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SUSTAINABLE HYDROMETALLURGICAL PROCESSING AT THE AMBATOVY NICKEL


OPERATION IN MADAGASCAR

*M. Collins1, D. Yuan1, M. Sitter2 and S. St. Jean3


1
Sherritt Technologies
Sherritt International Corporation
8301 113 Street
Fort Saskatchewan, Alberta, Canada T8L 4K7
(*Corresponding author: mcollins@sherritt-tech.com)
2
Sherritt International Corporation
1133 Yonge Street,
Toronto, Ontario, Canada M4T 2Y7
3
Ambatovy
Immeuble Tranofitaratra
7me tage, Rue Ravoninahitriniarivo
Ankorondrano, Antananarivo 101, Madagascar

ABSTRACT

The Ambatovy Joint Venture comprises an operating lateritic nickel mine, ore slurry pipeline,
pressure acid leach plant and nickel refinery in Madagascar. The hydrometallurgical process selected by
Sherritt for treatment of the Ambatovy ore is a long-term, sustainable approach to producing nickel.
Sulphur, used to prepare hydrogen sulphide, which is used to produce mixed sulphide intermediate, is
recovered in the refinery as ammonium sulphate fertilizer. Additional sulphur is used to generate sulphuric
acid for treatment of the ore in the high pressure acid leach (HPAL) step; fossil fuel consumption is
minimized by using the heat generated from the exothermic reaction between sulphur and oxygen in the
acid plant to produce power and steam. Steam consumption is minimized by design of efficient flashing
and preheat systems for HPAL, while the high temperature of the HPAL step serves to minimize acid
consumption. Fossil fuel consumption by the operation as a whole is further minimized by locating the
leach plant and refinery near the port of Toamasina and utilizing a 220 km slurry pipeline to transport ore
from the mine to the leach plant. In addition, Ambatovy has demonstrated a strong commitment to
sustainability programs such as the biodiversity management program at the mine and local procurement in
Madagascar. In this paper, the hydrometallurgical process for nickel and cobalt recovery from Ambatovy
ore is described, along with highlights of Ambatovys approach to sustainability in Madagascar.

KEYWORDS

Ambatovy, nickel, cobalt, sustainability, hydrometallurgy, laterite, HPAL, biodiversity, Sherritt

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INTRODUCTION

The Ambatovy nickeliferous laterite deposit is located approximately 130 km east of


Antananarivo, the capital of Madagascar. Exploration of the area dates back to 1960, when the Malagasy
Service Gologique carried out a limited pitting and auger-drilling program. Bureau de Recherches
Gologiques et Minires (BRGM) carried out additional drilling and pitting in 1962, and GENiM, a
consortium of BRGM and others, collected nearly 12,000 m of drill core between 1970 and 1972. Phelps
Dodge Corporation (now FreeportMcMoRan Copper & Gold, Inc.) was granted the mining rights to the
property in 1995 and carried out significant resource definition, environmental assessment and engineering
studies between 1995 and 2001 (Chou, Rooke, Williams & Hanks, 2000). In 2003, Dynatec Corporation
signed a joint venture agreement with subsidiaries of Phelps Dodge to evaluate the Ambatovy Nickel
Project. Dynatec then became extensively involved in the development of the project, including process
selection and pilot plant testing in Fort Saskatchewan (Collins et al., 2004, 2005a, 2005b, 2009). Dynatec
acquired 100% of the project in 2005 and a joint venture between Dynatec, Sumitomo Corporation, Korea
Resources Corporation (KORES), and SNC-Lavalin Inc. (SLI) was formed shortly thereafter to provide
funding for further development. Sherritt International Corporation reacquired Dynatec Corporation,
including 40% ownership in the Ambatovy Nickel Project, in 2007. The current Ambatovy Joint Venture
consists of an integrated nickel and cobalt mining, processing, refining and marketing enterprise between
subsidiaries of Sherritt (40% owner and mine and plant operator), Sumitomo Corporation (27.5% owner),
KORES (27.5% owner), and SLI (5% owner and responsible for construction).

