Tag Archives: Australian Mines

Base metal price rise sparks nickel-cobalt laterite activity

With the nickel price having recovered from the late March lows and now trading above the $15,000/t mark on the LME, those miners and developers tied to the base metal have been making moves in the last few months. Alan Taylor at ALTA 2020 Online recently highlighted some of the more significant news in the nickel-cobalt laterite sector.

It comes just two months prior to the start of the virtual conference.

Ravensthorpe restarts

Often viewed as an industry bellwether, the First Quantum-owned Ravensthorpe nickel mine (pictured) in Western Australia is continuing with a restart plan despite coronavirus challenges, the company recently reported.

The acid plant and atmospheric leaching operations restarted in March 2020, with the first high pressure acid leach (HPAL) circuit brought on stream in mid-April, followed by product drying and containerising of nickel mixed hydroxide product.

The second HPAL circuit is scheduled to come online in due course.

Director of Exploration, Mike Christie, said previously at Paydirt’s Africa Downunder conference in September 2019 that the mine plans to ramp-up production to between 20,000-30,000 t/y of nickel over the next few years.

Some 1,979 t of nickel was produced at the operation in the June quarter.

Ramu expansion engineering ready

Looking back to an ASX announcement on October 8, 2018, from Highland Pacific, a minority partner in the Ramu Nickel JV, a A$1.5 billion ($1.1 billion) expansion continues to be investigated.

Ramu is currently rated at 34,000 t/y nickel and 3,300 t/y cobalt as mixed hydroxide precipitate (MHP), achieved in 2017.

By way of an update, Craig Lennon, Executive Director of Highlands Pacific (now a wholly-owned subsidiary of Conic Metals Corp), advised Taylor that the expansion project is engineering-ready, although the final decision to proceed is dependent on factors including global markets and final permitting decisions in Papua New Guinea.

Indonesia projects slowed

There are several HPAL projects in Indonesia aimed at producing MHP for the electric vehicle battery industry. They received environmental approvals in January 2020, allowing them to proceed with construction, according to Jack Anderson of Roskill, however, their development depends on Chinese expertise and progress is likely to be slowed due to Chinese workers involved in the construction being quarantined.

Sunrise PEP progressing towards Q3 2020 completion

Fluor Australia Pty, as Project Management Contractor, is working with the Clean TeQ-owned Sunrise nickel/cobalt/scandium project team to develop a comprehensive Project Execution Plan (PEP) for the Sunrise project in New South Wales, Australia, according to reports.

The company expects that completion and announcement of the outcomes will be late in the September quarter.

Clean TeQ advises that the PEP capital estimate will likely be higher than the 2018 definitive feasibility study figure, while the operating costs indicate the project will remain extremely competitive because of strong cobalt by-product credits.

Queensland offers funding for Sconi

The Queensland government has offered Australian Mines a conditional financial support package for the development of the Sconi cobalt-nickel-scandium project in north Queensland, the mine developer says.

The package will be subject to a number of conditions including a timetable for securing an offtake agreement for all of the nickel sulphate and cobalt sulphate production (September 2020); delivery of a detailed execution plan, obtaining approved financing for construction and making a final investment decision; appointing an engineering, procurement, construction management contractor (end 2020); and completion of construction (July 2023).

It also includes conditions for employment of people and engagement of independent contractors working directly on the project.

Australian Mines, in August, became the first mineral resources company to be certified a “Carbon Neutral Organisation” under the Australian Government’s Climate Active program.

Piauí project granted preliminary environmental licence

Brazilian Nickel plc announced the granting of a Preliminary Environmental Licence by the Brazilian Piauí State Environmental Agency on October 22, 2019, for the mining and heap leaching processing plant to produce nickel and cobalt products for the battery industry at its Piauí nickel project.

The company says it is now ready to advance through a bankable feasibility study (BFS) enable financing and application for a construction permit.

An operating demonstration plant has leached 8,000 t of ore in full-height heaps and has achieved first sales of nickel and cobalt products. This will allow the company to expand the existing demonstration plant by a factor of 10 to 1,400 t/y nickel to jump-start the project to immediate producer status without the need for a BFS.

Process innovations

On the process innovation front, there have recently been two major stories from Pure Minerals and Metso Outotec.

