Sumitomo Metal Mining Co.,- Hydrometallurgical Processing Plant For Low Grade Nickel Ores

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The Project is located within the industrial facility of Rio Tuba Nickel Mining Corporation (RTNMC) in Brgy. Rio Tuba, Bataraza, Palawan.
Since 1977, RTNMC has been mining saprolitic nickel ores selling them to ferro-nickel smelters abroad. In more than 25 years of operation, it also generated mine wastes of about 25 million tonnes. Called low grade limonitic mine wastes, these are stockpiled around the mine area.
CBNC will process these stockpiles using the technology called HPAL or high pressure acid leach.

Published in: Investor Relations

Sumitomo Metal Mining Co.,- Hydrometallurgical Processing Plant For Low Grade Nickel Ores

  1. 1. Update ofSumitomo Metal Mining Co., Ltd.’s Hydrometallurgical Processing Plants For Low Grade Nickel Ores In the Philippines
  2. 2. SUMITOMO HPAL PROJECTS 54% 100% 2
  3. 3. HPAL Technology adds value to materials previously considered as mine wastes From low-grade limonitic laterites NiO - 0.8 to 1.5 % Ni stockpiled as“mine wastes” by RTNMC’s and TMC’s CoO – 0.1 to 0.2 % Co saprolite mining operations, NiS - 55 to 57 % Ni CoS – 4 to 5 % Co The HPAL process creates valuable intermediate products in the form of Mixed Ni and Co Sulfides.
  4. 4. Palawan HPAL ProjectHydrometallurgical Processing Plant (HPP)Coral Bay Nickel Corporation (CBNC)The Project is located within theindustrial facility of Rio Tuba NickelMining Corporation (RTNMC) in Brgy.Rio Tuba, Bataraza, Palawan.Since 1977, RTNMC has been miningsaprolitic nickel ores selling them toferro-nickel smelters abroad. In more Coral Bay Nickel Corporationthan 25 years of operation, it alsogenerated mine wastes of about 25million tonnes. Called low gradelimonitic mine wastes, these arestockpiled around the mine area. Rio Tuba Nickel Mining CorpCBNC will process these stockpilesusing the technology called HPAL orhigh pressure acid leach.
  5. 5. HPP LINE 1 (ECC granted July 10, 2002) PERFORMANCE AFTER 4 YEARS (April 2005 – April 2009) July, 2002 to August, 2004 – ConstructionAugust, 2004 to March, 2005 – Commissioning April, 2005 – Start of Commercial Operation Ore Processed – 3,487,000 DMT Ore Grade – 1.26 % Ni, .089 % Co Annual Production Production – 37,700 DMT Ni & 2,800 DMT Co 10,000 MT Nickel, 750 MT Cobalt Metal Recoveries – 87.2 %Ni, 84.9 % Co Employed – 2,125 (7.5% Female, 71.3 % Locals) Capital Investment – US$ 200 Million Taxes Paid – Php 993 Million
  6. 6. Tailings Dam #2HPP LINE 2 (ECC granted Feb. 1, 2007) COMBINED PRODUCTION CAPACITY June, 2006 to Jan. 2009 – Construction Designed: Feb. 2009 to May, 2009 – Commissioning Annual Nickel Production – 20,000 DMT/yrJune, 2009 – Start of Commercial Operation Annual Cobalt Production – 1,500 DMT/yr Annual Production Upgraded: 10,000 MT Nickel, 750 MT Cobalt Annual Nickel Production – 24,000 DMT/yr Annual Cobalt Production – 1,860 DMT/yr Capital Investment – US$ 308 Million
  7. 7.  Environmental Protection and Enhancement Program (EPEP) Social Development and Management Program (SDMP) Final Mine Rehabilitation and Development Program (FMR/DP)
