Port Pirie redevelopment, Australia
Name of the Project
Port Pirie redevelopment.
Location
The project is located on the eastern shore of the Upper Spencer Gulf, in South Australia, about 230 km north of Adelaide.
Client
Nyrstar.
Project Description
The redevelopment of the 127-year-old Port Pirie smelter into an advanced metals recovery and refining facility will allow for the rest of the Port Pirie site to be used at full capacity.
The project involves the conversion of the current operations into an advanced metal recovery and refining facility, enabling the processing of a wider range of high-margin feed materials, including internal zinc smelter residues and concentrates, which Nyrstar expects to account for about 50% of feed material requirements.
The increased operating flexibility of the smelter after redevelopment is expected to create a fundamentally different operating and business model.
The key aspects of the Port Pirie redevelopment include the replacement of the existing sinter plant with a top submerged lance (TSL) plant and the existing sulphuric acid plant with a new plant that has greater capacity and upgraded technology.
The redevelopment will also reduce the environmental footprint of the existing smelter, providing a step change reduction in airborne metal and dust emissions.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Value
Following a review of the project in February 2017, the expected project cost to complete the redevelopment is estimated at A$660-million.
Duration
Hot commissioning was scheduled for the third quarter of 2017.
Latest Developments
Hot commissioning started at the end of September. The first feed of the TSL furnace is expected this month.
In February, Nyrstar undertook a detailed review of the project to ensure that the scope, flowsheet and commissioning would provide Port Pirie with an industry-leading performance.
The review identified that rework was required to the fabrication of key module components, delaying the start of hot commissioning. Also as part of the review, several technical engineering improvements were identified to unlock additional value.
In the first half of 2017, the Port Pirie redevelopment focused on completing the rework of modules and enhancing the slag tapping arrangements on the TSL furnace, while completing the modular construction and progressing the commissioning of the new infrastructure and related control systems.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Following the review in early 2017, the TSL furnace hot commissioning was postponed by six months to September.
The total estimated cost to complete the project remains in line with the revised guidance of about A$660 million provided in February 2017.
Contact Details for Project Information
Nyrstar group manager: investor relations Anthony Simms, tel +41 44 745 8157 or email anthony.simms@nyrstar.com.
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