Sofremines-François Colette, copper métallurgical expert page 1 During our mission, we experienced a number of difficulties due to transportation problems and to the attitude of Balkhasmed management staff .We did not feel to be welcome on the site of the complex. A great deal of time was lost in unsuccessful attempts to arrange meetings with managers, walking through sections of the plant without appropriate assistance nor presence of operations supervisory personnel. We met only one section manager and the director of the copper transformation plant. In total, we spent two and half days on the site of the complex. The general manager does not seem to agree with the privatisation of the company nor does he seem to agree with the objective of involving of a foreign investor. Despite this general impression, the director designated by Balkhashmed to be responsible for the privatisation process, gave us his support and all the information that we collected. The following descriptions and the flow sheet of the metallurgical process have been elaborated. 1. CONCENTRATE SECTION METALLURGICAL EXPERT'S MISSION TO BALKHASHMED This section includes: The unloading of rail wagons delivering concentrates to the plant. The storage areas of these concentrates before the charge preparation. The filtration of Balkhashmed concentrates and, sometimes, of the Mongolian concentrates (In winter, Mongolian concentrates are frozen and they have to be re-pulped). This filtration is done by vacuum disk filters. Two drying rotary furnaces reduce concentrate moisture from 12-14 % to 4 %. STORAGE AND CHARGE PREPARATION AREAS FOR THE SMELTERS. This section is also in charge of the storage of external copper raw materials (copper scrap, blister copper, waste..), coal (klinker?) and fluxes (pyrites, silica, lime, etc.). STRUCTURE OF COPPER SUPPLIES In 1994, more than ten sorts of concentrate were handled in this section. The distribution of these sources is the following: Sofremines-François Colette, copper métallurgical expert Balkhashmed 23.7%; Kazak concentrate 15.4%; page 2 Kazak blister copper 15.0%; Mongolian concentrate 36.7%; Chilian concentrate 7.2%; other sources (nominal, balance). 2. SMELTING SECTIONS 2.1. VANJUKOV FURNACE The Vanjukov or "smelt-in-melt" process, belongs to the "bath smelting" family of copper smelting processes. In this family, reactions occur in the molten bath of the furnace. Concentrates and fluxes (plus coal and pyrites), are charged into the bath of the fixed hearth furnace. The latter is equipped with tuyeres through which oxygen enriched air is injected into the slag layer. This process has generally been applied to low grade concentrates (10-15% Cu); it seems to be well suited for high slag forming, copper smelting operations. The operation is almost autogenous in energy and the gases generated are suitable for sulphuric acid production. The productivity per square meter of furnace is forty times higher than in a conventional reverbatory smelter. The capacity of this Vanjukov furnace is 53 t/h of Cu concentrates (12.5% Cu) or 6.5 t cu/h. At an 85% utilisation rate, this furnace can process 400 000t of concentrates/year which corresponds to a production of 44 000 t Cu, in matte. Vanjukov data operating data: concentrates t Cu (a) % Cu matte produced t Cu (b) % Cu slags t Cu % Cu Cu entrained in gases t Cu balance t Cu yield mattes % b/a hours operation t Cu/hour operation % operating hours capacity 330 days 85% utilisation rate 1991 28 137 11.6% 25 907 43.5% 1 647 1.26% 189 394 92.1% 4 318 6.00 49.3% 44 000 1992 9 307 13.3% 8 480 43.9% 360 1.72% 106 361 91.1% 1 424 5.96 16.3% 44 000 1993 1994 (6 months) 40 700 11 701 15.0% 12.3% 37 434 10 627 44.9% 42.9% 1 580 773 0.83% 1.20% 390 131 1 296 170 92.0% 90.8% 6 080 1 850 6.16 5.74 69.4% 42.2% 44 000 44 000 comments: High Cu grade in the slag, except in 1993. In a conventional reverbatory furnace, the Cu content of the slag is normally 0.68 %. Sofremines-François Colette, copper métallurgical expert page 3 The utilisation rate of the furnace is low, due to the fact that the sulphuric acid plant is not running. The copper recovery rate would be higher if the sulfuric acid plant was more effective and the furnace utilisation rate was higher. Sofremines-François