(MERAF) for the Base Metals Smelting Sector - CCME

converters when the continuous converter is not operating. According to
Noranda, based on the current acid marketing dynamics, more sulphur dioxide
captured means more sulphuric acid is produced, and the larger the losses on an
operating and cash cost basis.
A smelter modernization at Noranda Gaspé could result in lower manpower and
energy costs estimated at $2 million per year. The modernization would result in
more sulphuric acid being produced. According to Noranda, based on the current
acid marketing dynamics, more sulphur dioxide captured means larger the losses
on an operating and cash cost basis.
Table 80 provides a summary of the estimates on the impact on the operating
costs.
Table 80: Operating Cost Estimates
Site Option for Reduction By 2008 Option for Reduction By 2015
Hudson Bay Mining
and Smelting
Inco Thompson
Falconbridge Kidd
Falconbridge
Sudbury
Inco Copper Cliff
Noranda Horne
Incremental improvements to gas
handling system
Annual Cost: $3 to 6 million
Improvements to gas handling
system
Annual Cost: $2 to 7 million
Wet scrubbing technology
Annual Cost: $1 to 2 million
Wet scrubbing technology
Annual Cost: $5 to 8 million
Wet scrubbing of Fluid Bed
Roaster off-gas
Annual Cost: $6 to 8 million
Increasing percentage of matte
processed through the Noranda
continuous converter, expansion of
the acid plant and connection of
Peirce-Smith converters to acid
plant
Installation of hydrometallurgical
process*
Annual Savings: $2 to 3 million
Smelter modernization and acid
plant
Annual Cost: $35 to 45 million
No major changes beyond 2008
No major changes beyond 2008
Continuous converting
technology**
Annual Savings: $2 million
Potential costs due to additional
acid production
No major changes beyond 2008
No operating savings identified as
Peirce-Smith converters will
continue to operate. Potential costs
due to additional acid production
Noranda Gaspé Incremental Improvements Smelter Modernization
Annual Savings: $2 million
186