Commissioning and start-up of the Ambatovy mine and plant facilities were completed in 2012,
with acid first introduced to the ore leach in March 2012 and test nickel briquettes first produced in the
refinery on June 26, 2012. Ramp-up of the facilities continues to advance (Figure 1). Commercial
production (defined as 70% of design capacity) was achieved in January 2014 and the production level
required to achieve financial completion (90% of design capacity for 90 days) was achieved in March
2015. Ambatovy has an annual design capacity of 60,000 tonnes of nickel and 5,600 tonnes of cobalt,
which makes it the largest finished nickel and cobalt operation from laterite ore in the world.

Figure 1 Monthly nickel production at Ambatovy since start-up

The metals recovery process in practice at Ambatovy was developed with a sustainable,
environmentally responsible, hydrometallurgical approach in mind. The hydrometallurgical process

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minimizes consumption of both reagents and energy. Ambatovys goal is to create lasting prosperity for
all stakeholders and to contribute significantly to sustainable development in Madagascar. The planned
life of the Ambatovy mine is 29 years. After the mine is depleted, the area will be decommissioned and
rehabilitated to restore the site to forested habitat consistent with the surrounding area.

HYDROMETALLURGICAL PROCESS

Nickel can be recovered from laterite ore by either pyrometallurgical or hydrometallurgical


means. The known pyrometallurgical methods for processing laterite ore are energy intensive, largely
because the moisture content of the ore, which is typically in the range of about 45 to 55%, has to first be
removed. Secondly, on-site production of sulphuric acid, used in hydrometallurgical acid leach processes,
may be used as an energy source the heat generated from the exothermic reaction between sulphur and
oxygen in the acid plant may be used to produce both power and steam. The Caron reduction roast process
uses about twice as much fossil fuel per tonne of ore as the high pressure acid leach (HPAL) process
(Campbell & Vardill, 1998; Duyvesteyn, Wicker & Doane, 1979). In ferronickel production, the dried ore
has to be calcined and melted to form a slag, at 1,500 to 1,600C. This requires both hydrocarbon fuels
(coal, oil or naphtha) and electric power. Ferronickel smelting consumes three to four times as much
conventional energy per tonne of nickel as the HPAL process (Duyvestyn et al., 1979).

Laterite Ore Water Steam H2SO4

Ore Slurry S
Mining &
Pipeline HPAL
Ore Prep
Transport L

Reclaim Water

Lime Limestone Barren Liquor Limestone

Tailings L
Management Tailings Neut Slurry Neut
Facility S
CCD Wash

H2 NH3 Oxygen H2S Limestone

Ni & Co Metals
Sulphide Raw Liquor
Refinery
Precipitation Neut
Ammonium
Sulphate Fertilizer

Barren Liquor to CCD Gypsum Slurry to


Wash & Tailings Neut CCD Wash

Figure 2 Simplified Ambatovy flowsheet

Figure 2 shows a simplified flowsheet of the hydrometallurgical process employed by Ambatovy.


The laterite ore is mined, scrubbed, screened, thickened and transferred to the pressure acid leach plant via
a pipeline. In the pressure acid leach plant, the slurry is thickened further and then fed along with sulphuric
acid to the high pressure acid leach (HPAL) autoclaves. After HPAL, the leached slurry is partially
neutralized with limestone (slurry neutralization) followed by a counter-current decantation (CCD) wash,

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which separates the nickel- and cobalt-bearing solution from the residue (mostly iron oxide hematite).
Sulphuric acid in the CCD product solution is further neutralized with limestone in the raw liquor
neutralization circuit. The neutralized raw liquor is then contacted with hydrogen sulphide in the sulphide
precipitation circuit, to produce a clean mixed sulphide intermediate containing the nickel and cobalt that
was leached from the ore. The barren liquor from sulphide precipitation is used to wash the leached ore
slurry in the CCD circuit. Excess barren liquor is combined with the washed leach residue, neutralized
with limestone and lime, and directed to the tailings management facility.

In the refinery, nickel and cobalt in the mixed sulphide intermediate are releached into solution,
the solution is purified, and nickel and cobalt are separated by solvent extraction before being precipitated
as metal powders by hydrogen reduction, and formed into briquettes for sale. Ammonium sulphate
fertilizer is also recovered in the refinery, as a by-product of the process.

