Check out the Jan 18 announcement ... The production of sulpher...

Check out the Jan 18 announcement ... The production of sulpher produces immense heat ... rather than just let it escape into the atmosphere, they harness it to fire large turbines that in turn produce power, which is stored for self-use.

The additional cost involves the turbines & power storage infrastructure ... both the acid plant & power production will pay for themselves in 2 years.

Bannerman Resources Ltd. Reports Goanikontes Anomaly A Operational Cost Reductions
Friday January 18, 2:47 pm ET

Bannerman Resources Ltd is pleased to announce an update to scoping study findings for Goanikontes Anomaly "A."
- Opex costs substantially reduced via onsite acid production
- Opex reduction of US$3.18/lb U3O8 (at 26 kg/t acid consumption rate)
- Operating costs reduce to US$22.79/lb U3O8 (HPGR) and US$25.73/lb U3O8 (SAB)
- Capital cost increases to US$430m (HPGR) or US$467m (SAB)
- Capital payback period less than 2 years
- Additional benefit of co-generation of 14MW of power

Introduction
During the completion of the scoping study for Bannerman's Namibian project, Goanikontes Anomaly A, in September 2007 Independent Metallurgical Operations (IMO) identified a number of areas with the potential to reduce the operating costs in the proposed processing plant. The study highlighted that the cost of acid and acid consumption was the single most important component of the operational cost.

Acid Plant
Potential reductions in operating costs from the onsite production of sulphuric acid and the co-generation of power from exothermal heat produced from the burning of sulphur were the basis of a case study undertaken by IMO following the completion of the scoping study in 2007.
Any reduction in the cost of supplying sulphuric acid or in the consumption of acid in the processing flow sheet has a corresponding and significant effect on the overall project economics.

Two acid plants were considered in the study, both sulphur burning plants with co-generating power turbines; a standard plant and an enhanced heat recovery system plant (HRS). The study identified that the additional power production capable in the HRS plant did not justify the additional US$17 million in capital cost nor the additional water used in the cooling circuits of the HRS.

The standard acid plant generates a net power output (excluding the power required by the acid plant itself) of 14MW. Additional infrastructure items would be required including portside handling equipment and stockpiling, on site storage tank and EPCM costs. Capital costs would subsequently increase to US$65.1 million.

This additional capital cost would be paid back in less than two years given reductions in the operating costs and the additional benefits of securing a major proportion of the proposed power requirements