P.T.

INCO

NICKEL LATERITES
Formation & Mineralogy,
Exploration, Mining, and
Processing Method
March 2006

P.T. INCO

NICKEL LATERITES FORMATION

P.T. INCO

WHAT ARE NICKEL LATERITES?

Nickel laterites are residual soils that have developed

over ultramafic rocks through processes of chemical
weathering and supergene enrichment

Critical conditions for the formation of nickel laterites:

Appropriate

accumulation of soil

Appropriate

rock type

Appropriate

weathering conditions

Appropriate

conditions for supergene enrichment

P.T. INCO

TYPICAL LATERITE PROFILE

Red Laterite
Limonite
zone
Saprolite
zone
Bedrock pinnacle

P.T. INCO

APPROACH TO LATERITE STUDY

Study of Laterites requires a good knowledge of the

relevant principles of:
Chemistry
Mineralogy
Petrology
Geomorphology
Soil formation
Processing constraints & technology

P.T. INCO

MINERALOGY

P.T. INCO

MINERALS ASSOCIATED WITH LATERITES

Mafics

Spinels

Primary
igneous
minerals

Olivine
Pyroxene

Magnetite
Chromite

Hydrothermal
minerals

Serpentine
Talc
Chlorite

Laterite
weathering
minerals

Secondary:
Serpentine
Talc
Chlorite

Oxides &
Hydroxides

Nickel
Silicates

Hematite
Goethite
Limonite
Bauxite
Gibbsite

Garnierites:
Nepouite
Willemsite
Pimellite
Nimite

P.T. INCO

LATERITE MINERAL ASSOCIATIONS

SiO2

H2O

Talc
En

Serp.
Chlor.
Brucite

PYX
Fs
Fo

OLIV
Fa

FeO

MgO

Magnetite
Magnesioferrite
Hematite

Fe2O3

Goethite
Limonite
Xanthosiderite
Esmeraldaite

H2O

P.T. INCO

OLIVINES Formation

Forsterite crystallises first (higher melting temperature)

As the larger ferrous cations replace the smaller Mg

cations, the melting temperature is progressively
reduced

If the original magma has more silica than can be used

by the olivines (> 40%), then the more siliceous mafic
minerals such as pyroxenes will be formed

Olivines can take up to 0.5% of NiO (0.4% Ni)

If the olivine is allowed to react with the liquid magma, it

will change its composition towards ferrous olivine

Ni occurs as replacement of Mg atoms by Ni atoms

P.T. INCO

OLIVINES Formation
Forsterite forms first
High melting temp.

Crystals
settle on
the bottom
of magma
chamber.
Original
Forsterite
composition
preserved

Crystals
allowed to
react with
magma

MAGMA

Magma with < 40% SiO2

Only olivine forms. Successive
crystals richer in Fayalite.

Magma with > 40% SiO2

Pyroxenes form, depending on
silica availability.

P.T. INCO

ALTERATION OF OLIVINE

Alteration of Forsterite
+800C:
Fo to En
625-800C:
Fo to En to Talc
500-625C:
Fo to Talc
200-500C:
Fo to Serpentine

