1. Sintering of Laterite ores
Confidential
GITS Sintering Services Inc.
Sintering of Laterite ores
The technology & economics of Reduction Sintering
19th June 2010

2. The issue facing most Nickel Laterite producers in the Philippines is…
How to Add Value to a large resource
of low grade laterite?

3. The Philippines has a large resource base of laterite nickel…
GITS
Ore Coke Flux

4. The majority of nickel laterites is exported to China for processing…
GITS
Approx. 16Mt laterite imported into
China in 2009
Imports are equivalent to > 110,000 t
Ni metal
For higher grade Ni ores, Indonesian
ore is preferred over Philippine ores
Philippine exports are mainly lower
Ni grade ores 4

5. Direct shipping of Nickel laterite ore is of low intrinsic value…
GITS
Ore Coke Flux
Laterite Nickel
Grade, % Ni
Chinese Purchase
Price, US$/t
1.0% US$12/t
1.5% US$20/t
1.75% US$30/t
2.0% US$50/t
>30% “water” shipped to China with every tonne exported

6. Traditionally, value added processing has been too expensive…
GITS
Ore Coke Flux

7. Sintering is significantly cheaper & has significantly lower barriers to entry
GITS
Ore Coke Flux
Sintering is the intermediate step in producing either-
laterite nickel feed for an EAF/Blast Furnace [Ni PI], or
iron ore feed for the steel industry
Capital Costs for a sinter plant are low-
Approx. US$4M per 100,000 tpy production module
Sintered products command a higher price then DSO-
Laterite nickel ~1.8% Ni = US$130/t FOB
Iron ore ~60% Fe = US$85 to US$100/t FOB

8. What is Reduction Sintering?
GITS
Ore Coke Flux
A process of heating laterites to 900oC – 1,200oC, under reducing
conditions, to induce a phase change of hematite to magnetite
resulting in a semi-fused metallic sinter which can be further
upgraded by simple magnetic means.
Nickel Laterites: Upgrades Ni content in sinter product
& eliminates water
Iron Laterites: Upgrades 40% to 50% Fe in limonite to
>60% magnetite sinter & eliminates water

9. Why is Reduction Sintering economic today?
GITS
Ore Coke Flux
Historical low iron ore prices 60% Fe) have
prevented the industry from expanding, until recently.
As iron ore prices increase, the economics of sintering improves
The Chinese are a ‘test-bed’ and very innovative when it comes
to seeking alternatives to high grade iron ore prices

10. (Nickel) Laterites & Processing Options

11. Ferronickel technologies suitable for nickel laterite ores… [Pyrometallurgy]
GITS
Ore Coke Flux
Chinese
Blast
Furnace
Process
1% Ni to 1.5% Ni Ore  3% to 5% Ni Pig Iron
Requires high Fe laterite
Low Capital...but environmental issues
Electric
Arc
Furnace
Process
>1.5% Ni to 2% Ni Ore  5% to 15% Ni Pig Iron
Requires low Fe laterite
High electrical consumption
AlloyStream
Process
1% Ni to 3% Ni Ore  3% to 50% Ni Pig Iron
No constraints on Ni or Fe
Low electrical consumption
Untested – only ferromanganese

12. Leaching technologies suitable for nickel laterite ores… [Hydrometallurgy]
GITS
Autoclave
Intermediate Product -Ni Hydroxide
High
Pressure
Acid
Leach
[HPAL]
High Temp
High Pressure
$$$$
Recovery > 90%
>75% Ni Pay
Agitation Tanks
Atmospheric
Agitation
Leach
[AL]
Low Temp
Low Pressure
$$$
Recovery 70%-85%
Processing
Plant – same
for all Tech.
Laterite Ore Heaps
Heap
Leach
[HL]
Low Temp
Low Pressure $$
Recovery 60%-75%
100% Ni Pay
Cathode Nickel

13. The laterite ore types will dictate the processing routes…
GITS
Traditional
Processing
Routes
New
Processing
Routes
Schematic
Laterite Profile
Heap
Leaching
Turkey [ENK]
Phil. [Rusina]
HPAL
Coral Bay
Goro
Revensthorpe
Limonite
Ni < 1.3%
Fe > 30%
Agitation
Leaching
Toledo Mining (TMC)
Saprolite
Ferro-nickel
- Chinese Blast Furn.
Elect Arc Furnace
Reduction process
Ni > 1.8%
Fe < 20%
Bedrock

14. Sintering is an intermediate step in the value-added chain… [Pyrometallurgy]
GITS
Intermediate
Products
Schematic
Laterite Profile A
Sintered Iron Ore
>60% Fe A
Sinter Reduction
Ni < 0.9%
Fe > 40%
Limonite B B
BF or EAF Feed
>3% - 6% Ni PI
Ni < 1.2%
Fe > 30% C
Saprolite C
Ni > 1.8%
Fe < 20%
EAF Feed
>10% Ni PI
Bedrock

15. Reduction Sintering is a proven technology and is widely used around the world?
GITS
Ore Coke Flux
Krupp Renn in Germany:
Nippon Yakin in Japan: currently processing Ni laterites
Minnesota low grade iron ores (35% Fe – 50% Fe)
Chinese - today

16. Sintering is a relatively simple process with basic inputs…
GITS
Product

17. Plan view and layout of a typical Reduction Sintering plant…
GITS
Ore Coke Flux

18. “The Size of the Prize”

19. The economics of the sintering process are compelling…
GITS

20. Total cash operating costs are approx. US63/t sinter product…
GITS
‘Margin’ over current SP of US$130/t
= ~US$67/t

21. Annual cash flow [US$M] is healthy in all years [500,000 tpy SP]…
GITS
P & L
US$M
Cash Flow
US$M
Assumes BOI income tax holiday for 6 years

22. The modular nature of the plant allows for financial flexibility…
GITS

23. Sensitivities indicate a robust project is achievable…
GITS