SAL OR DESAL

SEAWATER SUPPLY OPTIONS FOR THE MINING INDUSTRY

Raymond Philippe Hatch Ingenieros y Consultores Ltda, Chile

Characteristics Chilean Mining Projects

North Chile (desert), water scarcity High volumes (500 -10000 m3/h) Project altitude (1500 4500 masl) Distance to ocean (80-200 km) Copper mining (Copper/moly, copper/gold) Copper flotation
Greenfield Technology conversion from oxides to sulphides processing

Seawater use in Mining South America

Desalinated seawater
Escondida, BHP, Chile Cerro Lindo, Milpo, Peru Candelaria, Freeport, Chile (Execution fase)

Salt water (seawater/ saline well water)

Michilla, Chile Las Luces, Chile Mantos de la Luna, Chile Lipesed (Chile) Esperanza, Chile (start-up) Several projects (Study fase)

Mantos de la Luna

Michilla

Las Luces

Lipesed

Batu Hijau (Indonesia)

Texada (Canada)

All existing direct salt seawater usage is in mining projects at short distance and relatively low altitudes
Simple and economical conveyance systems Water conveyance costs do not require process optimization (recirculation, thickened tailings)

Components Seawater supply system

Minesite Altitude (masl) Pretreatment

Desal plant

Pumping Stations

Intake/ Outfall

Electrical Supply

Distance (m)

Seawater Conveyance
Aspects: Pipeline length Project altitude Pumping stations Water quality In general (new projects Chile): CAPEX: Conveyance system >>> Desalination Plant OPEX: Conveyance system >>> desalination

Decision Seawater Saline - desalinated

Is not (should not be):
CAPEX desalinated = CAPEX Saline + CAPEX desal plant
(eventual corrosion compensation)

Trade-off based on SWOT analysis (qualitative)

Depending on the project location, water supply may represent up to 15 - 30% of CAPEX of the overall project

Salt vs desalinated seawater

Possible impact differences in: Seawater intake (outfall) Pretreatment Desalination plant Conveyance system Mineral Processing Product differences Environment Financing options

Salt vs desalinated seawater Conveyance differences

Gravity (Difference 3%) Viscosity (Difference 5 %) Corrosion Materials selection pipes + pumps Pipe thickness (bare steel,corrosion compensation)
Corrosion velocity (mpy, mm/y) Oxidation Chloride pitting choose correct testprocedures

Internal pipe protection (liners, coating)

Seawater Differences
@15C TDS Cl SO4 mg/l mg/l mg/l Saline 36000 20175 2590 Desalinated 205 119 4

BOD5
Viscosity

mg/l
m2/s.106

variable
1.184

<5
1.139

Specific Gravity

kg/l

1.026

1.000

Salt vs desalinated seawater

Copper Mineral Processing
Consideration: Most mineral processes were developed based on industrial experience with good water quality, not salt water

Sulphide processing (flotation), differences in

Tailings Concentrate quality and recovery Molibdenum recovery Carbonate/Gypsum scaling Corrosion Reagents consumption

Salt water
used as Process Water
High concentrations of Cl y SO4 Salt water recirculation costs (OPEX) Higher reagents consumption Build-up of salts in process water
Evaporation losses Desalination at site: reject to process water

Result: Process water will have even higher scaling and corrosion potential than fresh salt seawater

Execution program Seawater supply system

Indicative timing
Preliminary Engineering Base line studies EIA/Permits/Rights of way Acquisitions and delivery Construction 3-6 months 6-12 months 12-18 months 14-18 months 6-12 months

Mining vs water supply project:

Velocity/timing differences Pressure on water project Influence sal/desal definition

Sal Desal Trade Off

Trade off
Intake/Outfall Desalination plant Conveyance system Corrosion management Mineral Processing differences Water requirements (quality and volumes) Project lifetime

Not always necessary to execute a complete trade-off!

E.g. Does the Cu/Mo recovery difference pay the desalination process? If so: Probably desalinated seawater is more attractive than saline seawater

Conclusions Salt vs desalinated seawater

Existing salt water experience in mining industry not comparable with most Chilean mining projects
Economic evaluation for both cases should consider not only differences in water supply systems but also associated costs and opportunities to the overall mining project. Not always all relevant aspects for sal/desal evaluation are being considered: Both alternatives should be developed (quantified) to at least prefeasibility level before decision is taken
Impact on CAPEX/OPEX Compatibilize execution programs

SAL OR DESAL
SEAWATER SUPPLY OPTIONS FOR THE MINING INDUSTRY

Raymond Philippe rphilippe@hatch.cl Hatch Ingenieros y Consultores Ltda, Chile