Hanking Molore Smelter Plant Project Lisbon.Rev1

LisbonLisbon

October 13, 2014October 13, 2014

New Nickel Processing Projects in Indonesia, The case of Hanking Co,. Ltd

Private & Confidential

Wahyu PrasetiyoWahyu Prasetiyo

Indonesia Economic & Investment Nowadays1



The development so far achieved has made Indonesia the 16th largest economic power in the world in 2011.

Plans for Indonesia’s GDP


Total investment of metal industry sector in Indonesia is more than 52 Billion USD with

the proportion of Nickel Processing facilities is more than 15 Billion USD

Registered Investment of Economic Sector in Indonesia

Source : Industrial Ministry

Development Of Nickel Processing Project in Indonesia2



Source : ESDM Geological Agency 2012

INDONESIA NICKEL RESOURCES AND RESERVES


PLAN OF NICKEL PROCESSING AND REFINING FACILITIES IN INDONESIA

Source : ESDM

From 89 Proposal, until today only 2 company already in commercial operation and 9 company with construction progress realization is more than 35%

Hanking Nickel Smelter Project In Indonesia3



Hanking Ore Reserve :Mineral Resource Summary of Block D, E and K as of November 2012 - JORC


Hanking Ore Reserve :Mineral Resource Summary of Block D, E and K as of November 2012 - JORC

Feni Plant

Hangking Makmur Nickelsmelt

Hangking Industrial Group Investment

Capacity 5.000 Ton Ni/Yr

Capacity10.000 Ton Ni/Yr

NPI Plant

Karyatama Konawe Utara


Project Summary

Project Location : Molore district, Langgikima, North Konawe, Southeast Sulawesi, Indonesia

Production Capacity : 50,000 tpa NPI

Plant Life : 20 years

Key Information

Capital Expenditure Stage 1 MUSD 45.19

NPV USD 5.31 million

IRR 18.41 %

Payback Period 6.79 years

Construction Period Q3 2013 – Q4 2015

Commissioning Q4 2015

Commercial Operation Q1 2016

NPI Molore Project Key Information

Ni % Fe % MgO % SiO2 % S % P %

≥ 1.6 18-35 ≤ 20 10 -25 ≤ 0.04 ≤ 0.04

CaO/% MgO/% P/% S/% Moisture % granularity/ mm

≥50 ≤3 0.04 0.15 15 30~60

Feed Ore Composition

Limestone Composition

M40/% M10/% granularity/mm granularity>80mm granularity<5 mm CRI CSR

≥76 ≤8.5 30~80 <5% <4% ≤35 ≥50

NPI Product Spesification

Element C Fe Ni Si S P T

Content <3.0% 83% 10% <2.5% <0.03% <0.05% ≥1300℃

Coke Spesification

Feeding Ore Demand 550.000 WMT/YR

Resourcess Feeding Composition


KKU NPI Process Flowsheet (Shaft Furnace Tecnology)

PT Karyatama Konawe Utara as subsidiary of Hangking group recently conduct construction of NPI plant with shaft furnace technology, the stage of construction currently is equpimnet installation and will be finished in end of 2015.

Nickel ore as feeding of the plant will shaped ore to briquett (press ball) by 6 ball press machine (each capacity 6.5 ton/hr) .The purpose of this process to make ore steady during smelting in the shaft furnace. Together wilth flux (CaCO3 and Ferrosilicon) and coke, press ball will smelt in the shaft furnace to produce NPI. During smelting process reduction of the ore, oxygen will blowing to help this reduction. Molten metal and slag will separate each other because of density differencess, metal will be in the bottom and slag will in the top. Frequently metal and slag will be tapping from different holes.

