aluminium part2

THE SECOND INTERNATIONAL CONGRESS NON-FERROUS METALS 2010, SEPTEMBER 24, 2010, KRASNOYARSK, RUSSIA

PART II

PROCESSES OF LEAD-ZINC ORE MINING AND PROCESSING METHODS

The Second International Congress Non-Ferrous Metals 2010, September 24, Krasnoyarsk, Russia Contents

PART II. PROCESSES OF LEAD-ZINC ORE MINING AND PROCESSING METHODSCommercialization of Kivcet Process in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 V.A. Shumskiy Environmetnal Aspects of Development of New Lead-Zinc Deposits . . . . . . . . . . . . . . . . . . . . . . . . . 53 S.P. Kiseleva, I.F. Marchenkov, N.S. Parilova, A.E. Arkusha Prospects of Development of The Technology of Hot-Dip Zinc Coating. . . . . . . . . . . . . . . . . . . . . . . 56 A.A. Bitsura Technological Features and Prospects of Development of Ozerninsky Ore Cluster . . . . . . . . . . . . . 63 S.G. Fedorov, A.S. Baranov State and Perspectives of Developmentof The Republic of Kazakhstan Zinc Industry . . . . . . . . . . . 66 N.N. Ushakov, A.I. Ananin, V.A. Shumskiy, N.M. Ni High Purity Electrolytic Lead Form Low Grade Crude Lead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Xiao Weisong, Xu Bin, Li Zhiwen, Zhao Qinsheng

The Second International Congress Non-Ferrous Metals 2010 Part II Processes Of Lead-Zinc Ore Mining And Processing Methods

COMMERCIALIZATION OF KIVCET PROCESS IN CHINAV.A. Shumskiy State Affiliate The Eastern Mining and Metallurgical Research Institute for Non-ferrous Metals Republic State Affiliate National Enterprise of Complex Processing for Mineral and Raw Material of the Republic of Kazakhstan (SA VNIItsvetmet RSA NE CPMRM RK), Ust-Kamenogorsk, Republic of Kazakhstan

In 2008 and 2009, VNIItsvetmet Institute signed License Agreements for purchasing of KIVCET technology with large metallurgical Chinese Companies Jiangxi Copper Corporation and Zhuzhou Smelter Group Co. At present, two lead plants with annual production capacity of 100 000 and 120 000 tons of lead, using KIVCET process for lead bullion smelting from different raw materials, are designed for these companies. The report reviews some aspects of KIVCET process commercialization in China, including specific details of the designed KIVCET units. Introduction Quick development of industry in China during last years is accompanied by large-scale projects for construction of new industrial enterprises and modernization of existing plants. Within a framework of state regulation of this process, programs for modernization of metallurgical industry of PRC are realized. The goals of such programs are the following: elimination of small, technically worn-out and technologically old metallurgical plants, which are dangerous for environment and people; construction of new or modernization of the existing large metallurgical plants on the basis of modern, highly-productive and environmentally safe processes; increasing of metal production output to meet the requirements of developing processing industry of the Country (building and construction industry, transport industry, manufacturing engineering, instrumentation engineering and others). Foreign advanced technologies are widely used for realization of these programs. As a rule, well-known brands, approved in leading world metallurgical enterprises, are used. It allows to reduce risks and to accelerate development of innovations. In process of modernization of Chinese metallurgical industry, much attention is devoted to upgrading of conventional lead production industry. 1. Modernization of Chinese Lead Industry The following environmental factors have considerable influence on relevance of lead industry modernization: country-wide use of environmentally-damaging sintering blast furnace smelting process in lead plants of China in conditions of general aggravation of environmental situation in regions, where such plants are located; production of significant amount of lead bullion in numerous backyard and low capacity plants, having low efficiency, high consumption of materials, not complying with sanitary regulations and environmental standards. That is why modernization program foresees solving of 2 main issues: 1) elimination of backyard and low capacity lead plants; 2) change of technologies, used in lead plants, into advanced, more environmentally safe and efficient processes of lead raw materials direct smelting. For solution of the first problem, state modernization program foresees minimum permissible lead plant production capacity in PRC; it is 50 thousand tons per year for primary lead and 10 thousand tons for secondary lead production. Lead plants, having lower production output of metal than limited by state, have to be expanded or eliminated. Besides, construction of new lead plants with lower metal production output is prohibited.

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Solution of second problem is accomplished by systematic introduction of commercialized (i. e. at stage of industrial exploitation) processes of direct lead raw materials smelting. Five processes of such kind are used in world lead production, i. e.: Swedish process Kaldo (or TBRC); German process QSL; two types of Australian process TSL (Top Submerged Lance) Ausmelt and Isasmelt; Chinese process SKS (QSL is prototype); and KIVCET process, developed in Kazakhstan by VNIItsvetmet Institute. It shall be noticed that during the last 1012 years, four from the five above-mentioned commercialized processes have been implemented in Chinese lead plants: Western Mining Company started up new lead plant, having annual production capacity of 50 thousand tons of lead bullion, using Kaldo technology in Xining city, Qinghai Province. In 1997 [1], China Non-Ferrous Metals Corporation implemented QSL process in lead plant, having annual production capacity of 52 thousand tons of lead bullion, in Gansu Province (at present there is no information concerning its operation). In 2005 Yunnan Metallurgical Group Co. has started using Isasmelt process in lead plant, having annual production capacity of 70 thousand tons of lead bullion, in Qujing city, Yunnan Province. Henan Yuguang Gold and Lead Co. and Shuikoushan Non-Ferrous Metals Group Co. apply Chinese Process SKS in three lead plants having total annual production capacity of about 160 thousand tons of lead bullion. Application of such a quantity of different processes for lead smelting in one country is already phenomenon. Nevertheless, there are intentions to start up two new processes for direct lead smelting. Nanchang Engineering & Research Institute of Nonferrous Metals (NERIN), situated in capital of Jiangxi Province in Nanchang city, is developing and accomplishing pilot testing of new Chinese process for flash smelting. At present it is not clear if this process is similar to Finnish lead smelting technology Outokumpu (which has not been realized industrially) or to KIVCET process. Xinxiang Zhonglian Company with the assistance Central South University is going to implement one more direct lead smelting process in a bath with side blowing (the way it is called in China). This technology is based on Russian Vanyukov lead smelting process, invented by Moscow State Institute of Steel and Alloy (MSIS&A) long time ago, but not realized commercially yet. MSIS&A and Central South University accomplished testing of lead smelting in pilot-industrial Vanyukov furnace at casting and mechanical plant of this company from 2001 up to 2004. The Company is planning to construct new lead plant with annual production capacity of 60 thousand tons of lead bullion, using 2 cascaded furnaces with side blowing for lead smelting in liquid bath (analogue of Vanyukov furnace), in Xinxiang city, Shandong Province. Thus, lead industry of China is looking for new possibilities for intensive development and modernization. Herewith, interest area of the industry touches almost all the known and experimentally tested technologies of lead smelting. Until recent time, only KIVCET process was the exception of this rule. Among reasons of not using this technology, they called high expenditures and relatively low heat efficiency of jacketed KIVCET furnaces and necessity of using finely-grinded materials and intensive preliminary drying of charge. Nevertheless, Chinese companies kept watching commercialization experience of this technology abroad: Karachipampa (Bolivia, 1985), Ust-Kamenogorsk Lead and Zinc Complex (UK LZC, Kazakhstan, 1985), Portovesme (Italy, 1986), Trail (Canada, 1997). After KIVCET process proved to be environmentally safe and effective for smelting of wide range of lead raw materials, including materials with very high content of residues from zinc plants (unacceptable for other technologies), two large Chinese metallurgical companies Jiangxi Copper Corporation and Zhuzhou Smelter Group Co. have purchased licensees for KIVCET during 20082009. 2. Specific Characteristics of Current Lead Smelting Processes To understand the reason of KIVCET process advantages in respect to quality range of processing raw materials, allowing it to penetrate into Chinese lead technologies market, it is necessary to look at specific characteristics of current lead smelting processes. At present, only two methods of direct smelting are used commercially (or tested in pilotplant trials): 1) bubbling smelting in liquid bath, using different ways of air-oxygen blast injection into liquid bath and 2) flash smelting of powdered raw materials, fed through burners with oxygen-bearing gas flow. Herewith, all lead smelting technologies unlike similar technologies for smelting of copper raw materials shall realize not only oxidation stage, but also significantly more slow reduction stage of the process for getting acceptable level of lead reduction into lead bullion.

