FPX Nickel Scoping Study Outlines Development of World’s Largest Integrated Nickel Sulphate Operation for EV Battery Supply Chain at Baptiste Project in British Columbia
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FPX Nickel Scoping Study Outlines Development of World’s
Largest Integrated Nickel Sulphate Operation for EV Battery
Supply Chain at Baptiste Project in British Columbia
Vancouver, September 7, 2022 – FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF ) (“FPX” or the
“Company”) is pleased to announce the results of an internal engineering scoping study (“the Study”)
evaluating the production of nickel sulphate for the electric vehicle (“ EV”) battery supply chain from the
high-grade awaruite nickel concentrate to be produced by the Company’s Baptiste Nickel Project
(“Baptiste” or “the Project”) in central British Columbia. The Study highlights FPX’s potential to develop
the world’s largest integrated nickel sulphate production facility, linking the Company directly into the EV
battery supply chain via the production of low -cost, low-carbon nickel sulphate over Baptiste’s projected
35-year mine life.
Highlights
• Development of an integrated nickel operation at Baptiste producing approximately 43,500 tonnes
of nickel contained in nickel sulphate per annum, enough to fulfill approximately 17% of the
projected North American EV battery demand for nickel in 2030 (according to Goldman Sachs1)
• Study outlines conventional hydrometallurgical flowsheet for production of high -purity nickel
sulphate directly from Baptiste’s high grade awaruite nickel concentrate (60-65% nickel), without
the intermediate smelting typically required for sulphide concentrates or the extensive, aggressive
pressure oxidation conditions required for laterite ores and sulphide concentrates
• Anticipated capital costs for nickel sulphate production expected to be competitive with large-scale
refinery operation recently developed by Terrafame (Finland)
• Nickel sulphate production at Baptiste is expected to be more environmentall y sustainable than
traditional production methods for nickel sulphate, with reduced carbon intensity, fewer supply
chain participants, and synergies with an integrated site
“This scoping study demonstrates that Baptiste could become a globally significant producer of low -cost,
low-carbon nickel for electric vehicles for decades to come,” commented Martin Turenne, FPX’s President
and CEO. “Baptiste’s awaruite nickel mineraliza tion has clear technical advantages over sulphide and
laterite ores for producing nickel sulphate , offering a lower-cost, lower-carbon path from mine-to-market
in the EV battery supply chain . Given its extremely high nickel content (over 60% nickel) and low levels
of impurities, our high-grade nickel concentrate has distinct advantages over low -grade nickel sulphide
concentrates (under 20% nickel), and is already comparable to intermediate nickel sulphate feedstocks like
mixed hydroxide precipitate (“MHP”), mixed sulphide precipitate (“MSP”), or nickel matte.
“We look forward to continued engagement with downstream participants in the EV battery supply chain,
including chemical companies, battery makers and automotive OEMs, and expect to incorporate the results
of this internal scoping study into the next stage of formal project study for Baptiste, with a new National
Instrument 43-101 technical report anticipated in the first half of 2023.”
Awaruite – An Advantageous Nickel Feedstock
Nickel mineralization at Baptiste is primarily present in awaruite (Ni3Fe), a nickel-iron alloy composed of
75% nickel and 25% iron. In comparison to typical nickel sulphide concentrates, the Baptiste awaruite
nickel concentrate is notable for its extremely high nickel content and low level of sulphur and associated
impurities, as shown in Table 1.
Table 1 – Select Elemental and Mineral Content for Baptiste Nickel Concentrate and Typical
Nickel Sulphide Concentrates
Elements and Minerals Baptiste Awaruite
Nickel Concentrate
Nickel Sulphide
Concentrates
Nickel (Ni) 60-65% 8-21%
Iron (Fe) 30-32% 25-41%
Sulphur (S) 0.6% 14-31%
Cobalt (Co) 1% 0-1.2%
Copper (Cu) 0.5% 0-5.0%
Magnesium Oxide (MgO) 1% 4-10%
As described in the Company’s January 7, 2020 news release, successful pressure leach test work on
Baptiste’s awaruite nickel concentrate was undertaken by Sherritt Technologies (“Sherritt”). These tests
demonstrated awaruite has favourable leaching characteristics, with up to 99% nickel extraction under
moderate conditions and short treatment times. In addition, these tests demonstrated that the expected
pregnant leach solution will contain low levels of impurities , allowing the utilization of conventional
downstream unit operations for the production of nickel sulphate.
The favourable leaching characteristics of Baptiste’s awaruite nickel concentrate , relative to a nickel
sulphide concentrate, arises from the absence of sulphur in the awaruite mineral. While leaching of nickel
sulphide concentrates is industrially proven, as demonstrated by Vale’s Long Harbour refinery, they require
more aggressive leaching conditions owing to the inherently refractory nature of sulphide minerals. Further
to the simpler processing route , the significantly higher nickel grade of awaruite translates to a reduced
plant size for a given nickel output.
Engineering Study Evaluating Nickel Sulphate Production
Strategy and Basis
Upstream of EV battery manufacturers are chemical plants producing P -CAM (precursor cathode active
material) and CAM (cathode active material) for in clusion into the battery cathode cells. These chemical
plants require nickel feedstock to produce P -CAM and CAM , with a preference for nickel sulphate
specifically.
FPX engaged Ausenco Engineering Canada Ltd. (“Ausenco”) to complete an independent scoping study
evaluating upgrading the high-grade Baptiste awaruite nickel concentrate to nickel sulphate. The Study
evaluated options for producing nickel sulphate in either crystal form (Option 1) or solution form (Option
2), including an assessment of the various technical, economic and strategic considerations of each
alternative. Figure 1 below provides a conceptual product flow diagram for each Option’s integration into
the EV battery supply chain.
Figure 1 – Product Flow for Integration of FPX Nickel Concentrate in EV Battery Supply Chain
Option 1 entails the production of nickel sulphate crystals at a hydrometallurgical refinery to be located
either at the Baptiste site or a separate off-site location. The primary advantage of producing nickel sulphate
in crystal form (versus Option 2’s solution form) is the greater flexibility for servicing multiple downstream
users, which is a tangible consideration considering the significant potential annual production volume from
Baptiste (nominally 43,500 tonnes per year of nickel contained in approx imately 200,000 tonnes per year
of nickel sulphate crystal grading 22% nickel).
Option 2 is based on the transport of Baptiste concentrate to a refinery co-located with P-CAM and CAM
manufacturing facilities (and potentially downstream battery cell manufacturing and battery pack assembly
facilities). In this scenario, the refinery would produce a nickel sulphate solution, which would then be
directly fed to an adjacent chemical plant producing P-CAM and CAM. The primary advantage of Option
2 is the potential synergies of co-locating refining, P-CAM, and CAM facilities in a common location.
In addition to the production of nickel sulphate, the Study also evaluated the capture of cobalt units into a
cobalt intermediate product, representing a new by-product opportunity for the Project.
Processing Concept
The Study envisioned a processing concept with a conventional flowsheet , including unit operations of
leaching, purification, solvent extraction, and crystallization. The process envisioned in the Study is also
broadly comparable with the recently constructed Terrafame nickel refinery, which treats a mixed sulphide
precipitate (“MSP”) product, with nickel intermediates such as MSP having broadly comparable processing
requirements to Baptiste’s awaruite nickel concentrate, as presented in Table 2.
Table 2 – Comparison of Baptiste’s Awaruite Nickel Concentrate and Typical MSP Feedstock
Baptiste Awaruite
Nickel Concentrate
Typical MSP
Feedstock
Composition
Nickel (Ni)
Iron (Fe)
Sulphur (S)
Cobalt (Co)
Copper (Cu)
Magnesium Oxide (MgO)
60-65%
30-32%
0.6%
1.0%
0.5%
1%
55%
0.1-0.2%
33%
1-5%
<0.1%
<0.01%
Pressure Leaching Requirements:
Pressure (kpag)
Temperature (°C)
Residence Time (hours)
750
150
1.5
1,200-1,500
160-180
2.5
Pregnant Leach Solution:
Nickel (g/L)
Iron (g/L)
Free Sulphuric Acid (g/L)
60-70
2.0
10-25
80
0.5
20-30
Selection of the process design, equipment sizing and reagent quantities in the Study was based on a review
of previous testwork , internal databases, and benchmark ing against similarly -sized nickel sulphate
operations, including Terrafame’s refinery in Finland and BHP’s Kwinana refinery in Australia. The FPX
Study developed overall flowsheets, mass and energy balance s, key mechanical equipment list s, general
arrangement layouts, capital cost estimates, and operating cost estimates.
Figure 2 presents a comparison of the Study’s processing concept to the comparable Terrafame processing
concept, with key differences highlighted.
Figure 2 – Process Concepts – Baptiste and Terrafame Nickel Refineries
Key Results
Based on the Study’s process design, the production of nickel sulphate from Baptiste ’s awaruite nickel
concentrate is expected to achieve stage nickel recoveries of approximately 97%, resulting in the annual
production of approximately 43,500 tonnes of nickel in nickel sulphate in the form of either crystals (Option
1) or solution (Option 2). At this scale, Baptiste would significantly exceed the scale of the world’s current
largest nickel sulphate producers.
Further, t he proposed design is expected to yield cobalt recoveries from flotation concentrate of
approximately 95%, resulting in the annual production of approximately 650 tonnes of cobalt in either an
MSP or MHP product grading 40-50% Co. At this scale, Baptiste would become one of Canada’s five
largest cobalt operations, alongside nickel-cobalt mines operated by Glencore and Vale in central and
eastern Canada.
