The Activox process is essentially a combination of ultra-fine grinding and pressure oxidation of sulphide nickel ores in an autoclave under mild operating conditions. In the LionOre flowsheet, the process precedes the conventional process technologies of solid-liquid separation, iron removal, solvent extraction, and electrowinning. The Tati refinery would have been the first commercial-scale application of the process.

In a statement announcing the postponement, Norilsk said, “The major contributing factors to the substantial cost escalation were an increase in construction, equipment, and project management costs worldwide. In addition, short-term energy constraints, as a result of the tight energy balance currently being experienced in southern Africa, were assessed as a risk that would have adversely affected the commissioning, time to production, and overall economics of the Activox refinery project.”

Norilsk will continue to operate the currently active Activox demonstration plant in Botswana as a large-scale test site producing LME grade nickel and copper cathodes. A major bulk sample of concentrate from Norilsk’s Kola operations in Russia is scheduled for test work at the demonstration plant.

Norilsk offered assurances that the Tati nickel mine has a sustainable, long-term future, with current mine life out to 2019, ore reserves of 99 million mt, mineral resources of 98 million mt, and forecast annual nickel production of 22,000 mt of Nickel in concentrate from 2009. The nearby Selkirk deposit is being evaluated as a potential future open-pit operation, and a prefeasibility study of this deposit is due for completion by the end of 2008. Mineral resources in the Selkirk deposit are estimated at 231 million mt, grading 0.24% nickel.

Norilsk also announced that it had begun commissioning a new, 12 millionmt/ y dense media separation plant at Tati nickel that will increase the head grade of Tati concentrator feed. The dense media separation plant is expected to increase Tati production of nickel contained in concentrates from 14,500 mt/y to 22,000 mt/y beginning in 2009.