1 2 3 4 5 6 DOE RUN PERU LA OROY A DIVISION Doe Run Peru Report to the Minstr of Energy and Mines, 1998 Report to the Ministry of Energy and Mines on PAMA and, request for approval of changes in schedule, December 1998. EXECUTIVE SUMMARY Durig its first year of ownership, Doe Run Peru undeltook studies of all of the obligations and developed a plan for meeting those obligations. This report is intended to brief the Mistry on what has been accomplished with regard to the P and Doe Run Peru plan and current schedule of implementation. There are 16 projects outlined in the PAM which are reviewed here. Because the projects numbers 6, 7, 10, and 11 are an interrelated group of waste water issues, we wil review them as a group. The actual P AM related expenditures incurred by Doe Run Peru for the fiscal year 1998 have been approximately U$3 8 millon compared with US$ 2 7 millon included in the approved PAM - 1 - Doe Run Peru Report to the Mistr of Energy and Mines, 1998 PAM A Project #1 NEW SULFURIC ACID PLANTS. INTRODUCTION This project' s mai objectives are to mitigate the adverse effects of Sulfur Dioxide (S02) and pariculates contained in the stack gas emissions ftom the Doe Run Peru La Oroya Metallurgical complex operations, and to comply with emission regulations and air quality guidelines Misterial Resolution No. 315- EM/.estalished by M. , in accordance with Anexo 1 and 3 of TECHNICAL DESCRITION The original P AM proposes two double contact double absorption sulfuric acid plants in , Lead, and Zinc smelting conjunction with substantial process modifications of the Copper products using circuits to fi 89. 35% of the sulfur intake as sulfuric acid or sulfur contained in by- the following technologies, Teniente converter for Cu, Ausmelt technology for Pb and Lurgi technology for Zo.. The solution proposed by Doe Run Peru is generally the same as the P AMA with some techncal 1998: diferences which are further explained in the Fluor Danel Master Plan Report Sept One single contact, single absorption Sulfuric Acid plant with separate gas cleaning systems for , maitaining adequate the various smelting operations is preferred because of space requirements gas strength by mig gases, and economies of size and reducing duplication. The off gases of the oxy-fue1 copper reverberatory furnace are not considered suitable for sulfric acid recovery at this time. A new fluid bed copper roaster is proposed along with two larger Pierce Smith converters with Teniente gas tight hoods to achieve adequate sulfr capture in the copper circuit. An EI converter is not considered necessary at this time unless market conditions or concentrates supplies dictate diferently. It is proposed that gas recirculation in the existing Lead Sinter Plant is the preferred method to upgrade the off gases for treatment in the acid plant. The dross furnace and the lead blast furnace off gases would continue to be cleaned in the existing cottrell system. This wil result in fixation of 78% ofthe sulfr in the Lead circuit. At this time it is the opinion of Doe Run Peru that oxygen smelting of concentrates and secondar lead materials is unproven technology but is deserving of thorough study at a future - 2- Doe Run Peru Report to the Mistr of Energy and Mines, 1998 study. The date. $0. 5mm has been budgeted for the years 2000 and 2001 for a feasibilty AMA. outcome of this study would directly impact the design of the new acid plants and the P The stack testing shows particulate emission concentrations wil comply with the R.M. No. 315- 96 Anexos 2 through 5 however a combination of the additional gas cleaning associated with the new sulfuric acid plants and improved cleanng in the existing cottrell syste due to greatly particulate and metal reduced volumes and dust loading, wil significantly further reduce emissions ftom the plant. 1998 PROJECT ACTIVITY Doe Run Peru commssioned Fluor Daniel to produce a Ten Year Process Master Plan on April 1998, working closely with Doe Run Peru personnel, this report was to include the processing and the Zinc refinery. The Final Report was of SOz gases ftom the Copper, Lead smelters submitted in September, the work relating to the Pama Project 1 consisting of Establishig primary metals production goals Review of proven existing technologies, world wide Review of operations of the present smelter Varous metallurgical investigations , and off gases Varous samplig and testing program for metals and impurities, slags SOz gases, employing a combination of Establishing a compliant sulfur balance including existing, improved, and new processes Establishing a cost and budget schedule for the projects Reporting the findings and reco endations in the 10 year Master plan report 1998 PROJECT EXPENSES 130 932 AF-030- RFS-9101 