Global Mineral Processing Firms Refine Strategies


The global mineral processing and metallurgical technology suppliers based in the Nordic region continue their efforts to minimize delivery times through worldwide supply chain management, albeit not without difficulty. But they are maintaining investment in new technology development and have also been paying attention to broader business strategies intended to maximize earnings while industry investment in new facilities remains at a high level.

FLSmidth Minerals: One Source, One Partner
Having achieved leading positions in the supply of crushing, grinding, flotation and sedimentation technologies by adding GL&V Process to the FFE Minerals business last year, the FLSmidth Minerals (FLSM) operation within the Danish-based FLSmidth group has been able to sign some major deals in 2008. But it has also further strengthened its product range in the filtration segment by acquiring the U.S. firm Pneumapress. In Germany, FLSM has established a materials handling technology center in Wadgassen, the home of FLSmidth KOCH, with the aim of developing this business area. And in March 2008 the Danish group entered into a strategic partnership with Brisbane, Australia-based Xstrata Copper.

Innovative Partnership
Under the agreement with Xstrata Copper FLSM will help to facilitate the development of Xstrata’s pipeline of copper projects. The immediate result was a letter of award from Xstrata Copper and Bechtel for the supply of crushing and grinding equipment and engineering services to be used to progress the possible development of six world class copper projects. These include Antapaccay and Las Bambas in Peru while additional projects will be added as appropriate.

Besides initially delivering crushing and grinding equipment worth more than $43 million, FLSM is involved in an innovative scheme to design a replicable copper concentrator and other facilities that could be applied to Xstrata Copper’s individual projects. Two key objectives are to enable the early ordering of long lead time items and to reduce the engineering time and costs on individual projects. Similar benefits associated with this strategy for other key areas of the process flow sheet will be explored by alliance partners as the project advances. The long-term framework agreement is expected to contribute positively to FLSmidth’s earnings over the next five to ten years.

Unique Filtration Technology
In May, FLSM bought the fully automatic pressure filter business from Pneumapress Inc., which is headquartered in Richmond, California. Founded in 1989, Pneumapress designs, manufactures, markets and services a broad range of automatic pressure filters including a “state-of-theart” multi-module tower press which, Smidth says, has rapidly captured market share particularly in mineral slurries and specifically in iron ore applications where the filter is now considered the industry standard.

The unique patented technology applies pressurized air and gases rather than vacuum and mechanical pressures. It can often reduce moisture to near 0% and in many cases can eliminate costly dryer installations. The technology has potential applications in nearly every flowsheet where filtration is required. Pneumapress sales are expected to surpass $25 million in 2008 and will have a positive effect on the FLSmidth Group’s earnings in 2008.

A key FLSM market is oil sands exploitation, for which the global group can provide Fuller rotary tumblers; ABON lowspeed sizers; Dorr-Oliver Eimco flotation cells, sedimentation and filtration technologies; KREBS Cyclones and millMAX pumps; RAHCO mobile material handling systems; and FLSmidth plant design and automation systems.


Larox’s newly extended line of peristaltic pumps includes the LPP-80, shown here, as well as the LPP-T32 and LPP-T50
Larox Flowsys Expands Its Pump Range
Finland’s Larox Oy and Larox Flowsys Oy do not operate at the same scale as FLSmidth Minerals. But they do have a very strong position in the fluids handling market, especially filtration, with a range of equipment able to handle many tasks.

For example, Larox Flowsys Oy, a supplier of cutting-edge flow control technology, has extended its peristaltic pump range to include the Larox LPP-T32 and LPPT50, and, in addition, has launched a new pump model, the LPP-M for accurate metering. The aim is to enable customers to find the best solution for their process requirements from the range of Larox peristaltic pumps which offer exceptional performance and reliability and come in a range of sizes from the LPP-D15 to the LPP-T80.

Larox LPP pumps incorporate a unique patented rolling design, which eliminates friction, maximizes hose life time and lowers energy consumption. The roller is mounted on a crankshaft creating eccentric rotation during the 360° operating cycle. Compared with conventional peristaltic pumps, LPP pumps can double the flow per compression cycle.