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QSL, TSL (Ausmelt/Isasmelt) and SKS processes realize bubbling method for raw materials smelting in liquid bath, which is essentially similar to processes of metallurgical melts converting and fuming. The technology of such kind, used in Russia and Kazakhstan for smelting of copper and nickel raw materials, is Vanyukov process. Kaldo and KIVCET processes realize flash smelting of raw materials in charge-oxygen flame. Similar technologies, used for copper and nickel raw materials smelting, are Finish smelting (Outokumpu process) and domestic process of oxygen-flash smelting (OFS). The specific characteristic of Kaldo process is close contact of short flame with slag melt bath with high concentration of lead. Influence of the flame flow under additional inclination and rotation of smelting reactor insures intensive circulation and mixing of the melt, accelerating consequent oxidation and reduction stages of the process. In KIVCET process the flame is located over a distance from the melt surface. It make the time of charge roasting and smelting in dispersed state longer and eliminates necessity of melt bath mixing; filtering layer of carbon reductant (coke checker) is formed on the surface of this bath. High dispersion ability of oxide melt from the flame and large surface of carbon reductant filtering layer considerably accelerate reduction stage of the process in comparison with bubbling and mechanical mixing of oxide melt. In the result, already reduced oxide melt goes from coke checker layer into liquid bath, and metal drops, enlarged in reductant layer, precipitate quickly into bottom phase. General specific characteristic for bubbling processes of lead raw materials smelting and Kaldo process (due to its specific organization) is long residence time in the furnace of intensively agitated slag melt bath with high concentration of lead. Taking into account high volatility of lead oxides and even higher volatility of lead sulfides, effective transition of lead into metal with the help of these processes is possible only under low smelting temperature and high level of raw material desulfurization. If these conditions are breached, which certainly happens when quality of lead raw materials becomes worse (i. e. when lead concentration is decreased and zinc, iron and copper concentration is increased), bubbling processes are gradually change from metallic lead smelting mode to lead sublimation into smelting dust mode [2]. Such transition is shown by experimental curves of lead distribution in products of lead concentrate bubbling smelting in accordance with the specific oxygen consumption in blowing (fig. 1). The curves, shown in figure 1, were derived during raw materials smelting in Ausmelt furnace [3]; however they are typical for all bubbling processes of lead smelting. Unlike Kaldo and bubbling smelting processes, KIVCET process does not use intensively agitated slag melt bath with high concentration of lead, and residence time of lead volatile compounds in the flame is much less than in liquid bath of bubbling processes. It allows making the flame temperature much higher and in case of high concentration of copper in lead raw materials to accomplish smelting with incomplete desulfurization staying in metallic lead smelting mode [4]. As a result, KIVCET process allows smelting of polymetallic raw materials with such lead, zinc, iron and copper ratios, which are not acceptable for Kaldo and bubbling processes due to sharp increase

Fig. 1. Lead distribution in products of 50 % Pb concentrate lead smelting in Ausmelt furnace [3]

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of lead transition into smelting dust. It is known from industrial experience, that KIVCET may effectively process the charge with lead concentration from 20 % up to 52 %, and other processes do not use charge, where lead concentration is less than 4446 % [2]. Thereby, KIVCET process is the most suitable technology for organization of the most effective integrated lead-zinc and lead-copper-zinc metallurgical complex enterprises [5]. Eventually, it was critical factor for its penetration into Chinese market, because Jiangxi Copper Corporation (being the largest copper company in China) decided to invest its fund into lead-zinc metallurgical complex plant, and Zhuzhou Smelter, which is initially lead-zinc enterprise, had to fulfill state program of the plant modernization. 3. KIVCET Process Penetration into Chinese Market 3.1. Historical Background As it was mentioned above, lead companies of China kept watching the experience of KIVCET process commercialization. The process considered to be rather effective, however rather expensive in respect to capital and operational costs. In 1980-es all new processes for lead smelting were estimated only from the point of view of lead concentrates processing or their mixture with lead residues, dust, recycles from lead refining and high-grade secondary raw materials. At that time, nobody could ever think about using lead smelting for processing of all residues from zinc plants without exception, solving thereby, environmental as well as economical problems, connected with limited supply of high-grade and simultaneously chip lead raw materials. Canadian company Cominco was a pioneer in presentation of the problem of complete processing of zinc production residues in a unit for lead smelting. From 1989 till 1992, the same Company tested industrially possible variants for solution of this problem by using two new lead smelting processes QSL and KIVCET. This expensive experiment proved that smelting of lead from low-grade lead raw materials with predominant content of residues from zinc plants is impossible for QSL and for other bubbling processes. The only possible variant of low-grade lead-bearing materials treatment with the help of these processes is removing of lead and zinc into fumes. Later this possibility of bubbling processes was used by Korea Zinc Company; they installed Ausmelt furnaces for zinc residues and slag fuming in their lead-zinc complex plant in Onsan city (South Korea) [6]. As soon as successful experience of processing in KIVCET unit of low-grade lead raw materials, based on zinc production residues, has been proved, interest of Chinese lead and zinc producers to KIVCET process has greatly enhanced. Already in 1993 Zhuzhou Smelter seriously considered a question of KIVCET implementation in their lead plant. Unfortunately, at that time these plans were not realized due to different circumstances. In 2002, after 5 years of KIVCET unit operation in Tech Comincos plant in Trail (Canada), Chinese Company Shuikoushan NonFerrous Metals Group Co. expressed a wish to implement KIVCET process. However, that time plans of KIVCET commercialization in China were not realized either, because the parties could not confirm financial issues in time, and Shuikoushan plant wanted also to apply their own invention SKS lead smelting process. Later interest to KIVCET didnt disappear. It happened because Chinese lead and zinc metallurgical enterprises had to fulfill state modernization program and processes implemented earlier (QSL, Kaldo, Isasmelt and SKS) were not sufficiently effective and environmentally safe. From the end of 2006 a variety of Chinese companies conducted meetings and negotiations with VNIItsvetmet in connection with technology presentation and terms for license purchasing. As it was mentioned above, two from these companies Jiangxi Copper Corporation and Zhuzhou Smelter Group Co. purchased Licenses for construction of KIVCET plants and using of KIVCET process. 3.2. Implemented Projects Preparation for construction of new lead plant for Jiangxi Copper Corporation, having design capacity of 100 thousands tons of refined lead per year, on the basis of KIVCET process, has started in Jiujiang City, Jiangxi Province. At the same time Zhuzhou Smelter Group Co. has started modernization of existing lead plant in Zhuzhou City, Hunan Province. The Company changes conventional technology of sintering blast furnaces smelting into KIVCET process. Design capacity of the upgraded plant will be 120 thousand tons of lead per year. VNIItsvetmet Institute prepared Process Procedures for KIVCET Plant designing for Jiangxi Copper Corporation and Zhuzhou Smelter in the framework of License Agreements with these Companies.

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Design engineering for both projects has been accomplished in cooperation with Italian engineering Company Forni Engineering, responsible for KIVCET furnace design, and Changsha Design and Research Institute of Nonferrous Metallurgy (CINF), responsible for all operation areas and infrastructure of all lead plant. Selection of the executors was based on the following factors: knowledge and experience of Forni Engineerings specialists in relation to design engineering of currently existing KIVCET plants in Portovesme and Trail; knowledge and experience of CINF in the field of design engineering, construction and commissioning of lead plants in China. Due to different raw material compositions and different methods of lead tapping, the KIVCET furnaces for Jiangxi Copper Corporation and Zhuzhou Smelter have different design and possibilities. We will describe some details. Jiangxi Copper Corporation is planning to process zinc and lead residues from zinc plant, sulfate slimes from copper plant, oxides and copper drosses from lead bullion refining, residues from waste water neutralization together with lead concentrates, which are about 6365 % from total amount of raw materials. Design feeding capacity of charge for Jiangxi Copper Corporation is 48.551.4 t/h; composition is the following: 2930 % of Pb, 7.58 % of Zn, 0.71.4 % of Cu, 10.511 % of Fe. Taking into account the requirement of smelting of lead raw material with rather high copper concentration (Cu/Pb~0.05), the possibility of lead bullion and matte accumulation and discontinuous tapping trough tapping holes is foreseen in the design of Jiangxi Copper Corporations KIVCET furnace. Similar possibility was used only in KIVCET of UK LZC (Ust-Kamenogorsk, Kazakhstan), where they smelted copper-bearing lead raw materials with Cu/Pb ratio of up to 0.08 and tested smelting of polymetallic raw materials (22.442.0 % of Pb, 5.07.6 % of Zn, 5.28.0 % of Cu) [4]. It is impossible neither in Canadian, nor in Italian KIVCET units. It is impossible to smelt raw materials with matte production in KIVCET unit in Trail because the possibility of matte accumulation and matte tapping is not foreseen. At the same time, discontinuous lead bullion tapping through the tapping hole allows to heat metal before tapping up to 10001100 o, increasing copper and sulfides dissolution level considerably. And on the contrary KIVCET unit in Portovesme allows smelting with matte production and has tapping holes for its discharge from the furnace; however lead is tapped through siphon. As lead temperature at the outlet of siphon is not higher than 600700 o, copper extraction together with lead is rather limited. Practically it means that KIVCET unit in Trail allows smelting of raw materials with Cu/Pb ratio of up to 0.05, and Cu/Pb ratio in Portovesme shall not be higher than 0.022. Slag from Jiangxi Copper Corporations KIVCET furnace will be tapped through the launder into fuming furnace. Besides bypass slag tapping into granulation is foreseen. Lead bullion will be tapped through the launder into continuous decopperizing furnace. Combination of the above-mentioned design solutions and optimum combination of innovations in the design of different parts and elements, tested in Portovesme and Trail, make the KIVCET unit of Jiangxi Copper Corporation unique smelting unit, allowing to realize effectively and completely the capabilities of KIVCET technology for processing of lead and polymetallic raw materials, having wide composition range. Zhuzhou Smelter is planning to smelt raw materials, containing 6165 % of lead concentrates, the rest is by-products from zinc plant, produced from hot sulfuric-acid leaching of zinc concentrates, using Outokumpu technology with the following extraction of elemental sulfur from leaching residues using Sherritts technology. The raw materials also contain the dust of smelting for matte production of copper drosses from lead bullion refining. Composition range of Zhuzhou Smelters charge is the following: 32.037.4 (34.5) % Pb, 3.44.9 (4.2) % Zn, 0.4 0.9 (0.5) % Cu, 8.59.3 (8.6) % Fe. Charge feeding rate is 4352 (47.3) t/h (nominal parameters are indicated in brackets). Taking into account rather low concentration of copper in raw materials of Zhuzhou Smelter, they selected lead bullion tapping method through siphon. This method reduces capital cost of KIVCET unit. Besides, siphon maintenance is easier to accomplish and personnel of Zhuzhou Smelter is familiar with siphon from blast furnaces operation. As Cu/Pb ratio in design raw materials is similar to Portovesmes raw material parameters, Zhuzhou Smelters KIVCET furnace allows smelting with matte production with discontinuous matte tapping through tapping holes, the same as KIVCET furnace in Portovesme. At the same time, there is a huge difference between these two furnaces. In Portovesme, slag is continuously tapped from KIVCET furnace into granulation. It allows keeping constant level of melt bath, facilitates control of electric furnaces operating modes, facilitates matte accumulation and matte tapping from the furnace and etc. Slag