Magmatic
Hydro
thermal

H2 O

Serpentine
Talc

MgO

Fo

En

SiO2

P.T. INCO

GARNIERITE GROUP

SiO2

Mg3Si4O10(OH)2.nH2O
Kerolite - Talc
Serpentine
Mg3Si2O5(OH)4

10A basal
spacing

GARNIERITES

Ni3Si4O10(OH)2.H2O
Pimelite

7A basal
spacing

MgO

Nepouite
Ni3Si2O5(OH)4

NiO

P.T. INCO

WORLDS SERPENTINE BELTS

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Layer

STRUCTURE OF OCEANIC CRUST

Seismic
Velocity

Metamorphic
Grade

Thickness
Sea Level

2.0 km/sec

5.1 km/sec

Marine Sediments
Zeolite

Ocean basalts

0 4 km
1 2.5 km

Greenschist
3

Gabbros

6.7 km/sec

5 km

Amphibolite
4

8.1 km/sec

8.1 km/sec

Layered Peridotite

Mantle Peridotites

Oceanic Crust
5 8 km

0.5 km

Mohorovicic
Discontinuity

P.T. INCO

Ni IN ULTRAMAFIC ROCKS

Ni in ultramafic rocks is primarily in mafic minerals

High in olivines (0.2 0.3% Ni)
Low in orthopyroxenes (0.05 0.1% Ni)
Very low in clinopyroxenes (< 0.05% Ni)
Thus, decrease in the olivine content of the ultramafic reduces the
overall nickel content of the rock:
Highest Ni grades in dunites
Lower Ni grades in peridotites
Lowest Ni grades in pyroxenites
Ni in mafic minerals is largely as a replacement of Mg
Some Ni may exist as replacement of the larger Fe atoms
Primary chromite and magnetite may contain minor Ni

P.T. INCO

WEATHERING

Four major processes under which rocks change their physical or

chemical properties:

Melting (at very high temperatures)

Metamorphism (high temperatures / pressure / addition)

Hydrothermal alteration (through high-temperature fluids)

Weathering (at ordinary temperatures and pressure)

Types of weathering:

Physical (mechanical breakdown of rocks)

erosion, thermal expansion/contraction, action of plants

Chemical (breakdown of rocks through chemical processes)

contact with water, oxygen, carbon dioxide, etc.

P.T. INCO

CHEMICAL WEATHERING

The process in which rocks react to atmospheric, hydrospheric and

biologic agencies to produce mineral phases that are more stable

1. Hydrolysis
Oxygen, carbon dioxide, ground water, dissolved acids attack the
minerals in the rock
2. Oxidation
Elements released by chemical weathering are oxidised
3. Hydration
Reaction with water adds the hydroxyl ion to newly formed minerals
4. Solution
The more soluble products of weathering are dissolved and removed
And the cycle continues .....

CONDITIONS FOR CHEMICAL WEATHERING

P.T. INCO

Acidic
Rain

Acidic
Rain

RAIN AND THUNDER STORMS

Nitrous oxides, CO2
HUMOUS (Organic) LAYER
(Reducing conditions)

ZONE OF OXIDATION

WATER TABLE
(Reducing conditions)

P.T. INCO

Elemental Mobilities

Many metallic elements are soluble in

ground waters
Solubilities generally increase with
temperature
Solubilities are a function of pH (acidity)
and Eh (redox) conditions

Mobilities of elements found in ultramafic

rocks are generally classified as:
Highly soluble = Ca, Na, Mg, K, Si
Non-soluble = Al, Fe+++, Cr, Ti, Mn, Co
Variably soluble = Ni, Fe++

Relative
Mobilities
(decreasing
Order)
Ca++

= 3.0

Na+

= 2.4

Mg++

= 1.3

K+

= 1.25

SiO2

= 0.20

Fe2O3 = 0.04
Al2O3 = 0.02

P.T. INCO

Factors Influencing Chemical Weathering

The following factors influence the speed as well as the character of

chemical weathering:

1.

Stability of Minerals (crystal structure, melting points)

2.

Acidity / basicity (pH) conditions

3.

Reduction / oxidation (redox potential) of the environment

4.

Rate of removal of dissolved constituents

5.

Climate (temperature, rainfall, fluctuation of water table)

6.

Topography

7.

Rock conditions (Fracturing, Jointing, Grain size)

P.T. INCO

Various topographic profiles

Steep Hill
Gentle Hill
Depression / basin

Plateau

River Terrace

Dissected Plateau

P.T. INCO

Role of Water Table

The position of water table depends on:

Amount

of rainfall
Ground porosity/permeability
Topographic characteristics

Impact of High water table

Much

of rock filled with water

Less oxygen being supplied

Fluctuating water table

Varying

zones of oxidation and reduction

Frequent flushing of system to remove dissolved material

P.T. INCO

Weathering of Ultramafic rocks

WEATHERING OF
ULTRAMAFIC ROCKS
AND LATERITES

Behaviour of MgO, SiO2, Fe, Al, Ni

Laterite Profile: Limonite zone
Laterite Profile: Intermediate zone
Laterite Profile: Saprolite zone
Rates of Laterisation

