.4.3 Road design
Taliing tire freight volume of automobile into account, the n€wly-built roads of the
Prcject are artedal road, secondary mail road, by-pass road and workshop approach
rcad, ofwhich the widths are 9.0m, 6m and 4m respectively.
Road{evel concrele pavement is adopted for plant rcad.
The calculated load ofroad should be of automobile-Grade 20 and check load should
be of trailer-Grade 100.

See general layout for the details

6.5 Safety
The new roads are designed as per Sa/e4' Regulation fbr R'tifu'ay and Road Transpottation
in Plants of In(lustrial Enteryrises (GB 4337-94) Specifcations .[or the Design oJ'
(GBJ 22-87). ^nd
Factory cold Mine Road

6,6 Landscaping
To beautifi the environment, reduce pollutions and improve worki[g conditions to crcate a
favorable production environmsnt for the worke.s, street trees are planted along both sides
of the rc;ds. Empty areas, other un-occupied are,as and areas upstream the embedded
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pipelines are made fully use offor landscaping. Area of landscaping is about 37,000m' and
rate ofland use for landscaping is about 19.96%.

6,7 Main technical and economic indicators in th€ general layout

Main tcchnical and economic indicators in the general layout arc as follows
Key techno-economic indicatom
s/N DescriDtion lJnit Ofv. Remarks
I Covedns area of the Plant 10am: 2 30 mu
Fioor area of structure and buildine l0aml 0.14
2 Anrong which: f'ioor area of open 104m'] 0.1

J Area ofroad and souare 0.012

4 Area ofland for landscaDins l0rm: 0.396

5
Coeflicient of land used for % ,16.81

buildinss
6 Coefficient of land used for roads % 21.2't
1 Greening l?te % t9 96
Total ransportation volume of 101t/a 32

8
ln which Incomins l0rta :t 34
Outsoina I01t/a 2.14s

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Chapter VII Environmental Protection and Comprehensive Utilization

7.1 Project overview
Thc main construction works includc the new ESCO fumace nickel iron smelting
production line (8.59m: ESCO fumacc smclting linc) and supporting power supply and
dist bulion systen, water supply & &ainagc systcm, environmental lrotectjon facilities
and fire-control facilitics, etc.
Thc constnlction site is located in Sulawesi Island, the east part oflndoncsia.
7.2 Environmental protection standards
Chinese standards shall be followcd:
> I tegrated Emisston Standutd ofAir Pollutants (C816291-1996) fable 2. Class II;
) Emission Standad ofAir Pollutents.for Industrial Kiln and Furnace (GF9078'1996),
Class II:
> Integrated lfastev)qter l)ischorge Standard (C88978 1996), Class I;
i Discharge Standard oJ Watur Pollutants.for lron and Steel Indusry (G813456-92),
Class It

D Standard of Noise at Boundary ol lndustrial Elnterprises (GB1234ll-90). Class III for

industrial zones.
7.3 Primary pollution sources, pollutants and control measure$
7.3.1 Noise control measures
Exccpt that prcvcntive measurcs are taken for noise soorce of major equipment based on
the noise mechanism and spcctral chaacteristic. mngc atte[uation and construction
shielding should also be considcred for noise polhltion produced by the prcject from thc
view of process configuration, so as to control thc noise in plant complied with Class lll
standa of GBI2348-2008.
l) The noise sourcc intensitv of air powcr noisc of various blowcrs are in thc range of
95-l07dB(A) with overpressure relief port of llodB(A). The muming device should
be designed for control. The blowers should be arranged in isolation booth so as to
reduce noise radiance.
2) The noise source intensity of air power noise of air compressor is in the range of 90-
95dB(A), which is located in the station house. Air draft filter shc,uld be installed al
the inlet. and exhaust muffler should be instalLed at reliefvalve.
3) Level ofnoise ofvibmting screen 90dB (A); level ofnoise ofball mill 95dB (A); level ofnoise
ofhanxner bpe crushe. 98dll (A).Sound-proo( danper and other measws ar: taken to reduce
noise level of equipment.

