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Sulphuric Acid -
NEWS
Updated December 16, 2009
2009
First Quantum to spend $120m on reopening
Ravensthorpe
Xstrata to shut Timmins smelter
American Securities Completes Its Acquisition of GenTek, Inc.
Serbia will invest 160 million euros in RTB Bor copper through Canadian
financing
Sulphuric acid plant for Phikwe under consideration
Southern States Ground Breaking
Puerto de Mejillones to invest US$10mn in sulfuric acid storage tanks
Anti-dumping duty demand on import of sulphuric acid
Stingray Copper Awards Aker Chemetics Acid Plant
Noranda Income Fund Announces That It Is Suspending Its Cash Distribution
Peru government rejects Doe Run smelter plan
Jury: DuPont negligent in '04 spill
Vale informs about strike in Canadian operations
Chemtrade will maintain supplies to customers despite the labour disruption at
Vale Inco
Bayer Technology Services completed sulfuric acid plant featuring innovative
technology
Toronto – Aker Solution opens new manufacturing facility in Pickering, Ontario,
Canada
Doe Run Peru shuts smelter, seeks to delay cleanup
Sulfuric acid may trade close to zero
Dupont And Lucite International Agree To Pay $2 Million For Clean Air Violations
Chemtrade Will Maintain Supplies to Customers Despite Vale Inco Sudbury Shutdown
Vale halts Sudbury mining
Eight-week shutdown at met site - Move impacts 175 Xstrata Copper workers
China punishes 13 officials for river pollution
Outotec has won service contracts in Chile and Canada
EPA Alleges Major Violations at Simplot
Economic Conditions Cause Re-Evaluation of El Paso Plant Investment/Goals
Outotec to deliver sulfuric acid plant for Noracid in Chile
China Energy Recovery Secures an $8.9 Million Contract for a Heat Recovery
System Retrofit Project for Jiangsu Sopo Chemical
Changes to BHP Billiton's Nickel Business
Al Ain to go green with sulphur concrete in sewerage
First Quantum to spend $120m on reopening Ravensthorpe
December 9, 2009 - Quantum Minerals will spend about $120-million in capital expenditure (capex) to bring the Ravensthorpe nickel operation in Western Australia back into production and to ramp up the operation’s production. Chairperson and CEO Philip Pascall said in a conference call that the company had made provision to spend about $140-million on the project, thus allowing it to have $20-million of contingency funding available for the project. BHP Billiton, which had shut down the Ravensthorpe mine in early January owing to low nickel prices, which it said made the operation unprofitable, on Tuesday announced that it would sell the operation to First Quantum for $340-million. Ravensthorpe is an open pit mine and hydrometallurgical process plant used to recover nickel and cobalt to produce a mixed nickel cobalt hydroxide intermediate product.
Pascall said that the acquisition reflected First Quantum’s clear strategy of diversifying its commodity profile and its geographical footprint. It was currently mainly a producer of copper cathode, copper in concentrate, gold and sulphuric acid in a number of African countries. Pascall noted that when the Australian operation first became available for sale, the company had been wary of the project, given its hasty closure. However, the mining firm had found that the main plant was in “an excellent condition”, he stated, adding that it had been one of the “best mothballed plants” the company had ever seen.
There were, however, some technical challenges, mainly related to the front end of the plant, which along with the financial challenges faced by BHP, had led to the closure of the operation. Nevertheless, Pascall was confident that First Quantum had the capability to overcome these technical challenges, saying that some of its other projects in Africa were a lot more complex to develop. It would make a number of changes to the front end of the plant and some smaller changes in some other areas of the operation.
He also noted that, owing to its size, relative
to that of BHP, it did not face all the constraints that the management of the
operation previously had. Pascall said that, for example, the previous
management had come up with a number of ideas on how to improve the plant’s
performance, but getting the required authority to implement such changes had
lengthened the timelines of the project. Further, Pascall expected
to be able to reduce the costs of production by introducing the changes to the
plant, which would allow the mine to become more profitable. He said that
First Quantum had put a lot of effort into understanding the nickel market
before deciding to buy the Australian operation.
First Quantum would fund the required capex from internal funds, with Pascall
pointing out that the company currently had a robust cash flow. It would,
however, review the matter again in the next six to 12 months. The
agreement between the two parties was subject to relevant approvals from the
Australian Foreign Investment Review Board and the West Australian Minister for
Mines and Petroleum and, subject to these approvals, was expected to close in
the first quarter of 2010. Pascall said that the operation would ramp up
to full production in less than 18 months after concluding the acquisition.
First Quantum expected the asset to produce an average of 39 000 t/y for the
first five years after operations restart. Overall, production over the expected
32-year mine life is forecast at 28 000 t/y. The company was currently
negotiating with a number of offtakers for the Ravensthorpe output, said
Pascall, noting that most of the interest came from China.
Xstrata to shut Timmins smelter
December 7, 2009 - Xstrata Copper Canada plans to
permanently close its Kidd metallurgical copper and zinc plants in Timmins,
Ont., with the loss of 670 jobs. The shutdown is planned for May 1,
2010, in a rationalization of the company's Canadian metallurgical operations.