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from Zhuzhou Smelters KIVCET furnace will go into fuming furnace. In connection therewith, accumulation and discontinuous slag tapping from KIVCET furnace to fuming furnace are foreseen. Besides, bypass slag tapping into granulation is foreseen. Until present there was no experience of long-lasting KIVCET furnace operation with siphon for lead bullion tapping and accumulation of slag melt bath. Therefore, current modifications in the design of blocks and elements of Zhuzhou Smelters KIVCET unit make it innovative unit, which has to be mastered by Chinese metallurgists. Herewith, as it was mentioned above, permissible quality range of lead raw materials, which will be processed in this unit, will be more limited in relation to copper concentration than in Jiangxi Copper Corporations KIVCET unit. 3.3. Process Perspectives In conditions when China realizes state program of lead and zinc industry modernization, there is a potential for future penetration of the KIVCET process into metallurgical technology market of China. Large metallurgical companies with state participation, having integrated plants for lead and electrolytic zinc production, are especially promising for process commercialization. If the capacity of electrolytic zinc plant in the integrated lead and zinc complex is considerably higher, it is almost impossible to find the alternative technologies which will be as effective as KIVCET process and which allow to replace old technologies (sintering, smelting in blast furnace and Waelz process) and to process simultaneously lead raw materials and by-products from electrolytic zinc plant following current environmental requirements [5]. At present, due to experience of commercialization of a number of environmentally-safe lead smelting processes, it is very well realized in China. Two more Chinese companies are very interested in KIVCET process. The consequences of this interest will be known in the nearest future. As for KIVCET process commercialization in other countries and in Kazakhstan, there are no perspectives in the nearest future yet. Summary We may state that long process of preparation for KIVCET process commercialization in China, which VNIItsvetmet accomplished in cooperation with Italian and Chinese partners, is rather successful. At present, design engineering is finished and preparation for construction of two KIVCET units is accomplished. Their commissioning and mastering is planned to be accomplished at the end of 2011 the beginning of 2012. Besides, there are perspectives for future KIVCET process penetration into metallurgical technologies market of China. The following reasons of the achieved success may be mentioned: active realization of state program for modernization of metallurgical and particularly lead and zinc industries with extension of enterprises and compulsory replacement of old technologies into new ones, complying with national environmental requirements; not very successful experience of commercialization of competing direct smelting processes in China, and their limitations in respect to permissible lead raw material quality range against the background of successful implementation of KIVCET process for processing of residues from zinc plant in Trail; promotional activities for Chinese lead and zinc producers, accomplished by VNIItsvetmet and Chinese partner CINF during the last 34 years; large state investments into development if Chinese industry for supporting of domestic market in conditions of global economic crisis. Thus, the following well-known, but unfortunately not always used rule contributed to KIVCET process commercialization in China: during economic exuberance the money shall be invested into production and product sales, and during economic stagnation it shall be invested into purchasing and construction of the enterprises for its production. Acknowledgements The author would like to thank Jiangxi Copper Corporation and Zhuzhou Smelter Group Co. for permission to publish information, concerning KIVCET project realized in China. The author would also like to thank Mr. Zhang Leru Changsha Design and Research Institute of Nonferrous Metallurgy (CINF) and Mr. Antonio Carminati from Forni Engineering for reviewing of the present paper.

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REFERENCES 1. Metallurgical processing of secondary lead raw materials/A. V. Tarasov [and others]; edited by A. V. Tarasov M.: Gintsvetmet, 2003. P. 224. 2. Shumskiy, V. Grade of lead material is the basic for the choice of lead smelting technology/V. Shumskiy//Reports of the First Conference of World New Technology and Equipment of Lead Smelting/Lead and Zinc Branch of China Nonferrous Metals Industry Association. China, Anyang, 2007. P.4156. 3. Mounsey, E. N. A Review of Ausmelt Technology for Lead Smelting/E. N. Mounsey, N. L. Piret//Proceedings of Lead-Zinc 2000 Symposium/TMS. Pittsburgh, USA, 2000. P.149 169. 4. Slobodkin, L. V. The Kivcet Treatment of Polymetallic Feeds/L. V. Slobodkin [and others]//Proceedings of Lead-Zinc 2000 Symposium/TMS. Pittsburgh, USA, 2000. P.687691. 5. Shumskiy, V. Advantages and Problems of Lead and Zinc Raw Material Complex Processing/V. Shumskiy, N. Ushakov//Reports of The 3d Lead & Zinc New Technology and Equipment Summit/World Nonferrous Metals. China, Changsha City, 2009. P.3134. 6. Kim, M. B. The QSL Lead Slag Fuming Process Using Ausmelt Furnace/M. B. Kim, W. S. Lee, Y. H. Lee//Proceedings of Lead-Zinc 2000 Symposium/TMS. Pittsburgh, USA, 2000. P.331343.

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ENVIRONMETNAL ASPECTS OF DEVELOPMENT OF NEW LEAD-ZINC DEPOSITSS.P. Kiseleva, I.F. Marchenkov, N.S. Parilova, A.E. Arkusha JSC Sibtsvetmetniiproekt, Krasnoyarsk, Russia

In recent years much attention is paid to the development of new lead and zinc deposits. First of all, the Kholodninskoe and Ozernoe deposits in Buryatia are of great concern (fig. 1). The interest to these deposits is stipulated with the fact, that their reserves of lead and zinc are among the highest not only in Russia but in the World as well. Development of at least one deposit will make it possible to eliminate import of lead for Russia, to create about 5500 new working places in Buryat Republic, to improve infrastructure of the region and to facilitate development of other deposits of Ozerninsky ore cluster. In 2008 JSC Sibtsvetmetniiproekt performed feasibility studies of constant conditions for the ores of Kholodninskoe pyrite-polymetallic deposit in the borders of the first ore zone. In 20092010 the Institute performed technic-economic estimations for the project titled Ozerny GOK (mining and processing complex) and facilities of its infrastructure. The deposits are located in the districts of the Republic of various environmental concern, each of them is characterized with peculiar mining and geological conditions of ore occurrence and other technological features, however, there are some common issues that combine theses deposits. These issues relate to the environmental conditions of development of these deposits. Kholodninskoe deposit is located in Central environmental zone of the Lake Baikal, 40 km apart. Taking this into consideration, when performing of feasibility study the appropriate approach was determined aimed, first of all, at provision of minimal environmental impact in the course of construction and operation of the complex. Main determining solutions in these relation are based only on underground mining excluding pollutions of the terrain with disposal of excavations and minimizing drill and blast activities, as well as pollutions of atmosphere and surface and underground waters. Aiming at protection of ground surface against deformation and caving at mining activities, the mining technology was selected with backfilling of mined areas. The utilization of process wastes as backfilling materials, including rocks after mining operations and tailings from beneficiation plant, will make it possible to decrease significantly the areas occupied by tailing ponds and rock dumps.

