Tag Archives: Outotec

Fertiliser leader OCP signs up Outotec for sulphuric acid plant EPC

Outotec has signed a contract with Morocco-based OCP Group for the delivery of a sulphuric acid plant for fertiliser production.

The approximately €80 million ($90.2 million) order has been booked into Outotec’s 2019 March quarter order intake, the company said.

Outotec’s delivery includes the engineering, procurement and construction of the plant, which is based on Outotec’s sulphur burning system. The new acid plant will incorporate advanced proprietary technologies such as HEROS heat recovery system as well as a converter, absorption towers and an acid distribution system that are made of the Edmeston SX stainless steel alloy.

Outotec said: “With more than 20 acid plants and several mining sites, OCP Group is a global fertiliser producer and leader in the phosphate industry. The acid plant will be built in connection with their existing chemical complexes and support in OCP’s fertiliser production from phosphate rock from their mining processes as a raw material.”

Kalle Härkki, Head of Outotec’s Metals, Energy & Water business, said: “Outotec’s sulphuric acid technology has proven to be one of the leading technologies for decades. We are honoured that OCP has selected our design for their new plant.

“With our leading technologies providing benefits such as safety, high reliability and enhanced heat recovery we are happy to help OCP reach their sustainability targets.”

Outotec continues to invest in technology as sales rise

Outotec registered a year-on-year improvement in financial performance in 2018, excluding a €110 million ($125 million) ilmenite smelter project provision, the company reported today.

The company’s sales increased 12% in 2018 to €1.28 billion, while its order intake jumped 4% to €1.25 billion. The €110 million provision for the Saudi Arabia project saw adjusted earnings before interest and taxes (EBIT) come in at -€46.2 million, compared with €33.5 million in 2017, yet President and CEO, Markku Teräsvasara, said adjusted EBIT would have almost doubled to €64 million had it not been for this deduction.

“In 2018, we made significant progress in several areas,” Teräsvasara said. “In the beginning of the year, the market for minerals and metals technologies improved, but global macroeconomic uncertainties and reduced metal prices started to affect the market sentiment, and we saw several larger investment decisions being delayed into 2019.

“This was demonstrated in our order intake, which increased 4% year-on-year (in comparable currencies 8%) but declined in the fourth (December) quarter from the comparison period,” he said.

The company’s largest order in the December quarter – around €34 million – was for the delivery of battery chemicals technology in Finland for the Terrafame plant to be built in Sotkamo. The company has since followed this up with a contract in Australia to convert spodumene to lithium hydroxide.

Teräsvasara said profitability continued to improve in the Minerals Processing segment, with EBIT coming in at €78.5 million, compared with €60 million a year earlier.

Outotec said copper, gold, and battery metals projects were the most active during 2018, with demand for minerals processing equipment and spare parts stable throughout the year. In the company’s Metals, Energy & Water divisions, meanwhile, “solid demand” was registered in hydrometallurgical and pelletising solutions, as well as sulphuric acid plants, Outotec said.

Outotec said the €110 million provision related to possible costs for an ilmenite smelter project in Saudi Arabia. Back in October, the company said it was working with the client to investigate the reasons why one of the repaired furnaces in a first-of-its-kind ilmenite smelter had issues starting up.

“The currently estimated provision is based on progress made with the analysis of the furnace,” the company said today, adding that the provision was booked in its December quarter results.

Teräsvasara highlighted the “leading technologies” that were part of the company’s core strength in the 2018 results.

During the year, the company continued to develop its technological capabilities and grow its patent portfolio, with Outotec’s R&D investments representing 5% of its sales and totalling €57 million last year, he said.

Outotec went into a little more detail about this in its 2018 and Q4 review.

The first two industrial references of Outotec TankCell® e630s are running at the Buenavista del Cobre concentrator in northern Mexico, the company said.

