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Sulphuric Acid on the WebTM Technical Manual DKL Engineering, Inc.

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Acid Plant Database  June 8, 2015

Owner Minera y Metalurgica del Boleo S.A.

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Location Carretera Transpeninsular No. 1
Km. 5.5 al Norte de Santa Rosalía
Santa Rosalía
, BCS 23920
Mexico
Background Company is controlled by Baja Mining Corporation
Website www.bajamining.com
www.mmboleo.com
Plant El Boleo
Sulphuric Acid Liquid SO2
Coordinates* 27° 22' 5" N, 112° 17' 50" W -
Type of Plant Sulphur Burning  
Gas Source Sulphur Sulphur Burning Acid Plant
Plant Capacity 2400 MTPD 300 MTPD
SA/DA DA -
Status Operating Operating
Year Built 2014 2015
Technology MECS, Inc. Noram Engineers and Constructors
Contractor SNC Lavalin Engineers and Constructors -
Remarks HRS and Turbogenerator

Reported Capital Cost: $120 million

Pictures      
General The Acid Plant and Power Cogeneration (cogen) Plant are both critical path items in the construction schedule. Accordingly, to ensure their timely availability in 2009, the Company has placed the order for a 46 megawatt turbine and generator (TG) set which has been identified as the single longest lead item. The cost of this TG package is approximately US$10 million. Delivery is expected in 18-22 months. The Cogen Plant is an integral part of the acid plant and utilizes heat recovered from the burning of sulphur to generate power. When fully operational, it is anticipated that this facility will provide almost all of the power required for the mine and process plant. In addition, the Company has issued a “Letter of Award and Limited Authorization to Proceed” to SNC-Lavalin Engineers & Constructors Inc. for basic engineering and procurement services for the 2400 tonnes per day acid plant, complete with heat recovery system and the 46 MW turbo generator package. The parties are currently working on concluding a definitive agreement for all services; however work has commenced based on the award.
References -
News January 26, 2015 - Minera y Metalurgica del Boleo (MMB) obtains its first copper production from the process of crushing, leaching, extracting and electrowinning in its mine-metallurgic project “El Boleo”.  The company is leaded by a group of Korean companies headed by Korean Resources Corporation (KORES) with a 90% of ownership with Baja Mining retained the 10% of the ownership.  MMB is very happy and proud to obtain this first copper production”. “El Boleo” is the effort of hard work for over 4 years; since they received the funding financing in 2010 for starting the construction of the process plant and finished at the end of the last year; in 2012, MMB change its management, the Korean Consortium increasing its participation on the company and by September 2014, Minera y Metalúrgica del Boleo suffers a tragic blow, two Korean Directors died during the hurricane “Odile”; after all this difficulties, they finally achieve the most important milestone of the Company, its first copper.  A major highlight of this project was the investment of around of $2.0 billion dollars; which has never occurred for any unitary company, for the creation of a new mining operation in the Baja California Sur state.  The annual production capacity of copper is 51,000 tons of copper cathodes with a 99.99% of purity, of metallic cobalt is estimated in 1,700 tons per year and zinc sulphate is around 25,000 tons each twelve months. Due this production volume, “El Boleo” project will place again Santa Rosalia as a mining town, Baja California Sur as the second copper producer at national level and as a first metallic cobalt producer in Mexico. The minimum lifetime of the mine is estimated in 22 years.  MMB has already a production estimation for this 2015; it is considered the production of 24,000 tons of copper, 8,000 tons of zinc sulphate and 600 tons of metallic cobalt. “El Boleo” is a water and energy self-sufficient project, since they produce their fresh water through desalinate plants and in the energetic aspect they produce their own energy through motors generators and a steam turbine, so, they will not affect the resources designated for the population.  MMB nowadays develop more than 1,000 direct jobs, being the 65% natives of Santa Rosalía. It is important to remark, that MMB has high responsibility levels in the care of the environment and the company have been characterized by develop high standards in the carefulness of our economic, environmental and social surroundings.