Fig. 1. Locations of mining and processing companies in Buryatia

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The placement of the enterprise in the environmental zone of the Lake Baikal imposed significant effect on the approach to arrangement of the facilities of the enterprise, providing high density of construction, reduction of external transportation routes and, hence, minimal utilization of the site for industrial facilities and transportation routes. The decrease of the impact of the project on the environment is based on the consideration of four variants of placement of the beneficiation plant and tailing pond: Variant I the beneficiation plant is placed at the same industrial site with the underground mine in the vicinity of the deposit, establishing a single technological complex. The tailing ond is placed 1.5 km away from the industrial site, across the River Tyia at its right bank, 500 m apart from the riverbed; Variant II the beneficiation plant is placed at the single industrial site together with the mine. The slurry is disposed to the tailing pond, located 25 km away from the industrial site, beyond the watershed boundary of the Lake Baikal. The slurry is pumped by five slurry pump stations via 4 slurry lines; Variant III the beneficiation plant is placed 25 km away from the industrial site (underground mine) beyond the watershed boundary of the Lake Baikal. The ore and maintenance materials are conveyed by means of railroad, conveyers and automobiles. The slurry is disposed to the tailing pond by gravity. Variant IV the beneficiation plant is placed near Ozernoe lead-zinc complex and acts as combined plant for processing of ores from Kholodninskoe and Ozernoe deposits. The variants of arrangement of the facilities were compared in terms of capital investments, operational costs and environmental impact. The comparison of the mentioned variants in terms of the first two performances evidences unconditional advantage of the first variant, since in the remaining variants the tailing pond is located at maximal distance from the Lake Baikal. At environmental comparison of the variants the aspects of possible pollution of atmosphere and waters were considered at various placement of the plant and tailing pond. The estimation was performed for the first three variants in scores. The comparison results demonstrated that the first and the second variants were about the same in terms of environment (12 and 13 scores), the implementation of the third variant would result in drastic increase in the environmental pollution (24 scores). Taking into consideration the comparative results, the placement of the tailing pond was selected according to the second variant, that is, 25 km away from the industrial site of the complex beyond the watershed boundary of the Lake Baikal. A bottleneck issue both for the Kholodninskoe and for the Ozernoe deposit is the utilization of pyrite concentrated product. Flotation of the ores was selected for both deposits at the beneficiation stage. The beneficiation stage yields four products: zinc, lead, and pyrite concentrates and waste tailings of the flotation. The first two concentrates are marketable products. The flotation tailings in the form of slurry are transferred to the tailing ponds, where the slurry sediments and stored in the pond. The liquid phase of the slurry after sedimentation is recycled to the technological process. The tailing pond at both deposits is of impoundment type, that actually eliminates dusting problems and atmosphere pollution. The hydraulic isolation of the bed of the tailing pond is arranged by means of double impermeable screen, that eliminates pollution of underground waters. For prevention of emergency leakages and for the case of pipeline emptying all the route is protected by earth levee from the lower side of slope including emergency ponds with screen made of polythene film. All the measures result in minimization of negative impact of the tailing pond on environment. The issues of utilization of pyrite concentrate was not solved in the project. As is known, up to the 1980-s in the former USSR the pyrite concentrate was utilized for production of sulfuric acid. Its share amounted to more than 30 % of overall sulfur containing stuff for production of sulfuric acid of all raw materials in amount of ~ 23 million tons of H2SO4 per year. At the end of 1970-s there was sharp increase in sulfur production as by-product of gas condensate plants of Orenburg, Astrakhan and others. The newly erected plants for production of sulfuric acid operate only with elemental sulfur. The existed plants producing sulfuric acid at their retrofitting were converted to the use of elemental sulfur as raw stuff. The last plant producing sulfuric acid in the former USSR (City of Krasnokamensk) on the basis of pyrite was shutdown in 2009. Substitution of pyrite concentrate with sulfur for production of sulfuric acid was predetermined by cost factors. According to data by VNIPIpromtekhnologia, the plants producing sulfu-

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ric acid from sulfur are characterized with lower capital investments (1.41.8 fold), power and labor consumption (1.31.5 fold) in comparison with the use of pyrite concentrate. Besides, at the use of sulfur there is no need to dispose any wastes. At present only Astrakhan gas complex produces more than 5 million tons of sulfur, overall production of sulfuric acid at the Russian plants approaches the value of 5 million tons. Within the discussions of the ways of utilization of the pyrite concentrate there were some proposals concerning possibility of the use of 110 thousand tons of sulfuric acid per year for development of Khiagdinskaya uranium ore cluster, provided that the plant producing sulfuric acid is constructed in the vicinity of the Ozernoe mining and processing complex. The construction of such plant will require as follows: arrangement of filtration and drying of pyrite concentrate; significant capital investments, as well as power and labor consumption (higher than at processing of elemental sulfur); coordination of the issues concerning storage or disposal of high amount of pyrite butts; arrangement of well-developed transport infrastructure at the industrial site for shipment of significant amounts of sulfuric acids that is qualified as extremely hazardous substance; coordination of issues of construction both of sulfuric acid plant, and tailing pond for disposal of remaining amounts of pyrite concentrate (the yield of pyrite concentrate at beneficiation of 1.6 million tons of ore of Kholodninskoe deposit amounts to 1 million tons). Therefore, at present in Russia there is no market for sales of pyrite concentrate. As a consequence, the pyrite concentrate us transferred to a separate tailing pond. It requires construction of a network of tailing pond facilities, some characteristics thereof are summarized in table 1. Table 1 Characteristics of tailing pondsComposition and parameters of facilities and systems Properties Complete processing I stage Flotation Pyrite Flotation Pyrite tailings tailings Ozernoe Deposit (processing of 8 million tons of ore per year) Units of measurement 17.4 20.9 49.0 10.0 3.3 325.0 630 * 11 6670 19.7 23.8 51.5 6.0 2.6 368.0 1020 * 11 5376 7.7 10.1 36.0 6.0 1.5 225.0 630 * 11 6670

Efficient capacity of the tailing pond million m 3 45.2 3 Overall capacity million m 53.3 Maximal height of the levee m 69.0 Upper width m 10.0 Overall amount of excavated ground million m 3 5.6 3 including clay thousand m 580.0 Slurry pipeline diameter m 1020 * 11 Slurry pipeline distance m 5376

In addition to the mentioned in the table, additional construction is required including distributing slurry pipeline, arrangement of a collecting system for surface waters (hill ditches), drainage system, pump station of recycled water supply, system of geotechnical monitoring etc. Prime cost of storage of 1 tons of tailings form the Kholodninskoe deposit amounts to 81.4 rubles. At designed capacity of the beneficiation plant the annual quantity of tailings of pyrite flotation will amount to 762.06 thousand tons. The maintenance of the pyrite storage pond will be about ~ 62.3 million rubles per year. The capital investments to the tailing pond at the beneficiation plant of the Kholodninskoe deposit equal to 1739.4 million rubles (estimated figures for the pyrite storage pond are 487.0 million rubles) or 16.2 % of overall capital investments for construction of mining and processing complex (in the costs of 2008). Capital expenses for construction of tailing facilities of the Ozernoe mining and processing complex are estimated at 2462.0 million rubles or 7.5 % of overall capital investments for construction of the complex for mining and processing of 8 million tons of ore per year. This covers only a portion of the environmental issues occurring at development of lead and zinc deposits. Conventional environmental issues arising at development of nearly all deposits were not discussed in this report.

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PROSPECTS OF DEVELOPMENT OF THE TECHNOLOGY OF HOT-DIP ZINC COATINGA.A. Bitsura JSC Sibtsvetmetniiproekt, Krasnoyarsk, Russia

Sibtsvetmetniiproekt R&D Institute in Krasnoyarsk is one of the oldest R&D institutes in the field of lead and zinc non-ferrous metallurgy. In 2009 the institute reached the age of 60. There are large lead and zinc mining and processing companies both in Russia and abroad, such as Dalpolimetall (Primorsky Territory), Gorevsky Mining and Processing Complex (Krasnoyarsk Territory), constructed on the basis of the institutes designs. The institute continues its intensive activities in the industry. Only in 2008 the institute was involved in the following projects: Construction Project of Kyzyl-Tashtyg mining and processing complex in Tyva Republic with annual mining and processing capacity of 1.0 million tons of ore; Expansion Project of Gorevsky mining and processing complex with capacity ramping up to 1.0 million tons; Feasibility study of investments into the construction of Kholodninsky mining and processing complex in Buryat Republic; Feasibility study of investments into the construction of East-Siberian Plant of hot-dip zinc coating in the City of Nazarovo (Krasnoyarsk Territory). According to statistic data, about 10 % of annual production of steel and the structures manufactured thereof become deteriorated as a result of corrosion. The annual losses resulted from the corrosion are estimated to be 300 billion US dollars only in USA. Overall annual expenses for anticorrosion protection in the developed countries of the World amount to 24 % of gross national product [2]. In the developed countries the problem of protection against corrosion of steel structures and items is successfully solved by wide application of zinc coatings applied by immersion into the melt. According to the data by Associazione Italiana Zincatura and Center for Zinc Development about 4864 % of world production of zinc is consumed for the zinc coatings. The technology of hot-dip zinc coating is known for more than 250 years. The first steel items with such zinc coatings were produced by Malouin, a French chemist, in 1742. The commercial utilization of the hot-dip zinc coating commenced in 1836 in Paris, when Sorel, another French chemist, implemented cost efficient method of surface cleaning and fluxing. The process of zinc application on steel surface takes place at immersion of a steel item into liquid zinc (bath temperature is about 440460 C). As a result of the reaction, ferrozinc alloy is formed on the item surface, consisting of four layers with various specific ratio of iron to zinc. The lowest Gamma-layer is the alloy of 25 % of iron and 75 % of zinc, then follows the Delta-layer containing 10 % of iron. The next Z-layer consists of 6 % of iron and 94 % of zinc; the final fourth layer on the surface consists actually of pure zinc. Such structure of hot-dip coated surface provides good adhesion between steel and zinc, that could not be attained by any other paint, polymer or metallized coatings. The zinc film acts as protective barrier minimizing the environmental exposure, it is stable against mechanical impacts.In addition, zinc provides electrochemical protection, because a galvanic element is formed at the contact with steel. Voltage occurring in the element even at cracking of zinc film results in corrosion of zinc instead of steel. Therefore, contrary to another anticorrosion systems that form either protective layer or galvanic element, the hot-dip zinc coating combines these two methods in a single one. At this, the lifetime of hot-dip zinc coatings is extended to 2025 years in comparison with 56 years of paint coatings. The protective zinc coatings promote not only cost efficiency of the products of iron and steel industry, but also result in decrease of pollution level of the environment, in increase of quality of final products, in decrease of expenses for maintenance of buildings, structures and equipment. The initial capital investments for application of zinc coatings are sufficiently readily returned due to minimal operational costs within the period of as-designed operation of structures, equipment, items, as well as due to cost efficient utilization of metal and expenses for production of new items intended for replacement of corroded ones.

