“We look at outputs that are considered waste by an industry and take a holistic approach which takes into consideration all the elements in the waste… Mr. Michael Shenton, CEO, Prima Resources, WA

AlCircle is a platform that strives to promote the advancement of use of aluminium as a sustainable material of choice. In that direction, we would like to highlight not only the established players of the industry who are contributing successfully towards the growth of the industry but also those individuals, companies and associations that are working positively towards sustainability for aluminium industry and making worthwhile contribution towards recycling, waste management and energy management in the R&D and industrial sector.

So, we spoke to Mr. Michael Shenton, CEO, Prima Resources, Mineral & Energy Ltd. in West Australia. Prima Resources is a Minerals, and Energy Company with a number of Mining Projects around WA. The company has also been involved with the project management, engineering design, and drafting for a number of clients on major resource projects. Prima Resources strongly believes in Waste to Wealth policy and is currently working on a number of projects that deal with alternative energy sources and Bauxite Residue Reclamation.

Mr. Michael Shenton is attending the IBAAS Conference in Vizag and is also presenting a paper on the Next Generation Bauxite Alumina Industry.

Excerpts from the interview:

AlCircle: Please tell us in brief about the current Bauxite Mining situation in Australia?

Mr. Shenton: Australia is the largest producer of bauxite in the world accounting for about one-third of global output. Bauxite production in Australia is estimated to reach 85.0 million tonnes by the end of 2014. Prima Resources have their business activities spread within West Australia and keeping things within my knowledge I can comment on the situation in WA. The major bauxite deposits in Western Australia (WA) are located in the Darling Range, the Mitchell Plateau and at Cape Bougainville, of which the latter two have not been developed. There are Four Alumina Refineries in WA the average alumina production being 3.0 MT/Y per Refinery. The average cost of production should be AUD $230 per Tonne and the Annual Profit should be AUD$100 per Tonne if managed efficiently. There are a few companies looking at Bauxite Mines or Alumina Projects in WA including Bauxite Resources Limited running a Bauxite Mine and an Alumina Refinery and AMMG working on a HPA Project for Bauxite Clays.

AlCircle: Australia is one of the top bauxite producing countries in the world (30% of the world total). However, it mostly exports the bauxite it mines to other aluminium producing countries. What is the reason behind such low aluminium production in a country despite having plenty of bauxite reserve?

Mr. Shenton: I am not an expert on the Alumina Business; however, having worked in the Alumina Industry since 1981, I have developed certain understanding of the industry situation in Australia. Some of the Major Aluminium Producers from other countries had set up Alumina Refineries in WA in the 1970’s to provide their own Aluminium Smelters with Alumina. It proves counterproductive for these external companies to develop smelters in Australia unless they shut down the Aluminium Smelters in their own countries. This may also be because of the reason that these major companies prefer to develop lower cost aluminum smelters in developing countries or countries with lower wages and energy costs rather than in Australia. During the period between 1970’s to 2000’s, WA had the lowest Cost/Tonne production of Alumina in the world. Due to shifting world economics this is no longer the case at present times. In my view, Australia has to be very innovative about managing its Alumina business and improving its business drivers substantially.

AlCircle: Coming back to your company, what are the main projects that you are working on at present?

Mr. Shenton: Prima Resources Pty Ltd is a Minerals & Energy Company specifically targeting Mining and Alumina Refinery Business Optimization. The company also investigates current operations of running projects and suggests innovative improvements to increase profitability.

We have recently announced The BMMF- Manjimup Project, a 1.0 MT/Yr Bauxite Mine & Metals Facility at Manjimup. The project intends to produce Aluminium, Iron and Titanium from the Bauxite Ore, and is in the Pre-Feasibility Stage. It has already secured an exploration licence for 90 Sq Kms. at Manjimup. The company is exploring funding options and a suitable JV Partner to proceed with the project.

Another project that we are keenly involved with is the Bauxite Residue Reclamation Project at Gove Alumina, the alumina refinery that has been closed down by Rio Tinto. We hope to start operation in two phases:
Phase 1 : 1.0 Mt/Yr Iron Oxide Extraction Plant
Phase 2 : 1.0 Mt/Yr Iron/Aluminium/Titanium Metals Extraction Plant

The third project which is in the Early development Stage is Coal to Syncrude/ Liquid Fuels - Collie Project. We are planning to develop a New Coal Mine – Collie and convert coal to Syncrude, Diesel & Gas.

AlCircle: Can you tell us in brief about the Bauxite Residue Smelter Gove Alumina project? We know that Rio has closed down its doors at Gove and are very keen to know how Prime Resources is going to work on the Bauxite residue at Gove.

Mr. Shenton: Prima spent 12 months in extensive discussions with Alcoa, BHP Billiton and Rio Tinto regarding the red mud residue at the closed Gove alumina refinery. All three companies confirmed they had no interest in being involved in a project to develop the technology or extract the metals from the Bauxite Residue Ponds. After much consideration, Prima decided to proceed with its own project at Manjimup to develop and prove the Technology using Bauxite Ore.

We have recently met with Nhulunby Indigenous Leaders/Company to discuss the impact of the town, economy, and unemployment due to Gove Alumina closing. It was agreed that an Indigenous JV Partnership / Company will be set up with Prima to request Rio Tinto hand back the Bauxite Residue Ponds and the Alumina Refinery to Local Indigenous Ownership.

This will enable the Indigenous Community to remove the potentially hazardous waste of the Bauxite Residue Ponds from their land while at the same time developing very significant cashflows and employment for the Local Community of Nhulunbuy.

This will be a first in many ways, we believe this will be the first Minesite owned, managed, and operated, by an Indigenous Company; this will also be the first in Australia to reclaim the Bauxite Residue and process all the material within the Bauxite/Alumina/Bauxite Residue processes in Australia.

AlCircle: Can you tell us in brief about the future prospect of Prima Resources in Australia?

Mr. Shenton: We look at a situation and try to find food for thought. We try to find a solution by thinking “there must be a better way”. Finding a better way, this is what we do.

In Australia, Prima is focusing on resources that are considered of No-Value and then creating something of Great Value. We look at outputs that are considered waste by an industry and take a holistic approach which takes into consideration all the elements in the waste instead of just trying to extract one element. The company will focus initially on:

• Processing Bauxite Residue / Tailings Ponds
• Alumina Refinery Optimisation
• Coal Technologies which enhance the Value of the Coal
• Environmental Business Solutions – eliminate waste while at the same time adding Value • Looking for Technology Partners with Smart Solutions ( Outotec, Weizmann Institute, Genesis Resource Technology )
• Investigate Technology in all Industries and then apply the latest efficient technology across a number of non-related industries.
These would include Mining/Bauxite/Alumina/Aluminium /Iron/Titanium/Coal/Oil & