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Proposal for 2X80m3 Ferro Nickel
Blast Furnaces
Content
Content .......................................................................................................................................... 1
I. Introductions ........................................................................................................................... 3
II. Smelting process ........................................................................................................................ 4
2. Blast furnace............................................................................................................................... 4
2.1 Brief introduction...................................................................................................................... 4
2.2 Raw materials ........................................................................................................................... 5
2.2.1 Main raw materials .......................................................................................................... 5
2.2.2 Source of raw materials ................................................................................................... 5
2.2.3 Consumptions of raw materials ........................................................................................ 5
2.3 Compositions of blast furnace.................................................................................................... 6
2.4 Parameters ................................................................................................................................ 6
2.5 Total charging capacity of blast furnace ..................................................................................... 7
2.6 Equipments for the furnace........................................................................................................ 7
3. Lime........................................................................................................................................... 8
3.1 Lime production........................................................................................................................ 8
3.2 Raw materials ........................................................................................................................... 8
3.3 Proposed scale .......................................................................................................................... 8
3.4 Capacity ................................................................................................................................... 8

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3.5 Equipments ............................................................................................................................... 8
4. Sintering..................................................................................................................................... 9
4.1 Introductions ............................................................................................................................. 9
4.2 Planning scale ........................................................................................................................... 9
4.3 Capacities ................................................................................................................................. 9
4.4 Equipments ............................................................................................................................... 9
5. Power generation .......................................................................................................................10
5.1 Power technology.....................................................................................................................10
5.2 The proposed scale ...................................................................................................................10
5.3 The Composition of Power System ...........................................................................................10
6. Investment budget ......................................................................................................................10
7. Construction period....................................................................................................................11
8. Investment analysis ....................................................................................................................11
8.1 production costs .......................................................................................................................11
8.1.1 Costs .............................................................................................................................11
8.1.2 Income statement ...........................................................................................................12
8.1.3 Gross Profit ...................................................................................................................12
8.2 Comprehensive evaluation of investment...................................................................................13
8.3 Payback period.........................................................................................................................13
8.4 Risk Analysis ...........................................................................................................................13
8.5 Project evaluation ....................................................................................................................14

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General Introduction on Ferro Nickel Smelting Production
I. Introductions
We have pyrometallurgical smelting process, which is short in production
flow, few wastes, advanced procedure and etc, is the main smelting method for
Laterite nickel.
With rise of international Ferro Nickel prices from 2005, companies in
China try to apply the used small blast furnace in Ni ore smelting, the
production flow shows as following：
Laterite Nickel
broken & screening
dry process
intergradient
sintering
smelting
Nickel pig iron
< Small blast furnace production process of Ferro-nickel >
slag

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Advantages：
1. mature procedure, short flow, simple equipment and easy entry of
market；
2. fit for Ni ore with 10% Fe processing，Fe, Cr are all can be used in
other purpose；
3. slag can be used as raw materials for cement；
4. gas used for electricity and lime production.
According to our testament we call assure the Indonesia Ni ore is high
content Ni ore with low iron. We have very mature technology with 80m３
blast furnace to process Laterite Nickel in China. One single furnace can have
8~11% Ferro Nickel alloy with daily production of 160 tones, and deal 1500
tones of Laterite Nickel. The smelting system mainly include 1) Sintering (one
24m2
belt sintering machine and three vertical sintering furnace); 2) Blast
furnace (two 80m3
blast furnace) 3) Lime Kiln (one 120m3
Lime Kiln); 3)
Power generation (one 3000KW gas generation system); 4) Corresponding
Public facilities for the above equipment (water, power, gas, heat and related
supplies).
II. Smelting process
2. Blast furnace
2.1 Brief introduction
Charging proper size of Laterite Nickel and sintered Nickel into blast
furnace along with Coke, Limestone, Dolomite and Fluorite in certain

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percentages through the feeding system. Heating the stove with gas produced
by blast furnace, then blowing 1100℃ into blast furnace through the
blowing device after heat exchange. Slag and Nickel pig iron formed after
chemical and physical interactions, then with the slag and iron separator, pig
iron casted into blocks and slag expel into slag pool. Slag can use as raw
materials for cement production. Blast furnace gas can also used in sintering,
Lime Kiln and power generation.
2.2 Raw materials
2.2.1 Main raw materials
Coke, Laterite nickel ore, limestone, dolomite, fluorite, anthracite
2.2.2 Source of raw materials
2.2.3 Consumptions of raw materials
No. Item Daily/T Annual/T Note
1 Coke 286 100100 Coke 2.2 without the PCI, coke 1.5 with the PCI.
No. Item Unit price（$/T ） Daily cost（$） Origin Note
1 Coke 225.8 64600 China CIF Indonesia
2 Laterite nickel ore 16.13 22600 Indonesia
3 Limestone 12.9 2900 Indonesia
4 Dolomite 24.2 200 Indonesia
5 Fluorite 96.8 200 Indonesia
6 Diesel fuel 1355 16300 Indonesia

