nickel laterite v sulfide: the hard sustainability

1

eng.monash.edu.au/enveng

Dr Gavin M MuddDr Gavin M MuddEnvironmental Engineering, Monash University, AustraliaEnvironmental Engineering, Monash University, Australia

Nickel Laterite v Sulfide:Nickel Laterite v Sulfide:

The Hard SustainabilityThe Hard Sustainability

Challenge RemainsChallenge Remains

March 2010March 2010

22ndnd Euro Nickel Conference, London, UKEuro Nickel Conference, London, UK

2nd Euro Nickel Conf : Nickel Sulfide v Laterite – The Sustainability Challenge / 2Institute for Sustainable Water Resources

2


Nickel: A Vital Infrastructure MetalNickel: A Vital Infrastructure Metal

OverviewOverview

•• Nickel ProdNickel Prod’’n Resources, Ore Typesn Resources, Ore Types

–– Sulfide versus LateriteSulfide versus Laterite

•• Current Global Nickel MiningCurrent Global Nickel Mining

–– Key Key ‘‘MegaMega--TrendsTrends’’

•• Environmental Sustainability CostsEnvironmental Sustainability Costs

•• Implications for the Future ?Implications for the Future ?


Nickel: Sulfide v LateritesNickel: Sulfide v Laterites

•• Nickel is a reasonably abundant known Nickel is a reasonably abundant known

metal resource, found in mainly in sulfide metal resource, found in mainly in sulfide

or laterite (oxide) depositsor laterite (oxide) deposits

–– Ni sulfides: eg. pentlandite, (Fe,Ni)Ni sulfides: eg. pentlandite, (Fe,Ni)99SS88

–– Ni laterites: eg. garnierite (Ni laterites: eg. garnierite (‘‘NiONiO’’ –– complex!)complex!)

•• In general, Ni is more difficult to process In general, Ni is more difficult to process

than copper, especially Ni lateritesthan copper, especially Ni laterites

•• Historically, most Ni came from sulfides, Historically, most Ni came from sulfides,

with increasing Ni now from laterites with increasing Ni now from laterites ……

•• Major uses: Major uses: stainless steelstainless steel, alloys, etc , alloys, etc ……

3


Global Nickel Production #1Global Nickel Production #1

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1865 1885 1905 1925 1945 1965 1985 2005

An

nu

al

Nic

ke

l P

rod

uc

tio

n (

Mt

Ni/

ye

ar)

Linear Trend Line

(1950-2008 only)

~4.5% growth/year



0

0.2

0.4

0.6

0.8

1

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

An

nu

al N

ickel

Pro

du

cti

on

(fr

acti

on

)

Dominican Republic

Russia

Canada

Australia

New Caledonia

Indonesia

CubaChina

Colombia

BrazilSouth AfricaBotswanaPhilippinesRest of the World

4



0

250

500

750

1,000

1,250

1,500

1,750

18

85

18

95

19

05

19

15

19

25

19

35

19

45

19

55

19

65

19

75

19

85

19

95

20

05

An

nu

al

Nic

kel

Pro

du

cti

on

(kt

Ni/

ye

ar)

Miscellaneous Sulfide

Laterite

Canada (sulfide)

Russia

(sulfide)

Australia (sulfide)

0

0.2

0.4

0.6

0.8

1

18

85

18

95

19

05

19

15

19

25

19

35

19

45

19

55

19

65

19

75

19

85

19

95

20

05

Ore

Ty

pe

by

Fra

cti

on

Sulfide

Laterite

Laterite


Ni Case Study: CanadaNi Case Study: Canada

0

2

4

6

8

10

1885 1900 1915 1930 1945 1960 1975 1990 2005

Ore

Gra

de

s (

%N

i, %

Ni+

Cu

, a

s m

ille

d)

Canada (%Ni) Sudbury Field (%Ni)

Sudbury Field (%Ni+Cu) Thompson (%Ni)

Voiseys Bay (%Ni) Voiseys Bay (%Ni+Cu)

Lynn Lake (%Ni) Lynn Lake (%N+Cu)

5


Ni Resources: Inco / FalconbridgeNi Resources: Inco / Falconbridge

0

2

4

6

8

10

12

14

1925 1940 1955 1970 1985 2000

Meta

l R

es

ou

rces (

Mt

Ni+

Cu

) / O

re G

rad

es (

%N

i+C

u)

0

80

160

240

320

400

480

560

Ore

Reso

urc

es (

Mt

Ore

)

Ore (Mt)

Grade (%Ni+Cu)

Inco(Sudbury, Thompson, Voisey's Bay)

Metals (Mt Ni+Cu)

0

1

2

3

4

5

6

7

1925 1940 1955 1970 1985 2000

Me

tal R

eso

urc

es (

Mt

Ni+

Cu

) /

Ore

Gra

de

s (

%N

i+C

u)

0

15

30

45

60

75

90

105

Ore

Re

so

urc

es (

Mt

Ore

)

Ore (Mt)

Grade

(%Ni+Cu)

Falconbridge

(Sudbury, Montcalm, Raglan)

Metals

(Mt Ni+Cu)

????


