[Ferro-Alloys.com] In its second-quarter production report released last week, Vale said that VNC is expected to resume operations in the fourth quarter of 2012. An investigation of the acid plant concluded that a technical defect caused a water leak inside the plant, which diluted the acid and caused some corrosion.

 

The acid plant issues are not related to the high pressure acid leaching technology (HPAL), Vale said. For years, analysts have been questioning whether the HPAL system at New Caledonia is viable. Vale said that the HPAL technology’s feasibility has been “proven by the production of 1,100 mt of nickel oxide” in the first quarter of 2012.

 

Vale said it is planning repairs to the acid plant and all equipment. The solvent extraction circuit will be ready to operate by the fourth quarter and VNC will produce nickel hydroxide cake, cobalt and nickel oxide. VNC produced 2,000 mt of nickel in the second quarter, 4,000 mt in the first half and no output in third quarter.

 

Vale also experienced production problems at Onca Puma, which stopped operating at the end of the second quarter due to the run-out of furnace #1 on May 28 and furnace #2 on June 22. Vale is still assessing the extent of the repairs needed, but initial indications suggest that both furnaces will be out of operation during the next few months. Onca Puma produced 2,000 mt in the second quarter and 6,000 mt in the first half.

 

Vale’s total nickel production in the second quarter was 61,000 mt, which increased 8.4% (y.o.y), but decreased 3.6% than the first quarter’s 63,000 mt.