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2 Laterite nickel ore 1400 490000 With 35% moisture
3 Limestone 224.4 78500
4 Dolomite 9 3200
5 Fluorite 2 700
6 Anthracite 140 49000 In sintering use
7 Diesel fuel 12 4200 250g needed to produce 1KW,
2.3 Compositions of blast furnace
The smelting system mainly include two furnace body, six heating
furnaces, gravity dedusting system, dust bag, caster, slag system, water
system, blower system.
2.4 Parameters
Num. Item Unit Parameter Note
1 Capacity m
3
2X80
2 Utilization coefficient t/（m
3
.d） 1.0
3 Annual working days d 350
4 Fuel kg/t
Coke kg/t 2200
Coal kg/t
5 Air consumption of unit pig iron m
3
/t 1469
6 Blow-in air Nm
3
/min 400
450Nm
3
/min
air blowing in
fan mouth
Top pressure MPa 0.02-0.06
7 Air temperature ℃ 1100
8 Pig iron production
Daily production t/d 2X65 Ni 10%

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Annual production 万 t/a 2X2.3
10 Slag production
Slag ratio
5900kg/t
Daily t/d
2X441.03
(moisture15%）
Annually 10 thousand t/a
2X15.44
(moisture 15%)
11 Gas production
Gas production of unit pig iron m
3
/t 7480
Gas production per hour m
3
/h 81033.4
Daily gas production m
3
/d 1944801.6
Gas consumption of blast furnace m
3
/h 32413.36
Remaining gas quantity m
3
/h 48620
12 Furnace life year 6
2.5 Total charging capacity of blast furnace
Total charging capacity of blast furnace is 3400kw，include 2200kw high
voltage and 1200kw low voltage.
2.6 Equipments for the furnace
1) Twelve materials cabinet with single capacity of 70m３
2) Two 80m３furnace body（include top equipment and taping equipment,
with spray cooling method）
3) Two gravity dedusting, and 8 sets of Nitrogen purge dust bag
4) Power system, Three C-450 centrifugal blowers matching motor
1050KW.
5) Six sets of heating furnace.
6) Two sets of slag removing system
7) Environmental

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The main blast furnace wastes are: gas, slag and dusts. Gas can be used
in lime production, sintering and power generation; slag is raw materials for
cement, dust can be used in sintering, and also parts of slag.
3. Lime
3.1 Lime production
Limestone（40mm~80mm）is charging into Kiln and after burned by gas,
then we have quicklime. Transfer quicklime by extractor and valve into
cabinets through conveyer. It is used for dehydration of Nickel ore.
3.2 Raw materials
Name Size Consumption/h Daily consumption Daily production Origin Note
Limestone 40~80mm 9.35T 224.4T Indonesia
Gas 9000m３ 153000m３
Quicklime 90T Daily production
3.3 Proposed scale
A 150m３ lime kiln with 120T production，100T for blast furnace, 20T for
sintering uses.
3.4 Capacity
Low voltage capacity is 380kw.
3.5 Equipments
Three Charging cabinets of 50m３column, one lime kiln, ash collecting,
gas pressurization, air system, cooling system, lime storage and lime
crushing.

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4. Sintering
4.1 Introductions
Two sintering procedures are functioning in the same time during
production. One is to use three sintering furnace with 150 tone daily capacity,
which used to sintering Nickel ore with high Ni content and low iron content,
in another word, it they are used to sintering Nickel ore with iron content
under 13%. These methods have advantages in dust processing and good
sintering quality. The sintering flow is remove ore grains over 80mm through
screening, then deducting moisture by quicklime，sintering with mixture of
coal powder into blocks. Another is to mix high iron content ore, quicklime
and coal powder together in certain proportions by belt sintering machine,
formed sintered blocks for blast furnace。
4.2 Planning scale
1) Three sintering furnace with 450t daily sintering capacity;
2) one belt sintering machine in 24m2 with daily production of 622 tones,
Utilization factor is 1.2t/m2
.h, Operating rate 0.9， gas consumption is
2800m３ per hour.
4.3 Capacities
Total capacity is 2100kw, with high voltage 1100kw, low voltage 1000kw.
4.4 Equipments
Two ingredients system, two sets of mixing and granulation system,
cooling system for sintering，electronic dust collection used in the machine