“The site has reported an increase of more than 3% in overall recovery with a higher-grade copper concentrate. The TankCell® e630 flotation cell has a nominal volume of 630 m³ and is equipped with a FloatForce mechanism with a diameter of 2,200 mm,” Outotec said.

The company has also developed and filed a patent application for a thermal leaching process to convert spodumene concentrate into battery-grade lithium hydroxide. The lithium hydroxide process has been piloted at the Outotec Research Center in Pori for Critical Elements Corporation in Canada and Keliber Oy in Finland. Lithium hydroxide corresponds to the change in demand in the metal salt markets, it said.

Meanwhile, the new Hybrid filter plates that are 40% lighter, and, therefore, more competitive than conventional plates, were introduced to the spare and wear parts markets during 2018, Outotec said. “The new plates also improve the filtration capacity, provide low residual moisture in the cake, and reduce operational costs,” it added.

Outotec has also designed a skid-mounted, modular prefabricated sulphuric acid plant which significantly lowers the installation cost and time. In addition, the modular plant offers lower operation costs, increased availability and maintainability, as well as environmentally sound and safe operation, it said. “The innovative plant concept is based on Outotec’s technology and expertise gained from 650 plants delivered globally,” Outotec said.

Meanwhile, Outotec is in the middle of a pilot study with Sweden-based miner LKAB to treat industrial waters at its Svappavaara mine in the country. The pilot started in August and consists of nanofiltration and chemical precipitation of sulphate with Outotec’s Ettringite process. The pilot has shown sulphate concentration can be significantly reduced from the inlet value of 1,800 mg/l to the level of 150 mg/l, Outotec said.

A new digital product, Outotec Health Indicator, was also introduced last year. This produces data for flotation process control when used together with Courier on-stream elemental analysers. It enables higher performance in terms of concentrate quality and recovery of valuable minerals, according to the company.

Lastly, Outotec has been developing MesoTherm™ bio-oxidation technology for leaching base metals. The development work has shown it to be effective on certain copper sulphides, yielding 98% copper dissolution.

Outotec to help convert spodumene into lithium hydroxide in Australia

Outotec says it has been awarded a contract for the delivery of filtration technology and services for a lithium processing plant in Australia.

The order, expected to total around €12 million ($13.7 million), has been booked in Outotec’s 2019 March quarter order intake.

The mineral processing equipment company’s scope in this order includes design and delivery of proprietary Outotec© Larox pressure filters as well as installation and commissioning advisory services and spare parts, it said.

When complete, the plant will convert spodumene concentrate into lithium hydroxide.

Kimmo Kontola, Head of Outotec’s Minerals Processing Business, said: “At Outotec, we have expertise to offer sustainable solutions for extracting lithium from brines and spodumene ores up to battery-grade lithium salts. We are well positioned in this growing market for lithium processing technologies.”

Outotec to cut costs at Canada nickel mine with mine paste backfill system

Outotec has been awarded a contract to design and deliver a mine paste backfill system for a nickel mine in Canada.

The contract price was not disclosed, but similar deliveries are typically valued at €20-30 million ($23-34 million), the company said. The order has been booked into Outotec’s March quarter intake.

Outotec’s order includes the design and delivery of a complete paste backfill system to service two underground orebodies. The paste backfill system, which comes with a higher degree of accuracy for binder addition, will reduce operating costs and allow the company to fully exploit the underground deposits, according to Outotec. The facility is expected to be commissioned towards the end of 2020 with a capacity of 300 t/h.

Kimmo Kontola, head of Outotec Minerals Processing business, said: “We are pleased to support our customer to improve their tailings management in a sustainable way. Outotec has vast expertise in mine backfill design and experience delivering paste plants. This project further solidifies our position in this market.”

Mine development ahead of schedule at Lundin Gold’s Fruta del Norte project

Lundin Gold has reached the orebody at its Fruta del Norte project in Ecuador, with mine development tracking ahead of schedule.

