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ROUNDUP 2001


    A Dilemma for New
     Producers of PGE
Concentrates – Downstream
Processing to Saleable Metals

         John A. Chapman
   J.A. Chapman Mining Services
Smelting & Refining   Producing PGE
                                      Rich Sulfide
Finished PGE                          Concentrates
  Products
Today’s Situation

Oligopoly of vertically integrated major mining,
smelting & refining companies
Restricted access for new PGE rich sulfide
concentrate producer(s) to smelting & refining
facilities of majors
Toll (custom) smelting and refining, if
negotiated, is very expensive
With very few facilities available concentrate
transportation costs may be significant
Integrated PGE Smelters and Refineries

                                Principal
                                 Purpose            PGE
  Company          Location     of Smelter   BMR   Refinery
 Outokumpu         Finland        Nickel
   Norilsk          Russia        Nickel
Anglo Platinum   South Africa     PGE's
   Implats       South Africa     PGE's
   Lonmin        South Africa     PGE's
   Zimplats       Zimbabwe        PGE's
Union Miniere      Belgium        Cu-Pb
     Inco          Sudbury        Nickel
 Falconbridge      Sudbury        Nickel
  Stillwater     Montana, USA     PGE's
Smelter Terms
      Charges & Penalties

Typical concentrate contains Ni, Cu, Co,
PGE’s, Au, Ag
Moisture content 10% +/- 2%
Approximate grade set on each payable
metal in concentrate
May be rejected due to deleterious
elements or off-specification moisture or
metals grades
Treatment charge on dmt basis of feed
Smelter Terms
           Credits

Smelter sets “accountable” metal
recoveries (%) or a minimum deduction
Credits based upon refined
“accountable” base, precious and PGE
metals with a deduction for refining
charge
Smelting and refining charges adjusted
annually by various price indices
Smelter Terms
         Credits (cont.)

Smelter price participation against base
prices of metals (usually LME)
Final payments may be spread over
considerable time periods for different
metals
Independent Refiners

Johnson Matthey
Union Miniere Precious Metals
Heraeus Metal Processing
Sabin Metal Corp
Engelhard Corporation
Degussa Corporation
Handy & Harman Refining Group, Inc.
See www.ipmi.org for complete list of Refiners
The Dilemma


  You have a PGE property that
   appeared to be technically and
    economically viable until the
feasibility study showed the X-Mine
 costs were so high that the project
     was rendered uneconomic
     (PROJECT NPV = NIL)
Possible Solutions To The
Dilemma for Large Deposits

The Stillwater Mining Company “model”
• proven smelting & base metal refining
  technology that is cost sensitive to
  concentrate grade and economy-of-
  scale
New technology, “PlatSol”
• high risk but with potential high reward
The “Stillwater”
            Model
Commenced production in 1987 at Nye,
Montana and shipped concentrate to
UM (~35K oz/yr PGE’s)
Added a smelter in 1990 and shipped
granulated matte to UM (~250K oz/yr
PGE’s)
The Stillwater Model (cont.)

Added a BMR in 1996 and shipped high
grade PGE residue to JM and UM and
copper and nickel solutions to Sherritt
(~300K oz/yr PGE’s)
Expanded smelter and BMR in 2000, ship
PGE residues to JM et al, and now
produce cathode copper and nickel-cobalt
crystallization at site (~400K oz/yr PGE’s
and increasing)
Stillwater BMR & Smelter
                   (1998 Photo)
PGE’s in Flotation Concentrate Upgraded From 50 opt to 60%
          Then Shipped to Off-Site PGE Refineries




           Byproducts Include Cathode Copper
                And Nickel/Cobalt Xtals
PGE Smelter
     Process Description

Electric 5 mW Furnace (EF)
• 100 tons concentrate per day
  processing design capacity
• Removes oxide materials (SiO2, FeO)
  from concentrate
• Upgrades PGE's from 50 opt to 200
  opt
• Smelter PGE recovery is plus 99%
New Stillwater Electric Furnace
PGE Smelter
Process Description (cont.)

Top Blown Rotary Converter (TBRC)
•   Processing capacity equivalent to 50-
    60 tons concentrate/day
•   Removes iron (FeO) and sulfur (SO2)
    from EF matte
•   Upgrade PGE's from 200 opt to 600
    opt
New Stillwater TBRC
PGE Smelter
 Process Description (cont.)