Colette, copper métallurgical expert 2.2. page 4 REVERBATORY SMELTERS Reverbatory smelting is still used, despite its high energy consumption. In Balkhashmed, the reverbatory smelters supplied 70 % of copper in matte. lt is a conventional design without major improvement. Two identical furnaces are used in this section. Reverbatory operating Data total feed material t Cu (a) % Cu matte produced t Cu (b) % Cu slag t Cu % Cu ash t Cu % Cu Cu entrained in gases t Cu balance t Cu balance % of total feed fresh feed t Cu % Cu recycled feed t Cu % Cu yield mattes % b/a hours operation t Cu/hour operation % utilisation capacity 330 days 1991 70 023 10.0% 66 567 26.4% 2 258 0.63% 286 6.35% 1 213 -301 -0.4% 65 086 14.20% 4 937 2.04% 95.1% 4 318 1992 68 912 10.9% 64 860 30.8% 2 053 0.77% 373 5.40% 770 856 1.2% 64 789 15.00% 4 125 2.90% 94.1% 1 424 45.55 16.3% 356 400 1993 1994 (6 months) 42 490 90 261 11.7% 11.7% 40 776 85 799 27.5% 29.2% 1 432 2 645 0.61% 0.63% 55 198 6.10% 5.70% 226 664 1 955 0.0% 1.1% 40 081 85 799 16.70% 15.80% 2 409 4 462 1.90% 1.90% 96.0% 95.1% 1 850 6 080 22.04 14.11 42.2% 69.4% 356 400 356 400 Comments Low Cu% slag is recycled in this furnace after concentration in the ore concentration plant (line N°7). The reported yields (98%) are too high, in our opinion. In this type of furnace, yields are of the order of 93 %. The utilisation rates of these two furnaces are correct. 2.3. CONVERTERS Three converters are in operation out of five converters installed. They operate according to normal and classical procedures. They are fed by the Vanjukov and reverbatory matte furnaces. The gas recovery system is not operative. A great amount of SO2 gases is released into the atmosphere, in this section of the metallurgical complex. Sofremines-François Colette, copper métallurgical expert page 5 Blister Balance (from the conentrate preparation plant to blister copper stage) concentrates Balkhashmed t Cu % Cu external concentrates t Cu % Cu total concentrates t Cu % Cu copper cement (leaching) t Cu % Cu other supplies t Cu (scrap, slags, waste etc.) % Cu total copper supply t Cu % Cu Vanjukov reverbatories total total losses t Cu of which Vanjukov slags Cu entrained in gases Vanjukov balance Cu Vanjukov reverberatory slags ash reverbatories Cu entrained in gases reverbatories balance Cu reverbatories balance blister blister copper produced % Cu rate of recovery % 1991 36 398 14.8% 49 501 16.9% 85 899 15.9% 3 108 37.90% 1 649 6.35% 90 656 15.82% 28 137 70 023 98 160 5 833 1 647 189 394 2 258 286 1 213 -301 147 84 823 98.75% 93.57% 1992 30 622 14.0% 69 680 19.7% 100 302 17.5% 3 505 25.50% 1 449 5.40% 105 256 17.17% 9 307 68 912 78 219 5 750 360 106 361 2 053 373 770 856 871 99 506 98.72% 94.54% 1993 1994 (6 months) 31 460 14 492 14.1% 14.1% 70 374 34 031 20.8% 26.6% 101 834 48 523 18.1% 21.0% 15 349 35.90% 1 538 825 5.70% 6.10% 118 721 49 348 18.81% 20.20% 40 700 11 701 90 261 42 490 130 961 54 191 5 031 2 704 1 580 773 390 131 1 296 170 2 645 1 432 198 55 664 226 955 1 -2 697 -84 113 690 46 644 98.80% 98.82% 95.76% 94.52% comments: Here as we already said, reported yields are certainly too high (this is due to the manner the materials are measured). A yield of about 93 % is normally reached. Material losses in the gases are not measured. We were told that concentrate feed, slags and dusts are measured and controlled (in tonnes and Cu %), but Cu losses in the gases are calculated by sub-traction, assuming 100% copper balance. In 1991, the percentage of Balkhashmed's concentrates in the feed was 40%, in 1992 29%, in 1993 26.5% and in 1994 29.4%. 2.4. DATA ON FLUXES total feed (a) dry tonnes of which pyrites of which other fluxes total fluxes (b) b/a % 1991 705 751 141858 2 360 144 218 20.43% 1992 749 031 124156 17 672 141 828 18.93% 1993 1994 (6 months) 763 757 321 660 94452 54685 54 300 31 657 148 752 86 342 19.48% 26.84% Sofremines-François Colette, copper métallurgical expert page 6 comments Important quantities of pyrites are fed to the Vanjukov and reverbatory matte furnaces. We do not know if these pyrites contain gold and silver and how much. Other fluxes are lime and silica. 