Highly robust and reliable, these pumps can handle abrasive, corrosive, viscous or crystallizing media and slurries with high solid content. They are equipped with in-line pipe connections; an optional hose leak detection unit and a patented adjustment mechanism that senses hose wear when compression is readjusted. This helps to maximize hose life time and minimize the risk of over-compression, says Larox. The compression adjustment is based on measuring the compression force making readjustment reliable and easy.

The new LPP-T32 has a flow capacity up to 3.9m3/h and the LPP-T50 goes up to 11.5 m3/h. Both pumps have a maximum operating pressure of 10 bar and come with a standard helical bevel geared motor. Hose material options are NR, EPDM, and NBR. A pressure transmitter with display, revolution detector, hose leak detector, connector hoses, and a connector flange for the pressure transmitter are available.

The new Larox LPP-M pump is ideal for accurate metering because it has an exact flow per revolution irrespective of pipeline pressure and provides accurate metering throughout the whole flow range. These pumps have the typical standard technical features of a peristaltic pump, including dry run capability and self priming and they provide exact flow per cycle. Larox says they also have the highest maximum working pressure in the marketplace and are equipped with a patented Tube Failure Detection (TFD). This patented system is capable of detecting the presence of a large number of chemicals. The LPP-M range has two types of tubes: Norprene for chemicals and Tygothane for oils and fats. The correct mechanical design and material selection are essential for optimal tube lifetime and factory assembled PVDF adapter fittings allow for easy tube changes, the manufacturer says.

Manufactured using durable elastomers, the pumps are compact in design and robust. The LPP-M range is suitable for pumping and metering a wide range of materials handled in the mineral processing, chemical and construction sectors as well as the food and beverage industries. For the customer the pumps provide substantial savings through improved process performance with efficiency, long service intervals and low maintenance costs.

Metso Seeks Faster Strategy Implementation
The strong technical and commercial links between equipment development and supply for the construction and mining industries continue to influence Nordic manufacturers’ business planning. Commencing January 1, 2009, Finland’s Metso Corp. will parallel Atlas Copco’s Construction & Mining Technique and Sandvik’s Mining & Construction by merging its current mining and construction businesses into a single Mining and Construction Technology reporting segment, to be headed by Matti Kähkönen, currently president of Metso Minerals.

There will be two other reporting segments, energy and environment technology, comprising the current Metso automation and power and recycling businesses, and paper and fiber technology, including the present paper and board, tissue and fiber businesses. The aim is to accelerate the execution of Metso’s strategy of sustainable profitable growth for the period 2008–2012. Jorma Eloranta, Metso’s president and CEO, said: “The decision to accelerate the strategy execution and to introduce more ambitious financial target setting shows that there is a lot of further value-creation potential in Metso.”


Outotec’s OKTOP reactor design is used for metals recovery at Talvivaara.
This does not imply that Metso’s performance in 2008 has been sluggish. Metso has established a four-year track record of profitable growth, Eloranta points out. Comparing first half 2008 with the first six months of 2007 and the whole of 2007 with the whole of 2006, orders received have continued an upward trend although the January through June 2008 increase was smaller than 2007 vs. 2006. The same relationships apply to net sales growth, and to capital employed and return on capital employed as the number of employees has risen substantially this year. The order backlog is now at its highest level at €1,849 million. At €185 million, Minerals operating profit for first half 2008 was more than 60% of the group total.

Explaining the new long-term financial targets for 2009-2012, Metso’s Executive Vice President and CFO Olli Vaartimo said: “We are targeting growth of over 10% in our mining and construction businesses as well as in the energy and environment businesses. The less than 10% growth in our paper and fiber businesses is expected to come mainly from services. We expect growth of services to be an important driver in all our businesses and estimate that services will eventually represent about 40% of our net sales, compared to 35% currently. Emerging markets are also an important growth driver for us, representing in the future about 50% of our new orders.” In Mining & Construction Technology, he added, profitability is expected to be primarily linked to volume leverage and increased share of the services business.

New North American Capacity
In August 2008, GE Energy transferred the ownership of its Lachine Main Plant near Montreal in Canada to Metso. The heavy fabrication and machining facility will be integrated into the Mining & Construction Technology business and the 170 employees who transferred to Metso will commence the manufacturing of mining equipment immediately, Metso said. The plant is expected to achieve full capacity by the end of the first quarter of 2009, adding significantly to Metso’s mining equipment supply capability which has been fully stretched by the continuing high level of demand.

