Nickel Laterites in SE Asia

Geology, Technology and Economics –

Finding the Balance

Presented by:
Mick Elias
Principal Consultant
CSA Global

BALI 2013
East Asia: Geology, Exploration Technologies and Mines
May 27, 2013
PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
 Chemical Weathering
General processes
1. Leaching of mobile constituents:
alkalis, alkaline earths
2. Formation of stable secondary
minerals: Fe and Al oxides, clays
3. Partial leaching of less mobile
components: silica, alumina, Ti
4. Mobilisation and partial
reprecipitation of redox-controlled
constituents: Fe, Mn
5. Retention and residual concentration
of resistant minerals: zircon,
chromite, quartz
Effects in ultramafic rocks
Breakdown of olivine, pyroxene, serpentine
and leaching of Mg, Ni, Mn, Co
Goethite formation, smectite formation,
adsorption of Ni from solution
Leaching of silica in humid climates in well-
drained locations
Precipitation of Mn oxides and adsorption of
Ni and Co from solution
Residual chromite concentration
TROPICAL LATERITE PROFILE
SCHEMATIC LATERITE APPROXIMATE ANALYSIS
PROFILE COMMON (%)
NAME
Ni Co Fe MgO

RED
<0.8 <0.1 >50 <0.5
LIMONITE

0.8 0.1 40 0.5

YELLOW
to to to to
LIMONITE
1.5 0.2 50 5

1.5 25 5
TRANSITION to to to
4 40 15
0.02
to
SAPROLITE/ 1.8 0.1 10 15
GARNIERITE/ to to to
SERPENTINE 3 25 35

35
FRESH
0.3 0.01 5 to
ROCK
45
MAIN NICKEL-BEARING MINERALS

Goethite (Fe,Al)O.OH.xH2O Up to 2.0% Ni, 0.2% Co

Mn oxides (Co,Ni)O.2MnO2.xH2O Up to 16% Ni, >4% Co

Nontronite Fe (Ca,Na,Mg,Al) clay Up to 4% Ni

Ni serpentine (Mg,Fe) hydrated silicate Up to 12% Ni

“Garnierite” Hydrated Mg silicate Up to 30% Ni

Chlorite (Mg,Fe,Al) hydrated silicate Up to 15% Ni

PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
CLASSIFICATION OF NICKEL LATERITES

Global
Ore mineralogy Fe Silica Magnesia mean Ni
grade

OXIDE Fe hydroxides High Low Low 1.06%

(“LIMONITE”) (goethite)

CLAY Nontronite, Low High Moderate 1.21%

smectite

Hydrated Mg-Ni
SILICATE silicates (incl. Low High High 1.79%
(“SAPROLITE”) garnierite)
Oxide – Ambatovy, Madagascar
Clay – Bulong, Australia
Silicate laterite – New Caledonia
Garnierite veins, New Caledonia
 Nickel Laterite Profiles

SILICATE CLAY OXIDE

(eg New Caledonia) (eg Bulong) (eg Ambatovy)
DEPTH (m) Iron cap
0 Cuirasse Colluvium
Limonite
Red Ferruginous overburden
limonite zone

Yellow Limonite
limonite Smectite
zone

Earthy Saprolite
ore
20
Ore with
boulders Saprolite
(Serpentine,
chlorite, Bedrock
Rocky smectite)
ore

Bedrock
40 Bedrock
PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
 GLOBAL NICKEL RESOURCES

CUBA
PHILIPPINES 22°N
INDONESIA

NEW CALEDONIA 22°S

AUSTRALIA

LATERITES SULPHIDES
GLOBAL NICKEL RESOURCES
(Contained Nickel)

Sulphides
30%

Laterites
70%
 GLOBAL LATERITE RESOURCES
(Contained Nickel)

Silicate
30%

9600 Mt 2700 Mt
1.17% Ni 1.79% Ni
112 Mt Ni 48 Mt Ni

Limonite
70%

Total 160 Mt Ni
LATERITE RESOURCES BY REGION
(Contained Nickel)

Other
Americas
Balkans
New Caledonia
Africa 2.49%

Brazil
1.38%

Cuba 1.88%

1.36%
Indonesia
1.19%
1.40%
Australia silicate
Philippines
limonite
 ILE ART

POUM

TIEBAGHI

ETOILE DU NORD
KAALA

OUAZANGOU TAOM OUATILOU

TCHINGOU
KONIAMBO
MONEO
KOPETO
PLAINE DES GAIACS CAP BOCAGE
PORO
BOULINDA
ME MAOYA
KOUAOUA
LE CAP
BOGOTA / CANALA
POYA BOURAIL NAKETY
BOAKAINE THIO PLATEAU
THIO MISSION
NINGUA
PORT BOUQUET
MT DO
OUENGHI N'GOYE

NEW CALEDONIA TONTOUTA

OUINNE

NICKEL LATERITE LOCATIONS BAIE N'GO

PLAINE DES LACS
GORO
NOUMEA HARICOT NORD
SLN DONIAMBO SMELTER
PORT BOISE
0 50 100 MT DORE/PLUM
PRONY
kilometres
 DISTRIBUTION OF OPHIOLITES IN INDONESIA

