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Ivanhoe awards China Nerin direct to blister copper smelter engineering contract to include Metso Outotec tech

Ivanhoe Mines Co-Chairs Robert Friedland and Yufeng “Miles” Sun have announced that Kamoa Copper has awarded China Nerin Engineering of Jiangxi, China,…

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This article was originally published by International Mining

Ivanhoe Mines Co-Chairs Robert Friedland and Yufeng “Miles” Sun have announced that Kamoa Copper has awarded China Nerin Engineering of Jiangxi, China, with the basic engineering contract for the planned, direct-to-blister flash smelter at the Kamoa-Kakula Copper Complex that will incorporate leading-edge technology supplied by Metso Outotec’s facility in Espoo, Finland, and have a nameplate capacity of 500,000 t a year of approximately 99%-pure blister copper.

The contract was signed earlier today by Mark Farren, CEO of Kamoa Copper, and Wu Runhua, General Manager of Nerin, at a virtual ceremony held at the Kamoa-Kakula Mine and Nanchang City. Jinghe Chen, Chairman of Zijin Mining; Zhang Xiaobo, Chairman of Nerin; along with Friedland and Sun, joined the signing ceremony to offer their congratulations and support for this important project milestone.

The planned Kamoa-Kakula smelter is to be built adjacent to the Phase 1 and Phase 2 concentrator plants, and is designed to use technology supplied by Metso Outotec and to meet the International Finance Corporation’s (IFC) emissions standards. The smelter has been sized to process the majority of the copper concentrate forecast to be produced by Kamoa-Kakula’s Phase 1, Phase 2 and Phase 3 concentrators. With a nameplate capacity of 500,000 t per annum of blister copper, it is projected to be one of the largest, single-line blister-copper flash smelters in the world, and the largest in Africa.

Nerin is an international engineering company with more than 60 years of experience in smelter engineering and construction projects globally. Nerin actively promotes the advancement of smelting technology through its own research and development, and establishing various partnerships with global industry peers, including Metso Outotec.

Since its inception in 1957, Nerin has undertaken more than 4,000 engineering and construction projects in 60 countries, including numerous large-scale, flash smelting projects, which comprise approximately 47% of the world’s current flash-smelting capacity. Notable projects include the upgrading of Rio Tinto’s Kennecott smelter in Salt Lake City, Utah, US, and the upgrading and expansion of Glencore’s PASAR smelter and refinery in Isabel, Leyte Philippines. Nerin’s exceptional capabilities in flash-smelting technology, combined with its significant experience in the DRC (including the Lualaba Copper Smelter near Kolwezi that is treating approximately one-third of Kamoa-Kakula’s current concentrate output, and Tenke Fungurume’s copper hydrometallurgical plant) will help ensure a smooth execution of the planned smelter at Kamoa-Kakula.

The smelter is expected to be built concurrently with the project’s Phase 3 mine and concentrator expansion, and the upgrading of turbine 5 at the Inga II hydropower complex. The additional 162 MW of renewable electricity from the Inga II upgrading project will be needed to power the Phase 3 expansion and on-site smelter.

The next stages in the smelter project development will be the completion of basic engineering, which is expected to take approximately seven months, and the ordering of the long-lead equipment, followed by earthworks which are expected to commence in Q2 2022. The awarding of the Engineering, Procurement and Construction Management (EPCM) contract is expected to occur shortly after the commencement of the earthworks.

The overall execution timeline will be dictated by the basic engineering, but is expected to be approximately three years. The expected capital cost is in the region of $700 million (100%-basis) for the enlarged smelter, to be financed with cash flows from Kamoa-Kakula.

An onsite smelting facility has compelling cost and environmental benefits, including a reduction in the volume of copper concentrate shipped from the mine by approximately one half or more, and the associated logistics costs, export taxes and concentrate treatment charges. The smelter also will produce sulphuric acid as a by-product, creating a new revenue stream for Kamoa Copper.

There is a strong demand and market for sulphuric acid in the DRC to recover copper from oxide ores. Copper mines in the DRC currently import significant volumes of sulphur used in sulphur-burning acid plants to produce sulphuric acid for the treatment of oxide copper ores. The DRC also imports sulphuric acid, primarily from Zambia.

Kamoa-Kakula currently is producing an extremely high-grade, clean copper concentrate containing approximately 55% copper and extremely low levels of arsenic by world standards – approximately 0.01%. Approximately 35% of Kamoa-Kakula’s Phase 1 concentrate is sent to the local Lualaba smelter for processing into blister copper ingots – containing approximately 99% copper – while the remainder is transported via trucks and ships to international smelters for treatment.

Mark Farren commented: “Today’s signing of the smelter basic engineering contract with Nerin highlights our commitment to the people of the DRC to derive more economic benefits from Kamoa-Kakula by maximising in-country beneficiation. Achieving the transformative potential of Kamoa-Kakula’s unrivalled copper resources requires creative thinking that supports the DRC’s priorities of economic growth and diversification through value-addition, processing and beneficiation. Nerin is a highly-respected engineering firm with the people and in-country expertise to deliver a first-rate, on-site smelter that will be among the largest of its kind in the world. They successfully built the local Lualaba Copper Smelter, to which we are sending about a third of our current concentrate output.”