2.5. PROCESS CONTROL All the furnaces used for matte and blister production are controlled from a central control room. All devices controlling the physical parameters (temperature, material flows, gas flows, oxygen and pressure) are installed. The dispatcher follows the process on video screens, which indicate, in real time, on flow sheets, the state and evolution of all process and operating parameters. The results of chemical analyses of the different outputs (matte, blister, slags), are communicated by phone every hour to the control room, by the central laboratory. Anode furnaces (thermal refining furnaces): There are three reverbatory furnaces in this section. These furnaces are fed by Balhkashmed's blister copper, blister copper from Kazakhstan and recycled copper products of the plant e.g.anodes, rejected cathodes and copper scrap. Due to the lack of wood used as reductant, they have had to suppress poling. Consequently, quality is reduced from 99.4% Cu to 94.1% Cu. The major impurities are Ni, Pb, As and Zn. Nickel grade is 3 % in the Kazak concentrates. Anode aspect is quite correct, they are flat and smooth. After quality control, 1.5% of the production is refused and recycled. lt is not possible, through the figures we received, to know the exact production capacity of these furnaces. For 300 000 t of refined copper per year, they have to produce 380 000 t of anodes. ln 1994,the utilisation rate of the three furnaces was 80 %, for a reported production of 132 000 tons of anodes. Anode furnaces data Balkhashmed blister t Cu external blister t Cu recycled anodes t Cu (a) rejected anodes (quality control) t Cu (b) other sources t Cu total copper supply (c) production of good anodes (d) anode recycling a/d % defective anodes b/c % rate of recovery % Balkhashmed blister % of total supply 1991 84 921 37 156 32 236 2 972 1 179 158 464 153 478 21.00% 1.88% 96.9% 53.6% 1992 99 506 27 013 28 581 2 911 8 457 166 468 161 686 17.68% 1.75% 97.1% 59.8% 1993 1994 (6 months) 113 620 46 644 20 921 7 781 33 102 11 233 2 654 935 6 492 1 146 176 789 67 739 171 065 65 997 19.35% 17.02% 1.50% 1.38% 96.8% 97.4% 64.3% 68.9% Sofremines-François Colette, copper métallurgical expert page 7 Comments: Despite good anode quality, recycled anodes range from between 21 and 17 %, as compared to a 14% planned figure. The quantity of Kazak blister supply, from Irtych rare metals plant near Ust Kamenogorsk, is seen to decrease from 37 156 t Cu in 1991, to an estimated 15 500 t Cu for 1994. 3. ELECTRO-REFINING For this section we were not given any written information. We only received verbal information. The production capacity of this plant is 300 000 t Cu per year. The starting sheets section is in good condition, the sheets are smooth and straight. The utilisation rate of the sheets produced is excellent, 95 %. Anode cycle is 21 days and cathode cycle 7 days. Current density is 213 A/m3 compared to a design value of 220 A/m3. Current efficiency is 92 % for a nominal value of 94 %. Electrolyte composition is: Cu 40-45 g/l, Ni 20-30 gr/1, As 10-20 gr/1, Sb 1-1.2 gr/1, H2S04 100-200 gr/1. The high grade of nickel is one of the problems that Balkhasmed have to solve. Nickel is eliminated, as of today, by bleeding toward the production section of copper sulphate. In general, the aspect of the cathodes is good, except for some defects on the bottom. These defects are due to the high level of slimes and can be eliminated simply by improving visual controls in this section. 70% of the production is MOK. The slimes which contain gold and silver, are treated in a plant for concentrating gold and silver residues. The copper residue is sent back to Balkhashmed and recycled in the metallurgical complex. A new plant to treat gold and silver concentrate residues, is presently being built for Balkhashmed, by Boliden Contech of Sweden. In 1995, the Boliden plant will be completed and the slimes will be treated by Balkhashmed, up to the stage of gold and silver doré. 4. ACID PLANT No visit, no informations and no management contact. Production in 1989 was 236 000 t. In 1994, they hope to produce 100 000 t of acid. Production has been affected by the decrease of copper production, and more importantly by the fact that traditional Sofremines-François Colette, copper métallurgical expert page 8 users (uranium leaching) have drastically reduced demand. This is creating great environmental problems in the area. To mitigate these problems, Balkhshmed have several projects. Two projects are to increase utilisation of sulphuric acid, by setting up: – a leaching plant for treating low grade copper ores and oxides (25 000t/year of acid) – an ammonium sulfate fertiliser plant. Another project is to improve the recovery of gases in the metallurgical plant, mainly in the converters area. 5. 