Pure Minerals has secured a A$2.55 million grant via its wholly owned subsidiary Queensland Pacific Metals Pty Ltd (QPM) for the Townsville Energy Chemicals Hub (TECH) project. QPM and project partners Direct Nickel Projects Pty Ltd (DNi) and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) successfully applied for the Federal Government grant.

The TECH project will process imported, high-grade nickel-cobalt laterite ore from New Caledonia to produce nickel sulphate, cobalt sulphate and other valuable co-products. If it proceeds it will be the first commercial application of the DNi Process™.

The next step is a pilot plant test work program on a bulk sample received from New Caledonia ore supply partners.

And, finally, Metso Outotec has introduced a new novel superheated steam sulphation process.

The process is a recent development of Metso Outotec, Finland, and has been successfully tested on a laboratory scale. It includes agglomeration of ground laterite with sulphuric acid, then superheated steam treatment at elevated temperature followed by water leaching. Nickel and cobalt are sulphated and solubilised. Iron dissolution is minimised by conversion from goethite to hematite. Sulphuric acid consumption is said to be moderate.

A paper on the process is to be presented by Metso Outotec in the ‘Nickel-Cobalt-Copper Conference’ at ALTA 2020 Online.

Pressure Acid Leaching for the production of nickel and cobalt for the battery industry is one of the key topics of the ‘Nickel-Cobalt-Copper Conference’ to be held on November 10-12 as part of ALTA 2020 Online.

This will be followed on November 13 by a short course ‘The ART of HPAL – The way of Success’. The course presenters played key roles as owner and engineering contractor in Sumitomo’s successful Coral Bay and Taganito HPAL projects in the Philippines.

International Mining is a media partner of ALTA 2020 Online

Australian Mines makes history with certified carbon neutral status

Australian Mines says it has become the first mineral resources company to be certified a “Carbon Neutral Organisation” under the Australian Government’s Climate Active program.

Climate Active is the most rigorous and credible carbon neutral certification available in Australia, according to the company, and meeting the “Climate Active Carbon Neutral Standard” means Australian Mines’ carbon neutral status is based on best practice, international standards and genuine emissions reductions.

Last month, the Queensland Government offered a conditional financial support package to Australian Mines’ 100% owned Sconi cobalt-nickel-scandium project in the north of the state. When fully developed, Sconi is forecast to be one of the most cost competitive cobalt-producing, nickel operations in the world, Australian Mines says.

The 2018 Sconi bankable feasibility study outlined a three open pit, 2 Mt/y operation that could produce some 8,496 t/y of cobalt sulphate, 53,301 t/y of nickel sulphate and 89 t/y of scandium oxide over the 18-year mine life.

“Australian Mines ability to maintain carbon neutral certification will underpin its position as a sustainable business that incorporates leading environmental, social and governance (ESG) practices,” it said. The company is already an approved member of the Initiative for Responsible Mining Assurance (IRMA), which independently verifies and certifies socially and environmentally responsible mining.

Australian Mines’ Managing Director, Benjamin Bell, said becoming the first Climate Active Carbon Neutral mineral resources company is consistent with Australian Mines’ commitment to leading on ESG.

“It follows the approval in March 2020 of our membership of IRMA and the Queensland Government recognising our commitment to the communities where we operate by granting ‘Prescribed Project’ status to our flagship Sconi project in 2019,” he said.

Australian Mines’ primary focus is to sustainably develop the Sconi project into a globally significant, ethical, reliable source of technology metals to meet the rapid growth in the electric vehicle and energy storage industries, it says.

A key part of sustainably developing Sconi is the company’s carbon neutrality plan designed to reduce greenhouse gas emissions by implementing energy saving initiatives coupled with offsetting any unavoidable emissions.

“Being certified Carbon Neutral by Climate Active is part of building a sustainable future for Australian Mines, long-term value for our shareholders and a better environment for all our stakeholders,” Bell said. “Members of the Climate Active Network are responsible for over 22 Mt of carbon emissions being offset, which is the equivalent of taking all of Sydney’s cars off the road for two years.”

Australian Mines shoots for carbon neutral status

Australian Mines has teamed up with sustainability, carbon and energy management consultancy, Pangolin Associates, to develop a “Carbon Neutrality plan” and achieve 100% carbon neutral status by June 30.

