Name and Location
Tati Nickel project, Botswana.

Project Description
The Tati Nickel base-metals refinery and dense-media separation (DMS) projects - collectively known as the Activox project - were approved in June 2006, following the positive results of a bankable feasibility study.

DMS test work and pilot-plant trials on both Phoenix and Selkirk material have shown that metal recoveries in excess of 70% and up to 95% are achievable at a 0% mining cutoff grade.

The DMS plant has been designed to treat a nominal 12-million tons of run-of-mine ore a year. This includes a primary gyratory crusher, capable of processing up to 15-million tons a year, which will be optimised in the existing crushing circuit. It is expected that, at full production, the DMS plant will improve and smooth the ore-feed grade by 73% to the plant from 0,3% to 0,52% nickel.

The project will require new power infrastructure, including the construction of an 80-km 220-kV transmission line at a cost of $24-million, which will extend the Botswana Power Corporation grid at Phokoje, near Selibe Phikwe, to the Tati mine site.

The Activox refinery and associated tailings disposal facility, which had been designed to accommodate between 20 000 t/y and 25 000 t/y of payable nickel and from 12 000 t/y to 16 000 t/y of copper, has been postponed indefinitely, owing to a substantial cost escalation in the project.

Value
$151-million for the DMS plant upgrade to the Tati concentrator, and $24-million for the power infrastructure installation.

The total cost for the Activox project initially was estimated at $636-million, including $482-million for the Activox base-metal refinery, however, the Activox project was indefinitely postponed in June 2008, following a review of the project's economics.

Duration
Full nickel-metal production is expected in the third quarter of 2009.

Client
Norilsk Nickel owns 85% of Tati Nickel, as a result of the acquisition of LionOre Mining International on July 1, 2007, and the Botswana government holds the balance.

Key Contracts and Suppliers
Mintek (test work), DSE (DMS fabricator), DRA (engineering procurement and construction management DMS process plant designer and project management company), Grinaker-LTA M & E Metals & Minerals (supply, fabrication, delivery, corrosion protection and erection of structural steelwork, plate work, and mechanical equipment for the DMS plant), Hatch (engineering procurement and contract management), RMB (underwriter), RFA (debt funding) and Multotec (dense-medium cyclones and densifiers).

Latest Developments
March 2009
The crushing and concentrator upgrade project, which includes a DMS preconcentration project has been completed.

January 2009
Grinaker-LTA has completed its portion of the DMS plant. The project was completed in nine months.

The project comprised the fabrication of 1 350 t of structural steel and 520 t of plate work by DSE and the installation of 477 t of mechanical equipment for the DMS plant.

The bulk (85%) of the project encompassed the construction of the DMS building, DMS plant conveyors and transfer towers, while the modification work in the existing plant on the thickener tower, load-out stockpile, waste stockpile and FESI plant areas comprised the remainder of the work.

August 2008
Crane and hoist company Condra has completed and delivered a 140-t double-girder maintenance crane ordered by nickel producer Tati Nickel for its Activox project.

Two double-girder overhead cranes were delivered in February 2008, to assist with crusher plant construction. The cranes will work alongside the 140-t double-girder crane as maintenance cranes after the plant is commissioned.

June 2008
Norilsk Nickel has indefinitely postponed plans for its Activox base-metals refinery at the Tati Nickel operation, following a review of the project's economics.

Internal and third-party reviews have indicated "a substantial cost escalation" from a 2006 forecast of $498-million. The company has said that the higher construction, equipment and project management costs, as well as short-term energy constraints in the region, mean that the "incremental" improvements that will be achievable through the Activox process at Tati do not justify the capital expenditure and project risk.

Further, Norilsk is studying the potential of further increasing Tati's life-of-mine, by developing the nearby Selkirk Deposit as a potential openpit operation. A prefeasibility study is due for completion by the end of 2008.

January 2008
The project has been fast-tracked.

The first 200 t of steelwork for the DMS plant was delivered on site, ready for installation, by the end of July 2007.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Norilsk Nickel Africa MD, Gerhard Potgieter, tel +27 11 462 4223.