The Toronto and Stockholm-listed company said it has completed 4.5 km of underground mine development so far, with level development having now commenced.

In the construction update on the 3,500 t/d underground project, the company said overall engineering was 85% complete, with project construction at 45% completion.

Ron Hochstein, Lundin Gold’s President and CEO, said: “Our team has reached and, in some cases, exceeded the project’s targets, all while maintaining excellent safety standards. With 70% of our capital expenditure committed and detailed engineering nearly done, Fruta del Norte is on schedule to meet its target of producing first gold in the fourth (December) quarter of this year.”

Lundin Gold said the majority of large process plant mechanical equipment was now on site, while 22% of powerline infrastructure was finished. The company noted it had clocked up more than 3 million manhours without a lost time incident.

Development

Lundin Gold reported that the K’isa decline was completed on December 9, 2018, after 2.1 km of total development, and transitioned to production level 1170. Production level 1195 began on December 7, 2018 and a total of 330 m of level development on two levels has been completed. December average advance rates in K’isa were 9 m/d, versus a target of 7.1 m/d.

“The Kuri decline is at 2.07 km of total development and is progressing towards lower production levels in the mine. This decline was completed this month. December average advance rates in Kuri were 5 m/d, versus a target of 4.2 m/d,” Lundin said.

“Overall, advance rates in both declines exceeded the plan by 11% due to better than expected ground conditions and lower than anticipated water inflows.”

Lundin Gold said it is preparing the first stages of transition to owner operations and its mining fleet, which includes Epiroc drills and bolters and Cat scooptrams and trucks, has started to arrive at Fruta del Norte.

Process plant

Process plant concrete foundations (pictured) are 62% complete and structural steel erection is progressing as planned, the company said. The remaining mechanical equipment is expected to be on site this quarter and installation of the carbon-in-leach (CIL) circuit and grinding mills has started. Commissioning of the process plant is still on track to begin in September quarter of this year.

In October 2017, Lundin Gold awarded the long-lead time grinding equipment packages, including the SAG and ball mills (complete with motors) and the flotation and filtration packages to Outotec Chile SA. The gravity mill, CIL and detox tanks, and ADR plant and gold room packages were awarded to FLSmidth USA Inc. TelSmith will provide the crushing packages for both the process plant and aggregate quarry crushers, while ABB has been awarded switchgear and substation equipment and transformers packages.

With process plant engineering substantially complete, engineering efforts are now focused on the paste plant – where concrete works have begun – and water treatment plant facilities, Lundin Gold said.

Tailings

The company successfully negotiated the Mountain Pass Quarry Exploitation Agreement with the local government in the December quarter of 2018, and extraction of aggregate materials began shortly after. Material from the quarry was necessary to move forward with the construction of the tailings storage facility (TSF).

Access roads and the polishing pond were completed in the December quarter, while construction advanced on the surface water perimeter diversion ditches around the TSF.

When fully ramped up, Fruta del Norte is expected to produce 325,000 oz/y of gold at an all-in sustaining cost of $583/oz over a 15-year period.

Outotec processing expertise and tech on its way to Mexico precious metals project

Outotec has won a contract for the delivery of a complete minerals processing plant for a precious metals project in Mexico, as part of wider €30 million ($34 million) order.

The company will also deliver process equipment for upgrades of two other sulphide silver ore processes for the same customer.

The total value of the contracts booked in Outotec’s December quarter order intake is approximately €30 million ($34 million), Outotec said.

The scope of the delivery includes the entire process flowsheet of grinding mills, flotation machines, concentrate and tailings thickeners, as well as concentrate filters, automation, and various spares and supervision services for the new precious metals concentrator.

For the upgrade of existing silver processes, Outotec will deliver additional flotation machines and multiple fine grinding equipment for improved recovery.

The deliveries will take place in the end of 2019, Outotec said.