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BSK-335 Zavod Company Ltd. (City of Pushkin, Leningrad Region) performed comparative analysis of prime costs and lifetime of the hot-dip zinc coated items and the items with another means of protection against corrosion (the prime costs of hot-dip zinc coating is taken as 100 %), the obtained results are summarized in table 1 below. Table 1 Comparison of the methods of protection of metal structures against corrosionAverage lifetime Prime prior to coating, costs, % years Hot-dip zinc coating 25 100* Shot-blasting, three-layer painting 12 75 Manual shot-blasting, three-layer painting 12 120 Etching and three-layer painting 10 85 Cleaning with metal brush and three-layer 8 75 painting Same as above and two-layer painting 5 55 Protective method Expenses after 25 years of operation including maintenance, % maintenance-free 150 195 200 230 280

The comparison demonstrated significant advantage of the hot-dip zinc coated metal structures and items in terms of lifetime and operational costs, expenses for application of the protective layer as opposed to the items preliminary processed by various methods (mechanical and chemical) and painted with 23 layers. The increased concern for the products with protective zinc coating in the 20th century was a determining factor for sufficiently wide scope of services for its application, therefore, in the developed countries of the World this industrial sector reached adequately high level. Presently, in Europe about 90 % of building structures are protected against corrosion with zinc, and in municipal infrastructure, railroad and highway construction this property amounts to 100 %. More than 5 % of all steel structures are hot-dip zinc coated. At present there are about 3600 plants of hot-dip zinc coating in the World, including Germany: 180 plants of zinc coating for 90 million inhabitants; Italy: 64 plants for 50 million inhabitants; the Netherlands: 20 plants for 16 million inhabitants; Spain: 48 plants for 46 million inhabitants. In Poland there are more than 50 plants. In China there are more than 2000 small-scale plants of hot-dip zinc coating, and in India there are more than 500 plants of this kind. The leading positions of hot-dip zinc coating in Europe are occupied by Italy 1.4 million tons per year (22 %) and Germany 1.3 million tons per year (21 %). The capacity of production of zinc coated steel is slightly lower in Great Britain 0.8 million tons per year (14 %) and France 0.7 million tons per year (13 %). Total share of Italy, Germany, Great Britain and France in the production of zinc coated items in Europe amounts to about 70 %. In other countries of European Union the production amounts to from 0.1 to 0.2 million tons per year. Vast scope of zinc coated products is supported by availability of numerous plants of hot-dip zinc coating in the leading countries. These countries are leaders in terms of total amount of zinc coating kettles Germany: 36000 thousand tons; Italy: 25000 thousand tons; France and Great Britain: 13000 thousand tons each; Spain: 11500 thousand tons. This property is significantly lower in other countries of European Union from 2000 to 6000 thousand tons. The average European level of production of zinc coated items per capita amounted to about 15 kg/person. This property exceeds the average value in Belgium: 25 kg/person, Italy: 23 kg/person, Denmark: 22.5 kg/person, Germany: 16 kg/person, and Sweden and Austria: 17.5 kg/person. At the beginning of the new millennium Europe reached certain saturation of the market of zinc coated items. The drop in production of zinc coated steel in Europe in this period amounted to about 50 thousand tons, that is, 0.84 %. It should be noted that the production of the zinc coated items in 20002002 increased in Italy by about 10 %, in Great Britain by 5 %; however, in Germany and France the production in the same period decreased by 13 % and 10 %, respectively. Currently, the market of zinc coated products in the developed countries slightly increases and, indeed, due to the hot-dip zinc coated items. The number of the companies producing electrolytically zinc coated sheet remains nearly the same. In 2006 the European market of the hot-dip zinc coating increased again by 7 %. The highest rate of consumption of zinc coated products in the four countries Great Britain, France, Germany, and Italy was registered in industrial construction: 3643 %, highway

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construction: 7.034 %, agriculture: 6.013.0 %, transport: 3.011.0 %, metal wares: 1.05.0 %. In the last three years the demand for hot-dip zinc coated steel in the USA was sufficiently uniform and amounted to about 16.517 million tons per year. Thus, in 2007 the market size amounted to about 16.6 million tons, that is, by 12.2 % lower than in 2006 (18.9 million tons). However, according to the expert estimations, the actual demand is considerably higher than it can appear. 7075 % of hot-dip zinc coated steel in the USA are applied in automobile and construction industries with slightly higher share of automobile industry. In Russia and CIS countries the hot-dip zinc coating is not yet sufficiently developed, though it confirmed its high technical and economic efficiency. In comparison with Europe and the USA the Russian market of hot-dip zinc coating is at its starting point and the demand for hot-dip zinc coated items is by far exceeds the available supply thereof. This results from the lack of the Russian factories manufacturing equipment for hot-dip zinc coating. The equipment and technologies were delivered mainly by Italian companies intensively participating in the Russian market of hot-dip zinc coating. In Russia there are 28 plant per 142 million inhabitants. Only 8 enterprises of the total number are directly involved in hot-dip zinc coating, and the remaining 20 are only shops included in the plants of another specialization. In Russia metallurgical enterprises commonly operate kettles for hot-dip zinc coating of large-scale items, and in European countries the kettles of similar dimensions are installed at minor private companies. All enterprises are locate in European part of Russia, including Belgorod Region 1 plant; Kaluga Region 2; Krasnodar Territory 1; Leningrad Region 2; Moscow 5; Moscow Region 3; Ryazan Region 1; Samara Region 2; Sverdlovsk Region 44; Tver Region 1; Tula Region 4; Ulyanovsk Region 1; Saint Petersburg 2. Actually there are no plants of hot-dip zinc coating behind the Ural and in Siberia. It was a historical trend, that for many years of development of natural resources of Siberia and at tremendous demand for metal structures and their protection against corrosion, neither a single plant was erected in the region for hot-dip zinc coating. Significant amount of metal structures for construction sites of Siberia has been and is delivered from European part of the country, despite noticeable increase of the construction costs due to transport component. This situation is strange enough, taking into account that in the region there are numerous plants of iron and steel metallurgy (giant plant in Kemerovo Region or Komsomolsk-on-Amur), as well as mining companies of lead and zinc industry in Far East, Trans-Baikal. Krasnoyarsk Territory, Altai, and numerous plants manufacturing engineering metal structures. The Siberian plants of engineering metal structures up till now protect their products against corrosion mainly by painting. Recently (and at acute necessity) a practice has been is adopted to transport the products for hot-dip zinc coating to the adjacent areas with appropriate plant, that is, to the Ural. As a result, there occur ridiculous situations: if in Europe transportation of structures for zinc coating for the distance higher than 100 km is considered as economically inefficient, then in Russia transportation of zinc coated items from the Ural and Moscow Region to Siberia is a common practice. As an example, let us mention the delivery of metal structures by East Siberian Plant of metal structures (City of Nazarovo) for anti-corrosion coating to the Ural Verkhne-Pyshma Plant of hot-dip zinc coating that is, 3000 km only in one way. Nearly one half of the zinc coated structures and items, produced in Russia, is utilized in construction. The metal structures and mounting hardware intended for construction are zinc coated mainly at the plants of metal structures. The volume of the market of engineering metal structures in 2007 amounted to about 4.7 million tons, including the rolled items (zinc coated and with polymer coating) applied for production of profiled sheeting, three-layer boards, and bent profiles. Besides, this property, in addition to the products manufactured the plants of metal structures, includes also the metal structures manufactured directly at site by installation companies (according to the expert estimations, about 40 % of total market volume). The dynamics of the market of engineering structures is positive: the increase rates in 20052007 equaled to 1012 % annually. According to the analytical forecasts, these increase rates will remain in the middle-terms. According to the data by Rosstat, in Russia there are more than 1000 companies involve in production of engineering metal structures. There are about 10 major producers with maximal geographical coverage of the markets. Expansion of industrial facilities by means of construction of green sites and reconstruction in such branches, as mining industry, fuel and energy complex, iron and non-ferrous metallurgy, makes it possible to suggest that the demand for metal structures increases in this branches. Besides, deterioration of machinery assets of the majority of industrial companies and increase