Mining and Ore Preparation

The ore body at the mine consists of two large, weathered lateritic nickel deposits, the Ambatovy
Deposit and the Analamay Deposit, covering an area of about 1,800 ha, with ore depths ranging between
about 20 and 100 m. The ore body, which varies broadly by location, is divided into 10 m by 10 m by 4 m
deep blocks, sampled, analyzed and mapped according to chemical composition. The laterite ore blocks
are mined selectively and blended to minimize acid consumption in HPAL and hydrogen sulphide
consumption in raw liquor neutralization. Ore is surface mined by hydraulic excavators and delivered to
the nearby Ore Preparation Plant (OPP) in trucks (Figure 3). At the OPP, the ore is prepared into a slurry
with fresh water from the Mangoro River, supplemented with collected storm runoff water. Oversize
material, enriched in acid-consumers like magnesium and aluminium, is scrubbed before being separated
by screening and rejected. The recovered fines are thickened to about 35% solids for pipeline delivery to
the pressure acid leach plant. The average composition of the prepared ore delivered to the pressure acid
leach plant in 2014 is provided in Table 1. The oversize reject is currently being evaluated for use as
sheeting (road construction) at the mine.

Table 1 Average composition of prepared ore (pipeline discharge) in 2014

Ni Co Al Cu Fe Mg Mn Zn
Prepared Ore Analysis, wt% 1.1 0.09 4.1 0.02 43 1.1 0.77 0.04

Figure 3 Mining the Ambatovy ore body (left) and overhead view of process plant at Toamasina (right)

Ore Slurry Pipeline

The Ambatovy mine site is about 14 km northeast of the town of Moramanga and 80 km east of
Antananarivo, as shown in Figure 4. The mine is only a few kilometres from the road and rail networks

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that connect it to the port city of Toamasina on Madagascars east coast, where the pressure acid leach
plant and refinery are located. The mine area includes the eroded remnants of a plateau located at about
1,000 meters above sea level. A 220 km long and 60 cm diameter pipeline delivers the laterite slurry from
the mine site to the pressure acid leach plant. The pipeline design maximizes the use of gravity to
minimize the need for energy intensive pumping facilities. Most of the energy needed to move the ore
through the pipeline is provided by the gravitational potential energy corresponding to the 1,000 m
elevation difference between the mine and the pressure acid leach plant at the coast.

The pipeline has a design capacity of about 825 tonnes of ore slurry (dry basis) per hour. If the
ore were to be transported by means other than the pipeline, e.g., by 100-tonne trucks at an average speed
of 30 km/h and about 60 L/h fuel consumption, about 15,000 L/h of fuel would be required to transport the
same amount of ore to the coast for processing (assuming 40 to 50% moisture in the ore as mined, 5 to
10% rejection of oversize material in scrubbing and screening, and a return trip for each truck along the
pipeline route). Accounting for the relatively modest energy consumption of the pumping facilities and the
annual production capacity of the plant, the difference in energy consumption between delivering the ore
by the pipeline and by truck would be equivalent to about 100 million L of fuel per year.

Figure 4 Map showing Ambatovy mine and plant locations and the pipeline route

The pipeline route was selected to avoid sensitive areas, e.g., the forest fragments located between
the mine area forest and the Mantadia National Park, and care was taken to collect and preserve
archeological artifacts that were discovered during construction. For nearly all of its length, the pipeline
was buried using either standard cut and cover construction or horizontal drilling beneath the surface,
leaving stretches of forest untouched and allowing the pipeline to pass safely below rivers. Extensive
rehabilitation over the course of the pipeline is already returning the landscape to its natural state.

Ore Slurry Thickening

Ore slurry received from the mine via the pipeline is thickened further in the pressure acid leach
plant (Figure 3) to minimize water input with the ore to the HPAL autoclaves. Maximizing the solids
content of the autoclave feed enables steam and acid consumptions in HPAL to be minimized. Thickener

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overflow solution is sent to the water storage pond for reagent make up (e.g., limestone slurry) while the
thickener underflow is advanced to the slurry feed tanks for the HPAL circuit.