Outotec Forges the Value Chain
Finland-based Outotec is now fully independent from Outokumpu and that company now has only one mining operation, Kemi, which is integrated with stainless steelmaking. Nevertheless, the experience gathered over decades of working with the former Outokumpu mines and metallurgical facilities, and with third party clients as well, still informs Outotec’s technology leadership and strong market position, the Espoo-headquartered company believes. This largely base metals experience has been complemented by acquisitions including, in particular, Carpco and Lurgi. The motto ”More out of ore” reflects the firm’s understanding of the whole value chain from mineral to metal. And Outotec maintains an extensive R&D program to build proprietary technologies that are environmentally sound and energy-efficient.

The company structure reflects the stages of metals production. The Minerals Processing Division comprises grinding, flotation, thickening, physical separation and analyzers and automation sections. The Base Metals Division deals with copper, nickel and zinc, plus precious metals and ferroalloys, while the Metals Processing Division is responsible for ferrous metals, ilmenite, alumina and aluminum, roasting of sulphide ores, sulphuric acid plants and off-gas handling.

Service Expansion
While this structure emphasizes Outotec’s widely recognized role as a technology and equipment supplier, the company does also provide installation and construction management services, for example through its International Project Services subsidiary (See E&MJ, October 2007, pp 73-75). In September of this year, Outotec agreed to acquire the Canadian-based Auburn Group, for approximately €10 million. Founded in the 1960s, this company provides maintenance and technical services for the mining and metals industries, mainly in Canada and Chile, but also has some global activities. Auburn’s sales in 2007 were C$41 million (approximately €27 million) and the company employs some 150 people. Outotec CEO Tapani Järvinen explained, ”The fit between Outotec and Auburn is excellent. Auburn’s experience in shut-down maintenance services for smelters and sulphuric acid plants in particular will bring us new business opportunities because we have a large installed base of such plants and other industrial plants worldwide.”

Recent examples of service business include three-year service agreements with Boliden’s Harjavalta and Kokkola plants and with Norilsk Harjavalta Nickel, all in Finland, plus a five-year agreement with Boliden concerning consulting engineering services for the company’s mines and smelters in Sweden and for the Tara mine in Ireland. Outotec’s links with these operations are well-established as the company bought Boliden’s consulting engineering business in Sweden while Outokumpu owned Tara for some years. Outotec intends to grow the service business to an annual level of €250- 300 million by the end of 2010.

Like FLSM, Outotec sees strategic cooperation as a good way to develop the business. In June of this year, the company signed an agreement with Kazgiprotsvetmet in Kazakhstan covering the marketing and provision of mineral processing and metallurgical plants plus related service in Kazakhstan and its neighbor countries. Outotec has also established a subsidiary in Kazakhstan and also one in India.

Order Backlog Builds
Like Metso, Outotec had secured a record high order backlog—of €1,548.4 million— by the end of June 2008. Sales, operating profit, profit before taxes, earnings per share and net cash flow were all well ahead of the levels attained in first half 2007. Järvinen commented that orders for a copper SX-EW facility from Southern Peru Copper, valued at more than $150 million, and a sulphuric acid plant for fertilizer production in Venezuela were particlarly pleasing. So was the growth in service and after sales business.

The leading division in terms of first half year sales was Metals Processing (€213.9 million - +8%), followed by Minerals Processing (€152.8 mn - +8%) and Base Metals (€132.0 mn - +6%). Employee numbers increased by 30.6% to 2,667, only falling in Australia but rising especially rapidly in South America at large projects at the commissioning stage.

Since the metals industry will have to mine lower grade and more complex ore bodies and process them in more energyefficient ways, under tightening environmental regulations, Outotec believes there will be new opportunities in its major markets. Furthermore, opportunities are arising in other process industries such as sulphuric acid plants for fertilizer manufacture and flotation for oil sands processing.

Technology Development
While increasing service and after-sales activity is a strategy focus, finding new technological solutions remains a primary aim for Outotec. Research and technical development activity continued brisk in first half 2008, with 20 new priority patent applications filed and 119 new national patents granted.

