unlocking the worlds lateritic ores to address the shortage of both - PowerPoint PPT Presentation

– unlocking the world’s lateritic ores to address the shortage of both nickel and cobalt. The Metals Extraction/Recovery Process for the Future

The DNi Process™ is Enabling Technology: A low cost, efficient and environmentally sympathetic route to the production of nickel, cobalt and transitional products for the EV battery and stainless steel markets patented, unique, game changing 2

• Nickel production is already being outstripped by demand • Cobalt production soon will be Where will all the nickel and cobalt required to supply the EV battery market come from? The DNi Process™ provides a solution… 3

Nickel-Cobalt Laterite Projects – an abundant source of both metals Ø Nickel-cobalt laterite deposits are typically located in “humid tropical climates”, according to the USGS; Ø Without new nickel mines, there are not going to be a lot of new cobalt mines; Ø “Cobalt is the element that makes up for the lack of stability of nickel. There isn’t a better element than nickel to increase energy density, and there isn’t a better element than cobalt to make the stuff stable. So (while) you hear about designing out cobalt, this is not going to happen in the next three decades. It simply doesn’t work.” Umicore Chief Executive Marc Grynberg; Ø Nickel laterites make up around 73 percent of the global Nickel resource; Ø “With the success of the DNi hydrometallurgical process, Ni-Co laterites may be a much larger contributor to the world’s production of Nickel.”: Marsh & Anderson, USGS 2011. 4

The DNi Process™ unlocking the world’s lateritic ores The DNi Process™: Ø treats the entire lateritic profile (limonite, saprolite and the transition zone); Ø uses nitric acid to dissolve and recover any saleable metal found in lateritic ores; Ø applies simple chemistry; Ø operates at standard atmospheric pressure and, for a hydrometallurgical process, low temperatures; Ø recycles and reuses 95% of the nitric acid through a unique and patent-protected technology; Ø produces a mixed-hydroxide product for direct sale into the stainless steel market or, after refining, products for the EV battery industry. 5

How are laterites currently being processed? Ø The British Geological Survey estimates that 73% of the continental world nickel resources are lateritic; Ø High Pressure Acid Leaching (HPAL) is the dominant extraction process for lateritic ores and is a hydrometallurgical process; Ø Other processes such as the Ferro-Nickel process and the Nickel Pig Iron process are designed to supply the stainless steel industry only and are pyrometallurgical processes; But …None of these processes can treat the full lateritic profile; And …HPAL is technologically challenging and costly, requiring titanium-lined autoclaves and sulphuric acid generation – leading to massive cost overruns and delays on HPAL projects in recent years (Goro and Ambatovy, for example). 6

The DNI Process™ is not an HPAL process The DNI Process™: Ø processes the full lateritic ore profile – HPAL can only process the limonite; Ø operates at 1 atmosphere – HPAL operates at up to 44 atmospheres; Ø operates at 100 degrees C – HPAL operates at temperatures above 230 degrees C; Ø uses common construction materials such as stainless steel tanks – HPAL requires sophisticated, titanium-lined autoclaves, each the size of a small submarine; Ø Consumes very little acid with 95% being recycled and reused – HPAL uses 200-520 kg/tonne of ore processed; Ø Produces relatively little, environmentally inert waste which is nitrogen-rich – HPAL produces over twice as much waste which requires neutralisation and disposal. 7

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Other unique features of the DNI Process™ Ø It can process mine tailings or waste material from other processes including, potentially, slag produced by ferro-nickel plants. It is a flexible process able to adapt to changing market demands and can produce nickel metal or Ø battery precursors (such as nickel sulphate, cobalt sulphate and cobalt oxide), a mixed hydroxide product or a mixed oxide product both of which can be sold into the stainless steel market Ø It will extract any metal which will dissolve in nitric acid. Ø It produces a number of other saleable products such as haematite for the steel or pigment industry and magnesium oxide , without the creation of CO 2 – the only process to do that. Ø The DNi Process™ uses continuous, rapid tank leaching to achieve high metal recovery rates (90-95%) , particularly of nickel and cobalt but also of haematite, magnesium oxide, scandium or any other metal which will dissolve in nitric acid. Ø With a minimum threshold plant size of around 5,000 tonnes per annum nickel output the capex commitment is significantly less than that required to implement competing technologies. 9