High Pressure Acid Leaching

Nickel and cobalt are extracted from the ore in the HPAL autoclaves by addition of sulphuric acid
to dissolve the host minerals, e.g. goethite (equation 1). Sulphuric acid is produced from sulphur in the
acid plants, which also generate steam and power required in the process plant, minimizing overall fossil
fuel requirements. The high temperature of the HPAL process, 260C at Ambatovy, promotes hydrolysis
of metal sulphates and precipitation of oxides from the solution, e.g., hydrolysis of ferric sulphate and
precipitation of iron as hematite (equation 2), and hydrolysis of aluminum sulphate and precipitation of
aluminum as alunite (equations 3 and 4), minimizing net acid consumption.

2FeOOH + 3H2SO4 2Fe2(SO4)3 + 4H2O (1)


Fe2(SO4)3 + 3H2O Fe2O3 + 3H2SO4 (2)
2Al(OH)3 + 3H2SO4 Al2(SO4)3 + 6H2O (3)
3Al2(SO4)3 + 14H2O 2(H3O)Al3(SO4)2(OH)6 + 5H2SO4 (4)

Nickel and cobalt extractions are both 95% in the plant design. The actual nickel and cobalt
extractions achieved in production typically range between about 94 and 97% (see Figure 5).

Figure 5 Nickel and cobalt extractions in HPAL at Ambatovy since start-up

The preheat and flashing systems for HPAL are designed for efficiency, to minimize fresh steam
consumption. There are three stages of flashing of the autoclave discharge slurry, with steam from the first
two stages used to preheat the incoming ore slurry. A portion of the steam recovered in the second stage of
flashing is directed to the sulphide precipitation circuit, to preheat the feed to that circuit, while steam
recovered in the third stage of flashing is used to preheat the raw liquor prior to raw liquor neutralization.

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Neutralization and Residue Washing

The discharge slurry from the autoclave is partially neutralized with limestone prior to advancing
to the six-stage counter-current decantation (CCD) wash circuit. Barren liquor from sulphide precipitation,
rather than fresh water, is used to wash the leach residue in the wash circuit.

The first thickener overflow solution from the CCD wash circuit is transferred to the raw liquor
neutralization circuit, where additional limestone is added to neutralize sulphuric acid and precipitate ferric
iron and other impurities, to produce a solution suitable for recovery of nickel and cobalt as a clean mixed
sulphide intermediate product in the sulphide precipitation step. The rate of limestone addition is selected
to optimize intermediate product quality and to maximize recoveries of nickel and cobalt in the sulphide
precipitation circuit. Both limestone utilization efficiency and the thickening properties of the neutralized
slurry are enhanced by recycle of raw liquor neutralization thickener underflow slurry (gypsum slurry) to
the raw liquor neutralization circuit. The net production of gypsum slurry is directed to the CCD circuit,
where it is washed along with the leach residue.

A portion of the CCD final thickener underflow is leached with concentrated sulphuric acid to
produce ferric sulphate slurry, which is used to remove residual hydrogen sulphide from the barren liquor
following sulphide precipitation. The remaining underflow slurry from the last CCD thickener, and excess
barren liquor (after H2S removal), are neutralized with limestone and lime prior to discharge to the tailings
management facility (TMF). Overflow from the TMF is recycled to the process plant for internal use, with
the balance discharged to the ocean at 150 m depth, one and a half km offshore, via an outfall pipeline. In
keeping with the stringent environmental standards adhered to by Ambatovy, design and operation of the
TMF and outfall conform with the Equator Principles.

Up to about 0.5 g/L of hexavalent chromium is typically produced from the Ambatovy ore in the
HPAL step. To prevent this Cr(VI) from reacting with hydrogen sulphide gas in sulphide precipitation,
which would result in elemental sulphur reporting to the mixed sulphide intermediate (equation 5), Cr(VI)
is pre-reduced to Cr(III) by addition of a small quantity of hydrogen sulphide, as required, in raw liquor
neutralization. Elemental sulphur formed in raw liquor neutralization is then thickened along with the
gypsum formed in this step and separated from the solution prior to sulphide precipitation. Keeping
elemental sulphur out of the mixed sulphides is important for maximizing the efficiency of nickel recovery
in the refinery, and hence energy consumption per tonne of nickel. Feed selection and blending at the mine
helps to minimize Cr(VI) concentration in the HPAL solution, and hence minimizes hydrogen sulphide
consumption in raw liquor neutralization.