He added: “After a great deal of due diligence, the partners at Kamoa Copper collectively agree that the state-of-the-art, environmentally-friendly technology offered by the Metso Outotec direct-to-blister smelter best suits the unique low-iron, low-sulphur and ultra-high-grade concentrate produced at Kamoa-Kakula, and aligns seamlessly with our goal of producing the world’s ‘greenest copper.’ The Kamoa-Kakula smelter will be powered by clean, renewable hydropower and will incorporate leading-edge sulphur capture. Shipping 99%-pure blister copper ingots produced from an on-site smelter, instead of shipping copper concentrate, will result in a significant reduction in Kamoa-Kakula’s concentrate transportation costs and Scope 3 emissions.”

Approximately one-half of the world’s primary copper currently is produced using flash, direct-to-blister smelting technology. Metso Outotec recently signed a major engineering and technology contract for the delivery of a landmark copper smelter complex to be built in Gresik, East Java, Indonesia. The project owner is PT Freeport Indonesia and has a value of $424 million.

The Metso Outotec technology produces high-quality blister copper in a single flash furnace without the need for separate converting stages or ladle transportation. The process and equipment have undergone continuous development over the last 70 years, which has led to one of the safest, most environmentally-friendly, and most reliable smelting processes for treating high-grade copper concentrates.

Summary of direct-to-blister smelting key features:

  • Often the most profitable process option for concentrates containing more than 30% copper.
  • Results in high copper recovery.
  • Requires no converting process.
  • Low capital and maintenance costs.
  • Integrated controls with continuous process.
  • High sulphur recovery due to single, continuous, stable gas stream, leading to minimum emissions to the environment.
  • Low capital and operational costs for sulphuric acid plant.

Kakula is projected to be the world’s highest-grade major copper mine, with an initial mining rate of 3.8 Mt/y at an estimated average feed grade of more than 6.0% copper over the first five years of operations, and 5.9% copper over the initial 10 years of operations. Phase 1 is expected to produce approximately 200,000 t of copper per year, while the Phase 2 expansion is forecast to increase production to approximately 400,000 t of copper annually. Kamoa Copper is on track to complete the Phase 2 expansion in Q2 2022. Based on independent benchmarking, the project’s phased expansion scenario to 19 Mtpa would position Kamoa-Kakula as the world’s second-largest copper mining complex, with peak annual copper production of more than 800,000 t.

The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the Government of the Democratic Republic of Congo (20%). A 2020 independent audit of Kamoa-Kakula’s greenhouse gas intensity metrics performed by Hatch Ltd of Mississauga, Canada, confirmed that the project will be among the world’s lowest greenhouse gas emitters per unit of copper produced.

The post Ivanhoe awards China Nerin direct to blister copper smelter engineering contract to include Metso Outotec tech appeared first on International Mining.


Author: Paul Moore

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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Energy & Critical Metals

Northern Graphite Snaps Up 2 Mines for US$40M

Northern Graphite Corp. [NGC-TSXV; NGPHF-OTCQB] has agreed to acquire a 100% interest in two graphite…

Northern Graphite Corp. [NGC-TSXV; NGPHF-OTCQB] has agreed to acquire a 100% interest in two graphite mines from French industrial minerals company Imerys Group for US$40 million, a move that CEO Greg Bowes described as “transformational” for the company.

The assets being acquired include the producing Lac des Iles graphite mine in Quebec and the Okanjande graphite deposit/Okorusu processing plant in Namibia. The Namibian project is held by Imerys and a joint venture partner.

Closing of the transaction is subject to a number of conditions, including the approval of the TSX Venture Exchange. The transaction is considered a “fundamental acquisition” under TSX Venture Exchange policies. As a result, trading in the company’s shares has been halted pending a satisfactory review by the TSX-V or closing of the transaction, whichever occurs firs.

Northern Graphite said it intends to raise US$55 million in financing to complete the transaction, which includes payment of the purchase price, capital improvements, reclamation bonding, working capital and transaction expenses.

The company has signed a term sheet with Sprott Resource Streaming and Royalty Corp. for US$40 million in debt/royalty/stream financing and an engagement letter with Sprott Capital Partners LP to act as lead agent with respect to an equity offering of US$15 million.

The Sprott Group intends to participate in the equity offering with an investment of US$3 million, and Imerys will receive US$3 million in equity on the same terms as the offering, as partial payment for the purchase price. Imerys is also providing other support for the transaction.

Northern Graphite is a mineral development and technology company that has been working to develop its flagship Bissett Creek graphite deposit in northern Ontario.

The company is also focused on upgrading mine concentrates into high value components used in lithium-ion batteries, electric vehicles, fuel cells, graphene and other advanced technologies.

Its aim has been to become a leading supplier of graphite, an industrial mineral that has long been associated with steel manufacturing, lead pencils and golf clubs, but is now a key ingredient used in the production of electric vehicles.

Speaking about the acquisition of the Imerys assets, Bowes said: “This is a truly transformational deal that will elevate Northern from one of over 20 junior graphite companies looking for project financing to being the only North American and the world’s third largest non-Chinese graphite-producing company.”

In addition, he said Northern will have two large-scale development projects in stable jurisdictions that will enable the company to significantly expand production to meet growing demands from the [electric vehicle]/battery markets,’’ Bowes said.

Transaction highlights include the acquisition of 40,000 to 50,000 tonnes per year of graphite concentrate production capacity. The Namibian operation will be brought back on line, enabling Northern Graphte to expand its market share in North America and Europe.

Terms of the deal were announced just before the market close on December 2, 2021, when Northern Graphite shares were priced at 83 cents and trade in a 52-week range of 92 cents and 23 cents.

 

Author: Staff Writer

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