Fennoskandian Mining and Exploration Congress. Rovaniemi Lauri Siirama

Transcription

1 The Sokli Mine Project Fennoskandian Mining and Exploration Congress FEM 2009 Rovaniemi Lauri Siirama

2 Contents Sokli site Geology Mining and processing History Background Yara phosphate projects Project status and schedule Date: Page: 2

3 Sokli location The phosphorus h deposit at Sokli is located in the municipality of Savukoski in the Finnish province of Lapland. It is 12 km from the Finnish-Russian border, 90 km from Savukoski and 275 km from Rovaniemi. The phosphorous deposit of Sokli is also surrounded by national and natural parks in North and South and also Natura areas in East and South and wilderness area in South The nearest similar il deposits are those at Kovdor and Apatite in Russia Date: Page: 3

4 Sokli s ore deposit Mineral potential of the Sokli deposit: phosphorus, iron and niobium The deposit is a 365 million year old carbonatite massif, 20 km² in area and dbased on seismic i reflections at least 6 km deep. Open pit production is planned for an area of about 300 hectares. Under the current plan, there is enough phosphorus-rich ore for production over approximately a 20 year period. If the deposit is exploited over a wide area, including areas with poorer phosphorus content, it may be possible to extend the mine life tens of years. Date: Page: 4

5 Sokli geology The structure of Sokli carbonatite massif (surface and cross section) and rock types (Vartiainen 1998). The structure of Sokli carbonatite complex consists of Carbonatite massif (20 km2) and Fenitic aureole (27 km2) Carbonatite massif The seismic reflections in Sokli carbonatite massif Magmatic carbonatite core (3 km2) - foscorite, sövite, silicosövite and rauhaugite Metacarbonatite area (5 km2) - metafoscorites and metacarbonatites Metasomatic area (12 km2) - fenites and derivatives (altered fenites and ultramafic rocks) Fenitic aureole Granite-gneiss altered by chemical and mineralogical changes Depth at least 6 km Date: Page: 5

6 Localization of Sokli ores Loitso area Pierkuli Magmatic core area Loitso area Pierkuli area Other P-ores Sokli massif magmatic core metacarbonatites metasomatites Lateritic P-ores Apatite-silicate-P-ores Apatite residues on carbonate dikes Exocontact of carbonatite massif 1 km WEATHERED CRUST P-ORES K = LOITSO AREA MAGMATIC CARBONATITE CORE AREAS OF THIN OVERBURDEN Thickness of overburden m L = km 1 km 2 km Thickness of overburden m Contact of the carbonatite massif Date: Page: 6

7 Sokli ores and ore types Loitso-Joutsen-Vuotso and Pierkuli areas lateritic P-ore types apatite-silicate P-ore types Weathered P-ores Nb-Ta-P-ores Hard rock P-ores WR 42 WR 41 P2O5-% P2O5-% 0m 50 m 0 m 10 m 20 m 30 m 40 m 50 m VAINIO (Valtasenvainio) Profile K=13 800, length of profile 300 m WR 58 WR 57 WR 56 WR 55 WR 54 WR m EXPLANATION Weathered rock 70 m Hard rock _ 25,6 27,5 10 m 28,9 27,5 _ 21 27,9 Lateritic P-ores 27,1 20 m 24,5 23,1 20,4 _ 21,3 22,9 21,9 30 m 4,2 8,7 2,5 _ 6,4 Weathered carbonatite 5,3 40 m 1,9 Hard rock carbonatite EXPLANATION P-ore,hard P-ore, granular P-ore,soft Mica-P-ore, soft Mn-P-ore, soft 80 m Date: Page: 7

8 Principles to divide ore to ore units Main principles Degree of weathering process/texture relations Mineralogical composition Chemical composition Lateritic ores (20 % of total reserves but P-reserves 60 %) P-content high (up to 25 % P2O5) Mature lateritic P-ores No carbonate minerals Classification of the ores according to mineral composition: phosphorous-ore, mica-phosphorous-ore, iron-phosphorous ore and magnesium-phosphorous h ore on weathering stage: soft, granular and hard ore types Silicate apatite ores (78 % of total amounts but P-reserves only 40 %) P-content % P2O5 Relicts of the original rock/ore textures are still present Ore types based on minerals (amfibole-mica-apatite ores, mica-apatite ores and fenite- apatite Weathered crust ores (mixture of above) P-content 4 7 % P2O5 Ore types as above Date: Page: 8

