Processing of Magnetite Iron Ores Comparing Grinding Options

B McNab1, A Jankovic2, D David3 and P Payne4

ABSTRACT
Although the majority of current steel production is supported by iron ore sourced from high0grade haemetite deposits, the long-term growing demand for steel has led to higher raw material prices and opened the way for many new magnetite deposits to also be developed. There is a rich and long history of magnetite ore processing in Western countries, including large operations such as Cleveland Cliffs in the USA and LKAB in Sweden, as well as smaller operations like Savage River in Tasmania. The challenge for virtually all magnetite operations is to minimise operating costs, which is dominated by the cost of power required to fine grind the ore in order to achieve acceptable concentrate iron grade together with low impurity content. This remains the case today and will be even more important in the future when a carbon tax is expected to become a significant addition to the operating costs for magnetite deposits. Historically, the lowest operating cost was achieved by multistage fully autogenous grinding with integrated magnetic separation steps between the stages. The major benefit of fully autogenous grinding is the elimination of steel grinding media costs and the need to discriminate between steel and magnetite in coarse magnetic separation. The separation step between grinding stages progressively reduces the amount of material to be ground. Application of more efficient grinding technologies developed in the last 20 years, including high pressure grinding rolls (HPGR) for fine crushing and stirred milling for fine grinding, has provided opportunities to further reduce the operating costs associated with comminution. Both technologies are already implemented in some magnetite processing operations, although in limited capacity. The results of a theoretical option study for high capacity processing of a hard, fine-grained silica-rich magnetite ore is presented in this paper, with the emphasis on comminution circuit options. Several circuit options are ranked based on a net present value analysis incorporating an estimate of carbon tax added in the operating cost. The study demonstrates the significant advantages of applying more efficient autogenous grinding technologies.

Compared to direct ship haemetite ores mined from the upper regolith, magnetite deposits require significant beneficiation, which typically involves grinding to a particle size where magnetite is liberated from its silicate matrix. Many banded iron formation deposits in the Pilbara and Yilgarn cratons within Western Australia and the Gawler craton within South Australia are very fine grained, often requiring a final concentrate grind size P80 (80 per cent passing size) of 25 - 35 m. The amount of energy required to produce a magnetite product suitable for sale as pellet plant feed is substantially more than an equivalent direct ship lump (<32 mm >6 mm) and fines (<6 mm) haemetite project.

MAGNETITE ORE GRINDING OPTIONS

Various magnetite ore grinding flow sheets have been implemented in the past, including:

conventional three (and four) stage crushing followed by

primary and secondary milling,

primary crushing followed by wet semi-autogenous grinding

(SAG) or autogenous (AG) milling and ball or pebble milling, and

air swept AG milling (for coarse grinding).

Historically, the lowest operating cost for fine-grained ores was achieved by multi stage fully autogenous grinding (Koivistoinen et al, 1989) with integrated magnetic separation steps between the stages. The major benefit of fully autogenous grinding is the elimination of steel grinding media costs and the need to discriminate between steel and magnetite in coarse magnetic separation ahead of pebble crushing. The separation step between grinding stages progressively reduces the amount of material to be ground and in many cases reduces the abrasive properties of the concentrate. Four North American subsidiaries of Cleveland-Cliffs Inc employ autogenous milling. The original autogenous milling circuit, consisting of an AG mill followed by cobber magnetic separation of pebbles, pebble milling of the magnetic concentrate, a finisher magnetic separation stage and silica flotation, was installed at Empire Mines in 1963 and had six individual concentrating lines with a capacity of 1.6 Mt/a of pellets (Weiss, 1985). There have been three expansions since and, in the 1990s, Empire Mines had a total of 24 individual concentrating lines and a total plant capacity of 8 Mt/a of pellets. The target grind size of the circuit varies between the 90 95 per cent minus 500 mesh (32 m) depending on the ore and operating conditions (Rajala, Suardini and Walqui, 2007). LKABs Kiruna is the worlds largest, most modern underground iron ore mine. Ore is mined using sublevel caving, with sublevels spaced at 28.5 m vertically. After primary crushing and hoisting to surface, the ore is processed in Kirunas complex consisting of a sorting plant, two concentrators and two pellet plants to give pellet and sinter fines products (see http://www.lkab.com/). Magnetite ore is ground using AG mills followed by cobber magnetic separation and pebble milling of the magnetic concentrate (Hahne, Palsson and Samskog, 2003). The target grind size is around 80 per cent minus 45 m depending on the ore and operating conditions (Tano et al, 2006). Application of more efficient grinding technologies developed in the last 20 years, including high pressure grinding rolls