The metals company, which was called Falconbridge before it was acquired by
Swiss-based Xstrata PLC, said the Kidd mine and concentrator will remain in
operation. Xstrata cited several underlying global factors for the
decision, including poor market demand and a strong Canadian dollar. Ben
Lefebvre, the chair of Canadian Auto Workers Local 599, called it a “devastating
blow” to the union's members, “particularly at this time of year.” He
added that hundreds of other jobs will be affected in Timmins and the
surrounding communities. “You can rest assured that we are not going
to sit idly by and let this happen without a fight,” Mr. Lefebvre said in a
statement. “The federal government agreed to the takeover of Falconbridge
by this foreign multi-national based on the fact that the deal would prove to be
a net economic benefit to this country,” Mr. Lefebvre said. “Obviously that is
not the case.” Xstrata said eligible employees will be offered early
retirement incentives and where possible, the company will try to offer work for
employees at its other operations. “Global smelting overcapacity is
driving treatment and refining charges to record lows while the costs to operate
and maintain these facilities continue to increase,” Claude Ferron, chief
operating officer, said in a release. “Our situation in Canada is
exacerbated by a strengthening Canadian dollar. The requirement for further
capital investment in these plants and lower sale prices for some byproducts,
including sulphuric acid, have also negatively impacted the viability of these
operations.”
American Securities Completes Its Acquisition of GenTek, Inc.
October 29, 2009 - American Securities LLC, a New York-based private equity firm, today announces that it has completed its acquisition of GenTek, Inc., a Parsippany, New Jersey-based provider of specialty inorganic chemical products and valve actuation systems and components for automotive and heavy duty/commercial engines. Equity was provided by American Securities Partners V, L.P., a $2.3 billion private equity partnership.
GenTek operates through two business segments: performance chemicals and valve actuation systems. The performance chemicals segment provides: (1) water treatment products, primarily used by municipalities, (2) various grades of sulfuric acid as well as sulfuric acid regeneration services for the refining and chemical industries, (3) ingredients used in prescription pharmaceuticals, nutritional supplements and veterinary health products, and (4) high purity electronic chemicals. The valve actuation segment provides performance-critical valve train components for a full range of gas and diesel engines. GenTek operates over 50 manufacturing facilities and technical centers and has approximately 1,100 employees.
In commenting on the transaction, Matthew F. LeBaron, a managing director of American Securities, said, “We are delighted to have closed this investment and to begin our partnership with GenTek’s management team. GenTek's specialty chemicals business has a leading position in the markets it serves, and its automotive valve business is well-positioned to grow. We are looking forward to working with GenTek's management team to continue to build the business.”
William E. Redmond, Jr., GenTek’s Chief Executive Officer, said, “We are pleased to have completed this transaction with American Securities and look forward to the next stage of GenTek’s development. We are excited to continue to grow and improve our company with American Securities’ support.”
Serbia will invest 160 million euros in RTB Bor copper through Canadian financing
October 19, 2009 - Serbia will
invest 160 million euros in RTB Bor copper through Canadian financing, Economy
Minister Mladjan Dinkic said. "135 million euros will be invested in
a new smelter and sulfuric acid plant, which should be built in two to three
years. The rest of the money is going to be used for the purchase of mining
equipment," Dinkic told reporters. "We had talks with the Canadian
Agency for Export Insurance (www.edc.ca) and they offered us a loan on favorable
terms. So we will have that 160 million euros from Canada." The state will
retain ownership of RTB Bor for some time and continue investments as the price
of copper on world markets has increased, the minister added. Serbia
tried three times to privatize the company but each attempt was canceled due to
violation of the agreement or withdrawal by interested parties.
Sulphuric acid plant
for Phikwe under consideration
October 19, 2009 - BCL Mine and
other development partners are mulling over the feasibility of establishing a
P1.9 billion sulphuric acid plant, which experts say will not only solve the
long-running concern of high sulphur emissions from the mine, but will also
develop a commercially viable industry in line with the town's economic
diversification. In their preliminary assessments, experts engaged
by the European Union for a Cleaner Concentrate and Emission Control Study
recently said that a plant to convert sulphur dioxide emissions into
commercially profitable sulphuric acid was the most appropriate solution for
Selebi-Phikwe and BCL's pollution concerns. Addressing European Union
delegates last week, BCL general manager Montwedi Mphathi acknowledged that a
sulphuric acid plant was the most ideal solution for sulphur emissions,
environmental conservation and profitability. He however, reiterated his
previously stated concerns about the challenges of developing such a plant.
"A sulphuric acid plant has been the best idea, but the cost of such an
operation has been the problem," Mphathi said. "It would be very helpful for us
if we had our market just outside the gates of such a plant because transport of
sulphuric acid is another great challenge." BCL Mine will be hoping its
fruitful cooperation with the EU over the years will enable related institutions
such as the European Investment Bank (EIB) to partner with it in environmental
interventions, including the development of the sulphuric acid plant. "Our
partnership with the EU may be coming to an end, but we hope for some assistance
from the EIB," Mphathi said. "Perhaps the EIB could be persuaded to help us do
something about the environment, granting us favourable rates and conditions."
Those in favour of the
sulphuric acid plant hope that the government, development and lending
institution and other partners could be persuaded to invest in the sulphuric
acid plant, looking at the end-product's high viability in the regional market.
Sten Johansson, a consultant involved in the Cleaner Concentrate and Emission
Control Study, said the cost of developing an appropriate sulphuric acid plant
for BCL Mine would be approximately US$290 million (P1.9 billion).
"The cost of this plant in 'Phikwe would be US$140 million (P915 million),"
Johansson said. "This would be equivalent to catching 2,400 tonnes of sulphuric
acid a day. Infrastructural investment for the plant would be in the
region of US$150 million (P981 million). This would include railway tracks, a
turn-in and out, ten locomotives and associated works." Based on
prevailing project economics, the proposed plant's operating cost would be US$30
per tonne (P196 per tonne), while transport to the envisaged target market,
South Africa, would cost US$20 per tonne (P131 per tonne). The key to
overcoming the difficult project economics would be for the plant's developers
to secure lucrative markets and purchase agreements both locally and regionally.