Proposed possible refinery MHP flowsheet for the DNi MHP Scrubbing or Pyrolysis/calcination to NO X recovery Mixed Oxide Product Residue Sulphuric Leach recycled to leaching circuit Solvent Extraction Nickel strip solution Electrowinning Electrowinning Cobalt Nickel Cathode Cathode 10

OPEX and CAPEX Ø A plant utilising the DNi Process™ has a very low operating cost - for example, for a plant, producing 20,000 tonnes of contained nickel, the plant operating cost would be $2.27 per lb of nickel before co- product credits are taken into account (from the sale of cobalt, haematite, MgO or other metals contained in the ore) - with G&A excluded. The operating cost will approach zero as the value of the co-products, particularly cobalt, increases. Ø A plant processing 1.37 million dry tonnes of ore per annum (equivalent to a 20,000 tpa nickel output plant assuming 1.46% Ni contained in the ore) is estimated to cost from $500 million to build (depending on site-specific parameters). 11

Environmental The DNi Process™ is environmentally sympathetic – setting it apart from any other hydrometallurgical or pyrometallurgical processes : Ø with around half the tailings footprint of an HPAL plant (the only other hydrometallurgical process currently in use) of the same capacity (principally due to the recycling of the nitric acid and the addition of fewer neutralising agents); Ø produces inert, nitrogen-rich tailings (nitrates in processed residue break down to usable nitrogen for plant growth) - this may prove to be a major advantage in nitrogen deficient, high-rainfall tropical environments, boosting local agriculture; Ø lowers production costs and efficiently reduces associated environmental issues; Ø produces magnesium oxide (MgO) without the creation of CO 2 - a significant greenhouse gas. 12

Background The DNi Process™ - initiated by an inventor, developed by experts and now being led by entrepreneurs: DNP’s technical partners include Drinkard Metalox Inc (the inventor of nitric acid recycling), Teck Ø Resources Ltd and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) , all of which have considerable experience in mining and minerals processing and recognise the distinct advantages of the DNi Process™ when compared to existing technologies The DNi Process™ has been significantly de-risked with the assistance of these partners and through Ø rigorous testing and development at the one tonne per day (input) pilot plant in Perth, Western Australia which occupies over around 450 square metres (almost 5,000 square feet) at CSIRO’s Australian Minerals Research Centre located on the campus of Curtin University 13

The 1 tonne/day (input) DNP Pilot Plant has proven that the DNi Process™ is simple and safe to operate on a continuous basis, with metal recoveries and reagent recycling meeting and, in many cases, exceeding expectations The DNi Process™ is protected by registered patents Mixed Hydroxide Magnesium Oxide Product Co-product Iron Oxide (as Hematite) Co-product 14

Now controlled by Windward Prospects Ltd (a UK-based venture investment company), Direct Nickel Projects Pty Ltd is being driven to commercialise the DNi Process™ by DNP’s directors: Ø Andrew Vickerman, Chairman - ex Rio Tinto, Lihir Gold and a current director of Trafigura; James Proudlock, CEO – over 30 years experience in commodity-related banking, trading and Ø trade finance with Swire Pacific, Man Group, UBS, JPMorgan, the London Metal Exchange and Hong Kong Exchanges ; Ø Christopher Gower, Exec. Director & Deputy Chairman - Managing Director of Windward Prospects Ltd; Stephen Stout, NED - most recently responsible for the Asian expansion of the DMGT Ø group; and Vincent Sweeney, NED & Co. Sec. - a principal of Sydney Capital Partners Pty Ltd. Ø 15

Acquiring the right to use the DNi Process™ DNP has identified battery manufacturers, electric vehicle manufacturers and owners of stainless Ø steel mills as those most likely to wish to licence the technology due to their need for a sustainable, long-term supply of raw materials. DNP will provide the processing technology and full technical support to its licencees who will build, Ø own and operate the processing facility with ongoing support provided by DNi. In return, DNP will receive a combination of licence fee, profit share and/or equity share, to be Ø negotiated on a case-by-case basis . 16

APPENDICES 17

APPENDIX 1 – GLOBAL NICKEL SUPPLY AND DEMAND 18