INTRODUCTION
World iron ore resources are estimated to exceed 800 billion tonnes and world iron ore production in 2006 was 1690 Mt. New iron ore mining capacity taken into operation in 2007 reached almost 130 Mt globally (United Nations Conference on Trade and Development, 2008). In Australia, magnetite is mined at the Savage River mine with reserves of 22 Mt of magnetite ore at 52 per cent Fe and the Iron Magnet deposit which has 300 Mt of magnetite ore reserves grading 37 per cent Fe. There are at least 4.5 billion tonnes of magnetite resources grading 33.5 36.5 per cent Fe in Western Australia, 1.5 billion tonnes at 31 50 per cent Fe in South Australia and 700 Mt at 25 - 52 per cent Fe in Tasmania and Queensland (Clout et al, 2004).
1. 2. MAusIMM, GRD Minproc Limited, GPO Box Z5266, Perth WA 6831. Email: brian.mcnab@minproc.com.au MAusIMM, GRD Minproc Limited, The Precinct 2, Level 2, 10 Browning Street, West End Qld 4101. Email: alex.jankovic@minproc.com.au MAusIMM, GRD Minproc Limited, GPO Box Z5266, Perth WA 6831. Email: dean.david@minproc.com.au GRD Minproc Limited, GPO Box Z5266, Perth WA 6831. Email: phil.payne@minproc.com.au

3. 4.

Iron Ore Conference

Perth, WA, 27 - 29 July 2009

B McNAB et al

(HPGR) for fine crushing and stirred milling for fine grinding, has provided opportunities to further reduce the operating costs associated with grinding. At Empire Mines a HPGR is installed for processing crushed pebbles and its introduction has resulted in a primary AG mill throughput increase in the order of 20 per cent (Dowling et al, 2001). Application of Vertimill fine grinding technology at Hibbing Taconite Company enabled processing of lower grade ores and increased the concentrate production (Pforr, 2001). The Whyalla magnetite plant in South Australia is specific because it utilises the HPGR technology for comminution of the primary ore. The HPGR circuit is closed with a 3 mm aperture wet screen with the undersize reporting to the rougher magnetic separators (RMS). Banded iron formation (BIF) ores at Whyalla allow a relatively large silica rejection to the RMS tailings stream and so are well suited to the particle size that can be effectively generated by a commercial size closed circuit HPGR system. Figure 1 shows the plant feed bin (left of photo) and the high pressure grinding rolls.

A minimum set of ore comminution properties are required for a conceptual design. An example is provided in Table 1 and is used as the basis for this theoretical study. TABLE 1
Ore design parameters.
Ore grade Drop weight index (DWi) Ore specific gravity Concentrate specific gravity Bulk density Bond ball mill work index (BBWi) Bond abrasion index (BAi) Bond rod mill work index (BRWi) Bond crushing work index (BCWi) Point load index (PLI) Unconfined compressive strength (UCS) Fibrous mineral content kWh/t kWh/t MPa MPa t/m3 kWh/t % FeT kWh/m3 32.2 11.1 3.40 4.30 2.01 17.2 0.3 17.7 20.6 14.8 355 Nil

The magnetite concentrate weight recovery, specific gravity (SG), predicted Bond abrasion index (Ai), iron and silica content were based on the following relationships: Concentrate weight recovery% = 10.737 ln(P80) - 3.0945 Concentrate iron content Fe% = -8.4667 ln(P80) + 98.455 (% Fe 518) % Fe 3.0 . Concentrate SG = 0.84 + 1 724 724 Concentrate Ai = 0.05(%Si020.4332) Concentrate silica content Si02 % = 9.6966 ln(P80) - 29.571
FIG 1 - High pressure grinding rolls at Whyalla magnetite concentrator plant (Morgan, 2007).