Process Description :


Land Preparation

Manufacturing & Fabrication

Project Summary

Project Location : Molore district, of North Konawe, Southeast Sulawesi, Indonesia

Production Capacity : 115.000 Tpy of FeNi (Nickel 12.84%)

Plant Life : 30 years

Key Information

Capital Expenditure 245 MUSD (Include Power

Power Plant)

NPV 212 USD

IRR 37.5

Payback Period 3.8 years

Construction Period 2 years

Commissioning Q1 2017

Commercial Operation Q2 2017

FeNi Project Key Information

Feed Ore Composition :


Assay (%) Indeks

Ni Co Fe SiO2 CaO MgO Al2O3 P2O5 Cr2O3 LOI SiO2/MgO MgO/SiO2 Fe/Ni

1.75 0.04 19 33 0.21 24.46 1.5 0.26 1.15 10.00 1.35 0.74 10.86

FeNi Metal Product Composition :

Component Ni Co C Si P S Cr Fe others

% 12.84 0.11 1.84 1.22 0.03 0.23 0.61 82.92 0.22

FeNi Slag Composition :

ComponentNiO FeO

SiO2 CoO MgO CaO Al2O3 Cr2O3 P2O5 other BasicityT.Ni T.Fe

%

0.16 14.97

45.93 0.01 33.83 0.47 2.58 1.43 0.36 0.26 0.730.128 11.63


Feronickel Plant Flowsheet

Basically Ferronickel process in Hangking similar with other RK-EF plant, this process divided into 4 process :

1.DryingLaterite ore consist of fine and lumps, with moisture content around 34% . The ore then is dried and screened and the lump ore is crushed. The ore is feed to the drying and crushing process at the rate of 180 ton per hour by means of shovel loader . Hot air from Hot Air Generator flows in the parallel current of the wet ore and dries it into the moisture content of 23 % by direct heating. Then dried ore from rotary dryer mixed together with coal and dust pellet charged into Rotary Kiln.

2.CalciningMix dried ore (dry ore, coal and briquette ) called conditioned ore charged into rotary kin. In addition to the 22 % moisture content, the conditioned ore contained 10% to 12 % crystallized water. Before charging into the electric furnace, not only the moisture content but also the crystallized water has to be eliminated. This crystallized water contained in the form of serpentine, goethite, etc.

The feed materials to the rotary kiln are fed at the inlet side,and moved to the discharge end by the rotation and the gradient of the rotary kiln. At the discharge end side, the burners burn the pulverized coal. This flame Heats the materials at the discharge end, and the hot gas thereby generated flows toward the inlet side of the kiln. The materials are dried and calcined by this counter current of hot gas. The materials fed at the feed section have first their adherent moisture evaporated . Then as the temperature of materials rise, the crystallized wtaer starts to decompose. At the same time inherent moisture and volatile matters contained in coal also evaporates.

After being dried in the drying zone of the rotary kiln, the charged materials enter the calcining zone where the crystalized watter is removed and then completely calcined at the burner flame zone. During this process, 20% of NiO and 80% of Fe2O3 conatined in the ore are reduced to Ni and FeO respectively.



3.SmeltingThe calcine from rotary kiln is supplied to the electric furnace by the hot charge system. This calcined orehas temperature of around 700oC and its ignition loss is trace. Inside the rotary kiln, 20% of NiO is reduced to Ni and 80% of Fe2O3 is reduced to FeO by the reductant added to the kiln. The calcined ore also contains the residual C, which is needed for reduction inside the furnace. The heat required for melting the calcine ore and for chemical reaction is supplied by the electric resistance heat created by the electric current flowing through the slag layer.

The calcined ore is reduced and melted by the heat. First, the calcined ore which is choke fed reacts with the reducing gas (CO gas) which is generated in the lower molten zone, and parts of nickel oxide and iron oxide contain in the calcined ore are reduced to Ni and Fe while the reducing gas rise through the calcined ore layer. The clacined ore will melting down, metal and slag will seperate respectively, molten metal will going down due to density differences, molten metal and slag will tapping frequently through different holes. Molten metal will transported to casting machine to become ingot product



1. Low infrastructure for supporting smelter construction and operation (i.e. Electricity, road and jetty)

2. Complex bureaucracy of smelter permit application 3. Unstable regulation

Investment Challenges of Establish Nickel Processing in Indonesia


Challenges of NPI Producers Outside China1. High Operation Cost Due to Cokes Import & Transportation Cost.2. No integrating plant of NPI and Stainless Steel outside china (Producer

usually take advantage of NPI molten metal heat for operation cost efficiency)

Wahyu Prasetiyo ([email protected])Zhao Zhou ([email protected])

Further Communication :


mailto:[email protected]

mailto:[email protected]

谢谢各位！谢谢各位！

Documents

Hanking Molore Smelter Plant Project Lisbon.Rev1