New technology for production of
alumina from alternative feedstock
Ivar S. Fossum, CEO, Nordic Mining ASA
Mona Schanche, Exploration Manager, Nordic Mining ASA
20th Bauxite & Alumina Conference
Miami, 26th of February 2014
Exploration and production of high-end minerals and metals
Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | [email protected]
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as to the accuracy of the information contained in this document.
Some of the statements made in this document contain forward-looking statements.
To the extent permitted by law, no representation or warranty is given, and nothing in this
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business.
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Content of presentation
1. About Nordic Mining ASA
2. Alternative alumina resources
- Non-bauxite resources
- Why is anorthosite potentially a new alumina resource?
- Drivers for seeking new resources
3. Alumina from anorthosite
- The Sogn-Voss anorthosite massif in Norway
- A review of history
4. A new technology for production of alumina
- Process concept
- Project development
- Initial process layout
- Key financial figures
- Technology advantages
5. Summary and way forward
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1. About Nordic Mining ASA
Nickel, Copper, Platinum, Palladium
- Value potential in strategic minerals
Reinfjord
Nordic Ocean Resources AS (85%)
Lithium
Titanium
Nordic Rutile AS
Quartz
Nordic Quartz AS
Keliber Oy (38%)
Responding to the increasing mineral deficit in Europe
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1. About Nordic Mining ASA
- Solid shareholder structure
Largest shareholders*
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Top 20 shareholders
NORDNET BANK AB
SKAGEN VEKST
MP PENSJON PK
NORDEA BANK PLC FINLAND
FINNISH INDUSTRY INVESTMENT LTD.
DYBVAD CONSULTING AS
VERDIPAPIRFONDET DNB
VPF NORDEA SMB
MAGIL AS
DANSKE BANK A/S
NORDNET PENSJONSFORSIKRING
SNATI AS
FRANK ROBERT SUNDE
VICAMA AS
CITIBANK NA S/H POHJOLA BANK
OVE KLUNGLAND HOLDING NIL
OLE KRISTIAN GUNDERSEN STOKKEN
LITHINON AS
AUDSTEIN DYBVAD
FEMCON AS
Total top 20
Other
Total
Share overview and share price development**
Shares
22 444 800
17 428 114
14 319 952
9 351 596
8 358 949
7 906 148
6 660 093
6 553 929
4 700 000
4 412 346
4 019 771
4 001 219
3 923 977
3 800 000
3 457 248
3 439 281
2 615 000
2 500 000
2 226 846
2 089 280
134 208 549
146 296 256
280 504 805
Percent
8,0 %
6,2 %
5,1 %
3,3 %
3,0 %
2,8 %
2,4 %
2,3 %
1,7 %
1,6 %
1,4 %
1,4 %
1,4 %
1,4 %
1,2 %
1,2 %
0,9 %
0,9 %
0,8 %
0,7 %
47,8 %
52,1 %
100,0%
Share overview
Stock symbol
Stock exchange
Number of issued shares
Owned by Norwegian shareholders
Owned by international shareholders
Owned by board members and management
Options
- of which owned by management
Fully diluted number of shares
Current share price (NOK)
Market capitalisation (NOKm)
NOM
Oslo Axess
280 504 805
80%
20%
2.5%
4 850 000
2 400 000
285 654 805
1.15
323
Share price development last 12 months
NOK
Robust and stable institutional shareholding
Note *: Shareholder overview as of 17 February 2014
Note **: Share price as of 17 February 2014
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2. Alternative alumina resources
- Al-rich rock types
Aluminum is found in high concentrations
in certain rock and mineral types:
• Bauxite
(30-60% Al2O3)
• Anorthosite
(24-32 % Al2O3)
• Aluminous clay (Kaolin)
(25-30 % Al2O3)
• Nepheline Syenite
(17-23 % Al2O3)
• Fly ash
(30 % Al2O3)
• Leucite
(20-22 % Al2O3)
2. Alternative alumina resources
- Why is anorthosite potentially a new alumina resource?
An igneous rock with unique qualities:
• A monomineralic rock consisting almost
entirely of plagioclase feldspar
• Minimal content of other contaminating minerals
• A high content of alumina (~30%),
calcium oxide (~15%) and silicon dioxide (~50%)
• A rock that is ready soluble in acid, making the
chemical components easy to access
• Present in large uniform plutons in certain
regions in the world including Canada,
Greenland, Norway, Finland, Sweden, India
Anorthosite, also called moon rock, is
a common rock on the surface of the moon
Plagioclase feldspar (anorthite: CaAl2Si2O8)
2. Alternative alumina resources
- Possible drivers for seeking new resources
•
Existing resources becoming more low
grade and more inaccessible
•
Environmental challenges with waste rock
and red mud tailings
•
Availability becoming more limited
•
Significant CO2 foot print for the current
production chain
•
Improved logistics by sourcing from
local feedstock
Bauxite mine and alumina processing plant in Australia (Castaneda)
2. Alternative alumina resources
- The bayer process - environmental impact
8-20 tonnes of CO2 per ton aluminium produced
3. Alumina from anorthosite
- Sogn-Voss anorthosite massif of 700km2 in Norway
Source: NGU
3. Alumina from anorthosite
- Anorthosite is mined in Norway as stone wool feedstock
Chemical composition:
SiO2
47-48 %
Al2O3
30-31 %
CaO
14-15 %
Na2O
Fe2O3
2-3
%
1 %
•
Homogenous anorthosite massif, low level of contaminants
•
Calcium rich and acid soluble (high anorthite content)
•
Estimated to about 500 million tones of anorthosite
of high quality.