STUDY OPTIONS
An option study for a 10 Mt/a ore processing plant for a consistently hard, fine-grained silica-rich magnetite ore was carried out, with the emphasis on comminution circuit options. A capacity of 10 Mt/a was selected to simplify the comparison by keeping within the current single processing line limitations of the worlds largest AG mill capabilities. In practice, GRD Minproc has undertaken studies of Australian concentrators from 10 Mt/a up to 80 Mt/a, whereby the level of design, layout and operation complexity significantly appreciates when multiple trains of worlds largest equipment need to be integrated. For the purpose of the study, the concentrator was assumed to be located in the Pilbara of Western Australia within 100 km of a port suitable for facilitating equipment delivery. It was assumed that there were no restrictions on spatial layout and that the process facility would be built on ground of a sound geotechnical character. Any subsequent differences in tailings disposal, water recovery, operation and cost were not considered. The approach taken in comparing various flow sheet options was in line with GRD Minprocs typical conceptual or scoping level assessment methodology and delivers a plus or minus 35 per cent capital and operating cost accuracy. Such an exercise is recommended at the commencement or prior to the prefeasibility study phase of a magnetite project. To enable a meaningful study a minimum required level of comminution and beneficiation test work should have been undertaken beforehand.

The fine-grained nature of this hypothetical ore results in a relatively late release or liberation curve as illustrated in Figure 2. This fundamental property of a magnetite ore is generally one of the most salient drivers of flow sheet design and therefore flow sheet option generation. For example, it is not uncommon for magnetite banded iron formation ores to exhibit two distinct liberation zones, a coarse size consistent with the inherent silica banding width and a finer size related to the unlocking of silicates within the magnetite bands. For the ore considered, only 20 - 30 per cent of feed mass can be rejected magnetically in the size range typical for closed circuit HPGR operation. Conversely, significant mass up to approximately 50 per cent can be rejected to tails at a P80 of 150 m which could be achievable with a closed circuit AG mill operation.

FLOW SHEET OPTIONS

Four circuit options were considered for comparison with the following acronyms used to identify the primary unit process within each:

COS coarse ore stockpile, SC secondary crush, HPGR high pressure grinding roll, AGC autogenous mill in closed circuit with cyclones and pebble crusher,

RMS rougher magnetic separation, CMS cleaner magnetic separation, CMS2 second cleaner magnetic separation,

Perth, WA, 27 - 29 July 2009

Iron Ore Conference

PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

90 y = 10.737ln(x) - 3.0945 R = 0.9705

Mass % of feed to magnetic concentrate

80

70

60

50

40

30 10 100 P80 Size (m) 1000 10000

FIG 2 - Grind versus liberation.

PM pebble mill, PC primary crusher, SM stirred mill, and TSF tailings storage facility.

Option 1 PC/AGC/RMS/PM/CMS
Primary crushing AG milling in closed circuit with hydrocyclones and pebble crushing rougher magnetic separation pebble milling cleaner magnetic separation (see Figure 3). Option 1 resembles the well known fully autogenous LKAB and Cleveland Cliffs style operations. Absence of steel grinding media significantly reduces the operating cost. Pebble mill control and pebble transport and handling requirements add complexity to the design and operation. A P80 of 250 m was nominated for the RMS feed.

In Option 3 secondary crushing and HPGR effectively replace AG milling with pebble crushing. Application of HPGR, stirred milling and additional magnetic separation stage reduces the power requirements compared to Options 1 and 2. The flow sheet is similar to that applied at Project Magnet south of Whyalla in South Australia and the proposed Gindalbie Project east of Geraldton in Western Australia. A P80 of 2300 m was nominated for the RMS feed, 75 m for the CMS feed and 30 m for the CMS2 feed. This would necessitate wet screening to close the HPGR circuit.

Option 4 PC/SC/O HPGR/PM1/RMS/PM2/CMS1/ SM/CMS2

Primary crushing secondary crushing screening open HPGR coarse pebble milling rougher magnetic separation fine pebble milling first cleaner magnetic separation tertiary milling using autogenous stirred mills second cleaner magnetic separation (see Figure 6). Option 4 is an attempt to design a circuit with the lowest operating cost through increased grinding energy efficiency using three stages of magnetic separation, traditional autogenous milling, HPGR and stirred milling technology. In this conceptual flow sheet steel grinding media is eliminated. Circuit complexity is partially reduced by open secondary crushing, HPGR grinding and stirred milling operation although recovery, storage and control of three separate sized media streams is introduced. It is assumed that a magnetic selection process is applied to collect each media stream thereby maximising the power drawn thus capability of the downstream autogenous grinding unit. A P80 of 500 m was nominated for the RMS feed, 75 m for the CMS feed and 30 m for the CMS2 feed.