5.1. STATE OF THE COMPLEX CONCENTRATE PREPARATION AND DRYING. The filtration and drying plant and equipments are in very bad state of maintenance. Balkhashmed have a project to replace the disk filters by ceramic filters. These filters are already on site but still in their containers. They have to be installed and put into service. The belt conveyors, the storage area equipement (reclaimers), show evidence of a lack of maintenance of some two or three years. 5.2. SMELTERS, CONVERTERS AND ANODE FURNACES Excepting some leaks of gases, the state of all the furnaces seems to be quite good and the dispatching room is well maintained. We believe that the main problem is a lack of maintenance of the building and in the gas recovery system. Balkhashmed plan to replace the heat exchanger of the Vanjukov furnace at a capital expense of 26 US$ million. 5.3. ELECTROREFINING. The maintenance schedule is to replace 15% of the cells each year. Our point of vue is that there is a maintenance backlog of three years, for the cells. The silicium converters are well maintained and the maintenance backlog for building is also about three years. 5.4. ACID PLANT This is the area of main concern for the immediate future. 5.5. TRANSFORMATION PLANT The copper transformation plant is under modernisation. Sofremines-François Colette, copper métallurgical expert 5.6. page 9 DUMP LEACHING Balkhashmed and a private american company, Earth Resources (ER), have set up a joint venture to recover and valuate copper from the Kounrad low grade and oxide ores. The ownership distribution of this JV is 60% Balkhasmed and 40% ER. ER is to provide technology, engineering skill and capital funds for the acquisition of plant and equipment. Balkhasmed is to provide only funds. The copper reserve in low grade ores is reportedly 112 300 t Cu at a grade of <0.5 % Cu. They intend to use the leach in dump process, with solvent extraction and electrowinning (SX/EW). The main design data are the following: Rate of recovery 63% Yearly production 5 000 t of electrowon copper Capacity 10 000 tons (due to the fact that the plant will operate only six months in the summer season). Acid consumption 5 tons per ton of refined copper produced. Dump capacity 2 000 000 t of ore. Four dumps will be used after the starting time. Acid consumption is important and if the cost of acid is valuated at market price, it means a cost of 0.30 US$/lb Cu. Operating costs in dump or heap leaching plants, vary between 0.15 US$/lb and 0.35US$/lb Cu. The profitabily of this JV will depend mainly on the acid cost and on the copper in are cost. This plant will consume 25 000 tons of sulfuric acid per year, but only in the summer season. Alternatively, Balkhashmed has treated in the past, this low grade ore with a dump-leach process, followed by copper cementation. Copper cement could be smelted into 94.5% Cu in a low cost shaft furnace, and fed to the anode furnaces of the plant, thereby contributing to the copper supply. 5.7. TRANSFORMATION PLANT This plant was built during the second world war with Russian second hand equipment. The equipments are used to produce pure copper, monel, brass and bronze products. They are able to produce a large range of transformed products in each sort of copper and copper alloys. The main products are strips, bars, wires and sheets. The production level depends on product specifications. It is around 40 000 t/year. At present, Balkhashmed lacks of inputs i.e. metals for production of alloys. Ni, Sn and Zn are all imported. Due to the non availability of hard currencies, imports are impossible today. Consequently Balkhashmed presently produces only copper transformed products. They are building a new plant with new and modern equipment. To Sofremines-François Colette, copper métallurgical expert page 10 complete this plant Balkhashmed need 30 US$ million in addition to the 100 US$ million that has already been invested. The main equipments in this new plant are: Two Austrian furnaces One russian furnace with continuous casting equipment A wire machine able to produce thin wire (minimum 0.15mm) Contirod installation, Enamel coating equipement for magnet wire. The production capacity will be between 70 000 t for rolled products (copper and copper alloy strips and bars), 40 000 t of wire bars and 7 000-8 000 t of magnet wire. They intend in this new plant to reduce the personnel from 1 300 people to 900 people. 