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of investment costs also result in expansion of the sales of the engineering structures market. The demand for production of the hot-dip zinc coated items will be significantly higher than available supplies. Moreover, in the nearest future the increment in the demand will be even higher due to intensive development of construction activities, which are in stagnation at present. Possible products of the plants of hot-dip zinc coating can include the following applications: Construction: Frameworks for buildings, beams, trusses, links, protective fences, auxiliary assemblies: staircases, fences, platforms, steel large form shutters, fa ade boars, rails, grids, access ports, anchored parts, roofs, protective elements for staircases, water drainage, window casting, protective hoods for ventilation and other engineering metal structures; Power production: Power transmission line supports, connectors and pendant fittings for conductors, transformer houses, pipeline supports, masts, elements of supporting and bearing structures of gas and electric supply substations; Industry: Parts of vessels and chassis of transport vehicles, metal wares and other items of pulp and paper industry, structural elements for treatment of waste waters and other equipment, steel doors, windows, store houses and hangars, various containers, sluices, supports and links for cranes, hoppers, tanks, sheds and other structures; Highway construction: Supporting, railing and noise-absorbing fences, span structures of pipelines and bridges, guides and poles, safety barriers, water discharging and draining pipes, platforms, poles for road signs, reinforcement mesh; Municipal infrastructure: light posts and communication towers, power transmission supports for municipal electric transport and railroad transport, bridges, pathways, flagpoles, elements of advertising facilities, steel grids and other decorations, staircases, metallic sculptures, garbage containers, park benches, assemblies of bus stops, sporting and play grounds; Agriculture: machinery parts for crop production and cattle breeding, melioration and irrigation, elements of green houses and other structures; Communication: Antennas, masts for cell and radio communications, relay stations for phone communications; UHF-supports, channels for cables and wires; Production of mounting accessories: The increase in production of the Russian plants for applying hot-dip zinc coating on steel structures and items will require availability of mounting accessories with adequate protection against corrosion. In European part of Russia the plants of hot-dip zinc coating are mainly erected in the vicinity of large administrative centers, where the demand for the structures with anticorrosive protection increases drastically. Taking into account very scarce distribution of such administrative centers in Siberia, even the estimated number of the plants will hardly meet the requirements for the products with hot-dip zinc coating. In Siberia, beginning from the Ural and to the Far East, prospective centers of hot-dip zinc coating can be located in industrial cities adjacent to Trans-Siberian railway, where metalwork industry is well developed: Kurgan, Tyumen, Omsk, Novosibirsk, Barnaul, Novokuznetsk, Kemerovo, Krasnoyarsk, Abakan, Irkutsk, Chita, Tynda, Blagoveshchensk, Khabarovsk, Komsomolsk-onAmur. At construction of the plants in these cities the distance between the centers of hot-dip zinc coating will amount to 350500 km. Of course, this cannot be compared with Europe, but better than nothing. Even with such number of new enterprises the market will be far from saturation. Urgent necessity for construction of the first Siberian plant of hot-dip zinc coating is dictated by recent commencement of the activities within the scope of Federal Project of development of Nizhneye Priangarie and Vankor Oil-Gas Field in Krasnoyarsk Territory. In this relation, there occurs snowballing increase in the demand for metal structures intended for these projects: Boguchany Hydro Power Plant, numerous facilities of oil and gas industry in YurubchenTakhom and Vankor zones, mining companies of iron-steel and non-ferrous industries. In addition, there is an increased demand for production of minor protected metal structures and items manufactured at the enterprises of Krasnoyarsk and other cities of Siberian Federal District. The most acute problem faced by the municipal authorities is the protection of metal structures of intracity facilities and highways, the relevant expenses grow intensively due to ageing of the structures and their destruction in reactive gassed environment. Only within the scope of the Project of development of Nizhneye Priangarie in the time period before 2020 it is planned to construct about 50 industrial enterprises and infrastructural projects (Boguchany hydro-power plant, Angarsky aluminium plant, Tagarsky iron ore and Gorevsky (expansion) polymetal mining and processing complexes, Priangarsky oil refinery, pulp and paper complex, power transmission lines and substations for 500, 220, 110, and 35 kW, and others), resulting in several fold increase in demand for hot-dip zinc coating.

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Table 2 Major projects of the Program of development of Nizhneye PriangarieItem 1 2 3 4 Project description according to the Program Boguchany hydro-power plant Boguchany pulp and paper complex Rated capacity Investments, billion rubles 42.8 28.5 40.5 12.1

5 6

7

8 9 10

11 12

3000 MW 720 thousand tons of cellulose annually Oil and gas producing complex of Nizhneye Prian8 billion cubic meters garie and South of Evenkia Autonomous District annually Gas processing refinery in Boguchany District 300 thousand tons of propylene annually 500 thousand tons of polyethylene annually Aluminium plant in Karabula 600 thousand tons of aluminium annually Tagarsky metallurgical amalgamation 3.3 million tons of iron ore concentrated product annually Gorevsky metallurgical amalgamation 170 thousand tons of lead-zinc concentrated product annually Cement plant 650 thousand tons of cement annually Karabula Yarki Railroad 45 km, bridgework High-voltage 220 and 550 kV transmission lines within the distribution network of Boguchany hydro-power plant at Main Delivery Point-1, Sedanovo, Razdolinsk, Novokrasnoyarskaya Construction of bridgework of Bohuchany Bridgework, 1505 m Yarki Angarsky Highway Reconstruction of highway sections: Kansk 484 km Aban Boguchany Kodinsk

59.85 27.7

5.2

3.4 5.15 19.4

4.3 3.3

Design peculiarities of the enterprises and facilities listed in the table predefine the dominating share of metal structures and their protection against corrosion by hot-dip zinc coating. According to estimations of the head contractor for implementation of the Program of development of Nizhneye Priangarie Corporation of development of Krasnoyarsk Territory up to 10 million tons of metal structures will be utilized in the projects to the year 2020. With specific share of hot-dip zinc coated metal structures amounting to 5 % of overall scope their annual consumption in the nearest 12 years will be about 0.5 million tons. This is an evidence of actual capability of increase in annual capacity of East Siberian plant of hot-dip zinc coating up to 100 thousand tons. The capacity increase to 500 thousand tons is possible at expansion of processing facilities. Only indirect economic effect of the projects, implemented within the scope of the Program, due to increased operation lifetime aided with the application of corrosion-protected items as well as with decreased expenses for their maintenance is estimated at thousand millions rubles. The products of East Siberian plant of hot-dip zinc coating is scheduled for sales in regional Siberian market covering the area of Krasnoyarsk Territory and neighboring subjects of Russian Federation. In 2008 Sibtsvetmetniiproekt Institute performed feasibility study of the investments, confirming the necessity of erection of the East Siberian plant of hot-dip zinc coating (VSZGTs). The VSZGTs is the first enterprise of such profile in Russia behind the Ural, where for the first time the commercial process will be established aimed at production of highly shortage and highly demanded marketable items, that is, zinc-coated structures and other metal items characterized with prolonged lifetime. Currently, the capacity of the plant is designed at 40 thousand tons only, but with capability to rapidly ramp this property up to 100 thousand tons. Aiming at debottlenecking of the shortage in hot-dip zinc-coated products, the construction of plants in Novosibirsk, Irkutsk and Altai was announced.