7.4 Landscaping
Flowers, lrassland a d trees are provided around workshop building and roads, which can
adapt to local climate and resist pollutions to prevcnt pollution. prolect and improve the
environment, Greening land can be controlled at 209lo.

Administrative organization for environmental protection and

environmental monitoring
The environmental protection and management ofthe Project can be managed uniformly
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by safety and environmental protection organization of the compary.

Environmental monitoring should be carried out by the company as per the rcquirements of
local adminishation departrnent.

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Chapter VIII Occupational Safety' flygiene and Fire Control

8.1 Specifications, codes, standards, and regulations applied in the design (as
per Chinese standards)
1) G85083-85 General Rulet or Designing the Production Facilities i4 Accordance v'ith
Safery and Health Requirchxents
2) ABZ l-2002 Sanitary Standad.for the Design of Indurtrial Dnterprise
3) GBZ 2.1-2007 Occupational Exposure Limits .fot Hazatdous Agents in the
llorkplace Partl:Chemical Hazardous Age ts
4) GB500l6-2006 Code of Design on Building Fire Protection ancl Ptevention
5) GB500l l-2010 Code for Seismic Design ofBuildings
6) G850057-2010 Design Codefor Lightning Plotection of Buildings
7) G850058-92 Eleclrical Installations Design Code for Er:Plostue Atmospheles
ancl l-ile Hazard
8) GBJI40-98 Codefor Design ofAutomatic FireAlarm Systen
9) CB50140-2005 Codefor Design of Extinguisher Disttibutiotl i]1 Buildtllgs
10) CBJ87-S5 Specifications .for the Design o{ Noise Control Systetu in Indltsttial
Enlerprises
Ll) GB50052-95 Specifcations .fot the Design of Industridl and Civil Power
Supply Systehl
12) GBl65-83 Code.for Eatthing Design of Inclustrial an.l Ci|il Electricdl Inslallatio'|
13) GBJI9-87 Codefor Design of He.lting ye&tilation and Air Conditio i g
14) Safery Regulations for Pudding
15) Safery Regulatiotxs for (:odl-Separuting Plant
l61 50IeL, R, gulaliont J (oking
17) for Si tering
Safery Regulatlons

8.2 Analysis on unsafe factors and occupational hazards in th€ Project

1) Natural hMards
Such unfavorable factors as lightning, earthquake, and hotness, if, no prevention
measures are adopted, may damage eqLripment and workshop' and cause shutdown,
personal injury, etc.
2) Unsale factors during production
Mechanical damage, penonnel falling, electical accident, water cut off, fire,
explosion and other unsafe factors
3) ADalysis on occtlpational bazards
Major occupational haz ds of the Project: dust (smoke), toxic and hanntul gas, noise'
heat radiation, etc. may pose danger to human if no measure is adopted'

8,3 Major precautions adopted in design

8-3.1 Measures against natural hazards

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1) Lightning protection and anti-electrostatic measules

According to relevant requirements of Design Code for Lightning Pt'otection of
Building; (GB5OD57 -2010), Iightning protection for plant area of the Project mainly
reUes on the arangcment of lightning rods High-rise buildings and structures above
l5m have lightning straps ananged on the roof, so as to prolect buildings and
stnrctures required such protection

