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This major resource has the<br />

potential to extend mine life<br />

beyond 50 years of economic<br />

production.<br />

The Koniambo Nickel project,<br />

a joint-venture partnership<br />

between Xstrata Nickel and<br />

Société Minière du Sud<br />

Pacifique (SMSP), is a greenfield<br />

pyrometallurgical facility in New<br />

Caledonia designed to develop<br />

one of the world’s largest and<br />

highest-grade nickel laterite<br />

deposits.<br />

The project will process ore<br />

in a 60,000-tonne-per-annum<br />

ferronickel smelter. The<br />

smelter will use a standard<br />

pyromettallurgical process and a<br />

new technology to confine dust.<br />

Because of the scale of the<br />

project and its remote location,<br />

the metallurgical plant was<br />

constructed in 15 separate<br />

modules in Qingdao, China,<br />

then shipped to site. The<br />

modules, weigh up to<br />

3,500 tonnes each and can<br />

be more than 50 metres tall.<br />

They arrived in New Caledonia<br />

between October and<br />

December 2010.<br />

<strong>Hatch</strong>, in joint venture with<br />

Technip in an integrated<br />

owner’s team, is constructing a<br />

metallurgical plant; a<br />

350 MW coal-fired power<br />

station; an ore preparation plant;<br />

an 11.5-kilometre ore conveyor;<br />

a port; and a construction camp<br />

for more than 4,800.<br />

<strong>Hatch</strong>’s Systems & Process<br />

Control group was responsible<br />

for the project’s fully integrated<br />

systems-and-automation<br />

approach, which includes<br />

state-of-the-art communications<br />

infrastructure, operational<br />

systems, fibre optics and<br />

networks, security systems,<br />

management systems and all<br />

automation.<br />

“<br />

Koniambo represents the opportunity to develop an outstanding<br />

nickel operation with cash costs in the lowest quartile and<br />

exciting, low-cost growth potential from its vast resource base.<br />

The project is based on very strong valuation metrics.<br />

— Mick Davis, Xstrata Chief Executive<br />

“<br />

<strong>Hatch</strong> Advantage July 2011 | 23

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