IC 8116 Economic Analysis Of The Production Of Ferronickel And Steel From Philippine Nickeliferous Ores ? Summary

Philippine laterite and serpentine ores can be utilized in an electric furnace operation to produce both a steel ingot and a ferronickel product. Figure 1 is a schematic interpretation of a plant in which laterite and serpentine ores are processed separately to obtain both ferronickel and steel as products. A relationship of estimated capital requirements and probable returns has been established in this study for a plant of this type. No attempt has been made to evaluate the risks involved in commercial operations. At such time that the project might be constructed and placed in operation, changes in the costs of material, labor, and power may materially affect the profitability aspects of this study. One of the uncertainties involved in the economic evaluation is the cost of mining, handling, and shipping the ores. It is on this basis that the cost of ore delivered at the plant is assumed to be variable at $3, $5, and $7 per net ton (dry basis). For all other costs a plant site at Iligan City, Philip-pine Islands, has been assumed in preparing the economic characteristics for a plant that will process 2,000 tons4/ of ore per day. Results of the study, for the 2,000-ton plant, with all monetary values expressed in terms of United States currency (Philippine peso valued at $0.50), are summarized as follows: