Direct Nickel completes successful nickel production demo
Monday, February 17 2014 - 02:22 PM WIB
ASX-listed Direct Nickel, announced on Monday the formal completion of its successful Nickel Production Demonstration Program, and the delivery of a major step in the company?s strategy to become a leading global nickel producer.
Significantly, the completion of the program positions DNi for its first commercial plant and underlines its objective to become a global nickel producer using the proprietary DNi Process to access and process laterite resources.
In addition to a significantly lower CAPEX profile, the DNi Process offers processing costs estimated to be as competitive as US$2.00 to 3.00/lb of Ni (before by product credits) for some markets such as Indonesia.
During 2013, DNi built and operated a one ton per day Test Plant at the CSIRO?s Australian Minerals Research Centre in Waterford, Western Australia. The test plant operation was completed successfully in December 2013 after 12 months of operation, and the Demonstration Program formally concluded with the delivery of the program?s validation report.
The DNi Process is an atmospheric hydrometallurgical process able to treat most nickel laterite ores to produce a number of final saleable products. The key to the process is the use of nitric acid as the leaching agent and the subsequent use of a patented recovery and recycling process returning +95% of the nitric acid for re-use.
Following the success of the Nickel Production Demonstration Program at the DNi Test Plant, a Feasibility Study is underway for a DNi Process Plant to produce up to 10-20,000 tonnes per annum of nickel in concentrate. For this commercial plant, Direct Nickel has partnered with Indonesia?s state owned mining firm PT ANTAM (Persero) Tbk.
When operational, the plant will be the first commercial processing plant to use the revolutionary DNi processing technology and will be established at ANTAM?s Buli operation in Halmahera.
Following the success of the Demonstration Program, Direct Nickel is committed to the commercialisation of its new process technology.
Direct Nickel CEO Russell Debney said the Company?s strategy to become a leading global nickel producer had progressed materially as a result of the work in 2012-2013 at the DNi Test Pant.
?The completion of the Nickel Production Demonstration Program positions DNi for our first commercial plant. As importantly, its success will increase awareness of the availability of a commercially viable solution in the DNi Process to access and process nickel laterite resources,? Debney said.
Among other end-user groups, Direct Nickel is targeting the stainless steel sector as the cost and production efficiencies associated with the DNI Process have the potential to reduce stainless steel pricing globally.
Debney said that Direct Nickel?s decision to proceed with a Feasibility Study with its partner PT ANTAM was a clear indication of both parties? confidence in the Demonstration Program, especially as PT ANTAM had contributed ore to the Test Plant for assessment during 2013.
?Some of the ore for this demonstration was sourced from ANTAM?s Buli operation. For the ores tested, the Demonstration Program has shown the DNi Process has very high recoveries of nickel, and other valuable by-products such as cobalt, hematite and magnesium oxide,?Debney said.
The DNi Process is expected to be very competitive in the Indonesian setting, as well as offering low environmental impact due to the recycling of nitric acid used in the process.
Additionally, by developing a DNi Process Plant in Indonesia, Direct Nickel is positioned to take advantage of the Indonesia ore export ban which took effect in January 2014 and which now requires export markets such as China?s massive steel sector to buy processed nickel concentrate instead of importing direct shipping ore.
Editing by Johannes Simbolon