ann about phosphate recovery

ARAFURA RESOURCES LTD (ASX : ARU)
ASX ANNOUNCMENT Wednesday, 14th March 2007
PREMIUM QUALITY, FERTILISER GRADE PHOSPHORIC ACID IS
COMMERCIALLY & TECHNICALLY FEASIBLE FROM NOLANS
A PHOSPHATE HOSTED RARE EARTHS – URANIUM DEPOSIT
Test work on phosphate rich mineralisation from Arafura Resources’ Nolans deposit
conducted by Bateman Litwin in Israel has demonstrated that it is technically possible to
produce commercial fertiliser grade and premium quality phosphoric acid.
Arafura previously reported hydrochloric leaching of Nolans mineralisation to separate the
insoluble rare earth rich stream from a soluble phosphate rich stream. This current test work
extends the flow sheet for the recovery of phosphoric acid from this soluble stream.
Preliminary estimates from Bateman indicate phosphate recoveries of about 80% with
capital costs of US$55 million and operating costs of US$131 per tonne of contained
phosphate pentoxide (P2O5) and are ± 40% accuracy. Technical details are appended.
On the basis that Arafura target 10,000 tonnes of rare earths production, the volume of
phosphoric acid as a co-product is about 60,000 tonnes per annum. The company is looking
at the opportunity for increasing these output rates for these products given the positive
results and the rapidly growing demand for rare earths.
At present the average price for merchant grade phosphoric acid is about US$400 per tonne
of contained P2O5 free of transport charges.
Arafura has commenced further optimization of the testwork for the pilot plant planned for
later this year.
Level 4/16 St Georges Terrace, Perth WA 6000 ■ PO Box 3047, Adelaide Terrace, Perth WA 6832
■ T: (618) 9221 7666 ■ F: (618) 9221 7966 ■ E:[email protected] ■ W:www.arafuraresources.com.au
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Alistair Stephens, Managing Director of Arafura Resources Ltd states: “The successful
development of phosphoric acid production as a co-product from the Nolans rare earths
project further enhances the value of this long life project. The availability of premium
fertiliser grade phosphoric acid (PPA) also has significant opportunities as Australia is a net
importer of PPA. This project could replace some of these imports.”
In addition to the outcomes of phosphoric acid production, initial indications are that the
production of commercial grade and quality calcium chloride (a residue from the phosphoric
acid production) is technically and commercially viable.
The test work has also extracted the majority of uranium into a single stream that allows the
company to focus on the extraction of uranium, a significant by-product of the project.
“Uranium has to be extracted from the main process to make commercially saleable products
of rare earths, phosphoric acid and calcium chloride. This optimises the commercial viability
of the project with the potential to produce about 200 tonnes per annum of uranium as byproduct.
Nolans certainly appears to be unique deposit as nothing like this has been reported
or found in the world” Managing Director Alistair Stephens said.
These test results are a significant component of the overall process for the extraction of rare
earths, phosphoric acid, calcium chloride and uranium. In the short term the company will
continue to focus on rare earth recovery and further optimisation of phosphoric acid process.
Additional works for the production of calcium chloride and uranium will continue as part of
the larger program this year.
For further information call
Alistair Stephens
Managing Director
Arafura Resources Limited
08 9221 7666
Or the Arafura shareholder help line on 1800 217 828
Level 4/16 St Georges Terrace, Perth WA 6000 ■ PO Box 3047, Adelaide Terrace, Perth WA 6832
■ T: (618) 9221 7666 ■ F: (618) 9221 7966 ■ E:[email protected] ■ W:www.arafuraresources.com.au
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TECHNICAL ASPECTS
Selected extracts from the Bateman report: “ The Extraction of Phosphoric Acid from the
Hydrochloric Acid Leach of Nolans Bore by Solvent Extraction-Laboratory Tests and
Preliminary Process Development”.
• The results obtained in the laboratory have shown that it is possible to extract and
produce a fertiliser grade phosphoric acid from the Nolans Bore hydrochloric acid
leach solution by extraction with an organic solvent.
• Initial testing using typical industry reagents and solvents, used for either P2O5 or rare
earth and uranium extraction, demonstrated that Tri-Butyl Phosphate (TBP) provided
the best extraction differential between the phosphate and rare earths in the leach
solution
• A fertiliser grade phosphoric acid can be produced commercially from the leach
solution after pre-neutralizations (with approximately >80% recovery). The product is
projected to have the following analyses:
P2O5 Ca La Ce F Fe AI Mg Si
% % % % % % % % %
48 0.007 0.002 0.002 0.05 0.35 0.04 0.05 0.01
• The technical specification (in the table above) is better than the average quality for
fertiliser grade phosphoric acid.
• The P2O5 extraction process is based on the use of “Bateman Pulsed Column
Technology” for the extraction and stripping stages in the solvent extraction process.
• The testwork focused on the extraction and concentration section of the process
designed around two production lines each producing 30,000 tonnes per year P2O5 as
50% fertilizer grade acid.
Level 4/16 St Georges Terrace, Perth WA 6000 ■ PO Box 3047, Adelaide Terrace, Perth WA 6832
■ T: (618) 9221 7666 ■ F: (618) 9221 7966 ■ E:[email protected] ■ W:www.arafuraresources.com.au
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• Operating costs are estimated at US $131 per ton of contained P2O5.
• The capital cost of the plant is accurate within ±40% and has been estimated at US $55
million.
• Additional laboratory process development work must be carried out to fully develop
the process and confirm the reproducibility, viability and feasibility of the proposed
conceptual process. This additional process development work must be carried out
before the operation of the pilot plant.
Level 4/16 St Georges Terrace, Perth WA 6000 ■ PO Box 3047, Adelaide Terrace, Perth WA 6832
■ T: (618) 9221 7666 ■ F: (618) 9221 7966 ■ E:[email protected] ■ W:www.arafuraresources.com.au
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