P.T. INCO

WEATHERING OF OLIVINE

Forsterite: 2MgO.SiO2 (MgO = 57.3%)

Sorowako Olivine:
FeO =

9.0%

Al2O3 =

0.4%

NiO =

0.37%

Highly unstable in weathering

environment

MnO =

0.12%

Cr2O3 =

0.02%

Individual SiO4 tetrahedra are

weakly bonded by cations

TiO2 =

0.02%

Magnesia is highly soluble in ground water

Replacements

Release of magnesia breaks down the Olivine structure

Breakdown of Olivines releases various cations:
MgO,

FeO, NiO, MnO

P.T. INCO

WEATHERING OF PYROXENE

Enstatite: MgO.SiO2 (MgO = 40.2%)

Sorowako Pyroxene:
Opx

Replacements

Relatively unstable in weathering

environment (but < Olivine)
Individual SiO4 tetrahedra are
bonded by shared Oxygen

Cpx

FeO = 6.0

2.5

Al2O3 = 3.2

3.5

CaO = 1.9

21.7

NiO = 0.08

0.05

MnO = 0.13

0.08

Cr2O3 = 0.58 0.86

Magnesia is highly soluble in

ground water

Release of magnesia breaks down the Pyroxene

TiO2 = 0.05 0.09

Breakdown of Pyroxenes releases various cations:

MgO,

FeO, CaO.Al2O3.NiO, MnO

P.T. INCO

Weathering of Serpentine

Serpentine: 3MgO.2SiO2.2H2O

Ni and Fe can replace the magnesium being leached.

This results in the formation of:

Magnesia is leached out first, leaving behind a silica

enriched phase or montmorillonite and chlorite

Iron

containing serpentine

Nickeliferous

serpentine

Through a similar process, nickel is also fixed in Talc,

Chlorite, and Smectite

Eventually, montmorillonite and chlorite also break

down, releasing remaining magnesia and silica

P.T. INCO

Behaviour of Magnesia (MgO)

Magnesia is present in Olivine, Pyroxene and Serpentine

Magnesia is released by the breakdown of olivines
Magnesia has very high solubility in ground water
It is the first major component to be leached out in large
quantities

Some magnesia may stay in the laterite profile to form

clay minerals and nickel hydrosilicates

Final product of lateritic weathering (Goethite/limonite)

does not contain any magnesia

P.T. INCO

Behaviour of Silica (SiO2)

Silica is present in Olivine, Pyroxene and Serpentine

In humid environments, laterite is constantly flushed and

little silica gets fixed as smectite/nontronite clays

In wet-dry environments, flushing of laterite profile is

poor and silica gets fixed as smectite/nontronite clays in
the Intermediate Zone

In the alkaline environment (where MgO is being

released), silica can precipitate from solution as
amorphous silica (silica veins, boxwork, coatings)

Silica is released by the breakdown of ferro-magnesian

silicates

P.T. INCO

Iron is present as:

Ferric

Fe++

In olivine (MgO.FeO.SiO2) :

In pyroxene (MgO.FeO.2SiO2) : Fe++

In chromite (FeO.Cr2O3) :

In ilmenite (FeO.TiO2) :

In magnetite (FeO.Fe2O3) :

Fe++
Fe++
Fe++

Breakdown of mafic minerals releases Ferrous ions

Ferrous ion is quite soluble and mobile
Ferrous ions get quickly oxidised to ferric ions, as:
Hematite / Maghemite, Goethite, Limonite

Iron in primary magnetite and ilmenite oxidise to form:

Ferrous

Behaviour of Iron (Fe)

Hematite / Maghemite, Goethite, Limonite

Iron in the Ferric (Fe+++) state is very insoluble

Fe+++

P.T. INCO

Behaviour of Alumina

Alumina is present in:

Pyroxenes
Common

(as impurity and as solid solution)