Master Plan (Amount used by FD) 829 AFE-030- DRP Costs 000 Estimated Costs December 98 - 3 - Doe Run Peru Report to the Ministry of Energy and Mines, 1998 160 761 I Total CAPITAL COST ESTIMATE AND PROJECT SCHEDULE The estimated capital cost of the revised solution is US$ 104.6 millon to recover (fix) a total of 502.5 tonnes per day of a projected total of 591.7 tonnes per day of new sulfur intake. Project expenditures would begi in the year 2002 and completion is scheduled for the end of year 2006. - 4- Doe Run Peru Report to the Mistr of Energy and Mies, 1998 PAMA PROJECT #2 ELIMINATION OF FUGITIVE GASES FROM THE COKE PLANT OBJECTIVES The project objective is to eliminate the emissions to the atmosphere resulting ftom the incomplete distilation of coal in the coking process. At the time the P AM was approved, the 3 of gases per day cokig cycle was approxiately 18 hours, and emits 23 800 m DESCRIPTION In the La Oroya metallurgical complex, metallurgical coke is produced ftom bituminous coal in Curant Knowless furnaces. This coke is used as a fuel in the Lead Smelter sinter plant and blast furnaces. During the coking process, the coal is subjected to temperatures of approximately 1350 , in a free oxygen environment. The volatile compounds gasifY and are then treated in gas collectors and scrubbers, where, with the help of water, they are cooled and separated ftom the tar. The cleaed gases are then mied with pre-heated air and recycled as fuel to fire the coking furnace burners. Due to production increases in the lead smelter, the coke production has been increased to satisfY the feed requirements ofthe sinter plant and blast furnaces by reducing the coking cycle from 24 to 18 hours. This time is insuffcient for the complete combustion of the volatile material contaed in the bitumious coal. Consequently, when the coke is discharged afer an 18 hour coking cycle, there is a signficant emission of these gases to the environment. BACKGROUN Five alternatives were analyzed in the P AM: - Operate the furnaces with coking cycles of 24 hours. It is proposed to mitigate the fugitive , and emissions problem by operating the furnaces with coking cycles of 24 to 26 hours overcome the production defecit with imported coke. The anual coal and coke purchasing needs would be: Purchase 41 000 t of metalurgical cokig coal to produce 27 000 t of coke. Purchase 8 200 t of metalurgical coke from other coke producers. - 5 - Doe Run Peru Report to the Mistr of Energy and Mies, 1998 - Installation of ventilation systems (SVEL) The installation of ventilation systems to 3 of the gases emited daily when operating with 20 hour coking capture the 23 800 m cycles would require a major investment in equipment and accessories. The principal problems with this alternative are the high permanent maintenace cost of the equipment and the limited space avaiable in the coke plant. - Substitute totaly the purchase of coal with metallurgical coke. - Encourage a coke producer to locate near La Oroya. - Build a state of the art coke plant (totally enclosed vertical design) without by-products recuperation. AB a result of the evaluations, a decision was made to pursue the first alternative, to operate 24 hour cycles and to purchase 8 200 tonnes of metallurgical coke per year. ACTUAL SITUATION Since May 24 1998, a total of 8 800 tonnes of metallurgical coke has been imported. Of the total st of October 5% was coke consumed through the 31 , 1998, 20 5% was imported and 79 produced ftom coal imported from Bradford U. Increasing the coking cycle time (to an average of 22 hours) has improved the coke quality. The fixed carbon has increased ftom 86 7% to 88 , the net coke recovery has increased from 9% to 68 7% and the gross coke recovery has increased from 79 7% to 83 1%. Additionally, gas emissions to the environment have been reduced substantially to 6 100 m / day. th of AB can be appreciated, since the project was implemented on the 24 May 1998 approxiately 59% of the cokig cycles were extended to 22 hours. Cycles of 23 and 24 hours wil be developed progressively, in such way that it does not affect the production oflead bullon. The purchase of a 10 000 m.1. lot of metallurgical coke is foreseen for 1999. It is expected to arve in January 1999. 1998 PROJECT EXPENSES lead The expenses for the coke purchase are being charged to the operating account of the smelter. - 6- Doe Run Peru Report to the Mistry of Energy and Mies, 1998 CAPITAL COST ESTIMATE The origial P AM did not include the investment required for this project. PROJECT SCHEDULE th 1998. It is estimated that by January 1999 The 22 hour coking cycle was initiated on May 24 100% of the coke production wil be obtained using a 24 hour coking cycle and fugitive gas emissions wil be elimnated.