In the first quarter Outotec reached a partnership agreement with the Geological Survey of Finland (GTK) to increase collaboration. The deal gives Outotec access to the former VTT facilities now managed by GTK at the Outokumpu Research Center which are said to include the best pilot plant set-up in the world and a complete mill test system. The partners want to develop new competences and technologies in environmentally sound and sustainable new process applications for minerals processing, in the utilization of by-products and tailings and in environmental risk management at mines. The two organizations also agreed on researcher exchange in demonstration plant tests and when commissioning new plants for Outotec’s customers.

In April, the company joined the energy research program of the Helsinki University of Technology, which includes research on energy losses in combustion processes. And in the same month Outotec agreed to perform continuous test runs at the HydroCopper demonstration plant with concentrates from the Zangezur Copper- Molybdenum Combine.

One particular recent technology focus, Outotec’s Global Technical Manager for Process Automation, Jari Morilan, explained to E&MJ, has been to integrate automation technology into process equipment units. For expansions, this makes the equipment easier to commission than it would be if the control technology has to be added to an existing distributed process control system. This approach, said Morilan, also creates opportunities for process optimization with less capital expenditure for higher level intelligence than would otherwise be the case. Applications include optimizing flotation cells working in series that experience disturbances such as feed variations. Outotec has developed expert control technology with auto tuning that can be linked to the firm’s established but enhanced process instrumentation systems as well as to newer ones such as MillSense for grinding circuits and CellSense for monitoring electrolytic tank house performance. Outotec is also looking at the integration of process simulators with distributed control systems for operator training.

In 2007, Outotec acquired the patents on Chena technology and the exclusive rights to use the technology in mining and metallurgical applications. Chena measures electrochemical activity online using both mineral and metal electrodes. Such probes have been tested measuring flotation electrochemistry at a number of plants in the Far East, Australia, Kazakhstan and Canada and the results have been encouraging.


Sandvik claims the Hurricane VSI rotor design is revolutionary, offering a host
of advantages not possible on earlier models.
Sandvik—Focus on Crushing
Sandvik Mining & Construction’s involvement in mineral processing is presently confined to crushing and materials handling equipment, including established jaw, cone and VSI crushers and screening equipment, the gyratory crusher range introduced last year (See E&MJ, October 2007, pp 69-70), mobile crushing and screening plants, and conveying systems. SMC also acquired the German company Aubema whose product line includes heavy duty hammer mills, roll crushers and sizers, with processing systems typically built to customer specifications.

Much of the crushing and screening equipment is sold, together with hydraulic breakers and cutting equipment, by Sandvik’s Quarry and Civil Engineering unit within the Construction business. Customer groups include quarries and recycling companies as well as contract crushing firms with whom Sandvik’s extended range of mobile crushing and screening plants has proved popular. Sandvik recently relocated the Construction headquarters to Singapore, reflecting market development trends.

However the larger VSI machines, cone crushers and the gyratory crushers are widely used together with screens and conveyors in mining, the installation at Talvivaara being a recent example. And by combining the biggest crushers and screens with heavy duty materials handling equipment Sandvik can compete effectively in the market for semi-mobile and mobile in-pit crushing systems, for instance at the Boliden Aitik 36 project as discussed in the June issue of E&MJ (p. 52). (However, both the Aitik and Talvivaara installations are using gyratory crushers supplied by Sandvik’s alliance partner FLSmidth Minerals, having been ordered before the introduction of Sandvik’s own range.)

New Products
Several product developments have been introduced during the past year. January 2008 saw the launch of the Caterpillarpowered, track-mounted Fintec 1440 impact crushing plant, the first Fintec model to be introduced after the Northern Irish company was fully absorbed by SMC in 2007and featuring the Sandvik PR301D impactor.

Described as revolutionary, the Hurricane VSI rotor can be retrofitted to Sandvik and other manufacturers’ autogenous VSI crushers. The rotor is claimed to offer five main advantages that result in increased crusher availability and reduced maintenance, combined with lower operating costs per ton.

And the ASRi automated crusher control system has been updated as Version 2.0 featuring a brighter touch screen, better screen lay-outs, a faster processor, USB port, new compact connection box, new power measurement unit with the ASRi-bus integrated into the power transducer, and new software program versions. Recently SMC has extended its gyratory crusher alliance to cover marketing the largest kawasaki cone crusher model worldwide.


As featured in Womp 08 Vol 8 - www.womp-int.com