Spinel (MgO.Al2O3)

On the breakdown of pyroxenes, alumina is temporarily

fixed in the chlorites (Clinochlore: 5MgO.Al2O3.3SiO2.4H2O)

After the breakdown of chlorites, alumina is fixed in

gibbsite (Al2O3.3H2O)

Alumina is very insoluble in ground water in the pH

range commonly found (4 9)

Al+++ and Fe+++ are truly residual elements in laterites

P.T. INCO

Behaviour of Mn and Co

Minor amounts of Mn and Co are present in the mafic

minerals (Olivine and Pyroxene)

On the breakdown of mafic minerals, Mn and Co are

released

Mn and Co are slightly soluble in acidic waters at the top

of the laterite profile

Mn and Co are very insoluble in alkaline waters

Much of Cobalt is tied to the manganese wad

Mn and Co concentrate at the bottom of the Limonite

Zone

P.T. INCO

Behaviour of Ni

Minor Ni is present in Olivines (0.3%), Orthopyroxenes

(0.1%), and Clinopyroxenes (< 0.05%)
Ni can replace the Mg being leached out of serpentines,
Talcs and Chlorite to form nickeliferous silicates
Ni is soluble in acidic water but insoluble in alkaline
water
Ni travels down the profile and gets precipitated as Ni
hydrosilicates in the Saprolite Zone (alkaline environment,
where solubility of Mg is higher than that of Ni)
Some Ni gets permanently tied to the goethite structure
(as solid solution, from 0.5 to 1.5% Ni)
Ni is also tied to Asbolite / Manganese wad at the base of
the Limonite Zone

P.T. INCO

LATERITES

The term Laterite is derived from the Latin word later which
means brick

Buchanan Hamilton first introduced the term in 1807 to the earthy

iron crusts that were being cut into bricks by the people of southcentral India

Currently, the term Laterite is used for soils that are rich in
sesquioxides of iron and aluminium, formed under the influence of
chemical weathering with special ground water conditions

Development of laterites require:

Availability of appropriate rocks that contain iron and aluminium

Relatively high temperatures (to aid chemical attack)

High rainfall (to aid chemical weathering)

Intense leaching (to remove mobile elements)

Strongly oxidising environment (to make sesquioxides)

Gentle topography (to preserve the laterite once it is formed)

P.T. INCO

LATERITE PROFILE

Laterite Zones
Red Hematite
Yellow Limonite

Processes at work
Acidic environment
Collapsed profile
Soluble ions leached (Ca, Mg, Si, Na, K)
Insoluble ions concentrated (Cr, Al, Fe)
Mn, Co show supergene enrichment

Saprolite zone

Alkaline environment
Un-collapsed profile
Leaching / residual concentration in progress
Boulder formation
Ni shows supergene enrichment

Bedrock zone

Alkaline environment
Joints / fractures exposed to U/G water
Chemical attack is just beginning
Channelways provide removal of dissolveds

P.T. INCO

LATERITE PROFILE Limonite zone

The uppermost zone is rich in hematite and goethite

The limonite may be remobilised in near-surface acid conditions and
crystallised to hard ferricrete/iron cap
Extremely insoluble minerals may persist in this zone (spinel,
magnetite, primary talc)
The base of the limonite zone is enriched in manganese, cobalt and
nickel (manganese wad). This wad occurs as coatings on joints and
fracture planes
Limonite zone represents laterite that has collapsed
The dry bulk density in the limonite zone is higher than in the
Transition zone
Due to collapse, the original texture and structure of rock is
completely obliterated

P.T. INCO

LATERITE PROFILE Intermediate zone

Contains soft Smectite clays usually nontronite (Fe2O3.2SiO2.2H2O)

and hard crystalline quartz

Leaching is advanced but collapse is not complete

(resulting in low bulk density)

Some original texture/structure is still preserved

The formation of distinct intermediate zone requires wet-dry climate

If the Intermediate Zone is developed, the occurrence of manganese

wad is more prominent in the upper part of the Intermediate Zone
rather than in the lower part of the Limonite Zone