Flanges installed in oxygen facilities, in/on piping are equipped with antistatic
accumulating dischaxging earthing device
2) Anti-cafihquakenrcaswes
In order to prevent disaste$, fo(ification is carried out for each building (structure) in
thc Project as per locai basic seismic intensify in accotdaice with rclevant
requir€ments of Code for Seismic Design of Builclings.
43.2 Safety measures during production
l) Safety precautions for mechanical equipment
Exllosed parls of each piece of movable machinery are arranged with protection poles
or protection handrails in accordance with re quircments no matter the machinery is of
high speed or low speed, and no matter the rotary belt is rotated directly or in
reciplocating.
Pits, trenches, ponds, and wells within the plant are arranged \'vith covers or safety
handnils.
No Entry or other waming signs are ananged at the major hazardous places in
workshop.
Crane and other equipment prone to collision, falling area for work at height,
flarnmable and explosive places, and other accident-prone scctions are aranged with
casily idcntinablc salely s gni or \ aming slgn5
The fabrication ofshaight ladders, inclined ladde$, protection hanclrails, and working
platfoms are in acco.dance with relevant national standards.
2) El€ctrical safeay neasures
Metallic enclosures of elect cal equipment ofthe electrical project, such as high and
low voltage switchgears and tansformen are ananged witb eartling and neutralizing
system to avoid electric shock to staff
Emergency power supply are used for power suppLy so as to minimize unsafe factors
caused by black out.

Enough saf'ety distance are set fol the arrangement ofeach electrical equipment of the
Projeit. Exposed parts of live conduclors arc arranged with protection network The
substation and diitributioo station are provided with scrcen proteotion devices, and
high voltage elect cal hazard area are ananged with waming boal ds
Steel wire meshes are used for windows, exllaust outlet, and passages of each electric
room and fansfonner room to plevent small animals fiom entering into, rcsulting in
various short circuit accidents.
To avoid accidetts caused by inattention' safety interlocking is caried out for
impottant processes via PLC to ensure safety ofhuman and equipment
3) Lighting safety measures

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ofall workshops,
Enough lighting device$ are set at sudden tums, ends, and crossings
points of operation, sidewalks and roads and major trutrkLines for vehicle
lransponation during working.
In addition to nomal 22OV liehting, cmergency ljghting larnps are installed for such
important places as electric rooms, master-contlol rcoms, and substations of the
project.
Explosive-proof lamps .re uscd in places with explosion hazard
4) Salety water supply measrres
DieseL generator set will be built for the Project, so additional spare power supply is
not roquired for the water pump station
The plant pipe network is ofannular type.
The water supply system is designed with various levels and &ater yield indication
instunents.
5) Firj and explosion pre\cnrion rneacurcs

Water inflow proof is considered for the design of slag runler, which is provided with
automatic tipping-over cans, and middle part of the slag runner is provided with
sedimentalion pits to avoid molten iron fi'oln entering into slag llushing system,
causing explosion during slag flushing.
8.3.3 Major precautions for occupational safety and hygiene
l) Measurcs for dust (smoke) control
Spdnkler systems are provided in each transfcr station alrd coridor of blast furnace
storage bunker in accorda[ce with relcvant requirements of,S4ritat]' Sta dard fol' the
l
Design of dustrial E le,'P,"ise so as to prevent dust rising
Air draft dedustiDg are arranged at such dust producing points as vibrating screeN ald
belt con!eyor traNfer slations.
The sintering machine will generate great nulnber of dust' which will be exhausted
after dedusting. Dust gencrated in the fccding system will be collected, subject to
dedusting and then exhausted
2) M€asures for toxic and hamful gas control

Fixed CO monitoring and alam devices are aranged at gas hazard paft ofthe project
Meanwhile, mobile CO tester is affatrged.
Charging equipment on the top of furnace, tuyere, slag notch, etc. are strictly sealed,
an,l no gas shall be leaked.
3) Measures for heat radiatiol control
As for high-temperatwe radiation area, mobile axial-blow blowers are used to lower
temperature partially. Meanwhile, natural ventilation are strengthened to carry ou1
ventilation and temperatue lowedng.
Ventilation and temperature lowering facililies are equipped in such major working
places as master-co;trol room, opemtion room, circulating water pump station, etc'