Option 2 PC/AGC/RMS/BM/CMS/SM/CMS2
Primary crushing AG milling in closed circuit with hydrocyclones and pebble crushing rougher magnetic separation ball milling cleaner magnetic separation tertiary milling using stirred mills second cleaner magnetic separation. (see Figure 4) Option 2 has an additional grinding and magnetic separation stage compared to Option 1 and is considered to be simple in design and operation. In respect to the grinding flow sheet, it is similar to the Savage River operation although the AG mill is closed with hydrocyclones rather than screens, there is no hydroseparator and a third stage of comminution has been added in respect of the finer liberation requirement. For reasons of cost estimation and layout simplicity hydrocyclones have been selected rather than screens to close the AG mill circuit for both Options 1 and 2. A P80 of 250 m was nominated for the RMS feed, 75 m for the CMS feed and 30 m for the CMS2 feed.

ENERGY COMPARISON
With the exception of the primary crushing module, which is consistent between options, estimates were developed for the total power drawn in the comminution, classification and magnetic separation areas of each circuit. Energy consumed by material transport machinery related to pumping between areas was not considered at this level of study. A summary of the resultant unit circuit energy for each option is shown in Figure 7.

Option 3 PC/C SC/C HPGR/RMS/BM/CMS1/SM/ CMS2

Primary crushing closed circuit secondary crushing closed circuit HPGR rougher magnetic separation ball milling first cleaner magnetic separation tertiary milling using stirred mills second cleaner magnetic separation (see Figure 5).

Iron Ore Conference

Perth, WA, 27 - 29 July 2009

B McNAB et al

FIG 3 - Option 1 flow sheet.

FIG 4 - Option 2 flow sheet.

Perth, WA, 27 - 29 July 2009

Iron Ore Conference

PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

FIG 5 - Option 3 flow sheet.

FIG 6 - Option 4 flow sheet.

Iron Ore Conference

Perth, WA, 27 - 29 July 2009

B McNAB et al

35

33.0 31.6

30

Circuit Energy (kWh/feed tonne)

25

25.0

24.7

20

15

10

0 Option 1 Option 2 Option 3 Option 4

FIG 7 - Circuit energy comparison.

A significant circuit energy reduction is predicted with Options 3 and 4, which include HPGR and stirred milling. Some 33 per cent of additional energy separates the most energy efficient option (Option 4) from the least efficient, the two stage AGC Pebble circuit, Option 1. In todays market and the projected energy market during the life cycle of a typical magnetite concentrator the magnitude of this difference is significant unless the cost of power is negligible (<$20/MWh), which is very rarely the case. Interestingly if weighted averages are calculated for the combined tailings from each circuit the outcomes for Options 3 and 4 do not parallel the energy consumption comparison. Option 3 with the coarse feed to the RMS has an average tail P80 of 736 m and Option 4 284 m. Some economic advantages may be realised by the coarser tails product although are beyond the scope of this comparison. According to Seidel et al (2006), the basic comminution energy requirement for the Boddington HPGR circuit option was 14 per cent lower than the SAG option; however, the overall energy requirement including conveying, screening, etc, was only five per cent lower. The Boddington copper gold ore is of similar rock competency to that selected for this study and so provides a good contrast between comminution processes designed to liberate minerals for flotation, in which the whole ore is ground to fine size, and comminution designed to reject silicates via magnetic processes. In the latter case energy efficiency between flow sheet options can be far more extreme.

TABLE 2
Key operating cost inputs.
Power Ball mill steel media Stirred mill steel media Labour on-cost Total HPGR cost $/MWh $/t delivered $/t delivered % $/t of HPGR feed 120 1501 1814 50 0.35

The estimates as summarised below are judged to have an accuracy of 35 per cent. Unit cost breakdowns are presented and shown graphically in Figure 8:

Option 1 $6.17, Option 2 $6.42, Option 3 $6.66, and Option 4 $5.38.

PROCESS OPERATING COST

Albeit a high-level comparison, a fairly rigorous approach was taken to the development of operating costs for each option. Consumption rates for power, wear and other consumables, labour and maintenance and materials were generated considering each process flow sheet from the COS reclaim feeders to either the final magnetic separator concentrate discharge or the magnetic separator tailings discharge. As such, no concentrate or tailings handling, filtration or storage costs were considered. For simplicity, some minor operating costs such as metallurgical test work and analysis, which is considered common to all options, have been omitted. Unit costs for power, grinding media, wear consumables and labour were referenced from average values within the GRD Minproc database for similar sized and located projects. A factoring approach from direct capital cost was used to develop cost estimates for maintenance materials. Key assumptions are listed in Table 2. All costs are estimated in Australian dollars and are presented as first quarter 2009 costs.

