Sepon Copper Project in Laos


 



The site of the Sepon Copper Project in the Vilabouly District of Savannakhet province of
Lao PDR.

3D-CAD rendering of the Sepon copper-processing plant developed by BATEMAN during the definitive feasibility study. The plant circuits comprise crushing, milling, atmospheric leaching, counter-current decantation, flotation, SX, EW, neutralisation, pressure oxidation and concentration leaching, residue washing and limestone milling.

Lane Xang Minerals Limited (LXML), a Lao based company
jointly owned by Oxiana Resources NL (80 %) and Rio Tinto
(20 %), has awarded a US$161M contract to a joint venture between Bateman BV and Ausenco Limited of Australia.

The contract concerns a copper hydrometallurgical process plant and associated infrastructure for the Sepon Copper Project in the Vilabouly District of Savannakhet province of Lao PDR and is phase 2 of the development of the gold and copper resources in the Sepon Project Development Area. The ore will be mined from the Khanong open-pit deposit with an estimated copper reserve of 13,5M t at 5,1 % copper.

The definitive feasibility study (DFS) indicated that the project will place Sepon in the lowest quartile of operating costs, enabling it to tolerate lower copper prices than most global copper producers. Nearby additional copper prospects have not been taken into account in this forecast and provide Sepon with substantial upside potential.

The Sepon plant will process 1,3M t/yr of chalcocite-clay run-of- mine (ROM) ore at an average grade of about 5 % copper to produce a nominal 60 000 t/yr of copper cathode. The design permits the treatment of oxide-ore components, predominantly in the latter period of the projected 12-year mine life.

The plant design allows consistent copper recovery from secondary sulphide minerals with an ability to accommodate high-carbonate oxide ores, which are high consumers of acid. The remote location means that acid and ferric reagents will have to be generated autogenously on site. The process solution for the Khanong ore required extensive batch testing with the selected flowsheet confirmed by continuous pilot tests.

The resulting two-step leaching process is expected to recover more than 90 % of the copper in the ore. The first stage, in open agitated tanks with a ferric sulphate / sulphuric acid leach medium, is the main copper recovery step. Following counter- current decantation, the remaining sulphides (elemental sulphur, copper sulphides and pyrite) are recovered by acidic flotation with the copper-rich portion of the concentrate treated in medium-pressure autoclaves at 220°C. The function of the autoclave is to generate reagents that are recycled to the atmospheric-leach circuit. The key to the overall flowsheet is the simple method of ferric generation that allows an aggressive approach to copper recovery in the atmospheric leach circuit.

The dissolved copper in the clarified leach liquor is recovered as copper cathode after passage through the solvent-extraction (SX) and electrowinning (EW) circuits.

Generating the appropriate process route for the project required integrated teamwork between LXML and BATEMAN with appropriate consulting support.

The site team will face several challenges, amongst which are logistics, complicated by a monsoon climate, the need to upgrade the road to the site, obtaining electrical power from Thailand and managing unexploded ordnance from bygone wars that must be cleared away before site construction can commence.

Prior to the project, studies were also undertaken to identify the main environmental and socio-economic consequences of the project. These incorporated input from the International Finance Corporation (the private lending arm of the World Bank) in consultation with the Lao PDR government, local communities and non-governmental organisations. The main conclusions were that the project would have minimal impact on the traditional usage of the land around Sepon, that potentially adverse impact on downstream users of the Nam Kok River could be minimised and that the subsistence economy in the area would move towards a cash economy. The Lao government enthusiastically supports the project.

The DFS commenced in December 2001 and the project was awarded in January 2003. Construction work up to September 2003 will be limited to the delivery of materials of construction and upgrading the road to the site before the onset of the 2003 wet season. Site construction is scheduled to commence in October 2003 and should be completed by the end of 2004. After wet commissioning, the first copper is scheduled to be produced in the first quarter of 2005. The contract also provides for the joint venture to participate in the subsequent ramp-up period to consistent design throughput.

For further details, please contact Tony Cau, BATEMAN General Manager, Copper and Zinc, on +61-7-3320-3333 or email Tony.Cau@batepro.com.au.

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