PEA - Orbite Aluminae Inc.

21 CAPITAL AND OPERATING COST
21.1 Capital Expenditure Costs (CAPEX)
GENIVAR established a main equipment list and developed a preliminary cost
estimate based on Orbite’s detailed process flow diagram, mass and heat balance
associated and provided in part among others by Orbite, SMS Siemag and Outotec
Pilot plant’s and preliminary studies with equipment suppliers (Pfaudler, De Dietrich,
Thaletec, IPPE (used)). GENIVAR worked closely with Orbite to perform preliminary
sizing (reactors, mills, mine equipment, etc.) of the equipment. Good used equipment
(glass lined reactors 64-80 m 3 , roller mills, steam boiler, 20MW cogeneration plant,
etc.) were also evaluated to a certain extent, in order to control CAPEX. The pricing
was evaluated based on new equipment and then after verification with large plant
and equipment resellers, some main equipment was adjusted based on their actual
availability on the market and pricing. In this last case, a provision was considered to
perform a mechanical evaluation and recontioning.
Process flow schematics having been provided from the beginning of the study and
specific revision were submitted by Orbite’s Chief Engineer. (60,61,62,63,64,65). The final
process flow diagram (PFD) revisions is No. 5 and dated October 7, 2011. (65) These
were provided to GENIVAR and the QP responsible for this section is satisfied that
the major cost items have been captured through this exercise.
At full capacity, the production objective of the Project is approximately 540,000 tpy of
Al 2 O 3 . Other value added marketable products are in addition to this, and the
Preliminary Economic Assessment reference remains on alumina production. The risk
associated with the implementation of this new process remains the integration of
series adapted and proven technologies and their associated interaction. As a whole
the acid recovery part and inter connection between sub-systems, even though wellknown
over the last 40 years, represents the engineering challenges of the Project.
As a result, the CAPEX for the chemical processing plant has been distributed over a
3 year period (-1 to 1) and have been divided into 3 phases (30%-30%-40% plant
capacity). The detailed engineering, procurement and construction has been
distributed as follows; 35% in Year -1, 55% in Year 0, and 10% in Year 1, where Year
1 is the first year of production and Year -1 is the reference year where basic and
detailed engineering is accomplished. Figure 21-1 shows the proposed chemical
processing plant construction phase approach.
Orbite Aluminae Inc.
ROCHE/GENIVAR
061364.002/111-20434-00 May 2012
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