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Outotec and Environment Kalle Härkki President, Pori Research Center CMD Seville May 15, 2008

2 Content General Ferroalloy technologies Flash Smelting and Converting technologies Acid plant technologies Mineral Processing - Hydrometallurgy

3 Award-winning clean technologies Flash Smelting - Flash Converting technology for sulfidic copper ores ASM Historical Landmark award in 2001; The cleanest copper smelting technology in the world Ferrochrome process Winner of the 2007 Cleantech Finland competition Qualified for the European Business Awards for the Environment 2008 competition; Because of its cleanness and energyefficiency. A new copper production method Quality Innovation of the Year 2007 by Excellence Finland Because of low investment, low operating cost and environmental sustainability.

4 Clean technologies as a booster for competitiveness and economic growth Our customers want to produce metals competitively. Only those producers survive in the long run who use sustainable technologies. Copper smelter, refinery, precious metals and sulfuric acid plant in Yanggu, China Profitability and environmentally sound technologies can and must go hand in hand.

5 Environmentally sound technologies Technology development is the key to effective use of raw materials lower energy consumption lower water consumption less emissions better working environment In improving the environmental conditions of a metallurgical plant, it is important to evaluate the whole production chain, from ore to metal.

Outotec Ferroalloy Technology Economical and Environmental Benefits

7 Ferrochrome Process

8 Advantages of SBS TM technology Lower investment and operation costs. Furnace gas rich in CO from the electric furnace. used as fuel. High efficient use of cooling gases of the sintered pellets. Low exhaust gas temperatures. Profitable and high grade pellets for smelting.

9 Profitable pellets Spherical, equally sized, hard and porous pellets. Constant chemical and physical properties. High refractoriness under load. High reducibility. Ideal charging material for smelting.

10 Benefits of using high quality pellets Better submerged electric arc furnace operation. Average load and power factor are higher. Energy consumption is significantly lower. Electrode paste consumption is lower. Continuous and even operation. High furnace availability.

11 Outotec FeCr smelting process Automatic batching system. Preheating in a stationary shaft kiln. Smelting furnace is closed and sealed. Patented power contol system. Cleaning of CO-gas. Slag is granulated.

12 Electric power consumption in smelting depending on chromite quality Power consumption kwh/t 5 000 4 000 RUN-OF-MINES, BRIQUETTES, FINES LUMPY ORE PELLETS 3 000 Preheated CHROMITE QUALITY

13 Without Technology Development the CO 2 emissions would have been almost 5 fold compared to the actual amounts CO2 EMISSIONS, tpa 600 000 500 000 400 000 300 000 200 000 CO 2 emissions in FeCr production in Tornio With and without technology development CO2 EMISSIONS, ACTUAL CO2 EMISSIONS WITHOUT IMPROVEMENTS 100 000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 YEAR

Flash Smelting & Flash Converting

15 Outotec Copper Flash Smelting / Converting Technology

16 Flash Smelting Technology Flexible Solution Flash Smelting has been applied for smelting of copper concentrates (matte and blister production), copper matte (i.e. Flash Converting), nickel concentrates, Copper Flash Smelters have been designed, built and operated for smelting of copper concentrates containing as low as 14 % copper and as high as 55 % copper; Flash Smelting can use any kind of additional fuel like natural gas, fuel oil, recycled oil, coal or coke; with the benefit of being able to utilize high-sulphur fuels, too.

17 Advantages of Flash Converting Closed process low gas and dust emissions good working conditions Continuous low-volume process gas flow, rich in SO 2 less gas cooling and cleaning capacity required low CAPEX/OPEX possibility for liquid SO 2 production Continuous process high automation degree, good process control Smelting and Converting separated high on-line availability High capacity with one small-sized converting furnace no converter aisle, no cranes less maintenance, low CAPEX Proven Flash Smelting technology

18 Sulphur capture development in copper smelting 100 Sulfur capture in Cu Smelting Brook Hunt database 2005 SULFUR CAPTURE, % 90 80 70 60 50 40 30 20 10 Most economic way to close the gap is to change smelting technology to Flash Smelting and Flash Converting S capture average S capture Outokumpu Flash Smelters S capture by other smelters 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 (F) 2006 (F) 2007 (F) 2008 (F) 2009 (F) 2010 (F) YEAR

19 Energy consumption in copper smelters (based on Brook Hunt data) 60 Total net energy concumption,gj/t Cu 50 40 30 20 10 Outokumpu Flash Other Smelters Power (Other Smelters) 0 0 100 000 200 000 300 000 400 000 500 000 Total Cu-Production, tpa

