!!! Peter!Ehren! Process!and!Environmental!Consultancy!!! From!Resource!to!Product! Presenta7on!by!Peter!Ehren! 1!

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1 PeterEhren ProcessandEnvironmentalConsultancy FromResourcetoProduct Presenta7onbyPeterEhren 1

2 ProfessionalBackgroundHighlights 1991A1997DelDUniversity 1997:FinalThesis:LithiumRecoveryfromGeothermalBrine:SaltonSea(atBHP) 1998:SQMProcessEngineer MOPexpansion,SOPandBoricacidStartAup Li2CO3Expansion32,000tpy 2001SQM:R&DManagerLithiumandBrineTechnology MiningPlanSolarEvapora7onExpansiondesign CarnaliteplantdesignandStart Up LithiumhydroxideplantstartAup ChinaVisitSpodumeneopera7onandlithiumplants ChinaVisitWestTajinaier VisitTVLERussia Li2CO3Expansion32,000tpy 2007IndependentConsultant ProjectEvalua7ons:Rincon,DXC,GalaxyMtCatlin,,Uyuni,SalinasGrandes, VisitGreenbushes(Australia)andDexin(China) ConceptualprocessdesignSalardeMaricunga ConceptualprocessdesignSalardeIsla SalardeOlarozProcessDesign&Engineering June2014Orocobre:Corpora7veManagerofTechnology Presenta7onbyPeterEhren 2

3 US$/year Export ton/year Year Li2CO3 ton/year Li2CO3 price US$/year PriceHistory (Chileanexportdata) Presenta7onbyPeterEhren 3

4 FromResourcetoProduct Batteries Glass Molecular Sieves Ceramics Desiccants or Dehumidifiers Emanel Brazing Fluxes Frits Fluxesundentes Chemicals Aluminum Process Butyllithium Polymers Cement Pharmaceuticals Brines High Na Lithium Chloride High Na Lithium Metal Specialty Organics Organic intermediate Pharmaceuticals, es Agrochemicals Flavors Fragrances Lithium Carbonate Specialty Inorganics HP Lithium Carbonate Lithium Bromide (air conditioning) Lithium Fluoride Lithium Nitrate Lithium Phosphate Lithium Sulfate Lithium Silicate Lithium Borates Specialty Inorganics Lithium Acetate Lithium Benzonate Lithium Citrate Lithium Salicytate Lithium Peroxide Minerals Lithium Hydroxide Low Na Lithium Chloride Low Na Lithium Metal Primary Batteries Aluminum Alloys Glass Ceramics Greases Natural resources Lithium Carbonate Basic Chemicals Performance Chemicals Ehren-González Limitada Presenta7onbyPeterEhren 4

5 EveryDepositisUnique A. Brinecomposi7on B. Climate C. ReservoirHydrogeology D. Reserves E. FreshWater&Energy F. PortDistance/ReagentsSupply G. EnvironmentalManagement H. SocialResponsibility I. MarketRequirements J. CostDrivers Presenta7onbyPeterEhren 5

6 A.BrineComposi7on:Parameters Li#concentra+on:# ## Mg/Li#ra+o IndicateshowmuchMagnesiumhastobe removedbyfrac7onalcrystalliza7onand/orselec7ve precipita7on. SO4/Li#ra+o. IndicatesaLithiumSulfatedeposits(high SO4/Li)oraLithiumChloridedeposit(lowSO4/Li). Ca/Li#ra+o IndicateshowmuchCalciumhastobe removedbyfrac7onalcrystalliza7onand/orselec7ve precipita7on K#concentra+on# SO4/K#ra+o#IndicatesaPotassiumSulfatedeposit(high SO4/K)orPotassiumChloridedeposit(lowSO4/K) Presenta7onbyPeterEhren 6