  8. 8. Particulars Requirements Compliance1. CAPEX on Pollution 10 % of Project CAPEX Php 3.5B or 14% of CAPEXControl Facilities2. OPEX on Pollution 3-5% of Operating Costs Php 2B/yr or 18-20% of OPEXControl Facilities ELECTROSTATIC PRECIPITATOR STACK STACK STACK STACK BOILER SCRUBBERS FLASH TANKS SCRUBBERGENERATOR AUTOCLAVE
  9. 9. Particulars Requirements Compliance3. CLRF – Contingent Php 5.25 M Deposited in 2003 at theLiability and Development Bank of theRehabilitation Fund Philippines4. MRFC – Mines 9 Members 10 Members (Plus one rep ofRehabilitation Fund the Environmental ResearchCommittee and Development Section)5. MMT – Multi-partite 10 Members 19 (Plus additional reps fromMonitoring Team MGB, EMB, PCSD, LGU and the Church + 4 samplers)6. MEPEO – Mine 1 Office (MEPEO) 1 Office called EMO plus 10Environmental Protection staffs of environmentaland Enhancement Office scientists, forester, marine biologist and 15 IPs for reforestation and industrial wastes handling
  10. 10. Particulars Parameters Standards Actual1. Effluent Siltation pH @ 6.5 – 9.0 8.0 – 8.5 Qualities pond TSS < 70 mg/L < 10 effluent Temperature < 3 deg C rise < 1 deg C Oil and grease < 5 mg/L <1 Cr +6 < .1 mg/L < .1 Pb < .3 mg/L < .05 Tailings dam pH @ 6.0 – 9.0 8.0 – 8.5 supernatant TSS < 150 mg/L < 10 Temperature < 3 deg C rise < 1 deg C Oil and grease < 10 mg/L <1 Cr +6 < .2 mg/L < .1 Pb < .5 mg/L < .05Notes:a) Quality of water from the pond and dam are well within the standards.b) As, Hg and Cd contents are also analyzed and are below detection levels.
  11. 11. Particulars Parameters Standards Actual2. Air Plant CO < 500 mg/Ncm 60-100 Qualities Emissions NOx < 1,000 mg/Ncm 60-100 SOx < 700 mg/Ncm 60-80 Opacity < 20 Percent 10-15 H2S < 7 mg/Ncm <1 Acid mist < .3 mg/Ncm <.07 Ambient Air TSP, at plant < 300 ug/Ncm 50-250 TSP, at houses < 230 ug/Ncm 10-150 Noise, at plant < 85 Decibels 60-75 Noise, at houses < 60 Decibels 45-50Notes:a) Actual air quality considerably lower than maximum allowable levels.b) Monitoring done in plant site (for source specific standards) and populated areas (for ambient air quality standards).
  12. 12. Environmental MonitoringMonthly In-house, by EMO Quarterly Visit, by MMT Environmental Assessment Fauna Coastal Flora Resources
  13. 13. Plant effluents and emissions to be“beyond compliance” with DENR standards,and had no adverse effect on the environment.
  14. 14. Particulars Requirements Compliance Commitment Remarks1. Financial > 1 % of Direct 1. 02%, or P149 M 1. 00%, or P439 M 2.9 timesAllocations Mineral for SDMP 1 for SDMP 2 higher Processing Cost (2004-2008) (2009-2013) Free medical services Subsidized schooling for 1,000 houses to the IPs to all IPs and non-dependents, up to through the indigent non-IPs high school Gawad Kalinga concept
  15. 15. EDUCATIONAL ASSISTANCESDMP scholars during a team building seminar. Out of 600 scholars, 77 graduated from college. Some of the 7 school buildings, 14 classrooms constructed.
  16. 16. COMMUNITY SERVICES
  17. 17. OTHER COMMUNITY SERVICES
  18. 18. INFRASTRUCTURE PROJECTS
  19. 19. LIVELIHOOD PROJECTS
  20. 20. Particulars Requirements Compliance Commitment Remarks2. Community Com-Rel Section Com-Rel Section To monitorOrganization Relations OfficeRequirement Rio Tuba Nickel Rio Tuba Nickel To implement Foundation Inc. Foundation Inc.3. Coverage 5 Host and 5 5 Host and 6 5 Host and 6 Additional brgy Neighboring Neighboring Neighboring of MNLF rebel Barangays Barangays Barangays returnees Interested ICCs Twelve (12 ) ICCs Twenty four (24) Doubled ICCs