20 RÖNNSKÄR (SWEDEN) GLOGOW KOKKOLA HARJAVALTA (FINLAND) NORILSK (RUSSIA) HAMBURG (GERMANY) (POLAND) SALT LAKE CITY SAN MANUEL HIDALGO (USA) BAIA MARE (ROMANIA) PIRDOP (BULGARIA) HUELVA (SPAIN) SAMSUN (TURKEY) KHATOON-ABAD (IRAN) ONSAN (SOUTH KOREA) KOSAKA HITACHI ASHIO TAMANO LA CARIDAD (MEXICO) DAHEJ PASAR (PHILIPPINES) TOYO SAGANOSEKI (JAPAN) KHETRI GHATSILA CHUQUICAMATA CHAGRES (CHILE) CAMACARI (BRAZIL) FORTALEZA (BRAZIL) KONKOLA (ZAMBIA) SELEBI-PHIKWE (BOTSWANA) (INDIA) JINCHANG YANGGU TONGLING GUIXI (CHINA) KALGOORLIE TENNANT CREEK OLYMPIC DAM MOUNT MORGAN (AUSTRALIA) Flash Smelters around the world Cu SMELTING Cu CONVERTING DIRECT TO BLISTER Ni SMELTING NOT IN OPERATION

Acid Plant Technologies

22 Sulphuric Acid Plants from Smelter Off-gas 1. Feed material: Off gas from metallurgical processes (melting, roasting, etc.) (SO 2 content 2%-60% vol) 2. Products: Sulphuric acid ( 94,0-98,5% H 2 SO 4 ) 3. Applications: Cleaning of metallurgical off gas (ore roasting, metal smelting and converting, etc.) 4. Capacity range: 50 5.000 tpd (product H 2 So 4 ) 5. Investment costs: 5-200 Mio USD

23 Our experience in sulphuric acid plants More than 80 Years in H 2 SO 4 technology Over 600 acid plants built world wide Smelting, roasting, off-gas cleaning, acid plants single supplier World s largest metallurgical acid plant: 4,200 mtpd (1.5 MM t/a) World s largest sulphur burning plant 4,800 mtpd (1.7 MM t/a) Super project Ma aden 3 x 4,500 mtpd (de-bottlenecked 5,000 t/d)

24 LUREC TM @ Yanggu Xiangguang Copper Co (capacity 2,300 mtpd) Conventional acid plant: 12 vol% => high gas volume => high invetment cost LUREC TM operates at 16 18%-vol. SO 2 5 Bed Converter with 3 integrated Heat Exchangers High Pressure Steam Production

Mineral Processing - Hydrometallurgy

26 Mineral Processing - Hydrometallurgy ORE CRUSHING GRINDING FLOTATION FLOTATION TAILINGS BIO CONCENTRATE HEAP LEACHING OF ORE ORE LEACHING CONCENTRATE LEACHING SOLUTION PURIFICATION LEACH RESIDUE REDUCTION METAL

27 Energy-efficient grinding technology Efficiency in the grinding circuit improves the overall performance of the concentrator. Outotec provides Advanced Control Tools (ACT) for grinding circuits: Desired particle size distribution is achieved and maintained. Throughput of the mil is optimized. This ensures cost-effective, troublefree and efficient operation of grinding circuit.

28 Advanced Flotation technology Outotec sets new standards for Superior flotation performance: aeration, mixing and froth removing. Low operating and maintenance costs and high equipment reliability. The wide range of available cell sizes, including the world largest operating flotation cell (TC- 300) permits plant design to be compact, economical and efficient.

29 Leading Thickener Technology The revolutionary SUPAFLO High Rate Thickener concept has pioneered and redefined the methods of clarification and thickening around the world over the past decade.

30 Paste thickening Outotec leads the industry with thickening technologies for base metals and minerals slurries, using: High rate, High Compression, Paste Thickeners. Why use Paste Thickeners? To efficiently use water (water shortage in mine-sites). Underflow (paste/solids) does not require filtration. De-watering a slurry to a paste will lead to environmentally sustainable tailings management. Paste might be used for refilling degraded mine-areas (rehabilitation of mine-sites).

31 Outotec hydrometallurgical processes Standard HydroCopper Zn hydrometallurgy (direct zinc concentrate leach technology) SX technology Customer specific tailored Different unit processes (known performance) Equipment selection

32 The HydroCopper - process HydroCopper is a chloride media based leaching process: Copper concentrates. Secondary Copper raw materials. Operating at athmospheric pressure and T = 80-100 C. Final product copper rod. No concentrate transportation!!

33 Customized process solution What is a customized process solution? Utilization of existing knowledge and references. Adaptation of the knowledge for a customer specific case. Customized process to treat customer specific raw material Leaching Impurity control Residue control Product control. Environmental aspects taken into account.

34 Mine to metal concept MINE CONCENTRATOR HydroCopper END PRODUCT No concentrate transportation. Local sosio-economic impacts.

35 Mine to Metal Longer lifetime for mine

36 Summary Our customers want to produce metals competitively. Only those producers survive in the long run who use sustainable technologies. Profitability and environmentally sound technologies can and must go hand in hand. Technology development is the key. It is important to evaluate the whole production chain, from ore to metal.

37 More out of ore!