Kimmo Kontola, Head of Outotec’s Minerals Processing Business, said: “We are pleased that we were chosen to deliver our leading technologies and services that enable our customer to improve their profitability in a sustainable way.”

The company was also recently awarded a pressure leaching and solvent extraction technologies for a battery chemicals plant to be built in Sotkamo, Finland. The total order value booked in the December quarter order intake for this contract is some €34 million.

Outotec battery chemicals production technology on its way to Terrafame

Outotec and Finnish multi-metal company Terrafame have agreed on the delivery of pressure leaching and solvent extraction technologies for a battery chemicals plant to be built in Sotkamo.

The two firms had already agreed on a supply deal, but had yet to confirm the specifications.

The total order value booked in the December quarter order intake is approximately €34 million ($39 million).

Outotec has partnered with Terrafame on this project since the prefeasibility study phase, helping the firm design the 170,000 t/y of nickel sulphate and 7,400 t/y of cobalt sulphate plant, which will be built nearby to the company’s existing mine.

“Outotec’s scope of delivery comprises the technology and engineering of the leaching and solvent extraction plants, supply of proprietary equipment as well as advisory services for installation, training, commissioning and start-up,” the company said.

The battery chemicals plant is expected to be ready for commissioning in 2020. As a by-product, the plant will produce approximately 115,000 t/y of ammonium sulphate used as a fertiliser and in process industry.

Kalle Härkki, Head of Outotec’s Metals, Energy & Water business unit, said: “We are pleased to be Terrafame’s trusted technology partner in this project. The demand for battery chemicals is expected to grow significantly in the future and we have the required expertise and proprietary equipment for their processing.”

Terrafame confirmed in October that it would go ahead with building the plant after securing the €240 million ($273 million) it needed for construction.

Outotec heralds “positive” Q3 minerals and metals processing technology markets

Process technologies and service provider Outotec saw its order intake from the minerals and metals sector pick up in the September quarter as producers continued to focus on improving their existing operations.

The company’s order intake rose 16% year-on-year to €271.5 million ($308 million) during the three months to the end of September, while its sales jumped 17% to €320.2 million.

In the period, the company secured a contract worth €25 million for a greenfield copper concentrator in South America, but it did note that there was “evidence of postponements in larger investments due to the global economic uncertainty, which has impacted metal prices”.

Outotec added: “Producers continued focusing on developing their existing operations. Demand for equipment, smaller technology packages and spare parts remained solid.”

In the company’s service business, Outotec said it was still experiencing supplier constraints, with sales remaining at previous levels to last year. “However, the sales started to improve towards the end of the third quarter,” the company added.

In terms of earnings, Outotec’s EBIT went from €12.3 million in the September quarter of 2017 to €16 million in the most recent quarter.

President and CEO Markku Teräsvasara concluded: “We expect the demand outlook for our technologies and services to remain good. However, major investments continue to develop relatively slowly.”

Terrafame to go ahead with nickel-cobalt sulphate plant in Sotkamo, Finland

Terrafame is to build a battery chemicals plant in Sotkamo, Finland, after finding the €240 million ($273 million) it needs to build the nickel-cobalt facility.

Terrafame, which took over the zinc-nickel-cobalt mine following the bankruptcy of former owner Talvivaara, said it intends to have the plant completed at the end of 2020 and commercial production started in 2021. Back in July, the company received permitting permission for the plant.

“The intention of the investment is the further processing of Terrafame’s current main product nickel-cobalt sulphide into nickel sulphate and cobalt sulphate, used in the manufacturing of lithium-ion batteries,” Terrafame said.

The production capacity of the battery chemicals plant will be 170,000 t/y of nickel sulphate and 7,400 t/y of cobalt sulphate. This amount of nickel sulphate should prove to be enough to produce around 1 million/y electric vehicle batteries, with the cobalt sulphate enough to cover around 300,000/y.