2H2CrO4 + 3H2S + 3H2SO4 Cr2(SO4)3 + 3S + 8H2O (5)

The concentration of nickel in the raw liquor prior to neutralization typically ranges between
about 3 and 4 g/L. The average raw liquor analysis in 2014 is shown in Table 2.

Table 2 Average raw liquor composition in 2014

Ni Co Al Fe Mg Mn pH
Analysis, g/L 3.2 0.26 5.1 0.75 4.3 2.2 2.0

Sulphide Precipitation

The neutralized raw liquor is combined with hydrogen sulphide gas in the sulphide precipitation
vessels to recover nickel and cobalt as a mixed sulphide intermediate. Hydrogen sulphide is produced on
site using sulphur and hydrogen in the hydrogen sulphide plants. Optimal metals recoveries in sulphide
precipitation are achieved at about 95 to 105C and with about 200 kPa or more hydrogen sulphide partial
pressure. Steam required for preheating the feed solution to achieve this temperature range is recovered

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from the flash tanks in the HPAL circuit. Excess hydrogen sulphide that is released from the sulphide
precipitation discharge slurry upon flashing is returned to the precipitation reactors via compressors. The
discharge slurry from the flash tanks is thickened and the mixed sulphides are washed in a two-stage CCD
wash circuit. The mixed sulphide intermediate product composition is shown in Table 3.

Table 3 Average composition of the mixed sulphide intermediate product in 2014

Ni Co Al Cu Fe Mg Mn S Zn
Composition, wt% 53 4.2 0.1 1.4 0.6 0.01 0.01 36 3.1

Refinery

In the refinery, the mixed sulphide intermediate product, along with solids recovered from
sulphide stripping of the reduction end solutions (the metals-depleted solutions after nickel reduction and
cobalt reduction), is leached in autoclaves under oxygen pressure to produce a high strength nickel sulphate
solution. The typical leaching conditions include 165C with 500 kPa oxygen partial pressure.

Ammonia is added to the leach solution, to increase the pH, in the iron removal circuit. Air is
sparged into the iron removal tanks to oxidize ferrous iron to ferric iron, which hydrolyzes and precipitates.
The iron precipitate, along with the mixed sulphide leach residue, is directed to the pressure acid leach
plant, where it joins the HPAL residue. The iron-free solution is contacted with zinc sulphide in the copper
removal circuit, to remove copper as copper sulphide. The zinc sulphide that is added to the copper
removal tanks is obtained from the zinc precipitation circuit; the resulting copper sulphide is sold.

After liquid solid separation, the copper-free solution is forwarded to zinc extraction, the first of
two solvent extraction circuits. Zinc is stripped from the loaded organic with sulphuric acid and
precipitated as zinc sulphide from the resulting concentrated zinc sulphate solution using hydrogen
sulphide. Part of the zinc sulphide is recycled to the copper removal circuit, as described above, and the
remaining zinc sulphide is bagged and sold.

Nickel and cobalt in the raffinate from the zinc extraction circuit are separated in the cobalt
extraction circuit, where cobalt is extracted, stripped from the loaded organic with sulphuric acid to form a
concentrated cobalt sulphate solution and purified. Nickel in the cobalt extraction raffinate, following
adjustment with ammonia and ammonium sulphate, is reduced to nickel metal powder with hydrogen gas
in the reduction autoclaves. After washing and drying, the nickel powder is compacted into briquettes for
sale. Similarly, cobalt is reduced to cobalt metal powder with hydrogen gas in separate reduction
autoclaves and the washed and dried cobalt metal powder is compacted into briquettes for sale.

