Outrageous energy prices. Sound familiar. Back in 2014 KWG initiated some testing with XPS on a new processing technique for separating chromite and iron from the ore. The following are pertinent items contained in that reporting with the full report availalble in the link. Maybe this time with the environmental and cost issues this will be revised.
Ring of Fire development plans spurred by Ontario’s outrageous energy prices
Conventional processing techniques would have demanded a 300-megawatt smelter — roughly the same amount of energy required to power city of 300,000 people
One of biggest obstacles is power supply. Processing chromium ore is extremely energy-intensive, requiring a whopping four megawatts per tonne of ore. To support the Ring of Fire, there were plans to build a 300-megawatt smelter near Sudbury. That is enough electricity to power a city of roughly 300,000 people.
That level of power usage is a big problem in Ontario because of the province’s exorbitant electricity rates. As such, power costs are a central issue for any mining company trying to determine if an investment in the Ring of Fire makes economic sense.
That is where Sudbury-based XPS comes in. The metallurgical consulting firm, which is a standalone unit of Glencore PLC, got to work on a test pilot furnace for a chromite smelter about three years ago on behalf of its partner KWG Resources Inc.
After giving the challenge some thought, they worked on a direct reduction process in which chromium oxide ore is heated by natural gas and other catalysts are also applied to help burn off the oxygen and leave the chrome and iron. The process, owned by KWG, is now being tested by XPS on KWG’s ore from the Ring of Fire.
Initial estimates from XPS suggest that power costs could drop more than 50% with this method. Greenhouse gas emissions would be significantly lower. And capital costs to build the smelter should be cheaper because there are fewer infrastructure requirements than a traditional smelter. Cliffs was talking about spending US$1.8-billion to build a traditional smelter before it backed away from the Ring of Fire.
https://financialpost.com/executive/smart-shift/ring-of-fire-development-plans-spurred-by-ontarios-outrageous-energy-prices