The most significant operating cost variables between options are those relating to power, media and liner consumption. The two options including AG mill circuits have between 27 - 32 per cent higher power consumption cost relative to Option 4. Or looking from the other perspective, application of new technologies resulted in an average 25 per cent energy consumption reduction. Grinding media and wear lining costs range between $0.41/t and $1.82/t. Option 3 has the highest media and wear lining cost as two ball mills of 8.8 MW installed power are required to grind 8 Mt/a of RMS concentrate from P80 2.3 mm to P80 75 m. This is the largest ball milling duty of all options being some 2.8 times larger than the Option 2 requirement. A carbon tax is expected to be introduced in the near future and would add a significant cost to the operation. For this exercise a simplified estimate of the effect of carbon tax is considered. It was assumed that the carbon tax would be applied to total circuit energy and steel consumption relating to media and comminution equipment wear liners. The following criteria were applied for the carbon tax estimate:

CO2 emission, 5 t per 1 t of steel media (Price et al, 2002); and CO2 emission, 1.0 kg per kWh of electricity, CO2 tax, $23 per
tonne of CO2 (Australian Government, 2008). Table 3 shows a summary of calculations related to carbon emission and carbon tax effect on OPEX. It can be observed that the introduction of carbon tax at $23/t would increase OPEX in the order of nine to 11 per cent. The majority of carbon emission

Perth, WA, 27 - 29 July 2009

Iron Ore Conference

PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

Operating Costs ($/feed t)

0.

00

1.

00

2.

00

3.

00

4.

00

5.

00

6.

00

7.

00

Option 1 Option 2 Option 3 Option 4

Option 1 MISCELLANEOUS LABOUR MAINTENANCE MATERIALS GRINDING MEDIA & WEAR LINERS POWER 0.17 0.80 0.83 0.41 3.95

Option 2 0.18 0.85 0.86 0.74 3.79

Option 3 0.17 0.87 0.81 1.82 2.99

Option 4 0.17 0.90 0.79 0.66 2.86

FIG 8 - Operating cost comparison.

TABLE 3
Carbon emissions and carbon tax summary.
Option 1 Power CO2 t/a Steel CO2 t/a Total CO2 t/a CO2 tax $/t OPEX $/t (no CO2 tax) CO2 tax % OPEX 329 503 5804 335 307 0.77 6.17 11.1 Option 2 315 768 18 256 334 023 0.77 6.42 10.7 Option 3 248 757 37 300 286 057 0.66 6.66 9.0 Option 4 238 328 8306 246 634 0.57 5.38 9.3

Indirect costs
Indirect costs are those expenditures covering engineering, procurement and construction management (EPCM) services together with the supervision of the commissioning of the works. Contract works and goods in transit insurance have also been included. Temporary construction facilities have been included in Indirects.

Contingencies (growth allowance)

Contingencies have been assigned as an overall percentage to the total estimate. Contingency has been applied to the estimate to make allowance for the following risks:

is from electrical energy consumption while indirect contribution from steel consumption (dominated by grinding media) is in the order of five to 16 per cent for Options 2 and 3 that utilise ball milling.

PROCESS CAPITAL COST

The scope of the estimates follows the work breakdown structure developed specifically for the study and considers each flow sheet from the COS reclaim feeders to either the final magnetic separator concentrate discharge or the magnetic separator tailings discharge. As such, no concentrate or tailings handling, filtration or storage was considered. For simplicity some equipment or costs considered common to all options have been omitted. The estimate is developed based on the premise that the process is located inland in north-west Western Australia. All costs are estimated in Australian dollars and are presented as first quarter 2009 costs. They are judged to have an accuracy of 35 per cent, which is commensurate with the accuracy requirements for a high level options study of this nature. The capital cost estimates have been structured into three major categories, detailed below.

minimal design input, preliminary scope definition, quantity survey errors and omissions, material and labour rate accuracy, equipment budget costing, and incorrect bulks factor application.

Estimation methodology
An industry standard methodology for a conceptual level estimate has been applied for the cost comparison and includes, bulk quantities, equipment and platework, freight, capital spares, temporary facilities, indirect costs, temporary facilities and EPCM and contingencies (growth allowance). A detailed equipment list has been prepared and imported into the estimate. For each item of equipment costs have been entered as per the basis outlined above. Budget quotes have been received for certain items of major equipment. GRD Minprocs database information (or allowances) has been used for other equipment items appropriately factored and escalated where necessary. The estimates are summarised and tabulated in Table 4:

Direct costs
Direct costs are those expenditures that include supply of equipment and materials, freight to site and construction labour relevant to the particular option.

