P .T. Inco (Indonesia) Plant Expansion

"PT International Nickel Indonesia, a subsidiary of Inco Limited, mines and processes nickel laterite ores for the supply of nickel matte, primarily to the Japanese market. It has large ore reserves and a substantial portion of its energy requirement is supplied from its own hydro-electric plant. Since the early 1980s, the company has increased its production level and has dramatically reduced its unit costs. Projects are in progress to further decrease costs and recently a major expansion - 31% increase in nominal capacity - has been undertaken, consistent with marketing opportunity in Japan. The expansion project, which has a low capital cost per unit of production, is outlined in this paper.IntroductionPT Inco is a fully integrated mining and smelting facility located in Indonesia on the island of Sulawesi, and is based on a very large, world class nickel laterite orebody located 60 km inland from the Gulf of Bone. Construction of a single furnace line plant started in 1973. Complete supporting infrastructure of townsite, hospital, schools, shopping centres, road systems, and an airport, all had to be built. Prior to completing the first phase, the decision to expand the plant to a three kiln-furnace line was made. A major factor in the decision was the ability to develop the hydroelectric potential of the nearby Larona River. This involved construction of a 30 m high dam, and a 7 km surface canal to the generating station. The penstocks drop 150m to three 55 Mw turbines. The power generated is sufficient to supply the entire electrical load for the complete smelting complex and town site. The unique capability to supply the high smelting energy requirements for a lateritic nickel ore by fully captive hydro power, has, over the past decade insulated PT Inco from the large upward swings in oil prices suffered by other lateritic nickel producers.Wet ore is first partially dried to 20% moisture in two co-currently fired rotary driers, screened on an internal trommel, and delivered to two dry ore storage buildings. The partially dried ore is calcined at 750°C and partially reduced in three large 100 m by 5.5 m kilns. Reduction is accomplished by lancing bunker C oil onto the ore bed at the discharge end of the kiln. The kilns are equipped with five air pipes with onboard blowers to gradually bum the combustible gases generated by the lance oil. The kilns were also originally equipped with two side burners to supply additional heat close to the feed end of the kiln. Calcined ore is transferred by 20 ton refractory lined containers to the furnace feed bins at the top of the smelter. Smelting is carried out in three 18 m diameter furnaces powered by 45 Mw transformers. Slag is skimmed at 1550°C through water cooled breast plates and removed to the slag dump by Haulmaster Carriers. Matte of 25% Ni, 1O% S, 65% Fe is tapped at 1350°C into the converter aisle. The iron is slagged in converters to produce a nickel sulphide matte at 80% Ni. Three rotary Kaldo converters were initially installed. The product matte is granulated, dried, and shipped in returnable rubber bags to Japan. Most of the matte is fluid-bed roasted to nickel oxide and then directly reduced in a second reducing fluid bed reactor at our facilities in Japan.The smelting complex was designed to smelt two million tonnes of dry ore per year, equivalent to 34 000 tonne nickel production at an ore grade of 2% Ni. The cost of the entire project including working capital was $900 million."