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The project of construction of East Siberian plant of hot-dip zinc coating includes the following buildings and facilities: zinc coating shop, administrative and household facilities, water supply and cleaning facilities, power supply assemblies, crane and other equipment. The cost of construction amounts to 822492 thousand rubles as of the year 2008, including VAT. The performed feasibility studies concerning the construction of the plant of hot-dip zinc coating in the City of Nazarovo demonstrated that this plant will be profitable, its net annual income will amount to 131.3 million rubles in the considered 7-year period of operation. The net discounted profit of the project is positive and amounts to 297.8 million rubles. The internal revenue rate of the project is 36.4 %, accounting for the discount rate of 15 %, refinancing rate of the Central Bank of Russian Federation of 11 %, and crediting rate of 20 %. The project is viable, the enterprise can settle all legal payments, has its net income and can repay the investment costs in 5.28 years, with accounting for time factor (discounted payback period) in 6.17 years. The construction project of the plant of zinc coating is characterized with high stability level in respect with variation of such factors as the costs of marketable products and consumed materials, the production capacity, the variations of investments and constant assets, increase of discounting rate. The construction of the plant of hot-dip zinc coating in the City of Nazarovo, Krasnoyarsk Territory is a commercially viable and feasible project for rapid implementation. At 15 % decrease in the costs of marketable products the value of net discounted cost decreases by 208.2 million rubles, still remaining positive. At 15 % increase in the costs of marketable products the value of net discounted cost increases by 70 %. The discounted payback period in this variant decreases by 1.7 years. The increase in overall cost of marketed products by 15 % results in the increase of the net discounted cost of the project by almost 104.6 million rubles, that is, by 35 %, and the rate of return of investment costs up to 55.3 %, together with decrease in discounted payback period to 5.4 years. If the sales scope decreases by 15 %, then the net discounted cost of the project decreases to 194.2 million rubles, and the rate of return of investment costs decreases from 36.4 % to 28.9 %. When the costs of materials and components increase to 115 %, the value of net discounted cost decreases to 71 % or by 83.9 million rubles. At decrease of the costs of materials and components increase by 15 % the value of net discounted cost increases by 84.5 million rubles. The value of IRR increases by 6.6 % The decrease of investments by 15 % results in increase of the rate of return by 19.8 %. The increase of investments by 15 % results in decrease of the rate of return to 26.3 %, that is, by 14.7 % When the discounting rate decreases by 15 % (9.35 %), the net discounted cost of the project increases by 61.8 million rubles, whereas the increase of the discounting rate to 17.25 % (growth by 15 %) results in decrease of the net discounted cost by 53.3 million rubles, being positive in both variants. At this, the discounted payback period varies insignificantly. The economic situation, modified at the initial stage of the crisis, will not influence significantly on the performances of the enterprise, and decrease in the costs of consumable materials, zinc metal in particular, will result in their improvement. The decrease in demand for the products is also a temporary factor, because corrosion does not take into account, either a crisis occurs or not. Efficient protection against corrosion decreases costs for maintenance of any facilities regardless of the type of ownership and sizes. Taking into consideration the central position of the East Siberian plant of hot-dip zinc coating relatively to the forecasted enterprises of the region, its technical and economical performances can be considered as averaged estimating conditions for individual plants of hot-dip zinc coating in eastern part of Russia along the Trans-Siberian railway. The shops of hot-dip zinc coating as a part of an enterprise of various specialization the technical and economical performances in terms of capital costs and payback periods will be 23 times lower with higher profits. The capital costs can be reasonably decreased by deployment of the facilities for hot-dip zinc coating at the sites of shut-down and abandoned plants, many of such plants are located in industrial centers of Siberia. Such approach makes it possible to utilize the existing engineer support facilities based on operating networks of water supply, disposal systems, heat and power supply, industrial services. Due to unavailability of domestic equipment for hot-dip zinc coating the initial choice should be based on such foreign variants that can facilitate attainment of planned capacity in the shortest possible time. It is recommended to consider the technology and equipment by Ingenia Company, Austria, selected as main equipment for the developed East Siberian plant of hot-dip zinc coating. The technological process of the aforementioned company, including preliminary

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operations and hot-dip zinc coating, is totally automated, the dimensions of the delivered kettles are custom tailored, the zinc coating kettles are heated both by gas and by electricity. The equipment delivered by INGENIA Company, though more expensive in comparison with some other proposals, is more modern and with high reserve of deterioration and environmental safety. The enterprises of hot-dip zinc coating can act as new centers of employment in troubled regions where numerous mining and processing plants are shut-down. Thus, the East Siberian plant will provide establishment of about 400 new working places in the City of Nazarovo, where the problem of employment is of urgent importance due to decrease of coal mining and shut-down of coal mining companies. Modern and totally automated plant will be attractive for young workers. The studies of environmental impact of the East Siberian plant of hot-dip zinc coating demonstrated that modern plants of this specialization are environmentally safe, without no actual harm to the environment. The operators and the plant territory are protected by permanent safety system. In addition, the plants of hot-dip zinc coating provides extra competitive features for the products of the plants manufacturing metal structures. Thus, hot-dip zinc coating of the metal structures manufactured by the East Siberian plant performed by the Ural enterprises made it possible to win tenders for delivery of metal structures for development of Vankor and Yurubchen-Takhom oil and gas fields, by-pass highway near Krasnoyarsk with bridgeworks across Yenisei River. In general, both enterprises, OAO VS ZMK and OAO VS ZGTs, provide deeper processing of raw stuff and create additional surplus value within the boundaries of Krasnoyarsk Territory. East Siberian Plant of hot-dip zinc coating is an economically efficient enterprise, therefore, it is an efficient tax payer to the budgets of all levels. Hence, all other similar enterprises will be similar tax payers to the budget of relevant region and the country. Despite the crisis, East Siberian Plant of hot-dip zinc coating, as well as other enterprises located East-wards from the Ural are welcome at the market of hot-dip zinc coating, that is based on: significant increase of demand (up to 10 % per year in the nearest 510 years) for zinc coated metal structures and items at existing deficiency of process facilities for meeting this demand; low level of competitions the plants are capable to enforce their position in the market before an outburst of starting of new enterprises.

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TECHNOLOGICAL FEATURES AND PROSPECTS OF DEVELOPMENT OF OZERNINSKY ORE CLUSTERS.G. Fedorov, A.S. Baranov JSC Sibtsvetmetniiproekt, Krasnoyarsk, Russia

The reserves of polymetallic ores of Ozernoye lead-zinc pyrite ore deposit amounted to 128.16 million tons as of January 1; 2008, this characteristic was approved by the Minutes No. 5869 of the Meeting of State Commission for reserves of mineral resources at the Council of Ministers of the USSR (GKZ USSR) dated January 19, 1970. The deposit in terms of its resources is considered as unique and is one of the largest reserves in terms of lead and zinc resources not only in Russia but in the World as well. The development of this reserve will make it possible to create up to 3312 additional jobs directly involved in production and up to 2500 jobs for associated activities and services only at the first stage. The existence of such large mining enterprise in the region will make it possible to improve its infrastructure and create backgrounds for development of the deposit suite of Ozerninsky ore cluster, which in its turn will advance the Buryat Republic to the leading positions of Russian industry. Historical survey, analysis of previous projects The history of development of Ozernoye polymetallic deposit amounts to 50 years exactly. The first step of this 50-year history of development can be assigned to the commencement of activities of Indolinskaya Geophysical crew in 1969 aimed mainly at exploration of bauxites; within the course of the explorations the crew discovered iron ores at the Magnetite and Hematite sites and others. A belief was stated that the magnetite ores were widely spread in the\is region. Later on the intensive activities were commenced on exploration and evidencing of the mineral resources in the Buryat Republic. Ozernoye lead-zinc pyrite ore deposit was revealed in 1964. For a short period (less than 6 years) a wide scope of exploratory activities was implemented, including 3500 meters of underground mining excavations. About 95 thousand meters of trial boreholes were drilled. In 19681969 the Chita Affiliate of Tsvetmetproekt Institute by the order of Buryat Geology Department worked out the project of deposit development conditions for Ozernoye polymetallic ore deposit in Buryat Republic, including the variants for 2700, 3000, 3300, 3600 thousand tons annually in terms of ore production with the recommended yield of 3300 thousand tons annually. On January 19, 1970 by virtue of the Minutes No. 5869 of the GKZ Meeting (State Commission for mineral resources) at the Council of Ministers of the USSR (GKZ USSR) the Ozernoye lead-zinc pyrite ore deposit was put on the State balance sheet, its ore reserves amounted to 128.6 million tons (Categories + 1 104.96 million tons; Category 2 23.2 million tons). Later on, up to 1985, the ore reserves of Ozernoye Deposit were explored and the adjacent areas were supplementary examined where the suites of minor deposits were revealed. At the decline of the Soviet era and the dawn of the perestroika all activities at the Ozerninsky ore cluster were suspended. The start of the modern history of development of the Ozernoye polymetallic ore deposit can be attributed to the date of licensing of JSC Metals of East Siberia Corporation in 2004 for the right to use subsurface mineral resources. For 5 years of operation at the deposit a vast scope of preparation activities was implemented, including geological validations. The intensity and scope of activities performed by the experts of JSC Metals of East Siberia Corporation and JSC Ozerny GOK can be compared with the activities by the Ministry of Non-Ferrous Metallurgy in the Soviet period. 36 thousand meters of validating trial boreholes were drilled at the deposit. The shift camp for 300 operators was designed and constructed. In 2009 opencast operations were commenced.