Sudbury Mine Type & DepthsSudbury Mine Type & Depths

•• Sudbury has Sudbury has

mostly been mostly been

underground underground

mining, some mining, some

moderate scale moderate scale

open cutsopen cuts

•• Now at major Now at major

UG mining UG mining

depths (~2 km)depths (~2 km)

•• Similar issues Similar issues

globally globally ……

0

500

1,000

1,500

2,000

2,500

1885 1900 1915 1930 1945 1960 1975 1990 2005

Op

era

tin

g U

nd

erg

rou

nd

Min

e D

ep

th (

m)

Typical Range

Creighton

Crean Hill

Levack

Garson

Falconbridge

Inco Sudbury

McCreedy East

Average and

minimum/maximum

(Inco Sudbury, 1998)

6


New CaledoniaNew Caledonia

•• Like Sudbury, Like Sudbury,

rich ore mined rich ore mined

first, but now first, but now

at considerably at considerably

lower gradeslower grades

•• Existing and Existing and

future projects future projects

based on large, based on large,

low grade oreslow grade ores

0

1

2

3

4

5

6

7

8

9

10

11

12

13

1870 1885 1900 1915 1930 1945 1960 1975 1990 2005

Nic

ke

l O

re G

rad

e (

%N

i)


AustraliaAustralia’’s Nickels Nickel

0

2

4

6

8

10

1965 1975 1985 1995 2005

Ore

Gra

de (

%N

i)

0

20

40

60

80

100

Op

en

Cu

t O

re (

%o

re)

%Ni

Open Cut Ore

(%ore)

1965 1975 1985 1995 2005

0

5

10

15

20

25

30

Ec

on

om

ic &

Su

b-E

co

no

mic

Nic

ke

l R

eso

urc

es (

Mt

Ni)Economic Resources

Sub-Economic Resources

?? ??Disseminated &Laterite oresincluded in

economic resources

7


AustraliaAustralia’’s Nickel: Ore Typess Nickel: Ore Types

0

30

60

90

120

150

180

210

1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003

Nic

kel

by O

re T

yp

e (

kt

Ni)

Laterite

Laterite

Sulfide

Sulfide

Kambalda

Greenvale

Mt Keith

Murrin Murrin


AustraliaAustralia’’s Nickel: Kambaldas Nickel: Kambalda

0

0.4

0.8

1.2

1.6

2

2.4

1965 1970 1975 1980 1985 1990 1995 2000 2005

Nic

ke

l P

rod

uc

tio

n-R

eso

urc

es (

Mt

Ni)

0

0.8

1.6

2.4

3.2

4

4.8O

re M

ille

d (

Mt)

/ O

re G

rad

e (

%N

i)Cumulative Production (Mt Ni)

Cumulative Production + Remaining Resources (Mt Ni)

Ore Grade (as milled) (%Ni)

Ore Milled (Mt)

8


Major Nickel MinersMajor Nickel Miners

•• Vale LtdVale Ltd –– The Big BrazilianThe Big Brazilian

–– through takeover of Inco Ltd (major Ni sulfide in through takeover of Inco Ltd (major Ni sulfide in

Ontario), plus Ni laterites in Pacific (New Cal., Indo.)Ontario), plus Ni laterites in Pacific (New Cal., Indo.)

•• BHP BillitonBHP Billiton –– The Big AustralianThe Big Australian

–– takeover of WMC Ltd (major Ni sulfide in WA), plus takeover of WMC Ltd (major Ni sulfide in WA), plus

Ravensthorpe Ni laterite (WA; now First Quantum)Ravensthorpe Ni laterite (WA; now First Quantum)

•• Xstrata LtdXstrata Ltd –– The Big Cheese (Swiss/SA)The Big Cheese (Swiss/SA)

–– takeover of Falconbridge Ltd (major Ni sulfide in takeover of Falconbridge Ltd (major Ni sulfide in

Ontario), interest in Koniambo Ni lat., & AustraliaOntario), interest in Koniambo Ni lat., & Australia

•• Eramet Ltd/SLNEramet Ltd/SLN –– The Big FrenchmenThe Big Frenchmen–– mainly Ni laterite mines, New Caledoniamainly Ni laterite mines, New Caledonia


Nickel Sulfide Miners (2008)Nickel Sulfide Miners (2008)

9


Nickel Laterite Miners (2008)Nickel Laterite Miners (2008)


Cumulative Global Ni Prod. & Res.Cumulative Global Ni Prod. & Res.

10


Enviro. Sustainability Costs of Ni ?Enviro. Sustainability Costs of Ni ?

•• Given the continuing demand for Ni, and Given the continuing demand for Ni, and

abundance of resources, what are the abundance of resources, what are the

‘‘environmental sustainabilityenvironmental sustainability’’ costs of Ni ?costs of Ni ?