7 A.BrineComposi7on WorldWideResources Deposit Deposit type Li K Mg Ca SO4 Mg/Li SO4/Li Ca/Li SO4/K Salar de Atacama Average (Rockwood Lithium and SQM) SulpoMag- Li 2 SO 4- LiCl- CaCl2 Note:SalardeAtacamahasseveraldifferentbrinetypes: Highsulfatebrine SulPoMagALi 2 SO 4 Lowsulfatebrine KClALiCl Highcalciumbrine KClALiClACaCl 2 SalardeOlarozNumberforProduc7onwells 1,835 22,626 11, , Salar de Hombre Na 2 SO 4 - K 2 SO ,404 1, , Muerto (FMC) Li 2 SO 4 Silver Peak Na 2 SO 4 - K 2 SO , , (Rockwood Lithium) Li 2 SO 5 Salar de Olaroz Na 2 SO 4 - K 2 SO ,227 2, , (Orocobre) Li 2 SO 6 Salar de Cauchari Na 2 SO 4 - K 2 SO ,127 1, , (LAC) Li 2 SO 7 Salar de Maricunga KCl-LiCl- CaCl (Li3) 2 1,036 8,869 8,247 11,919 1, Salar de Uyuni SulpoMag- Li Average 2 SO ,719 7, , Salar de Rincón SulpoMag- Li ( Rincon Lithium) 2 SO ,513 3, , West Taijinaier SulpoMag- Li (CITIC) 2 SO ,444 15,737 ND 35, Zhabuye Salt Lake Li 2 CO 3 -Na 2 SO 4 1,217 17, , Presenta7onbyPeterEhren 7

8 A.BrineComposi7on WorldWideResources Presenta7onbyPeterEhren 8

9 A.BrineComposi7on:JaneckeProjec7on Mg Salar de Atacama Average (Chemetall y SQM) Salar de Hombre Muerto (FMC) T=25 o C Halite=NaCl Silvite=KCl Gypsum=CaSO4*2H20 Glaserite=Na2SO4*3K2SO4 Ternadite=Na2SO4 Glaubersalt=Na2SO4*10H20 Schoenite=K2SO4*MgSO4*6H2O Leonite=K2SO4*MgSO4*4H2O Carnalite=KCl*MgCL2*6H20 Bischofite=MgCl2*6H20 Tenardite Astrakanite Leonite Schoenite Kainite Carnalite Glaserita Silvite Silver Peak (Chemetall) Salar de Uyuni Average Salar de Rincón ( Rincon Lithium) Salar de Olaroz (Orocobre) Salar de Cauchari (LAC) Salinas Grandes (Orocobre) Qarhan East Taijinaier Chang West Taijinaier Chang SO 4 K 2 Presenta7onbyPeterEhren 9

10 A.BrineComposi7ons:Liconcentra7on 2000,0 Li## 1800,0 1600,0 1400,0 1200,0 1000,0 800,0 Li 600,0 400,0 200,0 " Salarde Atacama Average (Rockwood Lithiumand SQM) Salarde Hombre Muerto(FMC) SilverPeak (Rockwood Lithium) Salarde Olaroz (Orocobre) Salarde Cauchari (LAC) Salarde Maricunga (Li3) Salarde Uyuni Average Salarde Rincón (Rincon Lithium) West Taijinaier (CITIC) ZhabuyeSalt Lake Presenta7onbyPeterEhren 10

11 A.BrineComposi7ons:Ra7os &35,0&& &30,0&& &25,0&& &20,0&& &15,0&& &10,0&& &5,0&& &*&&&& Salar&de& Atacama& Average& (Rockwood& Lithium&and& SQM)& Salar&de& Hombre& Muerto& (FMC)& Silver&Peak& (Rockwood& Lithium)& Salar&de& Olaroz& (Orocobre)& Salar&de& Cauchari& (LAC)& Salar&de& Maricunga& (Li3)& Salar&de& Uyuni& Average& Salar&de& Rincón& (&Rincon& Lithium)& Zhabuye&Salt& Lake&& SO4/Li& Mg/Li& Presenta7onbyPeterEhren 11

