WMC SO₂ reduction decision imminent

16 January 1995 00:00  [Source: ACN]

WESTERN Mining Corp has confirmed that a decision is imminent on whether it will build a sulphuric acid plant at its nickel smelter at Kalgoorlie, Western Australia, as part of its aim to reduce sulphur dioxide emissions there.

The potential for such a plant was noted in the recent report completed for the WA government on untapped chemical investment opportunities (ACN 21 Nov p12).

Construction of a sulphuric acid plant, at an estimated cost of Aus$100m (US$77.5m) is one of three options still under consideration to enable WMC to meet its emissions targets. The second is gas scrubbing, which would result in a gypsum byproduct for which market possibilities are few.

The third would produce elemental sulphur and carbon dioxide.

WMC enjoys a suspension in the reduction of its SO₂ emission limits, which have been frozen at the 1993 level for two years. It must, however, comply with stricter SO₂ emission standards by February 1996.

If the company chooses the sulphuric acid option, which appears to be the most likely at this stage, product would be sold by contract in the market.

The WA market for sulphuric acid is dominated by its use in the manufacture of super-phosphate fertiliser. Wesfarmers CSBP is the state's only manufacturer. CSBP imports the required sulphur, supplemented by supplies from a BP refinery, to produce the acid at four sites in WA, the majority at Kwinana.

Other options for using sulphuric acid do exist, points out chemical consultancy Acted. These include use in the manufacture of phosphate fertiliser using phosphate rock reserves at Mt Weld, held by CSBP, or in the manufacture of titanium dioxide by the sulphate route.

In a separate project WMC is considering developing its 1500m tonne phosphate rock deposits near Mt Isa, Northwest Queensland, to produce high analysis fertilisers.

It has around 30% of the Australian market for these slow-dissolving, prill fertilisers through its import business, operated through Hi-Fert Pty.

The project is dependent on an economic supply of natural gas, but may go ahead this year ACN understands.

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