Option 1 $346.6 M, Option 2 $356.9 M, Option 3 $321.3 M, and Option 4 $312.6 M.

Iron Ore Conference

Perth, WA, 27 - 29 July 2009

B McNAB et al

Total estimated capital costs for each circuit are within 14 per cent, which does not infer any one option is a standout from a capital cost perspective. Due to the higher power drawn by Options 1 and 2, which include AG mill circuits, a lower capital cost to power consumption ratio results. Option 1 offers the lowest ratio with $8.4 k/kW consumed, Option 2 has $9.0 k/kW consumed and Options 3 and 4 with $10.3 k/kW $10.1 k/kW respectively (refer Table 4).

FINANCIAL COMPARISON
Applying a ten per cent discount rate over 12 years of operation, high level, pre-tax, net present value (NPV) determinations were calculated for Options 1 to 3 relative to the base case, Option 4, which returned the lowest capital and operating cost. Figure 9 compares these outcomes. Options 1 and 3 have a similar NPV outcome ranging between negative $94 - 95 M relative to Option 4. A $1 M variance is viewed as being immaterial relative to the accuracy of the study. Option 2 shows the least favourable outcome with a $118 M NPV

deficit relative to Option 4. This option is disadvantaged by both high capital and operating cost. The all autogenous Option 4 flow sheet is $94 M lower than the next best option, Option 1. The conclusion drawn from this financial evaluation is that highly energy efficient autogenous processing routes can offer significant benefits for competent magnetite ores requiring fine grinding. Were this hypothetical process design to be advanced, piloting test work would be well justified to explore the validity of the key autogenous unit processes proposed within Option 4. Having established a relative NPV comparison a variability analysis was undertaken to understand each flow sheet options sensitivity to two key operating cost inputs namely power and ball mill media. The outcomes are presented graphically in Figures 10 and 11. Not surprisingly, Options 1 and 2, which are the most energy intensive circuits, are found to be highly sensitive to power cost when compared relative to Option 4. Only in the case that power could be supplied at a zero cost could Option 1 (AGC/RMS/ PM/CMS) approach the NPV value of Option 4.

TABLE 4
Capital cost comparison.
Area number Direct costs 001 002 002 002A 003 003 003A 004 005 005 006 006 Coarse ore feed AG mill grinding Secondary crushing Tertiary crushing Pebble recycle crushing HPGR circuit Pebble mill grinding and pebble storage Rougher magnetic separation Ball mill grinding Pebble mill grinding Concentrate separation and fine milling Concentrate separation Total process plant Site preparation and improvements Control aystems Total plant infrastructure First fill reagents and consumables (allowance) Ocean freight Spares Mobilisation/demobilisation and preliminaries Commissioning assistance Total miscellaneous Total direct cost Indirect costs Temporary facilities EPCM Total indirect costs Total costs (net) Growth, contingency, risk Total costs (overall) Delta total cost relative to Option 4 Total cost/kW drawn 19 265 417 36 122 657 55 388 074 287 309 243 59 241 158 346 550 401 33 914 153 8414 19 343 204 36 268 508 55 611 713 297 401 769 59 480 354 356 882 123 44 245 875 9041 17 415 717 32 654 469 50 070 186 267 766 649 53 553 330 321 319 979 8 683 731 10 289 16 945 054 31 771 976 48 717 031 260 530 207 52 106 041 312 636 248 0 10 108 2 758 989 200 913 722 2 098 103 4 552 915 6 651 018 0 10 180 855 5 630 444 6 447 027 2 098 103 24 356 429 231 921 169 208 392 675 2 083 927 4 586 582 6 670 509 2 646 705 10 095 453 5 612 860 6 287 927 2 083 927 26 726 872 241 790 056 188 588 092 1 885 881 3 668 577 5 554 458 3 413 705 7 373 659 4 325 727 6 554 941 1 885 881 23 553 914 217 696 463 186 240 895 1 862 409 3 463 224 5 325 633 0 7 405 066 4 219 437 6 759 735 1 862 409 20 246 647 211 813 176 90 872 360 76 680 928 76 680 928 2 272 362 2 272 362 18 264 249 3 282 300 48 448 884 27 801 316 66 959 736 17 704 056 14 972 636 34 215 535 20 430 750 36 389 765 2 524 846 Area description Option 1 $ 7 237 040 80 068 915 Option 2 $ 7 237 040 88 965 461 18 809 132 13 923 099 11 969 442 Option 3 $ 7 151 313 Option 4 $ 6 241 940

Perth, WA, 27 - 29 July 2009

Iron Ore Conference

PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

-140

-120

Circuit Energy (kWh/feed tonne)

-100

-80

-60 -94 -40

-118 -95

-20

0 Option 1 Option 2 Option 3

FIG 9 - Net present value (comparison).

