Activox might pack and go

RYDER GABATHUSE
Staff Writer | Friday July 11, 2008 00:00

BMR, a subsidiary of the Tati Nickel mine was in charge of the indefinitely postponed P4 billion Activox Refinery technology construction. On June 4, Peter Breese announced the halting of the multi-billion Pula project due to escalating costs.

Venter asserted that it is all dependent on the test work at the Activox demonstration plant at the Tati mine, which remained functional after the closure of the construction site of the main plant which occasioned the loss of 1,000 jobs.

'It's all dependant on the test work going on now. If the test produces good results, then there is a likelihood of the company looking critically at the gains of the Activox,' he said.

Currently, in the Kola region in Russia where the parent company, Norilsk Nickel International, is using a smelter to process the ore concentrates, they face heavy criticism of polluting the environment.

Therefore, an Activox refinery technology could be most important as it is environmentally friendly, emphasised Venter. He added that although BMR workers at the Activox demonstration plant would be redeployed to other Tati Nickel mine operations, they are expected to further test some ore concentrates emanating from the Kola mine in Russia late this year or early next year.

He indicated that final business decisions would be made based on the further tests that would demonstrate the viability of the Activox technology.

Despite Venter's explanation, some employees of the BMR have raised fears of the looming job losses following a warning of the impending closure of the Activox demonstration plant.

The Activox refinery demonstration plant is a patented hydro-metallurgical process that recovers nickel and copper metal from sulphide concentrates. The Activox demonstration plant was built at the Tati mine to prove the technology. Until today (Friday), the demonstration plant has been operational and producing LME grade nickel and copper cathodes from Tati concentrates.

An employee informed Mmegi that 'all is not well here'. He said following a meeting convened by the BMR boss Venter, they have been warned that there will be no more activities at the Activox demonstration plant until late this year or early next year.

'We have been informed that today (Friday) is our last day at work and we will then wait for some major bulk sample of concentrate from Norilsk's Kola mine operations in Russia which is planned to commence test work at the Activox demonstration plant in the next six months or more,' said one worker.

Another source revealed: 'There hasn't been much going on at the work place especially that some of us were clearing the concentrates that remained in the circuits and there will be nothing to do at all.'

Tati Nickel mine workers are further worried by the Norilsk Nickel International which is bent on pushing for the commissioning of the 12 million tonnes per annum Dense Media Separation (DMS) plant, which selectively increases the head grade of run of mine material.

The mining giant reported recently on its project updates that the DMS plant has begun commissioning on schedule and within budget parameters. Once in full swing, the DMS plant is expected to increase annual production at Tati from 14,500 to 22,000 tonnes of contained nickel in concentrate, reduce total cash operating costs and extend the life of mine by seven years to 2019.

Some workers fear that the employer harbours intentions of replacing the Activox technology with the DMS plant. 'Whilst about 200 BMR workers who manned the Activox demonstration plant can still be hired at the DMS plant, we fear that maybe not all of us will be absorbed,' lamented another source.

Workers believe that the technology will most likely be relocated to the headquarters in Russia. Similarly, Norilsk Nickel International has recently postponed the feasibility study for the Nkomati Activox project in South Africa.

Although there is no official position, some Tati Nickel miners feel strongly that whilst the Russians appreciate the Activox Refinery project as a new technology, they would not like to have it anywhere else outside Russia.

Tati Nickel mine Divisional Manager, Peter Meswele has refuted the possibility of the Activox technology being relocated to Russia indicating the test of ore concentrates from all over the world will continue at the demonstration plant.

On the possibility of job losses, he said that the mine would continue absorbing workers who manned the demonstration plant to other sections of the mine.

'If they are serving in other sections of the mine, it will be easy to recall them to the demonstration plant when there is a need to do so,' Meswele said.

Norilsk Nickel International is a majority shareholder at the Tati Nickel mine with Botswana government a minority shareholder through its 15 percent share.

Contacted for comment yesterday, Minister of Minerals, Energy and Water Resources, Ponatshego Kedikilwe, was in the dark about the possibility of the Activox technology relocating to Russia.

'As we speak, those people have only talked about the indefinite postponement of the Activox refinery and the utilisation of the Activox demonstration plant at Tati. We do not know anything about a possibility of relocating the Activox technology,' responded Kedikilwe.