9 Mineral resources in Sokli Ore unit Mt Soft rock ores Lateritic ores 36,7 Silicate-apatite P-ores 19,3 Ores in weathered rock 57,6 Total 113,6 Kaulusrova ores 75,2 Nb-ores 1,9 Total soft rocks 190,6 Hard rock ores Magmatic core Nb-ores 110 Arch ore 500 Area of metacarbonatites Area of metasomatites P-ores total in hard rock Date: Page: 9

10 Mining and processing Mining method Open pit mining No blasting using excavators 4-6 Mt/a 1-2 Mt/a overburden Water treatment is a challenge Processing Crushing Grinding Flotation of apatite Apatite purification Dewatering and drying Complicated mineralogy is a challenge Product transport by train Personnel Environmental aspects Mineral resources huge life time can tens of years Mineral possibilities, not only phosphate Date: Page: 10

11 History The Sokli deposit was discovered by Rautaruukki when prospecting for ore in The deposit has been explored since its discovery. At the end of the 1970s there was a trial run of the phosphorus ore at a pilot plant built in Sokli. Mining rights transferred from Rautaruukki to Kemira in Remarkable research and development project heading for the start of phosphorus production Niobium ore explorations Two-year extension to mining rights granted in 2007 to Kemira GrowHow (now Yara Suomi Oy). The Sokli mining rights belong to Yara Suomi Oy, which is responsible for its management and for supervising explorations. Date: Page: 11

12 Sokli activities Mining activities Prospecting, studies, evaluation, pilot plant Pilot tests, evaluation Nb-studies, EU-project Evaluation Mining project, EIAassessment Mining project Mining rights Rautaruukki Oy Kemira Oy Kemira Agro Oy Kemira GrowHow Oyj Yara Rate of activities Date: Page: 12

13 Background to the mine project The earth s population is expected to grow by around 40% to reach 9.2 billion people 0,5 by the year 2050 (UN, 2007). 0,4 The need for food will double by 2050 and 0,3 food production will need to rise by 50% by 02 0,2 the year 2030 (FAO, Agra Europe, 2008). 0,1 At the same time, the amount of arable 0,0 land per capita available for food production is declining, with the result that farming needs to be made more efficient through the use of fertilizers, etc. Hectares per person E 2020E Hectares per person Population (billions) Population increase vs. decline in amount of arable land per capita available for food production (IFA) Population (billions) Fertilizers boost harvests because they contain three main nutrients nitrogen, phosphorus and potassium, which, however, need to be used in a balanced, optimal way. Yara is the world s leading producer of nitrogen fertilizers and has also taken a strategic decision to expand into the basic production of phosphorus and potassium. Date: Page: 13

14 The world s phosphate markets The world s crude phosphate capacity in 2008 was 194 million metric tons. New capacity planned by 2012 is 42 million metric tons (IFA). The sector is highly concentrated. The world s major producers of crude phosphate are: China 63 million metric tons USA 30 million metric tons Morocco 27 million metric tons Russia 11 million metric tons Yara explores potential ore deposits worldwide. Date: Page: 14

15 Yara s phosphorus projects in Finland Siilinjärvi (capacity increase): Phase 1: 150,000 t/a of concentrate The increase would bring the current total of 850,000 t/a up to 1,000,000 t/a. Start up November Phase 2: 300,000 t/a of concentrate Survey undertaken to increase capacity to 1,300,000 t/a of concentrate. Will possibly be realized in 2010 and Sokli Start of production: 1.5 Mt/a of concentrate Estimated investment of USD 600 1,000 million Date: Page: 15

16 Timetable for the Sokli mine project EIA, Environmental Impact Assessments (mine, railway and power line) completed in spring 2009 New mining rights application left to authorities in spring 2009 Modification of Eastern Lapland regional plan to be confirmed by autumn 2010 no major decisions before that. Financial, commercial and technical studies ongoing Remarkable delays and additional worries caused by Natura assessments Economy has to fit before decision According to present plans, production will start earliest Date: Page: 16

17 Date: Page: 17 Thank you for your attention