4) Measures for noise control

Noise in production workshop and operation place shall comply with requirements of
Specificaiions for the Design of Noise Conttol System in Industrial Enterprises
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(GBJ87-85). As for kinetic noise and mechanical noise generated lrom the operation
ofblast furnace blower, gas bleeding. and electromeqhanical equipment, crushing and
scrccning equiplrcnt, nojsc elimination, sourd insulation. shock absorption measurcs,
etc. arc adopted rcspectively. The post noise shall be controllcd within 85dB(A).
Sound insulation doors and windows are adopted for duty room. rest rcom, etc- to
control indoor noise under 70dB(A). Personnet measules are adopted for staff at
operation posts with higlr noise, for cxample, wcaring carshields or earplugs.
8.3-4 Firelighting measures
According to charactcristic$ of the Projcct, places with firc explosion hazard during
production arc mainly: blast fumace control room, coal gas control room, various
distribution rcoms, switch cabinets, cablc tunnel. cable room, as well as lubricating station,
electrical room, gas conduits, gas t'acilities etc. which all belong to firc hazard places wherc
fire may be caused due to such reasons as open firc, dying fire. sparks and so on.
l) Firc protection system in thc gcneral plot plan
Acrording to production lranspofiation and plant firefighting requircments, main and
sccondary roads are newly built and cxisting ones arc rcconstmctgd in the plant, in
which that fire trucks can pass smoothly through main roads shall be takcn into
consideration.
As pct thc Code o/ Design on Building Fire Protection and Prevertiorl, sufncicnt fire
separation distancc is reservcd in-betwcen bLrildings/structurcs. Roads in thc plant are
in cycle both for transport and firc fighting.
2) Fire rvater supply
Smelting shop bclongs to Class lV workshop building, for which thc fire resistance is
designcd as Cradc ll, with fire demand of lsL/S and the number of hydraulic
monitors uscd at the same tilnc of 5. For tircfighling of thc pLant, the water
consurnption is 20LlS if there is onc fire accident once, and the total watcr demand
rvill be 252mr which is stored in pool if it lasts 2 hours. Production and firc water is
$rltplemented through newLy-built water pipclines of thc plant. Pipelines fbr fire
protection ir thc plant form a ring and outdoor and abovc-ground fire hydrants are set
separately with a proteclion radius of l20m-

3) Elect cal firefighting and lightning protection

> Entrances of high voltage distribution room. low voltage distibutior room. ard
control room are plovided with sand boxes and fire extinguisher, and CO2 or
alkyl halide fire-extinguishing equipment are prefeiable;
> Flame resistant cables are used. Rcfractory l'naterials are used at the cablc outlet
for plugging. Morcover, certain nun'tbers of fire doors and walls are aranged as
pcr relevant regulations:
! Power supplies for fireiighting are supplied by two-circuit power supply. And
fire alamr and fire fighting devices are supplied by emergency power supply;
F Explosion-proofeleclric apparatus are employed fo! gas dedusting system;
! Reliable measures for the earthiDg of lilthtning protcction or lightning prevention
are taken for flammable aad explosive buildings such as main plant buildings,
power supply and distribution systens. pipelines for gas and oil supply €tc-, in
accordance with Deslgtt Code ./or Lightning Prote,:fu)n of
Buildings
(B50057-94 ).