Supply of the sulphur dioxide for conversion in the plant is unlikely to be a
problem, given that BCL produces 534, 000 tonnes of sulphur dioxide per year.
Most of the sulphur dioxide is from the smelter, while other sources include the
mine's converter. Johansson said there was a "well proven" viability for
sulphuric acid as a commodity and that the acid was neither toxic nor explosive.
"Opportunities from this plant include getting the sulphuric acid to markets
like African Copper, Tati Nickel, South Africa and Namibia, the latter being via
the envisaged Trans-Kahalari Railway," he said. "The plant could also
supply downstream industries and lead to the establishment of industries such as
fertiliser production in Botswana, which would be a big opportunity for economic
diversification in the country."
Another great opportunity for the sulphuric plant's developers would be
to supply the country's various mines, which use sulphuric acid in ore
processing. The consultant said the research team had recommended that BCL
Mine be the principal developer of the plant and should appoint a project
manager for it. He explained that the project manager would then be required to
supervise a Bankable Feasibility Study and identify the Terms of Reference for
the project. "It should be appreciated that this plant would be an
environmental project and not strictly about making money," he added.
Mphathi said that such studies would enable the mine to make the right decisions
about the environment. When the mine was established, it used coal to reduce
sulphur emissions, but this system was ultimately abandoned as it was too
dangerous. Since then, the mine has installed and employed various systems and
machinery to reduce sulphur emissions as well as their potential hazardous
effects on the town's human population and the environment. Worldwide,
sulphuric acid is among the top products of the chemicals industry. The
commodity has spawned a multi-billion dollar industry with principal uses
including lead-acid batteries for cars, ore processing, fertiliser
manufacturing, oil refining, wastewater processing and chemical synthesis.
Southern States Ground Breaking
September 10, 2009 - After six years of site
searching, negations, engineering, and permitting the Wilmington Facility
finally became a reality in 2009. The September 10th Groundbreaking ceremony
marked the beginning of a new era of service, reliability, and environmental
stewardship for SSC. The new 525TPD Wilmington plant will produce 2/3 less
emissions and use less water than, the existing 200TPD facility while also
providing by-product steam which will offset carbon based fuel consumption. As
the company’s new principal acid plant, SSC Wilmington will set a new standard
for reliability of supply and customer service. The new Wilmington plant
is such a great addition to our "arsenal" of supply options for our customer
base and solidifies and improves our existing position in the Southeast US
market. It also exemplifies our long term commitment to our business and creates
such a positive influence for everyone involved. It's great to be a part of this
growth opportunity.
Puerto de Mejillones to
invest US$10mn in sulfuric acid storage tanks
August 28, 2009 - Puerto de Mejillones, Chile's region II Mejillones port bulk cargo terminal operator, will invest over US$10mn in the construction of two sulfuric acid storage tanks.
Anti-dumping duty demand on import of
sulphuric acid
August 25, 2009 - Copper and zinc producers are
selling their smelting by-product, sulphuric acid, much below their production
cost, as dumping of the chemical by Japanese and Korean producers has created an
over-supply, they complain. The acid is used by the fertiliser and detergent
industries. An industry lobby led by Sterlite Industries, Hindustan Zinc
and Hindalco Industries has demanded anti-dumping duty on the chemical, which
has not been approved by the government. “Government is not approving
anti-dumping duty under the pretext of protecting the fertiliser industry,” said
a person familiar with the development. He claimed the contribution of the
chemical to fertiliser production cost was minuscule. The chemical is currently
sold at the price of $3 per tonne. Usually, the price of sulphuric acid is a
third of the price of sulphur, which is being sold at $60-70 a tonne. This
should have meant the chemical is priced at $20-25 a tonne. According to
media reports, China is also considering anti-dumping duty on the chemical, as
it is a similar victim. This will worsen the situation for Indian producers.
Stingray Copper Awards Aker Chemetics Acid Plant
August 17, 2009 - Stingray Copper Inc. is pleased
to announce that it has awarded a contract to Aker Chemetics, a division of Aker
Solutions Canada Inc., for the Full Basic Engineering of a Co-Generating Plant
producing both sulfuric acid and electricity. The Co-Gen Plant will produce
superheated high pressure steam to be used in a turbo-generator resulting in
approximately ten megawatts of electrical power. In addition, this plant will be
capable of producing 750 tonne per day ("tpd") of sulfuric acid. This work was a
recommendation in the April 2009, El Pilar Feasibility Study completed by M3
Engineering and Technology Corporation and detailed in News Release 2009-02.
Both the power and sulfuric acid outputs are 25% larger than was contemplated in
the Feasiblity Study previously mentioned and should assist in driving down cash
costs per pound of copper produced while also de-risking the project.
The size of the Co-Gen Plant is being increased to supply 100% of sulfuric acid
requirements for the El Pilar operation as identified in the Study. The plant
sizing as per the Study would have required Stingray to purchase additional
sulfuric acid from third party markets to augment the acid plant production
originally designed for 600 tpd. The 25% increase in plant size is expected to
provide additional operating cost advantages by lowering overall acid costs and
decreasing power costs as well as avoiding the risks of spot acid price
volatility experienced in recent years. Decreasing power and sulfuric acid costs
for the El Pilar project will result in less risk for two of the largest inputs
for the Solvent Extraction-ElectroWinning copper operation. The primary input
for the Co-Gen Plant is liquid molten sulfur that is readily available from
several sources, but particularly in the Texas gulf coast as a by-product of
sour gas production wells. Stingray's market investigations have indicated
steady, reliable sources of sulfur can be railed directly to the El Pilar site.
