the low cost nickel process hrr needs?

Heron partner Direct Nickel have just released a previously confidential presentation giving economic details of their process. http://directnickel.com/wp-content/uploads/2014/03/DNi-Corporate-Preso-Sept-2013-copy.pdf

From the report

Economic modelling of a Direct Nickel Plant producing 20,000t per annum of contained nickel in MHP, located in Indonesia with an average nickel feed grade of 1.5% using a limonite:saprolite ratio of 3:1 and at a Ni price of US$8/lb produced the following highlights:

Capital cost of US$581m including all infrastructure including ports, accommodation, power plant, and general infrastructure
•? Operating cost of US$2.62 per pound of nickel produced, reducing down to US$0.54/lb after cobalt, magnesium oxide and hematite (iron ore) by-product credits
•? Post-tax IRR of 21-28% depending on inclusion of by-product revenue
•? Post-tax NPV of US$839-1,378m depending on by-product revenue (using an 8% discount rate)

No idea if this is reasonable but if you assume the OPEX is double the US$2.62 for Kalgoorlie due to the lower grade but the coproduct credits are similar you would get a C1 cost of about US$3.16/lb Ni for Kalgoorlie using the Direct Nickel process.

Regards

Wriglet