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