P.T. INCO

LATERITE PROFILE Saprolite zone

The Zone consists of: bedrock fragments, saprolised rims of

boulders, precipitated quartz, and garnierite

Chemical weathering is proceeding along joints & cracks

Saprolisation along joints leads to the formation of boulders
The boulders can have a significant saprolised crust
Original rock texture and structure are well preserved
Most parent rock minerals are preserved
In Unserpentinised rock, saprolisation is limited to boulder surfaces
since the rock is very hard (boulders are free of replacement nickel)

In serpentinised rock, saprolisation proceeds through much of the

rock mass since it is soft (boulders may contain significant
quantities of replacement nickel)

P.T. INCO

SOROWAKO LATERITE PROFILE

WEST BLOCK
UNSERPENTINISED

EAST BLOCK
SERPENTINISED

DEPTH (m)

10

15

20

Iron cap

Limonite
Overburden

Limonite ore

Saprolite Ore

Bedrock

P.T. INCO

NICKEL LATERITE PROFILES

SILICATE
(eg New Caledonia)
DEPTH (m)
0

Iron cap
Colluvium

Red
limonite

Ferruginous
zone

Rocky
ore

Bedrock

Limonite
overburden

Limonite
Smectite
zone
Saprolite

Earthy
ore

Ore with
boulders

40

OXIDE
(eg Moa Bay)

Cuirasse

Yellow
limonite

20

CLAY
(eg Murrin Murrin)

Saprolite
(Serpentine,
chlorite,
smectite)

Bedrock

Bedrock

Major Elements in Laterite Profile

50
45
40
35
30
25
20
15
10
5
0

Fe
SiO2

SAPROLITE

LIMONITE
Transition zone

PERCENTAGES

P.T. INCO

MgO

AlO2O3

-6

-4

-2

DEPTH IN METRES

10

12

14

P.T. INCO

Minor Elements in Laterite Profile

3.5
Cr2O3
LIMONITE

SAPROLITE

2.5

Supergene Ni
enrichment

2.0

MnO

1.5

Ni
Transition zone

PERCENTAGES

3.0

1.0
0.5

Co

0.0
-6

-4

-2

DEPTH IN METRES

10

12

14

P.T. INCO

RATES OF LATERISATION

m m o f L a te rite

100,000

100 metres

10,000

10 metres

1,000

1 metre

Based on water
compositions of
well-drained
Ultramafics

100
Based on mineral
solubilities in the
Laboratory

10
1

10

1,

10

,0
,0

00

00

00

0,

00

00

00

0,

,0

00

10

1,

10

10

TIME IN YEARS

P.T. INCO

USE OF Ni IN THE INDUSTRY

Over 60% of the worlds nickel is used for making

stainless steel
With the addition of nickel in steel, it is made resistant to
corrosion
Nickel is also used in making superalloys that can
withstand high temperatures and pressures (also high
electrical conductivity)
Nickel is also used for plating, making coins, Ni-Cd and
Ni-metalhydride batteries, and as a chemical catalyst
Cobalt has properties similar to nickel but is more
expensive
Primary nickel supply comes from newly mined ores
Secondary nickel supply comes from recycling scrap

P.T. INCO

NICKEL LATERITE EXPLORATION

P.T. INCO

Nickel Laterite Exploration Stages

Outlining of ultramafic area

Outlining and analysis of structural lineaments
Outlining of favourable laterite landforms
Reconnaissance sampling of favourable laterite landforms to define
Inferred resource
Follow up drilling for indicated resource
Determination of bulk densities and upgrading characteristic.
Follow up drilling of measured resource
Bulk sampling and metallurgical testing

P.T. INCO

Outlining of Ultramafic Area

Reference/Published Geological map

Aerial photograph, landsat/radar imageries
Ground mapping

P.T. INCO

Outlining and Analysis of Structural Lineaments

Highly tectonised rocks are more prone to penetration by

acidic surface waters and expose much larger area for
chemical weathering.
Major structures may also cause serpentinisation of the
ultramafic rocks.
Aerial photograph, landsat and radar imageries

P.T. INCO

Outlining Favourable Laterite Landforms

Good laterite is generally associated with slopes 5-15%

range, moderate slopes allow better drainage while still
retaining the soil. Steep slopes allow rapid erosion of
laterite while depressions do not allow good flushing
system to dissolve light elements.