The end solutions after hydrogen reduction of nickel and cobalt contain high concentrations of
ammonium sulphate. Small portions of these solutions are recycled to the nickel and cobalt reduction
circuits while the remainders are combined and then stripped with hydrogen sulphide to recover the
residual nickel and cobalt. The resulting sulphide precipitate is recycled to the sulphide leach circuit,
where it joins the mixed sulphide intermediate from the pressure acid leach plant, as described above. The
purified ammonium sulphate solution is fed to crystallizers in the ammonium sulphate plant, where
ammonium sulphate fertilizer is produced for sale. Water (condensate) from the crystallizers is recycled
within the refinery.

The quality of the cobalt product consistently exceeds the LME specification. The nickel quality
originally met LME specification for all elements with the exception of silicon; the silicon specification of
less than 0.005%, as well as the remaining LME specifications, have been routinely achieved since the
fourth quarter of 2014.

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SUSTAINABILITY PROGRAMS

Sherritt is committed to providing a safe and rewarding workplace, operating ethically,


demonstrating environmental responsibility, engaging stakeholders and benefitting communities. Sherritt
works to meet or exceed the standards where it operates and continuously improve performance. Sherritts
sustainability commitment is supported by a management system framework with policies, procedures and
processes to guide planning, implementation, measurement, reporting and assurance of sustainability
efforts across its operations.

Ambatovy has succeeded in finding effective and award-winning solutions for running a large-
scale mining operation in a region with rich biodiversity and high poverty rates. It is an employer of
choice in Madagascar, with high standards for occupational health and safety and a focus on skills
development and the well-being of employees. Ambatovys comprehensive social development plan is
aimed at achieving self-sustainability for significantly affected communities including those who have
been resettled and an improved quality of life through vocational training, education and health
initiatives, and agricultural support. These programs assist in contributing to local and, to a lesser degree,
national economic development, which should not be understated in a country where 92 percent of the
population lives on less than US$2 per day, according to the World Bank. The overarching goal of these
efforts is to build economic capacity and social structures that are independent of Ambatovy operations.

Madagascar is renowned for its unique biodiversity, characterized by exceptional levels of


endemism and high species richness. Ambatovy succeeds in operating in one of the most complex,
biodiverse environments in the world. Ambatovys environmental program also adheres to some of the
most stringent norms and regulations in the world, and is monitored for compliance by regulators from the
Government of Madagascar, third parties who conduct periodic assessments for the lending institutions that
have provided Ambatovy with project financing, as well as an independent Scientific Consultative
Committee made up of national and international experts.

Ambatovy has been recognized for excellence in sustainable business practices in Africa, Canada
and around the world. This recognition is demonstrated through being identified as one of the top
humanitarian actors in the private sector in Madagascar by the United Nations and the Government of
Madagascar, and through several awards received for its unique and successful sustainability programs.
Two of these programs are highlighted in this paper: Ambatovys Biodiversity Management System
(ABMS) and the Ambatovy Local Business Initiative (ALBI).

Biodiversity Management Program

Madagascar is amongst the most bio-diverse environments on the earth. Following extensive
deforestation since first human settlement, only about 10% of primary forest cover remains in Madagascar.
The Ambatovy mine lies at the southern tip of a large section of remnant eastern rainforest corridor, known
as the Ankeniheny-Zahamena forest corridor (CAZ). To the east of the mine lie the Torotorofotsy wetland
(a Ramsar Convention site) and the Mantadia National Park. Connecting the mine forests to the CAZ and
Mantadia is an area of intact forest known as the Analamay-Mantadia forest corridor (CFAM) which
Ambatovy is helping to conserve. These forests are known to support 14 species of lemurs, 32 other
mammals, 122 birds, almost 200 reptiles and amphibians (see Figure 6), 50 fish (including 25 endemic
species) and over 1,580 plants (including 250 orchids), representing more than 10% of Madagascars
known flora (Goodman & Mass, 2010). The Ambatovy operation includes four conservation areas, with a
total area approximately ten times the size of the mine footprint.