Australian Mines, which is developing the Sconi cobalt-nickel-scandium project in Queensland, Australia, aims to become certified Carbon Neutral, under the Australian Government’s Climate Active Program, through reducing the company’s greenhouse gas emissions and offsetting its remaining carbon-generating activity, it said.

“Making the decision to become carbon neutral is part of Australian Mines’ ongoing commitment to building a sustainable business that incorporates leading environmental, social and governance (ESG) practices,” the company said.

The move follows the approval of the company’s membership of the Initiative for Responsible Mining Assurance (IRMA) in March 2020. The IRMA is an independent third-party organisation that verifies and certifies socially and environmentally responsible mining, according to Australian Mines, with the company now working towards IRMA certification specifically for the Sconi project.

Australian Mines aims to invest A$1 billion ($604,020) to build a commercial battery metals production plant on the Sconi site. The proposed plant is expected to process 2 Mt/y of ore into battery-grade cobalt sulphate and nickel sulphate, with scandium recovery and production of high purity scandium oxide, it says. Over the life of the proposed Sconi project, 1.4 Mt of nickel sulphate and 200,000 t of cobalt sulphate is due to be produced.

Australian Mines Managing Director, Benjamin Bell, said being 100% carbon neutral was an extension of the company’s commitment to taking a leading position on ESG.

“It will follow on from the approval in March 2020 of our membership of IRMA and Sconi being given ‘Prescribed project’ status in early 2019 by the Queensland Government, which is a recognition of our commitment to the communities where we operate,” he said.

Australian Mines is partnering with Pangolin, which works with the Australian Government’s Climate Active Program, to develop a Carbon Neutrality plan. Australian Mines said it expected to begin implementing its plan by June 30 and be formally certified carbon neutral by the government before the end of the year.

Bell added: “We will join more than 90 organisations across Australia that have attained certified carbon neutrality, leading to over 15 Mt of carbon emissions being offset, or the equivalent of 4 million cars being off the road for a year.”

Australian Mines moves forward with Sconi cobalt-nickel-scandium project

The bankable feasibility study on Australian Mines’ Sconi cobalt-nickel-scandium project in Queensland, Australia, has shown a three open pit, 2 Mt/y operation can be built for some $974 million.

For this investment, the company anticipates producing some 8,496 t/y of cobalt sulphate, 53,301 t/y of nickel sulphate and 89 t/y of scandium oxide over the 18-year mine life, generating a post-tax internal rate of return of 15%.

The 2 Mt/y processing plant is by far the biggest capital expense, coming in at $730 million. This will be based at the Greenvale site where the mining operation will also be centred.

The company then anticipates mining a separate open pit at Lucknow, 10 km to the southeast of Greenvale, with Greenvale and Lucknow being treated as a single-fleet mining area. The Kokomo open pit, 60 km to the north-northeast of Greenvale, will be operated with a separate mining fleet with ore to be hauled to the processing plant by road trains. Mining is expected to be carried out by contractor.

Total C1 cash costs for the Sconi production have come in at $0.48/Ib ($1,058/t) nickel (post cobalt and scandium credits). Given the near-surface nature of the laterite mineralisation at Sconi, the mining schedule encompasses a short pre-strip period of just three months, followed by around 12.5 years of mining operations, with a peak mining rate of up to 6 Mt/y, and then a further five years of stockpile processing operations.

The flowsheet includes a mix of crushing and grinding, high pressure acid leach, pressure oxidation leach and solvent extraction to produce the three separate products (scandium oxide, cobalt sulphate and nickel sulphate).

In February, Australian Mines signed an offtake agreement term sheet with SK Innovation (a subsidiary of SK Holdings, one of South Korea’s largest companies) for 100% of the expected cobalt sulphate and nickel sulphate production from the Sconi project for an initial period of seven years, with an option exercisable by SK Innovation to extend this commodity supply agreement for a further six years. SK will use the cobalt and nickel sulphate to supply their global electric vehicle battery manufacturing plants.

While the BFS anticipates only around 10% of scandium oxide produced being sold, the company is currently working with Metalysis and leading academic researchers at the Amrita Centre for Research and Development in India to develop new markets for the metal.

The next step for the company is securing the funds to complete development of Sconi, which Australian Mines envisages being wrapped up next year before mining and construction starts in 2020.