6. CONCLUSIONS The major problem of this complex is the copper supply, in quantity and grade of concentrates, and blister. The structure of copper supplies in 1994 is shown on the table below: 1994 production level blister 92 000t Kazak blister nominal capacity level cathodes 132 000t blister 200 000t 15.0% cathodes 300 000t 6.6% Kazak concentrates 18.5% 15.4% 8.7% 6.7% Balkhasmed concentrates 28.4% 23.7% 13.3% 10.5% Kazak supplies total 46.9% 54.1% 22.0% 23.8% 44.5% 36.7% 20.9% 16.0% 8.6% 7.2% 4.1% 3.1% Mongolian concentrates Chilean concentrates scrap, waste, recycling, etc. shortfall total 2.0% 0.9% 0.0% 0.0% 53.0% 56.2% 100.0% 100.0% 100.0% 100.0% The table shows an important shortfall in Kazak and Balkhashmed copper supplies. The main suppliers of copper concentrates are external: Mongolian and Chilean, but they are treated and refined, on custom basis. To achieve the highest value-added and profit for Balkhasmed, it is necessary to maximize the feed of the plant with Kazak concentrates and blister copper. At least, it would be desirable to involve the Mongolian company in Balkhasmed's capital. Based on the present structure of copper supplies, it is net possible to reach the nominal capacity of production. The new Bozshikul flotation plant has to be started as soon as possible. Sofremines-François Colette, copper métallurgical expert page 11 The overall rate of copper recovery of the complex, after correction, is of the order of 93 %. With reference to other plants, this is fairly good and it reflects that Balkhashmed is operating correctly despite the lack of maintenance which shows in many of sections. The aspect and the quality of refined cathodes is good. In 1995 they will have the capacity to produce 100 000 tons/annum of copper transformed products. The state of the plant is in fact not too bad. We believe it is possible to revamp it without major difficulties. Moreover, core process units are little affected by degradation. We estimate that the replacement value of the metallurgical plant (value of a new plant of the same capacity i.e. 300 000t refined Cu/annum), excluding mines and flotation plant, is 900 US$ million. Considering a rate of 10% of the investment value for maintenance expenses per year, revamping for a three years maintenance lack is of the order of 270 US$ million. If the cost for revamping which is already planned by Balkhashmed is added to this (Vanjukov furnace, filtration of concentrates, sulphuric acid plant), the total expenditure of which is given for approx. 300 US$ million, there comes a total revamping and rehabilitation cost of approx. 570 US$ million. Balkhashmed indicate that they have 200 000t/annum and 300 000t/annum capacities for blister copper and electrolytically refined copper, respectively. We need further figures and information to confirm the capacities of each furnace. The pollution problems need to be solved urgently. They have to repair and modify the gas piping system as soon as posible. New customers for sulphuric acid have to be found. Balkhashmed have to start as soon as possible fertilizer and low grade ore leaching plants. We are not able to give recommendations and advice about personnel and cost. The information we have received are not divided between mines, flotation and the different metallurgical sections. Nevertheless one may assure that there are too many employees in Balkhashmed, as compared to similar plants in the western world taken as reference. There are 12 000 people employed in 1994, for a production which can normally be, say 250 000-300 000 t/annum of refined copper. This means a productivity of 20-25 t Cu/man year, while the international reference is 60 t Cu/man year.