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From 2004 to 2009 numerous main and preliminary projects were implemented by both Russian and foreign companies. In September, 2009 JSC Sibtsvetmetniiproekt Institute was selected as General design office for the project titled Ozerny GOK (Mining and processing company) (Buryat Republic) and the facilities of its infrastructure. When the feasibility studies for development of the Ozerny GOK were at the stage of coordination, several aspects were revealed which should be settled prior to the commencement of the overall project: 1. Determination of optimal parameters of Ozerny GOK, including: the yield production and processing amount at the enterprise; the way of transportation of final products to Mozgon railway station; the power supply; the choice and comparison of processing equipment. 2. Development of the regulations: the regulations for stability of the open pit walls; the regulations for stability of coal open pit walls; the regulations for blasting operations; the regulations for open pit ventilation. 3. Development of feasibility studies and technical specifications for engineering according to selected variant. Conclusions and recommendations As a result of the performed estimations, the variants with the annual yield levels of 6 million and 8 million tons were selected as providing high cost efficiency of production and processing. Construction of the enterprise and attainment of the designed capacity in both variants can be provided in 36 months, that is, in 20112013. The development of the deposit will be carried out according to open cast method. The major technological processes include mining and processing of ore at factory with production of zinc and lead concentrated products. On the basis of comparison of technical performances it is recommended to implement the variant with the yield of 8 million tons including power supply from heat power plant. For this variants the following items are determined: the revenue from sales of concentrated products, overall cost of construction of the project, the capital forming investments (with consideration of investments to circulating assets). The actual number of workers in a shift for the variant with the yield of 8 million tons amounts to 1555 persons, the payroll number of workers is 3312 persons, including 97 managers. The efficiency of the development of Ozernoye Deposit is characterized by the system of financial performances, the most illustrative ones are as follows: the net present value (NPV), the rate of return of investment costs and the internal revenue rate (IRR). The data demonstrate, that the project is viable, the company can pay all legal payments, has net profit and can reimburse the investment costs for the period of acquisition of the reserves. In addition, it is recommended to approve the following technical specifications for engineering: construction of mining and processing plant with annual capacity of 8 million tons of ore in two stages with start-up of the facilities for 4 million tons annually; mining site: open cast method, transportation of excavated rocks to external disposal. The development system should involve utilization of dump cars and excavators of cyclic operation; processing site: ore preparation conventional flowchart, floatation flowchart selective-collective, four lines with capacity of two million each, final product concentrated marketable product; tailing facilities for storage of two types of pyrite concentrate and floatation tails; transportation of final products should be performed by automobiles to Mozgon railway station including construction of transshipment terminal at railway dock; power supply of the mining and processing plant should be of combined type from own 60 MW heat power plant, reserved power supply, as well as power supply for the first years, including the period of construction, from the power grids of Buryatenergo by 110 kV transmission line;

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water supply of the mining and processing plant should be performed in two stages: ) the first stage construction of water supply intake from subterranean water source Isinga (approved reserves of 8640 m 3 per day), additional monitoring (in the deposit for validation of the reserves), then across the deposit and Sukhrebt site, Category 11466 m 3/day, that will make it possible to provide water supply for the first startup complex of the processing factory, b) the second stage additional survey of Khorga site with reclassification of the reserves from Category 2 to Category 1470010000 m3/day. The implementation of this project will promote OOO Metals of East Siberia Corporation to be among such large mining companies as JSC Polyus Zoloto and JSC Mining-Metallurgical Company Norilsk Nickel, as well as to leading positions in Russia in the field of mining and processing of lead and zinc concentrated products. Next stage of development of the company will involve construction of metallurgical site, its location and capacity should be estimated on the basis of overall capacities of mining companies of Russia and neighboring countries. The development of the deposit will be a pilot project for Buryat Republic, it will result in intensive development of abundant mineral resources of Trans-Baikal region due to development of infrastructure of auxiliary and maintenance facilities.

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STATE AND PERSPECTIVES OF DEVELOPMENT OF THE REPUBLIC OF KAZAKHSTAN ZINC INDUSTRYN.N. Ushakov, A.I. Ananin, V.A. Shumskiy, N.M. Ni State Affiliate The Eastern Mining and Metallurgical Research Institute for Non-ferrous Metals Republic State Affiliate National Enterprise of Complex Processing for Mineral and Raw Material of the Republic of Kazakhstan (SA VNIItsvetmet RSA NE CPMRM RK), Ust-Kamenogorsk, Republic of Kazakhstan

There has been carried out analysis of the current state of zinc industry in Kazakhstan, namely raw material base, technologies in use, major manufacturers. There have been reviewed economic factors for expansion of zinc production and demand in the Republic of Kazakhstan in connection with the major trends at world market. In respect of variety and reserves of mineral resources, the Republic of Kazakhstan takes one of the leading positions in the world. Mining-and-Metallurgical Complex (MMC) is one of the most important parts of the Republic of Kazakhstan economy. According to the results of 2009, MMC share in overall volume of the RK industrial production was equal to 16.9 %, share in total exports was 19.6 %. Basic staff of MMC is almost 164.5 thousands people and book value of fixed assets in MMCs enterprises was 7 % from total amount of fixed asses of the country at the end of 2008. From 2003 till 2009, metal ore extraction volume increased by 3.5 times. At present, in Kazakhstan large metallurgical non-ferrous enterprises usually use their own mineral and raw material recourses and produce great amount of non-ferrous, rare and precious metals. International analytics (in particular experts from Business Monitor International and CRU Strategies) highly appreciate perspectives of Kazakhstans mining and metallurgical industries and predict their dynamic development in the nearest 5 years. International investors discuss perspectives for cooperation with the republic of Kazakhstan in the field of ore extraction and following ore processing. There most interesting fields are non-ferrous metals processing, including development of zinc production industry. Mineral and Raw Material Basis for Zinc Production Industry of the Republic of Kazakhstan According to data of US Geological Survey (2005), Kazakhstan explored zinc reserves are in the 4th place in the world after China, USA and Australia. Verified Kazakhstan zinc reserves are in the 3rd place in the world after Australia and China. On the basis of large complex deposits of Eastern, Central and Southern Kazakhstan, highcapacity mining and metallurgical complex has been created. The history of development of this complex is more than 200 years. Earlier, a lot of money was invested into development of mineral and raw material basis (MRMB), therefore zinc reserves, spent for processing, were compensated and besides, quite many reserves were formed. At present, State Register of Reserves of the Republic of Kazakhstan estimates about 80 ore enterprises of lead and zinc sub-industry. There is the following distribution of zinc reserves among the Regions: 40.7 % in Eastern Kazakhstan, 28.5 % in Central Kazakhstan, 23 % in Southern Kazakhstan, 5.8 % in Western Kazakhstan, and 2.0 % in Northern Kazakhstan. Average zinc concentration in actual reserves according to category ++1 is 3.57 %. Estimated cost-efficiency of development for deposits with actual reserves is mostly determined by complex characteristics of mineralization. Generally, mineral and raw material basis, prepared for operation, ensures estimated metallic zinc production output until 2030. To increase competitiveness of the sub-industry, it is necessary to consolidate mineral and raw material basis, especially quality characteristics of deposits. The main source of raw materials for Ust-Kamenogorsk metallurgical complex of Kazzinc Company is concentrates from Zyryanovsk ore-dressing plant, where 2.25 million tons of ore from Maleyevskoye deposit are treated. The capacity of ore extraction from this deposit is planning to be decreased from 2019, and its developed will be finished in 2028.

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The source of raw materials for Ridder zinc plant of Kazzinc Company is Tishinskiy mine with annual capacity of 1.4 million ton and development until 2018, and Ridder-Sokolniy mine with annual ore extraction capacity of 2.6 million tons and development until 2031. Besides, Ridder zinc plant processes oxidized ores from Shaymerden deposit (Kostanayskaya Region), which development will be finished in 2019. Main ore basis for zinc production of Kazakhmys Corporation were Eastern Kazakhstan deposits (Artemyevskoe, Orlovskoye, Yubileyno-Snegirikhinskoye, Belousovskoye, Nokolayevskoye) and Karaganda Region deposits (Kosmurun and Akbastay). Average zinc concentration in ores from these deposits is 4.49 %. Shalkiya Zinc Company develops Shalkiya deposit in Karatau ore mining district of Kizylorda Region. Pb-Zn ore reserves according to ++1 category are 129 million tons, including 5.5 million tons of zinc with its average concentration of about 4.3 %. Nova Zinc Ltd., controlled by Chelyabinsk Zinc Plant Company (Russia), develops Akzhal deposit in Agadyrsk ore mining district of Karaganda Region. Average zinc concentration in the ore is 2.54 %. There are no other zinc deposits, which could be efficient for development, in this district. From 2007, the enterprise produces about 35 000 tons of zinc in concentrate. All the concentrate goes into Chelyabinsk Zinc Plant. Extension of raw materials basis for zinc sub-industry of Kazakhstan is first of all connected with development programs of Kazzinc Company. For extension of mineral and raw material basis, this Company has foreseen exploration work in Ridder-Sokolnoye deposit, Shubinskoye deposit, Maleyevskoye deposit, Dolinnoye deposit, Obruchevskoye deposit and starting of Kholodnaya mine in Maleyevskoye deposit; and realization of the program, concerning wastes recycling. Zinc Producing Companies of the Republic of Kazakhstan Practically, the only producers of zinc pigs in the republic of Kazakhstan are Ust-Kamenogorsk zinc plant and Ridder zinc plant of Kazzinc Company. Kazzinc is large integrated zinc producer with large amount of production of associated lead, precious metals and blister copper. All enterprises of the Company are located within the Republic of Kazakhstan in five cities. More than 20 thousands people work in mining and metallurgical industries, in electricity production and mechanical-engineering. Kazzinc comprises 131 subdivisions, including 1

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