Granulation/Regeneration
• Water jets cool EF and TBRC matte
• High efficiency scrubbing captures
  plus 99.5% SO2
• Regeneration product is gypsum,
  used locally as a soil amendment
• No discharge of process solutions
Stillwater PGE Smelter
BMR
      Process Description

Grinding – Batch Process
• Tower mill grinds smelter matte to 85%
  passing 200 mesh
Atmospheric Leach
• Leaches nickel, iron, cobalt and some
  copper
• Precipitates out any PGE's from solution
• Upgrades PGE's from 2% to 4%
Stillwater Mining Company
       Base Metals Refinery Atmospheric Leach



PGE’s = 600 opt




                                     PGE’s = 4%
BMR
 Process Description (cont.)

Pressure Leach
 • Autoclaves operate on a batch basis
 • Leaches nickel, copper and iron from the
   atmospheric leach residue
 • Upgrades the PGE’s from 4% to 60-65%
Iron Removal
 • Precipitates iron (Goethite) from solution
   (recycled to smelter)
BMR
 Process Description (cont.)

The nickel/copper/cobalt sulfate solution
• Nickel/cobalt crystallized and shipped
  offsite
• Copper electrowinning on site
PGE Residue Processing
• Filtered and shipped offsite for refining
Stillwater Mining Company
    Base Metals Refinery Pressure Leach

PGE’s = 4%




                                          PGE’s = 60%
The PlatSol Process

Patented process by International
PGM Technologies Ltd.
First pilot testing done in 2000 at
Lakefield Research in Ontario for
PolyMet Mining Corporation on a bulk
sample from the NorthMet deposit
The PlatSol Process (cont.)
Process uses an innovative
combination of concentrate pressure
leaching followed by precipitation
(gold & PGE’s), SX-EW (copper) and
crystallization (nickel & cobalt)
Lakefield Research Facilities
    Lakefield, Ontario
Pilot Plant
Crushing
Pilot Plant
Concentration
Pilot Plant Pressure Leaching
      & Metals Recovery
Conclusions

Very restricted access to PGE smelters
Deposits of +2.5 million ounces PGE’s
have a chance of processing to finished
metals at or near the mine-site, and could
yield a viable NPV for development
Smaller deposits will have great difficulty in
achieving a viable NPV for project
development because of the smelter
situation
The Goal!




     A
 Technically
 Feasible &
Economically
 Viable PGE
  Operation

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A Dilemma for New Producers of PGE/Base Metal Flotation and Gravity Concentrates – Downstream Processing to Saleable Metals