Outotec is to supply the pressure leaching technology for the battery chemicals plant, with the contract including the planning of the leaching technology area, the supply of key equipment, and installation supervision and training services.

Pressure leaching is the first of the three main phases of the battery chemicals plant. During the pressure leaching, nickel-cobalt sulphide, which is Terrafame’s current main product, is first placed in a elutriating unit, where it is mixed with the process water. The slurry is then fed into an autoclave (ie a pressure leaching reactor, with a raised pressure and temperature) to produce a metal sulphate solution. After thickening and filtration, the solution is directed for further refining and finally for the production of battery chemicals.

Outotec has been involved in Terrafame’s battery chemicals plant project since the prefeasibility study phase. Construction of the electric vehicle battery chemicals plant is due to begin in the first half of 2019, with deliveries of pressure leaching technology estimated to begin in early 2020.

A funding package of $200 million related to the financing of the plant project was agreed by Terrafame, Finnish Minerals Group (previously Terrafame Group Ltd), Galena Asset Management, Trafigura Group and Sampo plc back in November 2017. In connection with the plant’s final investment decision, the parties have agreed on an additional funding package of approximately €100 million, Terrafame said.

Matti Hietanen, CEO of Finnish Minerals Group (which currently owns 77% of Terrafame and is wholly owned by the Finnish government), said: “This is a very important investment for Terrafame and its owners as well as the whole Finnish and European electric vehicle battery manufacturing value chain. Terrafame’s investment also improves the conditions for attracting more operators in the battery manufacturing value chain to Finland.”

Mika Lintilä, the Finnish Minister of Economic Affairs, said the Finnish state was willing to do its part in advancing the development of the Finnish battery production value chain “and to take forward the necessary efforts in research & development, operating conditions of businesses as well as investments”.

This week, BASF selected Harjavalta, Finland, as the first location for a battery materials production hub serving the European automotive market.

Hummingbird to add second ball mill to crushing and grinding mix at Yanfolila gold mine

Hummingbird Resources has decided to add a second ball mill to its Yanfolila mine in Mali, only nine months since the operation started producing gold.

The addition of a second ball mill at Yanfolila is in place of the tertiary crusher the company initially thought would be suitable for later life as the operation transitioned to 100% fresh ore.

The mill is due to be operational in the September quarter of next year and is expected to set the company back some $13 million.

The Yanfolila crushing circuit is currently a two-stage operation incorporating both primary and secondary crushing circuits designed to treat a blend of oxide and harder ores. The ore is non-
refractory and the process plant design uses gravity and carbon-in-leach for the processing and recovery of the gold which averages 92.5% over the life of mine.

The original definitive feasibility study plan was to add a tertiary crushing circuit in order to allow the plant to process 100% hard fresh ore later in the mine life.

“However, the annual throughput was expected to decrease from 1.24 Mt/y to 1 Mt/y, when operating with 100% fresh ore which led to the life of mine average production dropping to 107,000 oz/y from 130,000 oz/y in the first full year of commercial production,” Hummingbird said.

On top of this, a review of the scope for a tertiary crushing circuit indicated higher costs and complexity of operation, leading the company to carry out a tradeoff study between the secondary ball mill and tertiary crusher.

The conclusion was the addition of a secondary ball mill could maintain the current 1.24 Mt/y capacity when processing 100% fresh ore and, when blended with 25% oxides, throughput rose to 1.4 Mt/y.

Hummingbird concluded: “The incremental gold recovered, and increased revenue associated with installing a secondary milling circuit outweighs the higher operating costs and incremental capital costs associated with the same.”

The addition of a second mill also provides the company with some flexibility should issues arise with the primary mill, supplied by Outotec.

Project management and engineering firm SENET will carry out the installation of the mill as part of an EPCM contract. SENET was the EPCM contractor for the Yanfolila mine build, which was delivered on time and budget.

Hummingbird expects to pour some 105,000-115,000 oz of gold this year.