OPHIOLITES

S C A L E
0 5 0 0 1 0 0 0 k

HALMAHERA

WAIGEO
KALIMANTAN CYCLOOPS
GAG
OBI

SULAWESI
IRIAN JAYA

JAVA

TIMOR
OPHIOLITE BELTS OF THE PHILIPPINES
OPHIOLITE BELTS

LUZON

SCA LE Manila
0 200 4 0 0 km

MINDORO
SAMAR

NONOC

PALAWAN
NEGROS

MINDANAO

KALIMANTAN
PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
AUGER, TEST PITTING
DIAMOND DRILLING
SAMPLING CORE
ORE DELINEATION
PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
TROPICAL LATERITE PROFILE
LATERITE PROCESSING OPTIONS

Ferronickel smelting

Matte smelting Pyrometallurgical processes

Blast/electric furnace (NPI)

Caron process

High pressure acid leach

AMAX process Hydrometallurgical processes

Atmospheric leach

Heap leach
Sorowako smelter, Indonesia
Murrin Murrin HPAL Plant
FeNi dominates as a finished product

Ni output as % of total laterite

Ferronickel smelting (incl NPI) 60

Matte smelting 14

Ammonia leaching 14

Acid leaching 12

2008 Figures

CSA, CRU Analysis

 World Nickel Production by Ore Type

900 50.0%
Sulphide
800 48.0%
Laterite
46.0%
700 % Laterite
44.0%
600
tonnes Ni ('000)

42.0%

% Lateritic Ni
500
40.0%
400
38.0%
300
36.0%
200
34.0%

100 32.0%

0 30.0%
1990 1995 2000 2005 2009

Data: CSA and CRU Analysis

Nickel Laterites Processing Issues

ACID LEACHING CARON PROCESS SMELTING

• Acid consumption • Energy (dry and roast) • Energy (dry and smelt)
• High metal recoveries • Capital cost of front end • Simple, robust process
• By-product cobalt • Poor cobalt recoveries • FeNi suited to S/S
• Tailings disposal • Mechanical and process production
• Effluent treatment reliability due to high • No by-product credits
• Technology/cost risk? temperatures and • Ore composition (Mg, Si)
• Ore composition complexity • High Ni grades (upgrading
(Mg, Al) • Ore composition (Si, Ni) possible)
CAPITAL AND OPERATING COSTS

Capex
Opex
US$/annual lb

FeNi 30 – 40 Moderate

Ni pig iron (BF) 10 – 15? High

HPAL 30 – 40 Moderate
Nickel Pig Iron
Existing Operations
• China (> 20 producers?)
• PT Indoferro (Cilegon) – 6000 tpa Ni

Commentary
• Chinese pig iron Ni production has increased from 30kt Ni in 2006
to an estimated 260kt in 2011
• Low-quality product, but electric furnaces capable of higher
quality product
• High cash costs ~ US$8 to 13/lb Ni
• Swing producer and potentially caps price spikes
NPI PRODUCTION COSTS

Data: CRU Analysis

CHINESE NICKEL PIG IRON FILLS THE GAPS
 CHINESE NICKEL ORE IMPORTS
(metric tonnes)

Source - INSG
 MAJOR CHINESE NPI PRODUCERS
(ktpa Ni contained)

Source - Antaike, company reports, Hatch

188
 PLANNED NPI PROJECTS IN CHINA
(ktpa nickel contained)

Source - Antaike, company reports, Hatch

620
2011 NICKEL MINE PRODUCTION

Nickel in ore mined

Country
(‘000t)
Indonesia 294
Russian Federation 270
Philippines 245
Canada 223
Australia 201
New Caledonia 128
Brazil 102
Total World Mine production 1896
PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
Technology Trends
Smelting (FeNi and matte)
• Well proven low risk technology
• Strong energy dependence
HPAL
• Proven but high risk technology
• High capital exposure
Ni pig iron
• Well proven low risk technology
• Low cap costs but high op costs
• Production will be Ni price
dependent
• Environmental concerns (trend
towards EF)
• Trend to higher quality product
reduces unit cost
Technology Trends
Atmospheric Leach Emerging technologies
• Acid – key capital and operating • Direct Nickel
cost driver • Direct reduction nickel (DRN)
• Capital and operating costs – lower
than HPAL

Heap Leach
• Ore type critical for heap
permeability
• Similar cost drivers
PRESENTATION OUTLINE
• What are nickel laterites and how do
they form?
• Range of deposit types
• Global distribution of lateritic nickel resources
• Exploration and resource delineation
• Processing options for nickel laterite ores
• Laterite processing – future trends
• What helps to create a successful nickel
laterite venture?
Ingredients of a successful laterite project
Ore quality Project scale
• Grade • Resource size
• Consistency
• Ore and overburden thickness
• Mineralogy
• Deleterious elements
Ingredients of a successful laterite project
Choice of project flowsheet Environmental considerations
• Combination of geological, • processing, waste disposal and
mineralogical and mining factors closure issues
• Technical and engineering factors

Location and infrastructure

• Should address flowsheet
requirements
Thank you for your attention and interest

mick.elias@csaglobal.com