  • 1. ROUNDUP 2001 A Dilemma for New Producers of PGE Concentrates – Downstream Processing to Saleable Metals John A. Chapman J.A. Chapman Mining Services
  • 2. Smelting & Refining Producing PGE Rich Sulfide Finished PGE Concentrates Products
  • 3. Today’s Situation Oligopoly of vertically integrated major mining, smelting & refining companies Restricted access for new PGE rich sulfide concentrate producer(s) to smelting & refining facilities of majors Toll (custom) smelting and refining, if negotiated, is very expensive With very few facilities available concentrate transportation costs may be significant
  • 4. Integrated PGE Smelters and Refineries Principal Purpose PGE Company Location of Smelter BMR Refinery Outokumpu Finland Nickel Norilsk Russia Nickel Anglo Platinum South Africa PGE's Implats South Africa PGE's Lonmin South Africa PGE's Zimplats Zimbabwe PGE's Union Miniere Belgium Cu-Pb Inco Sudbury Nickel Falconbridge Sudbury Nickel Stillwater Montana, USA PGE's
  • 5. Smelter Terms Charges & Penalties Typical concentrate contains Ni, Cu, Co, PGE’s, Au, Ag Moisture content 10% +/- 2% Approximate grade set on each payable metal in concentrate May be rejected due to deleterious elements or off-specification moisture or metals grades Treatment charge on dmt basis of feed
  • 6. Smelter Terms Credits Smelter sets “accountable” metal recoveries (%) or a minimum deduction Credits based upon refined “accountable” base, precious and PGE metals with a deduction for refining charge Smelting and refining charges adjusted annually by various price indices
  • 7. Smelter Terms Credits (cont.) Smelter price participation against base prices of metals (usually LME) Final payments may be spread over considerable time periods for different metals
  • 8. Independent Refiners Johnson Matthey Union Miniere Precious Metals Heraeus Metal Processing Sabin Metal Corp Engelhard Corporation Degussa Corporation Handy & Harman Refining Group, Inc. See www.ipmi.org for complete list of Refiners
  • 9. The Dilemma You have a PGE property that appeared to be technically and economically viable until the feasibility study showed the X-Mine costs were so high that the project was rendered uneconomic (PROJECT NPV = NIL)
  • 10. Possible Solutions To The Dilemma for Large Deposits The Stillwater Mining Company “model” • proven smelting & base metal refining technology that is cost sensitive to concentrate grade and economy-of- scale New technology, “PlatSol” • high risk but with potential high reward
  • 11. The “Stillwater” Model Commenced production in 1987 at Nye, Montana and shipped concentrate to UM (~35K oz/yr PGE’s) Added a smelter in 1990 and shipped granulated matte to UM (~250K oz/yr PGE’s)
  • 12. The Stillwater Model (cont.) Added a BMR in 1996 and shipped high grade PGE residue to JM and UM and copper and nickel solutions to Sherritt (~300K oz/yr PGE’s) Expanded smelter and BMR in 2000, ship PGE residues to JM et al, and now produce cathode copper and nickel-cobalt crystallization at site (~400K oz/yr PGE’s and increasing)
  • 13. Stillwater BMR & Smelter (1998 Photo) PGE’s in Flotation Concentrate Upgraded From 50 opt to 60% Then Shipped to Off-Site PGE Refineries Byproducts Include Cathode Copper And Nickel/Cobalt Xtals
  • 14. PGE Smelter Process Description Electric 5 mW Furnace (EF) • 100 tons concentrate per day processing design capacity • Removes oxide materials (SiO2, FeO) from concentrate • Upgrades PGE's from 50 opt to 200 opt • Smelter PGE recovery is plus 99%
  • 16. PGE Smelter Process Description (cont.) Top Blown Rotary Converter (TBRC) • Processing capacity equivalent to 50- 60 tons concentrate/day • Removes iron (FeO) and sulfur (SO2) from EF matte • Upgrade PGE's from 200 opt to 600 opt
  • 18. PGE Smelter Process Description (cont.) Granulation/Regeneration • Water jets cool EF and TBRC matte • High efficiency scrubbing captures plus 99.5% SO2 • Regeneration product is gypsum, used locally as a soil amendment • No discharge of process solutions
  • 20. BMR Process Description Grinding – Batch Process • Tower mill grinds smelter matte to 85% passing 200 mesh Atmospheric Leach • Leaches nickel, iron, cobalt and some copper • Precipitates out any PGE's from solution • Upgrades PGE's from 2% to 4%
  • 21. Stillwater Mining Company Base Metals Refinery Atmospheric Leach PGE’s = 600 opt PGE’s = 4%
  • 22. BMR Process Description (cont.) Pressure Leach • Autoclaves operate on a batch basis • Leaches nickel, copper and iron from the atmospheric leach residue • Upgrades the PGE’s from 4% to 60-65% Iron Removal • Precipitates iron (Goethite) from solution (recycled to smelter)
  • 23. BMR Process Description (cont.) The nickel/copper/cobalt sulfate solution • Nickel/cobalt crystallized and shipped offsite • Copper electrowinning on site PGE Residue Processing • Filtered and shipped offsite for refining
  • 24. Stillwater Mining Company Base Metals Refinery Pressure Leach PGE’s = 4% PGE’s = 60%
  • 25. The PlatSol Process Patented process by International PGM Technologies Ltd. First pilot testing done in 2000 at Lakefield Research in Ontario for PolyMet Mining Corporation on a bulk sample from the NorthMet deposit
  • 26. The PlatSol Process (cont.) Process uses an innovative combination of concentrate pressure leaching followed by precipitation (gold & PGE’s), SX-EW (copper) and crystallization (nickel & cobalt)
  • 27. Lakefield Research Facilities Lakefield, Ontario
  • 30. Pilot Plant Pressure Leaching & Metals Recovery
  • 31. Conclusions Very restricted access to PGE smelters Deposits of +2.5 million ounces PGE’s have a chance of processing to finished metals at or near the mine-site, and could yield a viable NPV for development Smaller deposits will have great difficulty in achieving a viable NPV for project development because of the smelter situation
  • 32. The Goal! A Technically Feasible & Economically Viable PGE Operation