Stingray Copper has awarded the Full Basic Engineering contract of a Co-Generating Plant (Co-Gen Plant) producing both sulfuric acid and electricity to Aker Chemetics, a division of Aker Solutions Canada (Aker Chemetics).
The Co-Gen Plant is expected to produce superheated high pressure steam to be used in a turbo-generator resulting in around 10MW of electrical power. This plant would also produce 750 tonne per day (tpd) of sulfuric acid. This work was a recommendation in the April 2009, El Pilar Feasibility Study (“Study”) completed by M3 Engineering and Technology Corporation.
Both the power and sulfuric acid outputs are 25% larger than was contemplated in the Feasiblity Study previously mentioned and should assist in driving down cash costs per pound of copper produced while also de-risking the project.
The size of the Co-Gen Plant is being increased to supply 100% of sulfuric acid requirements for the El Pilar operation as identified in the Study. According to the study, the plant sizing would have required Stingray to purchase additional sulfuric acid from third party markets to increase the acid plant production originally designed for 600 tpd. The 25% increase in plant size is expected to provide additional operating cost advantages by lowering overall acid costs and decreasing power costs as well as avoiding the risks of spot acid price volatility experienced in recent years.
The primary input for the Co-Gen Plant is liquid molten sulfur that is available from various sources, but particularly in the Texas gulf coast as a by-product of sour gas production wells. Stingray’s market investigations have indicated steady, reliable sources of sulfur can be railed directly to the El Pilar site. Aker Chemetics would complete their work prior to the end of 2009.
Aker Chemetics executes technology-based engineering and construction projects for mining and mineral-processing companies. They provide technologies that are offered on a worldwide basis to customers in the form of engineered systems, proprietary and nonproprietary equipment, as well as fully erected systems and plants.
The company is pursuing project financing alternatives while continuing to develop the El Pilar project for future mine construction. Basic engineering is also underway in several other areas of the project. The company is funded with around $15.5m in working capital.