Document VJZYXNJ7ryvo445GgQM08reZp

Union Carbide Corporation Metals Division Technology Department-Engineering Niagara Falls, New York 14302 File No. 11330 DESIGN MEMORANDUM SPONSOR: T. J. KAGETSU PROJECT: MAGNESIUM BASE ALTERATION PRODUCTS --------------------- (150,000 TPY CaseT"--------------------- By: V. Darden Holt Date: February 8, 1984 Design Memo No. 1 |Ha^| Revision No. 0 Subject: Prefeasibility Study Plant Capital and Operating Cost 1.0 SCOPE This memo provides prefeasibility study plant capital and operating costs for a facility at the Coalinga Mine site to produce a low magnetite magnesium base product from asbestos ore. 2.0 INTRODUCTION The objective is to produce a low magnetite magnesium base product with no toxicity to be used in magnesium production. The Product Development Department has determined that Coalinga asbestos ore when heat treated to 1300C forms Forsterite and Enstatlte. This product does not carry the toxic burden as that experienced for asbestos and upon removal of magnetite is a chemically satisfactory substitute for dolomite in magnesium production. Magnetite removal is not absolutely necessary but makes the product more valuable. This memo is based on projections which require additional development work to determine the production feasibility. A prefeasbility capital cost estimate for a production facility at the Coalinga Mine site is included along with a preliminary estimate of the operating cost. 3.0 PLANT DESCRIPTION AND CAPITAL COST The design is based on a facility being constructed at the Coalinga Mine site to produce 150,000 TPY of altered product containing low magnetite. The basis for this study Is listed in Table I. The flowsheet as depicted by Drawing No. S-15389 consists of screening to remove the +1/2 mesh material, jigging and classifying to remove approximately one half of the magnetite, dewatering, drying, kiln treatment, cooling and bulk loading. Two water wells will be provided near the mine site to supply process water. The electric power load for the facility was estimated to be 3500 KW and is to be supplied from transmission lines not more than one mile Page 2 Design Memo No. 1 Revision No. 0 Subject: Prefeasibllity Study Plant Capital & Operating Cost from the mine site. Bulk loading is to be by truck but no provisions are included for road improvements to the mine site from main roads. Equip ment is included for oil firing to the dryerand kiln unit as the avail ability of gas at the mine site has not beenresolved and may even be more expensive. The facility will include process buildings, maintenance buildings, office and laboratory. The prefeasibility capital cost estimate wasprepared by F. R. Angelorl for the facility and is $14.6MM as indicatedin Table II. 4.0 OPERATING COST The cost for production was estimated to be $40.18 as indicated in Table III. Table IV is a comparison made with the Hot Springs operations. The Hot Springs cost indicated in Table IV represents operations at the Hot Springs Plant from the ore feed to the cooler discharge less the costs for salt and lime feed to the off-gas scrubber. Also the Hot Springs plant cost figure does not include ore or supervision. The remaining figures in Table IV provide for plant supervision, mining, the difference in electric power cost between the two locations, and additional heat needed for the asbestos conversion operation. The energy figure has also been adjusted for the difference in the natural gas price at Hot Springs, Arkansas, and the delivered oil price at the Coal Inga Mine site. It is noted that Tables III and IV agree reasonably close and indicate that the production cost should be $40 to $47 per ton of product. 5.0 WITHOUT MAGNETITE REMOVAL The prefeasibility capital cost for a system to produce a magnesium base product from Coalinga asbestos ore with no magnetite removal is estimated to be $12.6MM. It is also estimated that the production cost for the magnesium base product with no magnetite removal is $36.55 per ton. dac6 TABLE I STUDY BASIS LOW IRON MAGNESIUM BASE ALTERATION PRODUCTS FROM COALINGA ORE 1. Production Rate 2. Bulk Density of Ore 3. Oversize Reject in Ore 4. Water of Hydration in Ore 5. Moisture content in Ore 6. Moisture Content of Filter Cake 7. Tailings from Jig 8. On Stream Time 9. . Operating Shifts per Day 10. Operating Days per Week 150,000 ton/yr 75 lb/ft^ 20% 14% 20% 22% 30% 82% 3 7 TABLE II PREFEASIBILITY STUDY COST ESTIMATE LOW IRON MAGNESIUM BASE ALTERATION PRODUCTS FROM COALINGA ORE PRODUCTION RATE 150,000 TPY Ore Feed System Magnetite Removal Equipment Drying, Heat Treating and Product Cooling Product Handling and Loading Process and Cooling Water Supply Electric Substation and Supply Line Process, Maintenance, Office and Lab Buildings Fuel Oil Supply Tanks Structural Steel, Concrete, Piping andDuctwork Electrical and Instrumentation Total Directs Engineering Contingency Start-Up Modifications Total Capital $M 522 1347 4676 378 388 135 295 85 1450 450 9726 2919 1459 496 14,600 TABLE III PREFEASIBILITY STUDY PRODUCTION COST LOW IRON MAGNESIUM BASE ALTERATION PRODUCTS FROM COALINGA ORE PRODUCTION RATE 150,000 TPY MINING Contract Mining ($2.00/ton of feed) DIRECT MATERIALS Electric Power (3500 HP Connected, 80% Operating, 300 days/yr., $0.0644/KWH) Fuel Oil (552 gph, 300 days/yr., $25/bbl.) DIRECT LABOR Subtotal Mill Operators (3 men, 24 hrs./day, 365 days/yr., $17/hr.) Shift Leaders (1 man, 24 hrs./day, 365 days/yr., $18/hr.) Utilities (2 men, 8 hrs./day, 5 days/wk., $16/hr.) MAINTENANCE Subtotal Electricians (1 man, 8 hrs./day, 5 days/wk., $18/hr.) Mechanics (4 men, 8 hrs./day, 5 days/wk., $17/hr.) Oiler (1 man, 8 hrs./day, 5 days/wk., $16/hr.) Materials PERIOD Subtotal Salaries (7 men, $40M/man) Taxes (guess) Office (phone, supplies, mlsc. materials) Subtotal TOTAL OPERATING COST COST PER YEAR $M 779 968 2366 3334 447 158 67 672 37 142 33 400 612 280 250 100 630 6027 UNIT COST PER TON $ 5.19 6.46 15.77 22.23 2.98 1.05 0.45 4.48 0.25 0.95 0.22 2.67 4.08 1.87 1.66 .67 4.20 40.18 I TABLE IV PREFEASIBILITY STUDY PRODUCTION COST COMPARISON WITH HOT SPRINGS, ARKANSAS, PLANT LOW IRON MAGNESIUM BASE ALTERATION PRODUCTS FROM COALINGA ORE PRODUCTION RATE 150,000 TPY Hot Springs, AR, Plant Operational Cost (Note 1) Period Cost (see TABLE III) Contract Mining ($2.00 per ton of feed) Addition Fuel Cost (Note 2) Addition Electric Power Cost (Note 3) TOTAL COST PER TON S 24.89 4.20 5.19 10.34 2.01 46.63 Note 1 - This unit cost includes operational labor, maintenance materials and labor, electricity, and fuel for the Hot Springs Plant operations section from the plant ore feed through the cooler after the roaster. Not included are costs for mining, salt and lime to neutralize the scrubber solution. Note 2 - Includes fuel cost of 0.41 per therm for oil at the Coal Inga Mine site vs. 0.39 per them for the Arkansas Plant. Includes fuel to boil off the additional water that, will be experienced from the asbestos kiln feed. Note 3 - Includes difference in power cost between Hot Springs, Arkansas, Plant (0.04225 per KWH) and King City Plant (0.0644 per KWH). VDH:dac6 4