Tag Archives: Ravensthorpe

FQM awards Ravensthorpe nickel E&I package to SIMPEC

SIMPEC says it has been contracted by First Quantum Minerals (FQM) to deliver an electrical and instrumentation (E&I) package at the Ravensthorpe nickel operations’ Shoemaker-Levy project, in Western Australia.

This material, newly awarded contract is SIMPEC’s first with FQM, the company said.

The contract scope is for the E&I portion of work for Shoemaker-Levy, with the value expected to be around A$9 million ($6.8 million).

The works are planned to commence immediately and be completed by mid-2021, the WestStar Industrial subsidiary says.

With FQM restarting Ravensthorpe in early 2020, it has been expanding into a second stage nickel laterite deposit, Shoemaker-Levy, to provide the operation with a long-term life of around 30 years.

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

MACA exits Brazil, prepares for more FQM Ravensthorpe work

Contract miner, MACA Ltd, says it will cease operations in Brazil, effective January 2020, following the early termination of a contract at the Antas copper mine.

The contract, due to conclude in 2020, was with AVB Mineracao Ltda, a subsidiary of OZ Minerals, which announced back in mid-2019 that it planned to close the Antas open pit (pictured) in 2021. The reduction in the work in hand (WIH) position as a result of the early termination will be around A$8 million ($5.5 million), the company said.

At the same time as announcing this news, MACA said its mining division had received a letter of intent (LOI) from First Quantum Minerals to carry out works at the Tamarine limestone quarry, in Western Australia, including mining, crushing and screening of limestone over a three-year period. This contract was worth around A$20 million over that timeframe, MACA said.

The LOI follows the Ravensthorpe contract award with First Quantum that was announced November 20, 2019. MACA said works were expected to start in February utilising existing crushing equipment.

In Brazil, MACA said it would retain ownership of the majority of the plant and equipment currently utilised at the Antas copper mine, in Para state, northern Brazil, and would dispose of assets that are not redeployed to other operations.

“It is expected there will be a non-cash impairment related to the cessation of operations in Brazil of approximately A$2 million,” MACA said. “In addition, there are unrealised forex losses that will be triggered upon closure of the subsidiary, of approximately A$5 million based on current exchange rates.”

Profit from ordinary operations was not expected to be impacted as a result of the closure given the recent financial performance of the contract, MACA added.

WIH attributable to MACA as at January 31, 2020 is expected to be A$2.3 billion across all business units, MACA said, with current guidance for financial year 2020 (to end-June) remaining at A$770 million revenue and EBITDA from operations (excluding the impact of the Antas impairment and forex losses) to be in a range of A$104-$110 million.

MACA to help FQM with Ravensthorpe nickel mine restart

MACA says it has received a letter of award from First Quantum Minerals related to carrying out open-pit mining services at the Ravensthorpe nickel project in Western Australia.

On care and maintenance since October 1, 2017, due to the persistently low nickel price, Ravensthorpe involves open-pit mining and beneficiation of nickel laterite ore, pressure acid leaching, atmospheric leaching, counter current decantation, precipitation and filtration to produce a mixed hydroxide precipitate product, containing approximately 40% nickel and 1.4% cobalt on a dry basis.

First Quantum hinted earlier this year that a restart could be on the cards following a sustained nickel price run. Restart costs, should favourable conditions prevail, are estimated at $10 million, the company has previously said.

The final contract award with MACA is subject to finalisation of documentation with all major terms having been agreed, the ASX-listed contractor said.

Mobilisation to site is expected to commence in December with operations commencing from January.

The project will consist of open-pit mining services including drilling and blasting, and loading and hauling, and is expected to generate around A$480 million ($327 million) in revenue for MACA over the initial five-year term.

MACA said its total work in hand position now stands at A$2.5 billion and its financial year 2020 revenue is expected to be around A$770 million.

MACA Operations Director, Geoff Baker, said: “We are very pleased to have been selected preferred contractor and look forward to developing a long-term working relationship with the First Quantum team at the Ravensthorpe nickel project.”