Stingray is anticipating that the increased size of Co-Gen Plant can be
completed without a significant cost increase from the estimate included in the
Study. Aker Chemetics is expected to complete their work prior to the year end.
Although this Plant is slated for construction in Mexico, it will adhere to the
highest industry standards by meeting or exceeding EPA and OSHA Standards.
Aker Chemetics is a world leader in executing advanced technology-based
engineering and construction projects for mining and mineral-processing
companies. They provide technologies that are offered on a worldwide basis to
customers in the form of engineered systems, proprietary and nonproprietary
equipment, as well as fully erected systems and plants. Aker Chemetics'
expertise encompasses all of the required engineering disciplines and project
execution skills for the Co-Gen Plant Full Basic Engineering work they will be
providing.
Stingray is actively pursuing project financing alternatives while continuing to
develop the El Pilar project for future mine construction. Basic engineering is
also underway in several other areas of the project. The company is well funded
with roughly $15.5 million in working capital.
July 20, 2009 -- The Noranda Income Fund (the "Fund") (TSX: NIF.UN) announced today it is suspending its monthly cash distribution. Since March 2009, the Fund has operated the production of sulphuric acid and zinc at 80% of 2008 levels because of the weak demand for sulphuric acid. The Fund's profitability and cash flow have been negatively impacted by operating at less than full capacity and by weak market conditions. As a result, the Board of Trustees feels that it is prudent to stop paying the monthly cash distribution until there is an overall improvement in the economic outlook for the Fund. The suspension will impact both the Ordinary and Priority Unitholders. Ordinary Unitholders have not received a monthly distribution since March when the subordination feature became effective. Starting in July, the Priority Unitholders will no longer receive a distribution. The Fund is unable to predict with any certainty the expected duration of weak market conditions, including the demand for sulphuric acid.
Peru government rejects Doe Run smelter plan
July 17, 2009 - Bloomberg reported that Peru’s government rejected a proposal by Doe Run Peru to reopen its shuttered lead and zinc smelter. Peru’s government said that it will not agree to delay a deadline for an environmental clean up unless the company puts up 100% of its shares as a guarantee. The Energy and Mines Ministry said that the subsidiary of the Renco Group needs to spend at least USD 100 million as compared with the USD 31 million proposed last month. Banks froze Doe Run’s accounts in February after metal prices collapsed and the smelter halted all operations on June 2nd because it couldn’t buy the raw materials needed. Copper, zinc and lead prices plunged at least 49% in London last year, leading to USD 124 million in company losses. Mr Jose Mogrovejo VP of Doe Run said that "We’re studying a new proposal for suppliers and the government to be discussed in a meeting later this week. We hope to reach an agreement on this as soon as possible." Mr Fernando Gala deputy mining minister of Peru said that US billionaire Mr Ira Rennert Renco’s owner must inject cash for the smelter. The government rejected the company’s proposal to use a prior USD 18 million guarantee and tax rebates to finance part of its USD 156 million debt to suppliers. The government may extend an October 31st clean-up deadline if the company commits USD 150 million over an 11 month period. Doe Run proposed a 30 month period to build a sulphuric acid plant to curb emissions.
Jury: DuPont negligent in '04 spill
July 14, 2009 - A jury has found chemical giant DuPont guilty of gross negligence in a 2004 leak at its Wurtland plant that released clouds of sulfuric acid over large portions of Greenup County. Because of that negligence, those suing DuPont for health problems they suffered as a result of the release are entitled to 10 times the monetary damages they would have otherwise collected, the jury ruled. The 10-member jury found in favor of the plaintiffs on Monday after deliberating for about three hours and 40 minutes. The verdict concluded a civil trial that began June 26 in U.S. District Court in Ashland.
The lawsuit - actually a consolidation of several actions filed against DuPont following the Oct. 11, 2004, chemical release - is being tried in four phases.
While acknowledging a chemical release did take place at the Wurtland facility on the date in question, DuPont continues to maintain that release was not the cause of the problems alleged by the plaintiffs, Campbell said. "We really don't believe our actions in the case warranted these awards," she said. We think our employees acted swiftly to stop the release and to inform the community." A number of those suing DuPont are police officers, firefighters and other emergency personnel who responded to the scene when the leak occurred. The leak, caused by a cracked pipe at the Wurtland facility, resulted in the release of sulfur trioxide, a chemical that formed billowing white clouds composed of droplets of sulfuric acid, which covered much of Wurtland, Worthington and Greenup.
Plaintiffs' attorneys argued failure on DuPont's part to address issues raised by a 1995 chemical release at the Wurtland plant was largely responsible for the same type of incident occurring again nine years later. Following the 1995 incident, a safety team recommended DuPont institute a number of changes at the facility to ensure a spill of that nature never occurred again, according to testimony in the case. "Not only did DuPont ignore those recommendations in 1995, it continued to ignore them following the 2004 spill as well," plantiffs' lawyers said in bench memorandum filed in the case. "In other words, DuPont had known for nine years it needed to improve its Wurtland facility's safety practices, but simply chose not to." Also, testimony in the case revealed three months before the spill, a DuPont investigation revealed the tube bundle that ultimately failed was "dangerously corroded" and in need of replacement, but the company declined to do so, the memorandum states.