12 B.Climate:SalarComparison Salar Surface Altitude Precipitation Evaporation rate Depth? Deposit Km2 m mm/year mm/year m Salar de Atacama Average (Rockwood Lithium y SQM) Salar de Hombre Muerto (FMC) Silver Peak (Rockwood Lithium) Salar de Olaroz (Orocobre) Salar de Cauchari (LAC) Salar de Uyuni Average Salar de Rincón ( Rincon Lithium) Salar de Maricunga (Li3) Zhabuye Salt Lake West Taijinaier (CITIC) SalardeOlarozisoverburdenedwithsediments(OlarozACauchariabout500km2) Presenta7onbyPeterEhren 12

13 B.Climate:Evapora7onRates(mm/year) 3500" 3000" 2500" 2000" 1500" 1000" 500" 0" Salar"de" Salar"de" Atacama" Hombre" Average" Muerto"(FMC)" (Rockwood" Lithium"y"SQM)" Silver"Peak" (Rockwood" Lithium)" Salar"de"Olaroz" Salar"de" Salar"de"Uyuni" Salar"de"Rincón" (Orocobre)" Cauchari"(LAC)" Average" ("Rincon" Lithium)" Salar"de" Maricunga" (Li3)" Zhabuye"Salt" Lake"" West"Taijinaier" (CITIC)" Presenta7onbyPeterEhren 13

14 C.ReservoirHydrogeology:SalarTypes Salartypes maturehalitesalarsand immatureclas7csalars The#Evalua+on#of#Brine#Prospects#and#the#Requirement#for# Modifica+ons#to#Filing#Standards# John#Houston1,,#Andrew#Butcher2,#Peter#Ehren3,#Keith#Evans4#and#Linda# Godfrey5 Presenta7onbyPeterEhren 14

15 C.ReservoirHydrogeology:SalarTypes Salar Area Elevation (km 2 ) (m asl) Salar type Uyuni 10,000 3,653 Immature Atacama 2,900 2,300 Mature Olaroz- Cauchari 550 3,900 Immature Huayatayoc- Salinas Grande Rincon 2, ,400 3,740 Immature Largely mature Arizaro 1,600 3,500 Immature Pocitos 435 3,660 Immature Antofalla 540 3,580?Immature Hombre Muerto W 350 3,750 Mature Hombre Muerto E 280 3,750 Immature Maricunga 90 3,760 Mixed Presenta7onbyPeterEhren 15

16 C.ReservoirHydrogeology:Porosity Presenta7onbyPeterEhren 16

17 C.ReservoirHydrogeology:Pumping Presenta7onbyPeterEhren 17

18 D.Reserves Projectlive MiningPlan Pumpingrate Produc7onRates ReservoirModeling =>Avoidexcessiveexploita7onof brinedepositinordertocontrol declininggrades Presenta7onbyPeterEhren 18

19 E.FreshWater&Energy ThefreshwaternormallyisscarcearoundSalarsandSalt Lakes =>Theobjec7veistoreducewaterconsump7on Processesthatengeneralconsumemorewaterare Adsorp7onprocess(forexample:FMC) Membranetechnologies(EastTajinaier) Ionexchangetechnology Presenta7onbyPeterEhren 19

20 E.FreshWater&Energy Energyrequirements SolarEnergyfortheevapora7onponds Electricalenergyfortheplant Energyforbrinehea7ng Energyforproductdrying ElectricalGridclosetoproject? Gaspipelineclosetoproject? Presenta7onbyPeterEhren 20

21 F.DistancetoPort/ ReagentSupply Sodaashimporta7on(Li 2 CO 3 precipita7on) Lithiumcarbonateexport Lime(Magnesiumremoval) Sodiumsulfate(Calciumremoval) Byproducts(Potash) Presenta7onbyPeterEhren 21