Landform is an extensive peneplaination of terrain.

Landforms can be easily interpreted from aerial

photograph, landsat and radar imageries

P.T. INCO

9th Relinquishment CoW Boundary

Sorowako
WB

EB
Sorowako Plant

Petea Area
Mahalona

P.T. INCO

Reconnaissance Sampling of Laterite Landforms

To check the presence of reasonable thickness and

nickel grades

Power auger, RC drilling, Lightweight Winkies, or even

hand auger can be used.

400m 200m drill space

P.T. INCO

Follow up Drilling for Indicated Resource

To define Indicated Resources to ensure geological

continuity.

Core Drilling with 100m drill space (may need closer

space if ore continuity is not uniform or in complex
geology/mixed rock type).

P.T. INCO

Determination of bulk densities and upgrading

characteristic

To determine tonnage factors, moisture content and

upgradeability/screen recoveries to convert in situ volumes to
equivalent dry metric tonnes of potential plant feed.

The best method: test pit or large diameter (20 cm) core drilling.

P.T. INCO

Follow Up Drilling for Measured Resource

To further increase geological confident (ore continuity,

ore type and chemistry variability

Core Drilling with 100m drill space (may need closer

space if ore continuity is not uniform or in complex
geology/mixed rock type).

Mineral Resources and Mineral Reserves

CLASSIFICATION OF
MINERAL RESOURCES AND
MINERAL RESERVES

FIGURE - 1
Revised: May 6, 2001
MINING ASPECTS
(Mineability,
Dilution)

(Based on CIMM philosophy)

PROBABLE
MINERAL
RESERVE

CONSIDERATION OF ECONOMIC, METALLURGICAL,

ENVIRONMENTAL, LEGAL AND OTHER ASPECTS

P.T. INCO

PROVEN
MINERAL
RESERVE

MINING ASPECTS
(Mineability,
Dilution)

INFERRED
MINERAL
RESOURCE
Low

INDICATED
MINERAL
RESOURCE
Medium

MEASURED
MINERAL
RESOURCE
High

INCREASING GEOLOGICAL ASSURANCE AND CERTAINTY

(Continuity of grades, thickness, chemistry, etc.)

P.T. INCO

Bulk Sampling and Metallurgical Testing

To obtain:
Detailed

geology (ore-waste contacts) at small scale

Mining method
Grade/Quality control sampling method
Reconciliation between pre-mining and post mining
estimates
Detailed ore chemistry and mineralogy studies abd
processing implications
Reduction and Smelting test

Size : 5,000 60,000 wmt.

P.T. INCO

World Nickel Laterite Deposits

Albania

Greece

India Burma
Cuba Dominican
Philippines
Republic Ivory Coast
Guatemala
Indonesia
Columbia VenezuelaBurundi Ethiopia
Zimbabwe
PNG
Brazil
New
Madagascar
Caledonia
Australia

Producing Countries
Non Producing Countries

P.T. INCO

LATERITE vs. SULPHIDE DEPOSITS

CUBA
PHILIPPINES
INDONESIA

NEW CALEDONIA

AUSTRALIA

LATERITES

SULPHIDES

World Nickel Laterite Resources

P.T. INCO

(Distribution by Contained Nickel)

Mt Resource

% Ni

Mt Ni

Caribbean

2785

1.26

35.0

25

New Caledonia

1890

1.52

28.7

20

Indonesia

1401

1.63

22.8

16

Philippines

1162

1.30

15.1

11

Australia

1144

0.95

10.9

Africa

800

1.33

10.7

C. & S. America
Other

661
539

1.60
1.08

10.6
5.8

8
4

10382

1.34

140

100

Total

World Nickel Laterite Resources

P.T. INCO

(Distribution by Contained Nickel)