Vale informs about strike in Canadian operations
July 13, 2009 – Vale S.A.
(Vale) informs that the unionized maintenance and production employees at its
operations in Sudbury and Port Colborne, province of Ontario, Canada, went on
strike today after rejecting the company’s settlement offer for a new three-year
collective bargaining agreement. Our proposal aims to provide the right
incentives to labor productivity growth and to enhance the foundations of our
long-term competitiveness and capacity to continue to generate value. The
strike affects 3,073 employees at our integrated mining, milling, smelting and
refining operations in Sudbury, and 116 employees at our Port Colborne refinery.
In 2008, finished nickel production originated from the Sudbury operations
reached 85,300 metric tons, 31% of Vale’s total output. Our Port Colborne
facility produces platinum group metals, gold and silver intermediate products.
As previously disclosed, the Sudbury and Port Colborne operations began an
eight-week shutdown on June 1, 2009, and were scheduled to resume operations on
July 27, 2009.
July 13, 2009 - Chemtrade Logistics Income Fund announced that Chemtrade's supply of sulphuric acid and liquid sulphur dioxide to its customers will not be affected by the labour disruption at Vale Inco's nickel mining and processing facilities at Sudbury. Mark Davis, President and CEO of Chemtrade, said, "Prior to Vale Inco's announcement in April of an extended shutdown we began building inventory to ensure that supply to our customers was protected. While Chemtrade's product supply of acid from Vale Inco ceased on May 9 and will not resume until the smelter is restarted, we will continue to supply our customers from inventory, our own sulphuric acid manufacturing facilities as well as sourcing from other suppliers. We will continue to review the situation but currently anticipate that we will be able to keep our customers supplied until Vale Inco resumes production."
Bayer Technology Services completed sulfuric acid plant featuring innovative technology
June 16, 2009 - Bayer Technology Services GmbH
(BTS) has been commissioned by Berzelius Stolberg GmbH, the largest lead
manufacturer in Europe, to build a sulfuric acid plant operating on the BAYQIK®
process. The company is based in Stolberg near Aachen, Germany. The plant
has now been successfully brought on stream after just 17 months. The BAYQIK®
(Quasi-Isotherme-Katalyse [quasi-isothermal catalysis]) process developed by BTS
can increase the SO2 inlet concentration by up to 50 percent by
volume. Coupled with optimized process management, this results in significantly
higher conversion, i.e. sulfur dioxide emissions are greatly reduced. Another
benefit is an increase of at least 30 percent in available plant capacity.
Berzelius tested and optimized the process in a pilot application on-site.
Its robustness, quality and cost benefits were the deciding factors in awarding
the contract for the planning, delivery and construction of the first
large-scale plant based on the BAYQIK® process. The facility has a total
capacity of 450 metric tons of sulfuric acid per day. As the BAYQIK® process is
operated on a peripheral basis, the existing sulfuric acid plant was refitted
cost-effectively with only a few days’ downtime.
Bayer Technology Services GmbH offers fully-integrated solutions along the life
cycle of chemical and pharmaceutical plants - from development through
engineering and construction to process optimization for existing plants.
The Bayer subsidiary employs nearly 2,600 experts worldwide at its headquarters
in Leverkusen and other German locations, as well as in regional offices in
Belgium, India, Mexico, the United States, Switzerland, the United Arab Emirates
and the People's Republic of China. 2008 sales totaled approximately EUR 420
million.
Additional information about Bayer Technology Services is available at http://www.bayertechnology.com.
Toronto – Aker Solution opens new manufacturing facility in Pickering, Ontario, Canada
June 15, 2009 - Aker Solutions
has opened its new 90 000 square foot state-of-the-art manufacturing facility in
Pickering, Ontario, Canada. The new facility will allow Aker Solutions to
capitalize on market demand for fabrication of its proprietary equipment for
acid plants, by more than doubling its production capacity. The original
fabrication facility was established in Toronto in 1961, and has been designing
and fabricating custom shell and tube heat exchangers and process equipment for
the sulphuric acid, nitric acid, petroleum and chemical industries for nearly 50
years. Gary Mandel, executive vice president of Process & Construction,
Aker Solutions, said: "As a result of our success as an industry leader in these
niche sectors, we have re-located to this much larger facility, and implemented
key equipment upgrades and manufacturing improvements to enable us to continue
to meet market demand for our high quality, custom fabrication capability."
This new facility includes a 17 400 square-foot office, 17 000 square foot
machine shop, and two 27 300 square foot assembly bays. The machine shop and
assembly bays are equipped with a total of seven cranes, each with a span of 70
feet. Single lift capacity in one of the assembly bays is 100 tonnes. The
facility provides higher and heavier lift capacity for larger equipment.
New contact information: 2001 Clements Road Pickering, Ontario L1W 4C2 Canada
Telephone: 1 905 619 5200 Telefax: 1 905 619 5345
Doe Run Peru shuts smelter, seeks to delay cleanup
June 3, 2009 - U.S.-owned mining company
Doe Run shuttered its Peruvian smelter on Wednesday, likely costing 3,500 jobs
and threatening the closure of scores of small mines as it struggles to finance
operations. Doe Run Peru called the temporary closure "inevitable," saying
it hasn't been able to find funding to "normalize operations, pay creditors, and
complete the final project" in a required environmental cleanup, according to a
statement published in local newspapers.Doe Run Peru, a subsidiary of New
York-based holding company The Renco Group, has faced serious financing problems
since March, after its lenders cut a $75 million credit line amid sagging metal
prices.
