GMUSG and SACOME Resources Industry Conference August 2013
GMUSG & SACOME Presentation Port Pirie Smelter Overview Environmental Health Issues Transformation – A Step Change 2014 Asset Management Plan 2
Port Pirie Overview • Pirie is an integrated multi metal recycling facility – producing lead, silver, zinc, gold, copper and sulphuric acid, plus a range of other minor by-products. • Most of the output is exported to Asia • Process uses sinter, blast furnace and slag fuming technology. • Production capacity – 230,000 tonnes of lead and 40,000 tonnes of zinc • It has been in constant operation for more than 124 years • Strong affiliation and connection with the community – community very parochial with generations of the same family members working at the site. 3
Port Pirie Location • Situated on eastern shore of Spencer Gulf - this location was critical in early years as it was the closest town from the Broken Hill mine with the deepest sea port. • However the close proximity to the community create a community environmental health issue. 4
Port Pirie Overview • Port Pirie is extremely significant to the region and South Australia* • Nyrstar contributes $1.6 billion to the value of South Australian economic output • Value add to GSP = $518 million • Direct employment = 838 FTE’s (made up of 705 Nyrstar employees and 133 contractor FTE’s) • Total employment effect (FTE’s) = 2,342 • Total wages effect = $270 million • Taxation impact = $102 million • Significant social capital contributions to the community of Port Pirie – sponsorships, donations, promotions and publicity – in excess of $4M AUD (2007-2012) * Analysis of 2010 completed by IMC Link 5
Port Pirie Process Concentrates Residues Fluxes SO2 Sulphuric Acid Sintering Plant Copper Matte Slag Bullion Zinc Lead Blast Furnace Copper Drossing Chloride Leach Slag Fumer As, Sb removal Fume Leach Solvent Extraction (Softening) Zinc Zinc Alloy Solution Vacuum Retorting De-silverising Electrolysis Purification Electrolysis Cupellation De-zincing Electrolysis Final Refining De-bismuthising ACID ZINC SILVER GOLD LEAD LOW Bi LEAD COPPER 6
Production – a changing landscape Greater focus on value creation 7 7
GMUSG & SACOME Presentation Port Pirie Smelter Overview Environmental Health Issues Transformation – A Step Change 2014 Asset Management Plan 8
Port Pirie issues • Very old site – constant operation 124 years - old technology, aged processing and instability generates emissions; • Since 2006, more than $50m of capital invested directed at emission reduction/environmental improvement • Critical structural recovery program in place • Focus over a long period of time has been on identifying potential new technologies and delivering sustainability to the site. • Continued constant focus on reducing emissions – operationally and through environmental awareness - training and changed work practices • Recruitment of professionals – technical, engineers, trades – has historically been difficult • Relationships critical with key government and regulatory bodies – our focus is to work collaboratively with stakeholders. 9
Significant Health and Safety Achievements on site NYRSTAR EMPLOYEES + CONTRACTORS BLOOD LEAD LEVEL 12 Mth Mov Average 350 Safety performance has been >= 35 ug/dL >= 30 ug/dL improving steadily over many years 300 No. of Employees 250 Lead in blood shows similar 200 improvements 150 100 50 0 10 10
Blood Lead Reduction Programs - Background • Long history of elevated blood levels in children in the Port Pirie community- potential impacts include behavioural and cognitive development problems. • 2005 WHO recommendation was less than 10 μ g/dl – focus is now on achieving levels below 10 ug/dl. • In 2005 following increases in children’s blood lead levels, (Zinifex) Nyrstar approached several key stakeholders – SA Health, the Port Pirie Regional Council, and the EPA to propose a unique way of addressing the issue. • The idea involved key partners working collectively to achieve the required reduction in lead levels in children under 4 years of age, at risk age group. • The tenby10 program commenced in 2005 – goal was to have at least 95% of children 0-4 years below 10 ug/dl by the end of 2010 • End of 2010 name change to “tenforthem” • 2011 name changed to “thumbs up for low levels” – reflects the move away from a focus on achieving 10 ug/dl - focus now on getting all children as low as possible. • Transformation needs the community to continue to be proactive – community blood lead levels must be maintained – new program will focus on “the future we all want” 11