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head, and bag dust collection used in the machine end.
5. Power generation
5.1 Power technology
Because of its lack of power supply in Indonesia construction site, we plan to use
electrical generator with the installed capacity of 300KVA to provide sufficient power
for the blasting, sintering , cast machine, water recycle, lime kiln, feeding and lighting
system. About two hours’operation, the blast furnace will produce residual gas, which
can be further used to generate steams to promote turbine generator. Then, the generated
power will be transformed to proper voltage for each part.
5.2 The proposed scale
The whole installed capacity is 6400KW (including 620kw for power plant
use), with 3300KW of high voltage and 3100KW of low voltage respectively.
The overall residual gas of blast furnace is nearly 48620 m３/h: apart from
2800 m３/h gas for Sintering, 9000 m３/h gas for lime kiln, other 36820 m３/h
can be used to build two sets of 2X3000KW gas-electric set, which can
generate 4400kw power. The gas generator will produce other 2000kw power
for production.
5.3 The Composition of Power System
Two sets of 20tons of boiler and 3000kw steam turbine and generator
respectively, water quality system and two set of fuel injection system.
6. Investment budget
1). Blast furnace equipment: $ 10,322,600, civil construction: $ 1,129,000

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2) Sintering: $5,483,900, civil construction: $564, 500
3) Lime kiln: $725,800, civil construction: $193,500
4) Power generation: $4,193,500, civil construction: $290,300
Total amount：Equipment $20,725,800; civil construction $3,177,300
7. Construction period.
The construction period is 12 months, and commissioning period 2 months.
8. Investment analysis
8.1 production costs
8.1.1 Costs
Num. Name Day consumption
（T）
Unit price（USD ） Daily cost Annual cost 备注
1 Coke 286 225.8 64600 22610000
2 Nickel laterite 1400 25 35000 12250000
3 Limestone 224 12.9 2900 1015000
4 Dolomite 4.5 24.2 100 35000
5 Fluorite 1 96.8 100 35000
6 Anthracite 140 27 3800 1330000
7 Diesel 12 1350 16200 600
8 Labor cost 32.26/t 4200 147 Daily
production 130t
9 Related cost 6.45//t 800 28 Daily
production 130t

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10 Freight cost 130 22 2900 101.5 Sell to China
Total amount 130600 4004.06
Note:
1) Diesel power consumption is 250 grams per Kw•h, i.e. 0.29 liters
Diesel oil/kw•h. The proportion of Diesel oil is 0.85kg/L.
2) The installed capacity of plant is 6400KW, with 3300KW of high
voltage. Among which Residual gas of blast furnace can generate
4400KW power, the other 2000KW relies on diesel generators
8.1.2 Income statement
No. Items Daily Output (tons) Unit price(USD) Daily Income（USD ） Annual Income（USD）
1 Water slag 882.06 5.65 5000 1750000
2 Ferronickel 130 2016 262100 91735000
Total 267100 93485000
Instructions:
1. Unit price of water slag is $5.65 per ton.
2. Ferronickel price in China is $201.6 per ton. Grade. Nickel
content 10%, i.e. $ 2016 per ton. Freight costs for CIF China need
$22 /t.
8.1.3 Gross Profits
Daily profit (USD) Annual Profit (USD)
136,500 53,444,400

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8.2 Comprehensive evaluation of investment
Estate investment of the Project is estimated to be $ 22,903,100, which
includes $20,725,800 for equipment, and civil construction needs
$217,300. Circulating Capital is about $15,000,000.
8.3 Payback period
Payback period of investment in fixed estate
Estate investment/annual profit=2390.31/5344.44=0.447 year
One year for construction, commission period is two months, i.e. the
payback period is 20 months.
8.4 Risk Analysis
Risks of the project mainly exist in the following aspects:
1) Influences of Chinese coke market
Coke takes nearly 49% (6.46/13.06=49%) of daily cost. Suppose the coke
price rises 10%, then daily cost raises $6460, daily profit would be 4.73%.
Coke price rises 20% would lead to 9.46% reduction in daily profit
($123,600/day and annual profit would be $43,260,000. Payback period
needs one more month. (p.s. 20% increase in coke price is the price in good
economic situation in China.
2) Influences of selling prices
There is an increasing demand for nickel ore, due to the facts that nickel
ore exports are restricted in Indonesia and small blast furnace and smelting
ore furnace are banned in China for environment purposes. At present, the

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selling price of nickel ore is $201.6 per ton, grade. Suppose the price of
nickel ore drops 10%, i.e. $181.4 per ton, grade. Daily production of 10%
nickel ore is 130ton, then income reduce $26,200, daily profit would be
$110,300, annual profit $38,605,000, there will be a two-months extension in
payback period. A 10% reduction in selling price would be lower than the
price in the worst economic situation in China.
8.5 Project evaluation
The project will accelerate the Indonesian industrialization, promote the
local processing level and technology, it also utilize the resources
comprehensively, and brings great social benefit in Indonesian. Moreover, it
has high risk-proof ability and strong economic advantages.
Note:
1) The above budget excludes costs in civil construction, office, living
facility and corresponding financial cost.
2) The above is the investment budget of two blast furnaces.