  21. 21. Particulars Requirements Compliance Remarks1. Financial Php 106 Million To implement Approved by Budget within 10 years after MGB on Dec. closure. 14, 20092. Coordination Must align with their After MGB LGU still with LGU CLUP approval. preparing their CLUP3. Fund To be deposited in a To comply. MGB Allocation gov’t-assigned bank requirement for 7 years, from 2012 to 2019
  22. 22. HPP Project Area End-of-Project Land Site (ha) UseHPP Complex 35 ForestlandTailings Dam 1&2Impoundment 187 Industrial tree plantation areaEmbankments 29 Reconstructed shrublandWater storage 28 AquacultureSanitary Landfill 4 Sports ground or public open spacePort area 36 Coconut landincludingcauseway
  23. 23. Taganito HPAL ProjectHydrometallurgical Processing Plant (HPP)Taganito HPAL Nickel Corp (THPAL)The Project is located adjacent to themine site of Taganito MiningCorporation (TMC) located inBarangay Taganito, Claver, SurigaoDel Norte.Since 1987, TMC has been mining Taganito HPAL Nickel Corporationsaprolitic nickel ores selling them toferro-nickel smelters abroad. In morethan 20 years of operation, it alsogenerated mine wastes of about 18million tonnes. Taganito Mining CorporationTHPAL will process these stockpiles,as well as in-situ limonites of TMC,using the technology called HPAL orhigh pressure acid leach.
  24. 24. Ore Requirement: Approx. 4.9M WMTNature of Project: Nickel Oxide Ore of low grade nickel oxide oreProcessing utilizing Hydrometallurgical (limonite) from TMCProcess Estimated Operating Life: 30 yearsProject Operator: Taganito HPAL Nickel Manpower Requirement:Corporation (THPAL) Construction ~ 4,000 Operation ~ 1,000Project Location: Barangays Taganito, Project Schedule:Urbiztondo, Hayanggabon and Cagdianao,Claver, Surigao del Norte Construction – March 2010 Commissioning – April 2013 Commercial Production –Aug. 2013Product/Annual Production Capacity:Nickel-Cobalt mixed sulfide (30,000 tonsof Ni and 2,600 tons of Co) Capital Cost: US$ 1.3 Billion
  25. 25. Project Components Site Development Plan Wharf Ore Yard Desalination Plant HPAL Plant Complex Dormitory Materials Storage Facilities Tailings Storage Facility
  26. 26. Project Update Government Certificates NCIP’s CERTIFICATE ECC 0804-012-3721 OF PRECONDITION granted on Sept. 3, granted on November 2008 by EMB-DENR 19, 2009 PEZA Certificate ofECC AMENDMENT Registration asgranted on Sept 3, 2009 ECOZONE EXPORTby EMB-DENR ENTERPRISE granted on January 7, 2010
  27. 27. Project Update On-going Construction Activities
  28. 28. Project Update On-going Construction Activities CONSTRUCTION PROGRESS Activity Equivalent Item Progress as of Description Contractor Percent Percent # Aug. 20, 2010 Weight Weight Site Grading & Road 1 SMCC 5 60 3.0 Construction 2 Wharf SMCC 4 71 2.8 3 Tailings Dam SMCC 7 3.4 0.2 4 Dormitory Complex SMCC 3 13 0.4 5 Power Station Plant FHI 10 0 0.0 HPAL Plant (Main Equipt, 6 TJCP/SMCC 71 0 0.0 Road, Bldg.,Piping, and etc.) Total (%) 100 6.5
  29. 29. Environmental Protection &Community Development Activities CSR Activities IEC and Consultations

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