C. & S.
America
8%
Africa

Other
4%

Caribbean
25%

8%
Australia
8%

Philippines
11%

Indonesia
16%

New
Caledonia
20%

P.T. INCO

WORLDS LAND-BASED Ni RESOURCES

Excluding sea-based manganese nodules

Mt
Ore

%
Ni

Contained
Nickel

Relative
%

SULPHIDES

10,594

0.58

62

31%

LATERITES

10,382

1.32

140

69%

TOTAL

20,976

0.96

202

100%

P.T. INCO

WORLD LATERITES Grade/Tonnage Plot

LIM Producing (Yr 2000)

LIM Likely to produce (by 2010)

LIM Non-producing

SAP Producing (Yr 2000)

SAP Likely to produce (by 2010)

SAP Non-producing

2.8
SLN Hi grade

2.6
Taganito

2.4
2.2

% Ni Grade

Koniambo

Hinatuan
Rio Tuba
Puma
Onca

2.0

Funguesso
C.Matoso

R 1-5

C 1-5

1.8

Soroako

1.6

Tocantins
Loma
B 1-5

1.4

Codemin

1.2

M 1-5

Moa

Inco Pomalaa

Bahodopi
Exmibal

Benguet Inco Coastal

B.Alto

Falcondo
Inv.

Cupey

SOA

Gag

Ramu R.

1 B lb Ni

0.6
0

50

Raventhorpe
6-20

100

N.Cal.
Indep.

Mindanao

Ambatovy
Murrin M. 6-20

2 B lb Ni
Bulong
6-20

Goro Ni
Palawan

Apo

Nicaro

0.8

10 B lb Ni

Sipilou

Soroako
Prony
Inco Pomalaa

P.Gorda

1.0

15 B lb Ni

PTAT

Larco

Marlboro

Pinares
des Mayari

5 B lb Ni

Mt.Marg.
Cawse 6-20

150

200

250

300

Millions of tonnes of Resource/Reserve

350

400

450

P.T. INCO

WORLD Ni PRODUCTION & RESOURCES

PRIMARY Ni PRODUCTION

WORLD Ni RESOURCES

60%

70%
LATERITE

SULPHIDE

LATERITE

40%

SULPHIDE

30%

P.T. INCO

MAJOR LATERITE PRODUCERS

For 2003

Country

Producers

Mt Ni

% of
world

Indonesia

PT Inco; ANTAM

79,100

16.9

Cuba

Cuba Nickel

75,000

16.0

Australia

QNI (BHP-B); Minara

67,383

14.4

Japan

PAMCO; Hyuga; Nippon Yakin

63,000

13.5

New Caledonia

Eramet/SLN

61,500

13.2

Columbia

Cerro Matoso (BHP-B)

46,900

10.0

Brazil

Anglo; others

30,000

6.4

Dominican Rep. Falcando (Falconbridge)

27,227

5.8

Venezuela

17,200

3.7

467,310

100%

TOTAL

Loma de Niquel (Anglo)

INDONESIA

P.T. INCO

Principal Nickel Laterite Deposits

SERAWAK
HALMAHERA
SULAWESI

WEDA BAY
SOROAKO
KALIMANTAN
SUMATRA

GEBE
WAIGEO IRIAN JAYA
OBI GAG

BAHODOPI
POMALAA

JAVA
TIMOR

500km

PNG

SENTANI

P.T. INCO

LATERITE MINING PROCESS

PT INCO - SOROWAKO

P.T. INCO

PTI Concession

Malili

Original Concession
6,600,000 Ha
Current Concession
218,529 Ha
(3.3%)