A group of Peruvian miners and banks stepped in with a $175 million loan in
April, but the smelter has since operated at 30 percent capacity, "leaving the
company in an increasingly unfavorable economic situation," its statement said.
The 82-year-old smelter processes copper, lead, zinc and smaller amounts of
gold, silver and other metals. Doe Run acquired it from government-owned
Centromin in 1997, agreeing to build three sulfuric acid treatment plants to
lower toxic emissions.
Doe Run says it has spent $300 million on the cleanup so far, but it has also
delayed its completion by three years. Its current deadline is set for October,
but construction on the third treatment plant stopped in March. On
Wednesday, the company asked for "flexibility" from the government in completing
the cleanup at a "realistic and satisfactory" cost and time. Energy
Minister Pedro Sanchez in April said the government would be flexible, noting
that Renco had injected $165 million into the company and offered all its shares
in the smelter as collateral to guarantee the cleanup.
Sulfuric acid may trade close to zero
April 22, 2009 - Sulfuric acid, the biggest by-product of
copper smelting, may trade near zero on the spot market for the rest of this
year because of a slump in demand from customers such as fertiliser makers, CRU
Group said. The acid sold above $450 a tonne in the spot market in the
middle of last year, the London-based research company said. Prices fell as the
US, Europe and Japan entered simultaneous recessions and demand shrank to a
five-year low. “Zero, or close to zero, is still the spot price,” Joanne
Peacock, a sulfuric acid analyst at CRU, said by phone yesterday. “Based on the
current outlook for demand, it is more or less the same picture for the rest of
the year.” The plunge in prices is curbing the profitability of some
copper producers, compounding a drop in some charges for processing metal. The
excess supply has spurred some refiners to store acid on ships at sea and
prompted Xstrata to suspend a smelter in Canada this month. Demand from
fertiliser manufacturers, who use the commodity to make phosphate fertiliser,
has dropped about 30 per cent this year, CRU estimates. The industry normally
accounts for over 50 per cent of consumption. The acid is also produced by
the zinc, lead and nickel industries, which together with copper generate 55
million tonnes of the liquid a year. A copper smelter produces 3 tonnes of
acid for every tonne of metal made. Weak demand for acid has been cited by
metals producers such as Stockholm-based Boliden AB as a contributory factor in
them shutting production. “Unless there is a sudden pickup in acid demand,
there is a risk for many more acid-related smelter production cuts in the months
ahead,” Barclays Capital said in a report April 2. The bank expects copper
demand to shrink 2.1 per cent this year, compared with a 1.3 per cent drop in
production. Lower acid prices are benefiting some companies. Miners use
the commodity to dissolve crushed ore, consuming about 10 million tonnes a year,
according to CRU.
Dupont And Lucite International Agree To Pay $2 Million For Clean Air Violations
April 20, 2009 - DuPont and Lucite International
Inc. have agreed to pay a $2 million civil penalty to settle Clean Air Act
violations at a sulfuric acid plant in Belle, West Virgina, the U.S.
Environmental Protection Agency, the U.S. Justice Department, and the state of
West Virginia announced today. The sulfuric acid plant is located on a
100-acre chemical manufacturing complex along the Kanawha River. The plant is
owned by Lucite and operated by DuPont. The companies will pay $1 million
to the United States and $1 million to the state of West Virginia.
Further, the companies chose on their own to shut down the sulfuric-acid
manufacturing unit of a larger chemical facility at the site and the settlement
confirms this agreement. Under the settlement, the sulfuric acid unit is
scheduled to shut down by April 1, 2010.
“The actions taken as part of this settlement will reduce emissions of air
pollutants by more than 1,000 tons each year,” said Catherine McCabe, acting
assistant administrator for the EPA’s Office of Enforcement and Compliance
Assurance. “Sulfur dioxide emissions can be harmful to children, the elderly,
and people with heart and lung conditions.”
“This settlement is part of the U.S. government’s dedicated effort to bring all
sulfuric acid manufacturers into compliance with the Clean Air Act,” said John
C. Cruden, Acting Assistant Attorney General in charge of the Justice
Department’s Environmental and Natural Resources Division.
In a joint complaint, filed concurrently with the consent decree, the United
States and West Virginia allege that the companies made modifications to their
plant in 1996 without first obtaining pre-construction permits and installing
required pollution control equipment. The Clean Air Act requires major sources
of air pollution to obtain such permits before making changes that would result
in a significant emissions increase of any pollutant.
The Belle sulfuric acid plant burns sulfuric acid sludge, which creates sulfur
dioxide (SO2). Most of the SO2 is converted to sulfuric acid and recovered, but
a portion of the chemical is emitted to the atmosphere. In addition to SO2, the
plant also emits sulfuric acid mist, nitrogen dioxide and carbon monoxide.
The settlement is part of an EPA initiative to improve compliance among
industries that have the potential to cause significant amounts of air
pollution, including the cement manufacturing, glass manufacturing, and acid
production industries.
Chemtrade Will Maintain Supplies to Customers Despite Vale Inco Sudbury Shutdown
April 17, 2009 - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced that Chemtrade's supply of sulphuric acid and liquid sulphur dioxide to its customers will not be affected by Vale Inco's recent announcement that its nickel mining and processing facilities at Sudbury will be shut down from June 1 to July 27, 2009 in response to global demand conditions. Mark Davis, President and CEO of Chemtrade noted that although Vale Inco is Chemtrade's largest supplier of sulphuric acid, Chemtrade has its own sulphuric acid manufacturing facilities and is also able to source from other suppliers. Mr. Davis added, "While Chemtrade's product supply of acid from Vale Inco will be curtailed for the duration of the shutdown, we have built inventory to prepare for this possibility. With Chemtrade's capabilities and measures taken to date, we do not expect any disruption to our customers."