November 23, 2010
- Baja Mining Corp. ("Baja") is pleased to announce that its Boleo Project is now fully funded for construction following Baja’s recently completed US$858 Million project financing and C$184 Million bought deal financing.  “After signing the US$858 Million project financing facilities on September 28, 2010, the final component required to complete this milestone financing was the equity raise of C$184 Million” said John Greenslade, President & CEO, “Today, with over US$1 Billion raised, we are fully funded and ready to move the Boleo Project to the construction phase with the goal of reaching copper production in 2013”.  Michael Shaw, Chief Operating Officer, stated, “We are a ‘shovel ready’ project with mass earthworks ready to start within a month. Our most significant long lead equipment has been fabricated or is in an advanced state of fabrication. We have released our EPCM contractor and construction activities are recommencing at site”.

September 29, 2010 - Baja Mining Corp. (“Baja”) is pleased to announce that its 70% owned project company, Minera y Metalurgica del Boleo S.A. de C.V. (“MMB”), has finalized and signed US$858 million of financing facilities for the construction and development of the Boleo project (the “Project”) located in Baja California Sur, Mexico. The financing facilities comprise US$823 million of project financing facilities (the “Debt Facilities”) and a US$35 million equity cost overrun support facility (the “Equity Cost Overrun Agreement”).  “The closing of the Boleo debt financing and the cost overrun funding are major milestones for Baja and for the mining industry in Mexico,” said John Greenslade, President & CEO. “The closing of these facilities is a testament to the compelling economics of the project and to the strong effort of our team. It also means full-scale construction activities at Boleo can commence imminently.” Tom Ogryzlo, Chair of the Board, stated, “being associated with the creation of the Boleo project has been one of the most memorable events of my long career in the mining industry. I am very proud to be working with such an outstanding management team.”   The US$823 million of Debt Facilities, representing the entire amount of debt financing required to develop the Project, will be provided to MMB by the Export-Import Bank of the United States (“EXIM”); Export Development Canada (“EDC”); the Korea Development Bank (“KDB”); and by a group of commercial banks comprised of Barclays Capital (the investment banking division of Barclays Bank PLC), Standard Bank Plc, Standard Chartered Bank, UniCredit Bank AG and WestLB AG (together, the “Commercial Lenders”).

February 3, 2009 - Following the previously announced slowdown in Project construction the Company has been devoting significant time to progressing detailed engineering. Work also continues at Boleo to complete certain infrastructure on site, such as the phase 1 construction camp and desalination plant. The Company has also commenced a capital and operating cost review, as it believes that one positive outcome of the global financial crisis and the related easing of the construction market, is the potential for a reduction in capital and operating costs in the near term. The slowing of the original construction schedule now enables the Company to take advantage of the reduced cost environment. The re-costing estimate is being undertaken in Vancouver together with the assistance of Baja's Korean partners.
The Company has been working closely with its suppliers and contractors to defer commitments.  Baja and its Korean partners are working together closely to develop a new Project schedule that will incorporate new cost estimates and expected timing of full re-engagement in Project construction.

October 29, 2008 - Baja Mining advises that due to the current global financial crisis, it has elected to delay construction activities at the Boleo Project, Mexico.  While project economics remain robust even at low metal prices, the impact of the current financial crisis on short term metal prices and hedging prices, coupled with an effective shutdown of the global bank syndication and equity markets, require Baja to revise its constuction schedule.  On going baselining and engineering activities at Boleo will continue, as will completion of the Boleo construction camp and certain other on-site infrastructure activities.  However, other activities at Boleo will be suspended until market conditions improve.

MTPD - Metric Tonne per Day
MTPA - Metric Tonne per Annum
SA - Single Absorption
DA - Double Absorption
 

* Coordinates can be used to locate plant on Google Earth