Based on preliminary estimates developed for the Study, it is expected that the capital costs of nickel
sulphate production at Baptiste will be competitive with the comparable Terrafame refinery in Finland,
which was commissioned in 2021 (see Table 3). Similarly, the Study’s operating cost estimate in well
aligned with other industry benchmarks.
Table 3 – Key Parameters for Recent and Planned Nickel Sulphate Refinery Operations
Baptiste Terrafame
Basis Independent scoping
study
Constructed
Location Canada Finland
Feedstock Awaruite concentrate
60-65% Ni
MSP
55% Ni
Production (tpa nickel contained in
nickel sulphate)
43,500 37,4002
Capital Cost (USD, millions) Internal Estimates $3333
Capital Intensity (USD / tpa nickel) Internal Estimates $8,900
Operating Cost (USD / lb nickel) Internal Estimates Not published
The production of (a) nickel sulphate and (b) cobalt MHP (or MSP) products are expected to generate high-
value alternatives for the utilization of Baptiste concentrate in the global EV battery supply chain. With
easy access to well established domestic and international shipping routes, the Baptiste products can be
readily integrated into the rapidly expanding EV production chain both within North America and abroad.
Comparison of Nickel Sulphate Feedstocks – Awaruite vs. Sulphides and Laterites
Typically, nickel sulphate is produced from intermediate or refined nickel products that have been subject
to multiple complex metallurgical processes. These intermediate nickel products are typically either
produced from sulphide or laterite nickel ores. The treatment process for Baptiste’s awaruite nickel
concentrate presents a simplified and lower risk route to producing large quantities of nickel sulphate.
Awaruite vs. Sulphide Ores
As compared to nickel sulphide concentrates, results from FPX’s testwork and the Study suggest Baptiste’s
awaruite nickel concentrate has significant technical advantages, as follows:
• Reduced Processing Requirements – the lack of sulphur and associated impurities eliminates the
need for intermediate smelting prior to downstream hydrometallurgical processing into nickel
sulphate (see Figure 3)
• Reduced Process Complexity – the efficient dissolution of Baptiste’s awaruite nickel concentrate
eliminates the need for intermediate smelting and/or complex leaching processes, such as ultra-fine
grinding, chlorine pre-leaching, chloride addition, or ammonia leaching
• Reduced Carbon Intensity – the extremely high nickel content of Baptiste nickel concentrate (60-
65% nickel) reduces the volume of concentrate for shipment by up to 85% in comparison with
nickel sulphide concentrates, which typically grade 10 -15% nickel , and the elimination of a
secondary refining stage (e.g., smelting) further reduces the carbon emissions associated with
transportation to multiple refining locations
Figure 3 – Simplified Processing Route for Nickel Sulphate Production
Awaruite vs. Laterite Ores
As compared to nickel laterite ores, results from FPX’s testwork and the Study suggest Baptiste’s awaruite
nickel concentrate has significant technical advantages, as follows:
• Process Complexity – the leaching characteristics of awaruite require significantly lower pressure
and temperature than high-pressure acid-leach (“HPAL”) processes (See Figures 4 and 5)
• Process Footprint – the extremely high nickel content of Baptiste concentrate (60-65%+ nickel)
tangibly reduces the volume of material subjected to pressure oxidation and leaching, significantly
reducing the footprint and cost of the hydrometallurgical facility
• Reduced Carbon Intensity – tangibly reduced process requirements for Baptiste concentrate fed
by British Columbia’s hydroelectric-based grid with demonstratively lower carbon intensity
Figure 4 – Operating Pressures for Autoclaves in the Nickel and Gold Industries
Figure 5 – Operating Temperatures for Autoclaves in the Nickel and Gold Industries
Based on FPX’s testwork and Study results, a refinery upgrading Baptiste’s awaruite nickel concentrate
would generate a low-carbon, low-cost, high-volume and high-purity nickel sulphate product for the EV
battery supply chain, with a favourable competitive position driven by:
• Single integrated facility to convert concentrate directly to nickel sulphate
• Low cost of feedstock for a refinery integrated with the Baptiste mine-and-mill operation, versus
higher-cost refined nickel feedstocks like nickel matte, MSP, MHP, powder, and briquettes
• High refinery recovery rates for both nickel and cobalt
0
1,000
2,000
3,000
4,000
5,000
FPX's
Awaruite
Conc.
MSP
(Terrafame)
Gold
POX
Laterite
HPAL
Autoclave Pressures (kPag)
100
150
200
250
300
FPX's
Awaruite
Conc.
MSP
(Terrafame)
Gold
POX
Laterite
HPAL
Autoclave Temperatures (°C)