3. Alumina from anorthosite
- A brief history outline
• 1976-1987: “The Anortal project” – a technology for producing alumina from
anorthosite was developed in Norway
• Challenges: High energy and acid consumption at high capital cost
• Potentially deposition of large quantities of CaSiO3
• In parallel, technologies were developed in Canada and US based on the acid
route for anorthosite and Al-rich clay processing
The Anortal Process of 1970-ties
4. A new technology for alumina production
- coping with previous challenges
•
New technology developed by Nordic Mining and Institute for Energy Technology (IFE)
•
Builds on previous achievements and utilize new innovations in order to develop an improved
production method
•
The process is based on a acid solution and sparging technology with integrated use of CO2
•
“The CO2 Utilization step” is a innovative process step for production of Precipitated Calcium
Carbonate (PCC) and enhanced acid recovery
•
The process concept includes production of commercial by-products from PCC and silica
High quality PCC produced at IFE
4. A new technology for alumina production
- Basic process concept
Silica filler material
(1.7 Mt/y)
Anorthosite
(3 Mt/y)
Patent pending
Smelter grade Al
Al2O3
High purity Al
(1 Mt/y)
CO2
(0.5 Mt/y)
CaCO3
PCC
(1 Mt/y)
Deposition for CO2 storage
4. A new technology for alumina production
- A three stage approach
4. A new technology for alumina production
-Nordic Mining/IFE’s research initiative
2014 - onwards
Integration of energy and acid recovery,
optimization and proof of concept at pilot scale
IFE - NM
2012
Advances in Alumina production from Anorthosite
with Integrated CO2 Storage
IFE – GASSNOVA - NM
IFE scientists Asunción Aranda and
Johann Mastin
2010
Intermediate project - Enhancement of
carbonisation process and sparging technology
IFE – GASSNOVA - NM
2009
Feasibility study – Direct carbonatization
NM-STATOIL – GASSNOVA - IFE
4. A new technology for alumina production
- Development work 2012-2013









WP1: Leaching optimization
WP2: Analysis of the acid recovery system
WP3: Develop Al2O3 technological alternative
WP4: Separation and characterization of by-products
WP5: Pilot test under optimized conditions
WP6: Mass & Energy calculations
WP7: Process design and conceptual engineering
WP8: Techno-economic evaluation
2014: Patent filed
Head researcher, Asunción Aranda, at Pilot plant,
Herøya industry park, Porsgrunn
4. A new technology for alumina production
- Conceptual engineering and Techno-economic evaluation
Anorthosite
preparation
Leaching
Al2O3
production
Silica production
CO2 utilization
4. A new technology for alumina production
- key financial figures for production of approx. 1 mill ton of alumina
NPV Case 1 (25 years, 7,5%):
100M USD
- Excluding sales of by products
NPV Case 2 (25 years, 7,5%):
450M USD
- Including sales of by products (220’ t/y silica, 100’ t/y PCC)
CAPEX:
600M USD
Operational cost:
190M USD per year
Conclusion: Future work needs to focus on improvements in acid and energy recovery, and
production of saleable by-products
4. A new technology for alumina production
- Advantages of the new technology
•
Availability of a new alumina source
•
Sourcing from local mineral resources
•
Potential for better infrastructure/less transportation
•
Moderate process conditions (2-5 atm and 100-160ºC)
•
Potentially close to total use of the mineral resource
•
Production of commercial by-products
•
Mining with little waste, processing with less tailings
•
Reduced CO2 footprint, (consumption of 0.5 ton of CO2 per ton of alumina)
4. Summary and way forward
•
Positive NPV with conservative assumptions, and potential for improvements
•
Main process costs are linked to energy and acid consumption
•
The economy of the process improves significantly by addition of moderate sales of PCC
•
The process development is still in an early phase
•
Optimization and proof of concept at pilot scale
•
Future effort will focus on integration of energy and acid recovery, and production of larger
quantities of alumina and by-products
Thank you for your attention!
www.nordicmining.com
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