In alignment with the mission and vision, Ambatovy aims to meet or exceed all its environmental
obligations and to deliver no net loss, and preferably a net gain, of biodiversity and no net harm to
Madagascars ecosystems. Ambatovy adheres to stringent environmental standards such as the Equator
Principles, the International Finance Corporation (IFC) Performance Standards, the principles of the

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Business and Biodiversity Offsets Program (BBOP), as well as the national decree concerning
environmental compliance for investment projects in Madagascar (in French, Mise En Compatibilit des
Investissements avec lEnvironnement, MECIE). Ambatovy joined the BBOP as a pilot project in 2006,
with the intention of benefiting from and contributing to best international practice in biodiversity
offsetting and achieving no net loss (Berner, Dickinson, Andrianaivomahefa & Melton, 2010).

The Ambatovy Biodiversity Management System (ABMS) provides a quality assurance adaptive
management framework for biodiversity through the design, implementation, control and tracking of
relevant strategies, plans and activities. The ABMS helps to implement the mitigation hierarchy (avoid,
minimize, restore, offset), ensures compliance with Ambatovys biodiversity commitments (international,
national and internal) and promotes continual improvement of Ambatovys biodiversity management. The
ABMS is a process-based system at three process levels: business process, operational process and activity
process and five management fields: adaptive management, quality management, resources management,
impact management, and monitoring and evaluation. The operational process level includes a series of
management plans, each addressing a particular management theme. Biodiversity management is broken
down into approximately 20 separate impact management plans (IMP), including plans for each of the
principal taxonomic groups and habitats. The activities level includes workflows for each category of
management plan, with the workflow for impact management.

Figure 6 Mantella aurantiaca, the Golden Mantella frog, an inhabitant of the Moramanga District

Some examples of avoidance, minimization, and restoration measures that Ambatovy has
implemented or is in the process of implementing are provided below:

Lemur spatial dispersion monitoring during forest clearance to assess their capacity to (a) migrate
(avoid immediate impacts); (b) settle in their new home range (a medium-term impact) and (c)
reproduce and maintain population viability (a long-term impact)
Rescue and relocation of impacted flora and fauna, focused on species likely to require human aid
to migrate towards refuge areas such as orchids, high category species of concern and
International Union for Conservation of Natures (IUCN) critically endangered and endangered
species
Identification and monitoring of evolutionary significant units in the endemic fish species
population
Establishing research and production plant nurseries at the mine site and a series of community
nurseries
Undertaking rehabilitation/restoration trials at several locations on the mine site

As part of its offset activities, Ambatovy manages large forested areas in adherence with BBOP
principles and guidelines. Sophisticated calculations are used to determine residual losses in biodiversity

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due to Ambatovys activities and the gains achieved by the offsets. Socioeconomic assessments are also
made to determine the impact of offsetting on local populations and the scale of compensatory measures
that may be required. Ambatovys offsets program is monitored in consultation with BBOP through the
annual assurance framework meetings and with the support and guidance of experts associated with the
program.

The principal areas of focus for the offset have been the mine conservation forests, the CFAM and
the Ankerana massif (an area of ~6,800 ha situated roughly 70 km to the north of the mine site and forming
part of the CAZ). The Torotorofotsy wetland site also has the potential to serve as an offset through the
active conservation of forests along its western and northern margins, which are contiguous with the mine
conservation forests and CFAM and which harbour about 1,590 ha of zonal forests. This area is four times
the approximately 2,400 ha of total disturbed forest land that aims to be reclaimed after mining operations
are complete. The small amount of land that is not reclaimed represents the area occupied by legacy
infrastructure, such as roads that will remain for the beneficial use of the communities. The total result will
be a net gain of conserved land.

The Ambatovy Biodiversity Management System overall is monitored in line with established
quality standards such as ISO 9001. Ambatovy also works in collaboration with dozens of organizations,
such as Conservation International, the Wildlife Conservation Society, Asity Madagascar, the University of
Antananarivo, Group dEtude et de Recherche sur les Primates de Madagascar, Duke Lemur Center, and
Missouri Botanical Garden among others. Ambatovy works to continually monitor and improve its
biodiversity initiatives to achieve efficiency, scientific rigour, and excellence in biodiversity management.

In 2014, Ambatovy won the Nedbank Capital Sustainable Business Award, for excellence in
sustainable business practices in Africa, in the Resources and non-Renewable Energy category for its
Biodiversity Management Program.