$0

-$20,000,000

-$40,000,000

Delta NPV Relative to Option 4 ($)

-$60,000,000

Option 1 Option 2 Option 3

-$80,000,000

-$100,000,000

-$120,000,000

-$140,000,000

-$160,000,000 0 20 40 60 80 100 120 140 160 180 200 Power Cost ($/MWh)

FIG 10 - Net present value sensitivity to power cost.

$0

-$20,000,000

Delta NPV Relative to Option 4 ($)

-$40,000,000 Option 1

-$60,000,000

Option 2 -$80,000,000 Option 3 -$100,000,000

-$120,000,000

-$140,000,000 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700

Ball Mill Media Cost ($/t)

FIG 11 - Net present value sensitivity to ball mill media cost.

Iron Ore Conference

Perth, WA, 27 - 29 July 2009

B McNAB et al

Ball mill media cost is only relevant to Options 2 and 3 as the other circuits include autogenous grinding. Figure 11 highlights the high NPV sensitivity to ball mill media cost for Option 3, which considers the largest ball milling duty. Although the NPV relationship shown is steep, Option 3 would not become economically equivalent to Option 4 even at a zero ball mill media cost.

DISCUSSION
Some clear understanding of the economic merits of process circuit options can be gleaned by developing a comparative study as illustrated by this paper. In this case it was found that highly energy efficient autogenous processing routes can offer significant benefits for fine-grained competent magnetite ores. The traditional AG mill and pebble mill style comminution circuit or those requiring significant steel grinding media to operate have been found to be suboptimal from a pure economic perspective. Circuit options favouring multistage magnetic separation and with energy efficient autogenous comminution equipment are more likely to add project value. The approach taken in this paper to compare flow sheet options was purely economic and to a large degree simplified by assumptions. In practice there are many other flow sheet selection drivers that can become relevant or even exclusively dominant. Some examples of these from recent GRD Minproc experience include:

requisite test work is completed prior to undertaking comparative conceptual or prefeasibility studies. This approach infers test work and study planning need to be suitably timed to ensure an adequate basis is available at the commencement of a study period. The rapid pace of project evaluation and development experienced during the 2006 to 2008 mining boom did not always permit this strategy and in many cases has led to higher project risk, inefficient engineering practices and slow commissioning and ramp up. Further information describing GRD Minprocs approach to geometallurgy and analysis can be referenced in David (2007).

CONCLUSION
The primary conclusion drawn from this financial evaluation is that highly energy efficient autogenous processing routes with multiple separation stages offer significant financial benefits for fine-grained hard magnetite ores. For the ore type evaluated, the application of HPGR and stirred mill technology is indicated to reduce energy consumption by up to 25 per cent compared to conventional flow sheets with wet tumbling mills. Flow sheet design and option selection should be tailored to the magnetite ore comminution and liberation characteristics. For fine-grained ores the addition of a third grinding stage which utilises energy efficient stirred milling benefits the economics in two ways: reducing the amount of material that need to be fine ground and grinding at high energy efficiency. The application of HPGR technology significantly reduces the energy consumption compared to AG milling. A synergy of HPGR and primary pebble milling as proposed for Option 4 and can result in a very effective circuit from a capital and operating point of view with HPGR working in open circuit feeding the primary pebble mill which in addition to grinding, generates grinding media (pebbles) for the secondary pebble milling circuit. The product from the primary pebble mill is much finer than what can be practically obtained from a closed HPGR circuit and thus the tail rejection at the RMS is higher which significantly reduces the duty of the following pebble milling stage. The magnetite market in general and the required scale of magnetite concentrator capacity is rapidly expanding and as a result will amplify the importance and value of sound metallurgical investigation and process design. To this end a well structured and scheduled study and evaluation period is of considerable importance if the objective is to maximise life cycle project value and mitigate financial and stakeholder risk. An introduction of a carbon tax at levels indicated by the Australian government is predicted to increase the operating cost for this type of operation significantly, in the order of nine to 11 per cent or $0.57 - $0.77/t of ore.