22 G.EnvironmentalManagement EnvironmentalLegalFramework FloraandFauna Lagoons Vegasandwetlands Flamingos,Vicuñas,Fox,etc. TouristsInterestA Sceneryimpact Industrialinterven7on ProtectedAreassuchas Na7onalParks Na7onalReserves Hydrogeologicalissues. Pumpingrates: Environmentalwellmonitoringand alertsystem Hydrogeologicalmodelingforbrine extrac7oneffects IndigenousCommuni7es Presenta7onbyPeterEhren 22

23 G.EnvironmentalIssues:Process WasteSaltsManagements EndAbrinemanagement=> SalardeOlarozProcess:ZeroLiquiddischargeandLi 2 CO 3 endaliquorrecovery SalardeAtacamaProcess:ZeroLiquiddischargeand Li 2 CO 3 evapora7on SalardeHombreMuerto:Endbrineofadsorp7on processpurgedtolowerpartofsalarbasins Poten7alsolventextrac7onandIXprocess:Endbrine reinjec7ontosalar? POSCOprocess(accordingtopatent):Endbrine reinjec7ontosalar? Presenta7onbyPeterEhren 23

24 I.SocialResponsibility Indigenouscommuni7es SharedValue Localproviders Localemployees Presenta7onbyPeterEhren 24

25 J.MarketRequirement: Productspecifica7on LithiumCarbonateBaseryGrade everydaymorepure Lithiumhydroxideforbaserygrade..everydaymorepure Samplesfortheindustry Rela7onshipwithoffAtakersandpoten7al clients Presenta7onbyPeterEhren 25

26 K.CostDrivers:Brines SodaAsh=>LithiumCarbonateprecipita7on Lime=>magnesiumremoval(lowMg/Li) (SilverPeak/SalardeOlaroz/SalardeRincon) Sodiumsulfate=>calciumremoval (SalardeMaricunga/SalardeRincon) Brinehea7ng SaltHarves7ng Halite(All) Silvinitesalts(All,SalardeAtacama) Carnalite(All,SalardeAtacama) Bischofite(All,SalardeAtacama) Agoodbrineprojectshouldhaveanopera7onalcosts between1,500and2,800usd/ton Presenta7onbyPeterEhren 26

27 K.CostDrivers:Opera7onalMinerals Mining#(#%Li2O=grade#)# Spodumene#produc+on### Ore#Calcining#(>1000# o C)# Soda#Ash#=>#Lithium#Carbonate#precipita+on# Sodium#sulfate##by#product# Brine#Hea+ng# Product#drying# Calciner kiln Electricity# Agoodmineralprojectshouldhaveanopera7onal costsbetween3,000and3,500usd/ton Presenta7onbyPeterEhren 27

28 K.CostDrivers:Opera7onalMinerals USD/ton Li2CO3 Spodumene in Li2CO3 Spodumene concentrate 0 3,80% 3,00% 2,00% 1,50% 1,00% 0,50% %Li2O in lithium minerals 18,000ton/year. Strippingra7oof2 Costbasis2008Australia 8.05tonsof6%Li2Ospodumene/tonLi2CO3 Presenta7onbyPeterEhren 28

29 K.CostDrivers:Investment Wellfield Brinetransportpipelines SolarEvapora7onPonds PowerSupply LithiumCarbonateplant PotassiumChlorideplant Infrastructure:Buildings,Camp,Laboratories, ect. Presenta7onbyPeterEhren 29

30 FinalWords EveryBrinedepositisuniqueandrequiresit stailormade process Donotcopy paste Learnfromtheotherprojects Simulatetheprocessandcalculatethecosts Analyzethebestprocessop7onandtestit Becosteffec7ve. Howmuchbe+erisittogetwisdomthangold( Lithium) andtogetunderstandingrathertobechosenthansilver( Potash)(Proverbs16:16(KJV)) Thanksto Mywife,forhersupportandadviseonenvironmentalmanagementissues Myson,MaIas(11)whohelpedmywiththespecialeffects Annelies(10)andDaniel(2)formissingmewhenIamnotathome Myclientswhohavetrustedmeinthissmalllithiumworld Presenta7onbyPeterEhren 30

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