Vale halts Sudbury mining
April 16, 2009 - Major nickel mining operations in Sudbury, Ont., will come to a standstill for the first time in more than a century this summer after Brazil's Vale Inco announced plans to shutter its Sudbury mines and smelters for two months. Blaming the devastating downturn in nickel prices and plunging demand for the metal used to make stainless steel, Vale Inco parent Companhia Vale do Rio Doce [RIO-N] said late Thursday it will close its five operating Sudbury mines and its entire suite of nickel processing operations in June and July. Vale Inco spokesman Cory McPhee said there is no longer sufficient demand for all the nickel the company produces from its Sudbury operations. “The pipeline is full. We are not selling all the nickel we produce in Ontario and so this allows us to clear the pipeline. …When we return to work we are going to be in a much better position,” Mr. McPhee said. About 5,000 Vale Inco employees will be affected. Mr. McPhee said the company will mandate employees to use their vacation time during the shutdown, but will likely have to issue temporary layoff notices. The planned shutdowns follow Xstrata Nickel's recent decision to shutter its mining operations in Sudbury, save for a development mine that won't reach full production until 2010. Xstrata laid off 686 workers at its Sudbury operations in February when it put its two operating mines on care and maintenance. It continues to construct the Nickel Rim South mine in the Northern Ontario city that has been the world's largest nickel mining centre since the early 1900s. In December, Vale Inco closed its Copper Cliff South mine in Sudbury. It recently said it is cutting 900 jobs including 350 in Canada. Vale and Xstrata were the respective victors in a heated takeover battle for Canadian mining stalwarts Inco and Falconbridge in 2006 and 2007. The foreign mining giants paid more than $40-billion combined for the Canadian companies. In order to win Ottawa's approval for the takeovers, both Vale and Xstrata promised not to lay off workers for three years. The price of nickel reached record highs above $23 (U.S.) a pound shortly after the buyouts. It has since fallen to about $5.50 a pound.
April 1, 2009 - About 175 workers at
Xstrata Copper’s Kidd Creek Metallurgical Site will be affected by an eight-week
shutdown starting April 13 because of weak demand for sulphuric acid. The shutdown will affect employees
working in the copper smelter, whereas the site’s concentrator and zinc
operations will continue to operate.
Thompson Hickey, general manager at the site, said the company experienced a
“significant drop” in sulphuric acid sales since January, due to a lack of
demand. “An ongoing negative
outlook on sales requires that we adjust our operating plans to further reduce
our acid production to meet this current reality,” Hickey said in a press
release. “This situation is beyond
our control and we will make all possible efforts to mitigate potential impacts
on our 175 employees working at the copper operation.”
Hickey said Xstrata doesn’t expect the shutdown to last any longer and “we look
forward to returning to normal production levels.”
China punishes 13 officials for river pollution
March 30, 2009 - Thirteen officials in central China have been punished after a chemical company contaminated a river with arsenic, state media reported Sunday. A local court sentenced Liu Gaili, a former environmental protection bureau official, to two years in jail, the official Xinhua News Agency cited the Shangqiu city government in Henan province as saying. The report said 12 other officials were either sacked or given administrative punishments. The officials were punished after a section of the Dasha river was found contaminated by arsenic in August last year. Water quality tests showed the concentration of arsenic was nearly 900 times greater than what was deemed safe. Investigations showed the Chengcheng Chemical Co. Ltd., a sulfuric acid plant, had been illegally dumping toxic waste water into the river since late July, contaminating 1,000 tons of water, Xinhua said. Selected sluices were closed and dams built to prevent the contaminated water from spreading to neighboring Anhui province, while experts from the Chinese Academy of Sciences poured chemical agents into the river to purify it. Tests between November and March showed the water was safe and no residents or livestock had been poisoned, Xinhua said. China's double-digit economic growth has been accompanied by a surge in toxic industries. The country has 16 of the world's 20 most heavily polluted cities.
Outotec has won service contracts in Chile and Canada
March 24, 2009 - Outotec has won service contracts in Chile and Canada. Outotec has won several service contracts for industrial and maintenance services in Chile and Canada. The total value of these services is approximatel EUR 15 million. The orders include: industrial services for Codelco's Minera Gaby copper mine in northern Chile including maintenance and cleaning services for five years, - maintenance and cleaning services for Xstrata's Altonorte smelter and sulfuric acid plant in northern Chile during three years, and - smelting furnace rebuild services for Vale Inco's nickel smelter located in Sudbury, Canada. The services will be provided by Outotec Auburn, a new unit focusing on maintenance services and acquired by Outotec in late 2008. "We have invested strongly in the development of the Services business. These contracts demonstrate that our work is bearing fruit. Outotec Auburn has a strong presence in Canada and Chile, but with Outotec's large network of sales and service centers the unit has good opportunities to grow its business globally", notes Tapani Järvinen, CEO of Outotec.
EPA Alleges Major Violations at Simplot
February 9, 2009 - The Environmental Protection
Agency has filed a notice of violaton against the J.R. Simplot Company.
Specifically the Don Plant in Pocatello and some of those violations according
to a notice by the EPA date back almost twenty years...
Think of it like this...EPA enforcement rules state the government can fine a
company by the day. In this case, Simplot may be forced to pay millions in fines
since the violations began in 1991.