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4) Fuelgas firefighting
)> Low pressure alamr. automatic cutting. gas-filling & purging devices are
arranged at fuel gas ilrlet pipclinc;
> Pipeiincs and valvcs fbr stearn are equippcd on thc top of blast futnacc, gas
pipeline and gavity duster catchcr. Whcn blast-fumacc stops blasting, thc gas
shut-off valve is closcd. and stcam valve and gas blccding valvc is lumcd on so
that gas in thc vess(l will be purged by high-pressurc steam, and in this way
,iafcly can bc cnsured.
) Back-draft r,alves and gas diffrrse pipcs arc equipped at the hot-blast main. When
blast fumace stops blasting for cxamination and repair, back-draft valves arc
started to dischargr) high-prcssure gas in thc blast fumace so as to ensue safcty
during repair.
) In ordcr to prevcnt gas explosion in thc blast-fumacc system. intcrcepter valves
are equipped on thc top of blast lumace and thc inlet of grality duster catcher.
tias dif'fusc valves arc arranged on the top ofblast f'urnace ancl interceptcr valve,
and deduster outlct.
5) Firctlghtingcomnlunication
) iSomc key and flammablc placcs such as naster control roorl, dist|ibution roon,
gas management room. and various hydraulic stations, etc. arc cquippcd with
autotnatic firc alarm l'acilities in accordance with relel,ant regulations;
> Each opcmtjon roon and duty room in the workshop arc cquipped with
direct-dial telephone t'br firefighting communication.
6) Safcty signs
Cenain nunbcrs of No Flarning signs are alrangcd at sonlc more visible locations in
thc plant. And firefighting signs likc "Bewarc of firc and bcware ol opcration!" are set
at places cxisting explosion hazard. And all signs arc armnged in accordancc with
Retluirements for the Placenent ofFire Salbty Signs (G815630-951.

8.4 Wellare lacilities

According to relevant regulations in documents. cartain numben of offices, canteens.
bathrooms. cloakrooms, safety edusation rooms, clinics and lavatories tbr men and women
etc. shall be set ill the Project.

8.5 Construction of safety and health organiz:rtion

The cornpany assigns a manager to take charge of occupational safety and health
managelnernt, a full-time technician to take charge of the saf'ety and health and a part-tilue
safety and heath ofTicer for the working group, thus a network can be formed irl the plant to
ensure SafL'ty.
Firefighting matters are considered unifonnly by the safety and fire department of tllc
company. Every department has a person in chargc of fire fighting 1br supervision and
managelncnt.
Emergency rescug equipment and vehicles and full"tim€ gas rescuers are alTanged for gas
accident p crcntion deparrmcnt.

8.6 Expected effect

Based on production process and local conditions, and in accordance with relevant national

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slandards, codes and rules & rcgulations, measures fot earthquake prevention, lightning
protection, storm prevention, and sunstroke prevention etc are taken in the design of the
Project, meanwhiie, a series of measures for safe power supply, safe water supply, and
other hazards prevention arc also taken, thus ensunng electromechanical equipment safety
and personnel safety under nonnal occasions. During production, such measures as dust
removal. noise rcduction, and toxic gas contol etc arc adopted to create good operation
environment for staff Moreover, effective safety and health management system
established by the enterp se will further guamnteo staff safety and labor health.
Guided by the policy of "devoting major efforts into prevention and combioing fire
prevention with fire fighting" and according to relaled laws, rules & regulations and codes,
a series ofmeasues for fire prcvention are adopted in the firefighting design ofthe P'oject,
so thal fire hazards can be discovered, prevented and reduced timely under notmal
situations.

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Chapter IX Investment Estimate

9.1 Main project contents
This is the new ESCO lirmace Feronickel Smelting Project of Jiangsu Deli Metal &
Mineral Co., Ltd. The consttuction of the Project mainly includes the new ESCO furnace
nickel iron smelting production line (8.59m'?ESCO firmace smelting line) and supporting
power supply and distribution system, watff supply & drainage system, environmental
protection facilities and fire-control facilities.

9.2 Constructioninvestmentestimate
9,2.1 Preparationbasis
(1) The investmont of construction works is calculated as per estimato index of similat
works;
(2) Cost of equipment is estimated according to marketing inquiry and the installation
expense ofthem is calcrtlated as per the estimate index of similar works;
(3) The construction discount factor between Indonesia and Chim is considorgd as: civil
works 2, installation 2.0 and equipment 1.1;
(4) Reserve fund is calculated and charged as 10 percent ofthe project cost.
9.2.2 Investme t analysis
See Table 9-1 for Project investment and composition analysis
Tabe 9-1 Proj€ct investment and composition analysis

DescriDtion Investment Amount (101 USD) Ratio in eslimate value (%)

Construction works I85.00 16.18
163.00 t4 8S
Eq!ipnrfnt 149.00
Odrer expenses 000 000
Total 1097.00 100.00

9,2.3 Construction investment estimate value

Constluction investment estimate value ofthe Ptoject is 10.97 rnillion USD.