Monitoring Lead in Air – Comprehensive air monitoring network Winter Local climate is dominated by strong northerly winds Summer in winter and southerlies during the summer. 12
Exposure pathways are complex – social economic impacts 13 13
Community engagement focus Ensuring effective community consultation, communication and engagement critical to the ongoing success of the project; • Significant financial support to childcare facilities and kindergartens, cleaning equipment, air conditioning, new carpet, new vacuum cleaners etc. • Nutritional program for kindergarten, childcare centres and schools – raise healthy eating and hygiene. • Additional childcare placements for children from high risk homes – extremely successful • Multi media platforms – Website, TV/Radio • Employee and contractor car cleaning and detailing • Awareness material – DVD’s, flyers, brochures • Much has been achieved since 2005 however a step reduction in children's blood lead levels now required. 14 14
Blood Lead Reduction Capital projects Slag Fumer Coal Injection $6.6M Blast Furnace Enclosure - $9.5M Baghouse installed TOTAL CAPITAL & OPEX SPEND TO DATE $46M 15
Tenby10 Capital projects Before After 16
Blood Lead Reduction Programs – Significant Outcomes achieved 17
GMUSG & SACOME Presentation Port Pirie Smelter Overview Environmental Health Issues Transformation – A Step Change 2014 Asset Management Plan 18
Transforming the Future - Overview • Transformation announcement is important and significant for Nyrstar, the Port Pirie operation, its employees, the community of Port Pirie and the wider region. • The announcement was the culmination of many months of discussions and negotiations between Nyrstar and both State and Federal Governments, the key focus of which was on identifying a sustainable future for the smelter and the community of Port Pirie. • The in-principle funding and support agreement that was reached by the parties allows work to proceed to transform the Port Pirie smelter through new technology to an advanced poly-metallic processing and recovery facility capable of processing a wide range of high value, high margin raw materials. 19
Transforming the Future • Agreement reached supports construction of $350 million poly-metallic processing and recovery facility • Historic agreement secures long-term future of Port Pirie and jobs of the 800+ direct employees and 2,500 people who rely on Nyrstar plant for their livelihood. • Best practice closed smelting technology allows Nyrstar to deliver environmental and health outcomes simply not possible through continued use of 124-year smelter • Pre-feasibility study by September 2013, final investment case including detailed bankable feasibility studies expected by end of 2013. • Final Government approval end of 2013, final Nyrstar Board approval March 2014 • Pending positive outcomes of feasibility studies the new plant construction begins 2014, commissioned in 2016 20
Transforming the Future – Funding • Nyrstar will to invest up to $200 million of $350 million in the advanced poly-metallic processing and recovery facility at Port Pirie. $100 million from its own balance sheet and $100 million funded by forward sale of silver • South Australian Government will provide forward sale financier regulatory certainty to support the forward sale of free metal • Commonwealth and State Government support is required to attract additional $150 million private investment • Commonwealth, through Export Finance and Insurance Corp’s (EFIC) National Interest Account, will assist Nyrstar attract private investment by providing a guarantee to $170 million • State provides environmental regulatory certainty for 10 years post-investment and contributes $5 million to Nyrstar’s $15 million feasibility study which will be repaid into Targeted Lead Abatement Program 21
Nyrstar Technology Transformation • Primary source of lead emissions at Port Pirie is the sinter plant – transformation will replace the sinter plant with international best practice closed smelting technology • Post-transformation lead-in-air at EPA licensed monitoring sites to be reduced by at least 50% • 10-fold reduction in sulphur dioxide emissions • Transformation will be lead by a dedicated GM, supported by a project team comprising internal and external resources. • Current operation will continue while new assets constructed built – strong focus on continuing emission reduction initiatives. 22
23
Recommend
More recommend