According to the notice of violaton, the EPA alleges that the J.R. Simplot plant
failed to acquire the necessary permits before making modifications to the 300
and 400 plants in Pocatello. On page eight of the violations, the EPA alleges
the plant modifications to the #400 sulfuric acid plant began back in 1991. On
page ten, it alleges that modifications to the #300 sulfuric acid plant began in
1996.
At the #400 plant, modifications included a net increase of approximately 364
tons per year of sulfer dioxide..enough to require Simplot to apply for and
obtain a permit. That amount of sulfer dioxide is considered a major
modification.
Simplot at the time said the modifications they made to the plant were intended
to restore plant integrity for long term dependability.
At the #300 plant, modifications in 1996 boosted sulfer dioxide emissions by 430
tons per year...again, enough to require the plant to apply and obtain a permit
which the EPA says they did not do.
Simplot says they made modifications to the plant for the purpose of increasing
production capacity...and to increase steam generation by 17 percent.
Then, in 2001 - the EPA alleges that Simplot replaced a bunch of aging equipment
which ultimately resulted in an increase of sulfer dioxide by 85 tons per year.
That too is considered a significant increase and according to the EPA Simplot
did not apply for a permit.
If the EPA seeks a full restitution...the law specifies Simplot may be ordered
to pay $25,000 dollars a day since the violations began. If you take into
account the first violations to the #400 plant...they could be ordered to pay
hundreds of millions of dollars.
Simplot told me today, they aren't prepared to respond to the notice by the EPA
because they just received the complaint. But Rick Phillips says the EPA has a
national inititive right now focusing on plants that make sulfuric acid.
He says Simplot feels they are being singled out and have significantly reduced
SO2 or sulfer dioxide emissions significantly over the past twenty years.
Economic Conditions Cause Re-Evaluation of El Paso Plant Investment/Goals
February 3, 2009 - Asarco LLC informed the Texas Commission on Environmental Quality (TCEQ) that it does not intend to reopen it El Paso, Texas Copper Plant. The decision is based on the dramatic downturn of the world economy in the last six months. Asarco is working with the state of Texas to fund a custodial trust for the demolition of the plant and remediation of the site. Any custodial trust must be approved by the bankruptcy court that is overseeing Asarco’s reorganization effort. Today’s decision will not affect Asarco’s operating copper refinery in Amarillo, Texas.
Outotec to deliver sulfuric acid plant for Noracid in Chile
January 27, 2009 - Outotec to deliver sulfuric acid plant for Noracid in Chile. Outotec has agreed with Noracid S.A. on the delivery of a new sulfuric acid plant to be built in Mejillones, Chile. The contract value is approximately EUR 51 million. Outotec's scope of delivery covers engineering, process equipment and supervisory services for a plant designed to produce annually over 600,000 tonnes of sulfuric acid and approximately 24 MW of electric energy. The sulfuric acid will be used by the local metallurgical industry. The plant is expected to be commissioned in the first quarter of 2011. "Outotec has delivered sulfuric acid technology for a number of plants in Chile, for example for Codelco's divisions and for Xstrata's Altonorte operations. This new plant based in Mejillones will further strengthen our market position as a leader in sulfuric acid plant technologies in Chile," comments Outotec's CEO Tapani Järvinen.
China Energy Recovery
Secures an $8.9 Million Contract for a Heat Recovery System Retrofit Project for
Jiangsu Sopo Chemical
January 27, 2009 - China Energy
Recovery, Inc. (OTC Bulletin Board: CGYV - ISIN: US16943V2060; "CER"), a leader
in the waste heat energy recovery sector of the industrial energy efficiency
industry, announced today that it has recently entered into an EPC (Engineering,
Procurement and Construction) contract for a retrofit project (the "Project") to
build a new low temperature heat recovery system (the "System") for the sulfuric
acid plant of Jiangsu Sopo Chemical Group ("Sopo Group"). Sopo Group is a
leading Chinese integrated chemical company and China's largest producer of
Acetic Acid (Glacial), one of the major basic chemicals for industrial uses.
The Project is arranged as a sales-type lease which offers the company higher
margin compared to regular EPC projects. The currently determined total contract
value amounts to RMB60.8 million (roughly $8.9 million USD at the prevailing
exchange rate on the date of the release) with a 4-year installment payment
term. The main low temperature heat recovery system for the Project will be
specially procured from MECS, Inc., a leading US-based company specializing in
sulfuric acid manufacturing equipment and systems and formerly part of Monsanto.
CER partners with MECS to provide the low temperature heat recovery systems for
sulfuric acid plants in China.
The primary purpose of the System is to utilize the waste heat released from the
sulfuric acid production process and to use it to supply the main facilities
with the hot steam, which would otherwise have to be supplied from coal-fired
generators. Through this process, not only are energy costs significantly
reduced but Sopo Group is able to meet strict environmental protection
requirements. It is estimated that upon completion in early 2010, the System
will help Sopo Group save roughly 17,000 tons of coal (coal equivalent), which
would otherwise be required to produce the same amount of hot steam, and thus
prevent the release of approximately 45,000 tons of carbon dioxide emission each
year. Moreover, approximately 200,000 tons of cooling water will also be saved
annually.
Changes to BHP Billiton's Nickel Business
January 21, 2009 - BHP Billiton today announced
that it will immediately commence the safe ramp down and indefinite suspension
of the Ravensthorpe Nickel Operation (Australia).
Al Ain to go green with
sulphur concrete in sewerage
January 20, 2009