P.T. INCO

PT Inco Concessions Surround Sorowako

Matano
Matano Lake

Petea
Lampesue N&S

WB EB
Processing Plant
Lingkona
Mahalona

Malili

Towuti Lake

Tanamalia

Lasubonti
Lingke
Lengkobale

Mine Equipment ~ 2006

P.T. INCO

Equipment
BACKHOE

FRONT SHOVEL
TRUCK

DOZER

LOADER

Type

Total Unit

11 m3 bucket

4 m3 bucket

11

11 m3 bucket

50 tons payload

85 tons payload

100 tons payload

51

125 tons payload

350 HP

34

550 HP

200 HP

11 m3 bucket

6.5 m3 bucket

3.5 m3 bucket

P.T. INCO

EXPLORATION
DRILLING

PT INCO Simplified Mining Flow Diagram

Ore Body
modeling
&
Mine Planning

MINING
(ORE DIGGING)
SAPROLITE

Land
CLEARING

STRIPPING
of
Overburden
capping

OVERBURDEN
DISPOSAL/
DUMPS

FINAL MINE
PRODUCT
to
WET ORE
STOCKPILES
Capacity : 1million
tons

SCREENING
(ORE
UPGRADING)
(4 active
screening
plants)

Mine Revegetation

Mining Process
P.T. INCO

P.T. INCO

GEOLOGIST AND MINE ENGINEER KEY ROLES

GEOLOGIST
Exploration (Mapping, Drilling,
Logging, Geological Evaluation,
Geophysics)

Orebody Modelling (Geology

Database, Geostatistic, Mineral
Resource/Reserve Estimation)

Mine Ore Quality Control (Mine

MINE ENGINEER
Mine Planning (Life of Mine,
LTP/STP, Equipment Calculation,
Design of mine pit, roads, dumps,
drainage, quarry, etc)

Blasting
Mine Dispatch System (Modular
Mining System).

Geologist)

Mine Ore Reconciliation (Actual

mined vs Model)

Ore Blending

Mining Operation
Production Statistic and Cost
Control

P.T. INCO

Rehabilitation work
at disposal area

Before rehabilitation

Land preparation

Vegetation development

P.T. INCO

Mine Environment Control

P.T. INCO

PROCESSING OF Ni LATERITES

Pyrometallurgical processing
(Ore is melted)
Production

of Ferro-nickel

Production

of Ni-S matte

Hydrometallurgical processing
(Ore is leached with acid solutions)

Combined pyro and hydro process (Caron)

(Ore is reduced at high temperature, then leached)

P.T. INCO

NICKEL SULPHIDE vs. LATERITE PROCESSING

Nickel Sulphide

Nickel Laterite

Mining

Hard rock mining more

Soft rock mining cheap.
expensive. Many sulphides U/G Only open cast mining

Deposit
uniformity

More uniform in chemistry and

mineralogy

Upgrading

Highly upgradeable to sulphide Low upgradeability. Final

concentrate
grade generally <2.0% Ni.

Ore/Con
shipping

Relatively cheap (per lb Ni) due Relatively high (per lb Ni)

to high upgradeability
due to low upgradeability

Processing cost

Modest due to high Ni content.

Sulphur provides latent heat.

High due to low Ni content.

High energy input required.

Ni recovery

High due to consistency of ore

chemistry and mineralogy

Modest due to compromise

for prevalent chemistry

Capital cost

Modest per lb of Ni

High per lb of Ni

Project size/life

Can be short to medium

Long to pay for high capital

More varied in chemistry

and mineralogy; stratified

P.T. INCO

Processing

Drying
To reduce moisture content to +/- 20%.
To reject high olivine/low Nickel rocks
To blend the ore

Reduction
To further reduce moisture content to ~0%.
To remove water crystal (LOI/Loss on Ignition)
To further blend the ore
Convert/reduce oxides to metallic form
Finalize blending recipe for smelter feed (addition of Carbon/coal and
Sulfur)

Smelting
To remove remaining LOI
To complete reduction process
To melt sulfide and metallic phases to form a single liquid matte phase.
To melt the remaining oxide phases to form a single liquid slag phase.
To separate the matte and slag phase based on density differences.
To discard the slag containing only small amount of nickel.
To tap matte containing most of nickel for further processing in the
converters.

DRYING AND REDUCTION PROCESS

P.T. INCO

P.T. INCO

MELTING PROCESS

P.T. INCO

Thank You