the identification of fibrous minerals within the ore; the availability/cost of water; the capability of the project owner to accept risk; spatial layout constraints, ground slope and geotechnical characteristics; allow sufficient time or budget for comparative test work programs;

a prescribed study and development schedule that does not

variability in rock competency or magnetite liberation; social and environmental risks relating to dust and the costs
associated in dust collection and control;

the effect of moisture on HPGR performance and caking

properties of HPGR product;

long-term predictions for the cost of power and grinding

media; and

the cost impacts of tailings including capital, operating cost

and environmental risks. To expand further on the final point other capital and operating costs components related to different options for tails disposal would need evaluation in the next phase of study. Options which allow coarse RMS tailings, such as Options 3 and 4 in this paper, offer the potential to be inexpensively dewatered and either conveyed or transported by dump truck to be either comingled with mining waste or dumped in a separate tailings storage facility (TSF). Cost savings in process water consumption and TSF capital may be realised with this approach. The justification and value of this type of evaluation process is reflected by the magnitude of the NPV delta produced. In this case a $118 M delta resulted between the options considered. It is therefore not unreasonable to expect that flow sheet selection has the potential to vary project value by up to one billion dollars for the worlds largest scale magnetite projects being considered. In comparison, the total cost of sample collection, metallurgical bench and pilot scale test work and engineering studies becomes inconsequential for such projects. GRD Minproc places a high importance on developing and understanding geometallurgical relationships during the project evaluation phase and as such would recommend that the

ACKNOWLEDGEMENT
The authors acknowledge the permission of GRD Minproc to publish this paper and the assistance of James Higgie in compiling flow sheets and operating costs during his student vacation work period.

REFERENCES
Australian Government, 2008. Carbon Pollution Reduction Scheme: Australias Low Pollution Future White Paper, volume 1, December. Clout, J M F, Trudu, A, Zhu, D, Holmes, R J and Young, J, 2004. Australian magnetite resources and pellet plants, in Proceedings 2004 Pelletizing Conference, Dalian, China, 19 - 22 August. David, D, 2007. The importance of geometallurgical analysis in plant study, design and operational phases, in Proceedings Ninth Mill Operators Conference 2007, pp 241-248 (The Australasian Institute of Mining and Metallurgy: Melbourne).

10

Perth, WA, 27 - 29 July 2009

Iron Ore Conference

PROCESSING OF MAGNETITE IRON ORES COMPARING GRINDING OPTIONS

Dowling, E C, Corpi, P A, McIvor, R E and Rose, D J, 2001. Application of high pressure grinding rolls in an autogenous Pebble milling circuit, in Proceedings SAG 2001 Conference, Vancouver, vol III, pp 194-201. Government of India, 2007. Comprehensive industry document on iron ore mining, Ministry of Environment and Forest, Government of India [online]. Available from: <http://www.cpcb.nic.in> [Accessed: 2007-08]. Hahne, R, Palsson, B I and Samskog, P O, 2003. Ore characterization for and simulation of primary autogenous grinding, Minerals Engineering, 16:13-19. Koivistoinen, P, Virtanen, M, Eerola, P and Kalapudas, R, 1989. A comminution cost comparison of traditional metallic grinding, semiautogenous grinding (SAG) and two stage autogenous grinding, in Proceedings SAG 1989 Conference, Vancouver. Morgan, A, 2007. Project Magnet HPGRs [online]. Available from: <http://www.amped.net.au/2007_06_01_archive.html>.

Price, L, Sinton, J, Worrell, E, Phylipsen, D, Huc, X and Li, J, 2002. Energy use and carbon dioxide emissions from steel production in China, Energy, 27(2002):429-446. Pforr, B, 2001. Fine screen oversize grinding at Hibbing Taconite Company, SME Annual Meeting, Denver, February. Rajala, G, Suardini, G and Walqui, H, 2007. Improving secondary grinding capacity at Empire Concentrator, SME Annual Meeting, Denver, 25 - 28 February. Seidel, J, Logan, T C, LeVier, K M and Veillette, G, 2006. Case study Investigation of HPGR suitability for two gold/copper prospects, in Proceedings SAG 2006 Conference, Vancouver, vol IV, pp 140-153. Tano, K T, Plsson, B I, Alatalo, J and Lindquist, L, 2006. The use of process simulation technology in process design when time and performance is critical, SME Annual Meeting, Denver, February. United Nations Conference on Trade and Development, 2008. The Iron Ore Market 2007 - 2009 [online]. Available from: <http://www.unc tad.org/infocomm/Iron/covmar08.htm#abstract>.

Iron Ore Conference

Perth, WA, 27 - 29 July 2009

11

12

Perth, WA, 27 - 29 July 2009

Iron Ore Conference