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MEI Online: Commodities: Metallic Ores: Nickel: Latest News: May 14th 2008


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:: Contract Award from Southern Urals Nickel for DC Furnace Technology

Bateman Engineering is pleased to announce the award of a US$31 million contract to its subsidiary, Bateman International Projects B.V, from Southern Urals Nickel Plant OAO (“Southern Urals Nickel”), a subsidiary of Mechel OAO, for the design and supply of a 12 MW DC furnace. The furnace will be erected at Southern Urals Nickel’s existing facility in the city of Orsk, Orenburg Region, Russian Federation.

The contract will be undertaken on a fixed price and against a defined scope of work for small-scale industrial furnace complex equipment for the production of ferronickel and will include the provision of a basic engineering package for the entire process plant and detailed design and supply of the core technology equipment for the 12 MW DC furnace. Work is expected to commence shortly and the project is due to be completed by the end of 2009.

Southern Urals Nickel has embarked on a recapitalisation and expansion programme for its nickel operations in order to boost production and create operational efficiencies. The 12 MW furnace is the first phase in this programme whereby, in addition to producing a saleable product, it will be used to assess the commercial viability of a significantly larger project.

The 12 MW plant will be designed in accordance with the latest proven technology in the field of ferro smelting and environmental protection. The technology has been designed employing a holistic process approach to achieve low operating costs and high recoveries with high levels of reliability.

Commenting on the award, Eddie Du Rand, Deputy Chief Executive Officer of Bateman Engineering, said:

"Bateman Engineering has for several years promoted and marketed DC arc furnace technology developed at the South African Council for Mineral Technology (Mintek) for smelting of ferronickel and other related ferroalloys. This contract award vindicates our confidence in the technology and confirms the potential for its application in the Russian Federation and adjacent countries such as Kazakhstan and Ukraine.




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