Examination of Laterite Ferronickel Projects Using Pyrometallurgy Route in the Long Term

"Along the process of defining the fundamentals of a ferronickel project, several questions require proper answers from the very beginning such as the size and characteristics of the laterite deposit (oxide or silicate), the mineralogical variability, and the selection of the most valuable process route. In general, these elements will be defined along the progress of the exploration and feasibility studies, and definitive engineering. Also, from the very preliminary estimates, three questions are very common: what should be the plant capacity (annual tonnes of contained nickel), what will be the probable capital required (CAPEX), and what will be the estimated timeline (schedule) between the initial stage, say the feasibility study and the plant start-up and ramp-up to designed capacity. The accuracy of the capital cost estimates also progresses along the different stages of development from ±50% at the Preliminary Economic Assessment (PEA) stage down to ±5% for the Detailed Engineering and Construction stage. These accuracies of estimates have been, in some ways, accepted by the mining community and investors. The industry accepted benchmark for ferronickel projects in terms of CAPEX are then in the order of US$50,000 per tonne of nickel contained in the FeNi product. In this paper, the authors analyze in some details three ferronickel projects for lateritic ores that have selected the Rotary Kiln - Electric Furnace (RKEF) as the suitable technological route and have started production in the period 2006–2016. Some key aspects of the ferronickel projects are examined: 1) size and type of deposit; 2) flowsheet selection; 3) evolution of capital cost as a function of capacity from the feasibility stage to construction; 4) comparison between planned production scale and actual ramp up; 5) estimated capital expenditure (CAPEX) compared with actual figures; 6) nickel price evolution and timing of the approval for the project to proceed to construction and production start-up. The objective of this paper is to identify key elements that should be addressed in future projects and that are proposed as benchmark figures for similar projects."