9,3 Estimate of working capital

Estimated by the method of sub-item detailed estimate, the working capital n€€ded in the
production capacity-reached year of the Project is 0 8 million USD. Working capital is
invested yearly as per the production capacity-reaching plan

9.4 Total Project investments

Total Project investments are i 1 77 million USD.

9.5 Source of funds

The Project Constuction investments 10.97 millior USD is sellraised by the company'

9.6 Construction investment estimation table

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Table 9-2 Construction lnvestment Estimation

Constructiofl investment Estimtiion ( l0jUSD )

Equipment material Total ratio
s/N work items scale Constrnclion works lnstallation r.vorks Other expenses
purehase

1 construction cost

t.7
New ESCo furnace
s00t/d 67.74 a4.71 254.44 477.29 33.63"/.
nickel iron smelting line
Oxygen generation 45.9i 283-87 34S.19
r.2
station
Full set of auxiliary L34.7'l 274.52 \a.72./<
1.3 33.8t 47.94
equipment
1-.4 Electricalsystem 8.06 8.06 48.3S 64.52 5.45./,

1.5 Living and ofiice facilities 12.1( 2.42 9.6t 24.IC 2.9toi
3.23 9.82o/t
1.6
plant road, etc. 25.81. 0.0c o.oc 25.41. 2.97%
7.7
Others 0.00 0.0c o.0c 0.0c o.ot o.oo%

!84.52 163.55 7 48.77 0.00 to96.71 100.007

Total

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 9.7 Cost and profit analysis table

Table 9-3 cost Analysis

Cost Analysis

1 Material Costs
Subject Unit Price(USD) Quantity Total(USD) Rate

l.l Laterite ?2.26 210000 6.114600 20.19%

12 Coal 96.',7',7 43000 416 [ 10 20.26Vr

1.3 Lime Stone 16.i3 21000 338?30 3.04%

'L4 Oxygen o 9'7 27580000 26752600 38.91%

Diesel turl l45l.61 100 41s483 1.820/.

1.5

].6 Eleclricity 0 t6 16632000 161120 ts.11%

Total 44486300 4tt2:t647 100.00%

2 Labor Costs
Subject Unit Price(USD) Quantity Total(USD) Rate

2.1 Prodrction Staff USD/p.a 96"/1.42 87 84193s.54 62 264/"

22 Administrative Staff USD/p.a 12903.23 6 71419.38 15.090/"

2.3 Auxiliarv Personn€l USD/p.a 4838.71 1 33870.9',7 22.64%

Totrl 100 9s3225.A9 100.009/"

3 Maintenance Costs
Subject Unit Price(USD) Qu a ntity Total(USD) Rate

3.1 Maintenance cost t29-t319.03

4 Other Cost
Subject Unit Price(USD) Quantity Tota(USD) Rate

4.1 Financial Cost 61935,1.84 80.86%

Adminislration 241935.48 1t.49%

42
r6129.03 '7.66V.
4..1 insumnce charge

Total a17419.35 100.007.

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 Table 9-4 Profit analysis

Prolit analvsis
Subject Unit Quantity Remark
1
Annual production ol 21,450.00
Feronickel with cont€nt
fenonickel l0%.310 davs Der vear

2 Ferronickcl salcs price USD/Ni 1',7 7 .42

annual sales revenue

3 USD 38056,151.61
(Excluding Tax )
4 Annual oprrrtion costs USD 20334475.81

5 annualprofir LiSD 117 2t97 5.81

6 Efter-ta\ profirs USD 14109240

7 static irvcstmcnt USD 109617 4t.94

8 \ b*jng capital IISD 806451.1

I 'l he projccl tolal in\]cstmeot IJSI) |1',?1193.55

10 9

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