PERTH (miningweekly.com) – A scoping study into the production of high purity alumina (HPA) as a co-product at the Townsville Energy Chemicals Hub (TECH project), in northern Queensland, has demonstrated that the project could become a one-stop shop for key battery chemicals, owner Pure Minerals said on Friday.
A December prefeasibility study (PFS) into the TECH project identified the production of HPA as a key value-add opportunity, and using a conventional process flowsheet, the aluminium hydroxide co-product could be upgraded to produce a high value HPA.
The PFS estimated that the TECH project would produce some 26 393 t/y of nickel sulphide, 3 097 t/y of cobalt sulphide, 327 556 t/y of hematite, 20 079 t/y of magnesium and 9 920 t/y of aluminium oxide, with construction costs estimated at some $300-million.
The TECH project is expected to have a mine life of some 30 years.
The HPA scoping study assessed the production of HPA on a standalone basis, using aluminium hydroxide as a feedstock, and estimated that over plant design life of 25 years, the TECH operation could produce 4 007 t/y of final HPA product, at a recovery rate of 77.4%.
Capital cost for the HPA plant have been estimated at $59.8-million, with the HPA division expected to generate annual revenues of A$147.3-million and annual earnings before interest, taxes, depreciation and amortization of A$129.2-million.
The HPA operation is estimated to have a post-tax net present value of A$849-million, and an internal rate of return of 80%.
“The TECH project is becoming a one-stop shop for battery manufacturers. Nickel sulphate, cobalt sulphate and HPA are key chemicals required by the battery industry and our potential ability to supply meaningful quantities of all these products will increase our appeal as a supplier to battery manufacturers,” Pure Minerals MD John Downie said.
“The HPA market is evolving and the TECH project has two key advantages against other potential suppliers. Firstly by starting with an advanced intermediate product in the form of aluminium hydroxide, our capital and operating costs are significantly lower.
“Secondly, the TECH project will be protected from any significant price volatility in the HPA market due to revenue derived from its primary product streams.”
The scoping study results will now be combined with the PFS results.