Local Procurement Program

Madagascar is one of the least developed countries in the world, with a large and rural population
reliant mostly on subsistence agriculture. Political instability for the last 5 years has stalled economic
growth and has weakened governance structures and public policy. In this context, Ambatovy is working
to develop economic capacity in a meaningful, sustainable manner, so that Malagasy businesses can
operate and grow beyond their work with the Ambatovy operation.

Ambatovy is one of the largest customers for Malagasy businesses in the fields of transportation,
construction, clothing, catering, supplies and materials. Over US$2 billion in local contracts have been
awarded since 2007. The Ambatovy Local Business Initiative (ALBI) provides support to local businesses
and entrepreneurs through training, mentoring and capacity building programs, and trains
individuals/business owners to improve their standards in order to serve the broader market. The program
was created to fulfill Ambatovys buy locally, hire locally policy and commitment to the regulator, and
has evolved from a social project for Ambatovy to a strategic platform for supply chain management.

Ambatovy uses a robust and dynamic supplier database in which all suppliers must register. The
database categorizes and links opportunities, records commitments and interactions, and has a grievance
mechanism. By the end of 2012, more than 3,500 businesses had been registered in the ALBI supplier
database, of which more than 75% were Malagasy enterprises.

Ambatovy audits suppliers to ensure they fulfill the necessary legal, ethical, organizational and
performance requirements under Ambatovys procurement policy and aims to ensure that suppliers provide
a legitimate working environment for their employees. Suppliers are awarded an audit score. If a supplier
achieves above 80%, they receive certification, which can be leveraged as a proxy for quality for business
opportunities in other markets. The audit is not pass or fail; it is designed to take continuous improvement

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into account. Additional training and/or mentoring is offered to increase a potential suppliers score. Once
training is complete, companies are re-audited.

The Ambatovy Business Training Centre provides local businesses, future entrepreneurs, and
university students with training and mentorship to fill training gaps identified in the audit. The Business
Training Centre (BTC) has trained over 700 students and 70 companies since July 2012. Training helps to
increase audit score by an average of 11% per year. Ambatovy also provides basic training on topics such
as answering a tender, cost-price analysis, basic accounting, building a business plan, and accessing bank
business loans. ALBI has also provided agricultural training to over 18,000 people, of whom 49% are
women, including demobilized workers, farmers and individuals interested in learning to become farmers.

The actual program cost of ALBI is approximately $500,000 a year. Although this is not minimal,
it is a strategic investment that helps Ambatovy to manage social risk, honor its buy local policy and
commitment, and develop a local supply chain that meets international standards, which can lead to long-
term savings especially on transportation costs associated with procurement. Additionally, ALBI has a
focus on maintaining market pricing and fighting inflation. ALBI has strict pricing guidelines and will
purchase supplies from a local supplier within 5% of competing bids, but not more than that threshold.
Purchasing locally does not increase the overall cost of procurement in a material way. The benefits
prevail over the corresponding costs thereby increasing the financial sustainability of the initiative.

In 2014, Ambatovy was awarded the Excellence in Corporate Responsibility (ECR) Award in the
Social Enterprise Creation category for the ALBI program.

In 2015, Sherritt received the Syncrude Award for Excellence in Sustainable Development, in
recognition of world-class sustainable development practices at the Ambatovy Joint Venture as a whole.

CONCLUSIONS

A sustainable, hydrometallurgical process for the recovery of nickel and cobalt from laterite ore
has been developed and designed by Sherritt, and is now in operation at Ambatovy. Apart from these
technical achievements, the approach at Ambatovy with respect to environmental, social and business
aspects of the joint venture has also been highly successful in a sustainability context.

ACKNOWLEDGEMENTS

The authors thank the management of Sherritt International Corporation and the Ambatovy Joint
Venture for granting permission to publish and present this paper.

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Campbell, F. & Vardill, W.D. (1998). PAL process energy saving opportunities since the construction of
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Chou, E.C., Rooke, P.M., Williams, A.R., & Hanks, J.T. (2000). Nickel and cobalt recovery from
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