–– energy, water and greenhouse costs of sulfide energy, water and greenhouse costs of sulfide

versus laterite Niversus laterite Ni

•• Since Ni mining is dominated by a handful Since Ni mining is dominated by a handful

of major mining companies, most of which of major mining companies, most of which

report on their sustainability performance, report on their sustainability performance,

it is possible to analyse Ni costsit is possible to analyse Ni costs


Ni Laterite Mining, New CaledoniaNi Laterite Mining, New Caledonia

11


Results : Energy & GreenhouseResults : Energy & Greenhouse

0

100

200

300

400

500

0 1 2 3 4

Ore Grade (%Ni±Cu±Co)

GJ/t

meta

l

Inco Sudbury

Thompson

Murrin Murrin

Sorowako

Mt Keith

Leinster

Kambalda

Laterite Projects

Sulphide Projects

0

7

14

21

28

35

0 1 2 3 4

Ore Grade (%Ni±Cu±Co)t

CO

2/t

me

tal

Inco Sudbury

Thompson

Murrin Murrin

Sorowako

Mt Keith

Leinster

Kambalda

Doniambo

Laterite

Sulphide


Results : Energy Results : Energy VV GreenhouseGreenhouse

0

10

20

30

40

50

0 100 200 300 400 500 600 700

GJ/t metal

t C

O2/t

me

tal

Inco Sudbury

Thompson

Murrin Murrin

Sorowako

WMC Total

Yabulu

Laterite ProjectsSulphide Projects

12


Trends v Time: Kalgoorlie Ni SmelterTrends v Time: Kalgoorlie Ni Smelter

•• WMC Resources WMC Resources

reported data on reported data on

emissions, emissions,

energy, water energy, water

for a decadefor a decade

•• Kalgoorlie nickel Kalgoorlie nickel

smelter showed smelter showed

longlong--term trend term trend

of declining unit of declining unit

emissionsemissions

0

1

2

3

4

5

6

1991 1993 1995 1997 1999 2001 2003 2005

Em

issio

ns In

ten

sit

y (

t S

O2/t

Ni;

t C

O2/t

Ni)

0

12

24

36

48

60

72

En

erg

y In

ten

sit

y (

GJ/t

Ni)

Sulfur Dioxide (t SO2/t Ni)

Energy Intensity

(GJ/t Ni)

Greenhouse Gases

(t CO2/t Ni)


Ni Production: Key Ni Production: Key MegaMega--TrendsTrends

•• Major shift from sulfide to lateritesMajor shift from sulfide to laterites

•• Declining ore gradesDeclining ore grades

–– also need to consider ore quality & impuritiesalso need to consider ore quality & impurities

•• Increasing mine depth for sulfidesIncreasing mine depth for sulfides

•• Environmental constraints Environmental constraints –– energy, water, energy, water,

COCO22 and SOand SO22 emissions, mine wastes, emissions, mine wastes, ……

•• Sources of new Ni production increasingly Sources of new Ni production increasingly

in developing world, especially tropics in developing world, especially tropics ––

including environmentally sensitive areasincluding environmentally sensitive areas

13


Future Thinking: eg. BolidenFuture Thinking: eg. Boliden

•• A major future trend will have to be A major future trend will have to be

efficient recycling technology & systemsefficient recycling technology & systems

•• EgEg’’s include computers & s include computers & ‘‘eWasteeWaste’’, Pt in , Pt in

cars, Li batteries, urban infrastructure cars, Li batteries, urban infrastructure ……

Boliden, 2007, Sustainability Report.


Implications & NickelImplications & Nickel’’s Future ?s Future ?

•• Nickel will continue to be a critical metal in Nickel will continue to be a critical metal in

infrastructure infrastructure (no real alternatives (no real alternatives ……))

•• Need for improved sustainability reportingNeed for improved sustainability reporting

•• Although there are relatively abundant Although there are relatively abundant

resources compared to consumption:resources compared to consumption:

–– most Ni is in lateritic oresmost Ni is in lateritic ores

–– most new Ni mines are lateritemost new Ni mines are laterite

–– Ni from laterites is clearly more environmentally Ni from laterites is clearly more environmentally

costly than sulfidescostly than sulfides

•• Env. costs for Ni will grow rapidly in futureEnv. costs for Ni will grow rapidly in future

14


Acknowledgements / ReferencesAcknowledgements / References

•• Mineral Policy Institute (MPI)Mineral Policy Institute (MPI)

•• Numerous Colleagues in mining circles, Numerous Colleagues in mining circles,

Institute for Sustainable Futures @ UTS, Institute for Sustainable Futures @ UTS,

CSIRO Minerals Futures Research ClusterCSIRO Minerals Futures Research Cluster

•• Lori Janower (Manitoba Geol Survey), Bill Lori Janower (Manitoba Geol Survey), Bill

McCutcheon (NRC, Ottawa)McCutcheon (NRC, Ottawa)

•• Numerous mining companies for info.Numerous mining companies for info.

•• Informa for the invitation & opportunityInforma for the invitation & opportunity

All work is in various papers, just email me All work is in various papers, just email me ☺☺☺☺☺☺☺☺


The Hard Sustainability Challenge Remains The Hard Sustainability Challenge Remains ……

nickel laterite v sulfide: the hard sustainability

Documents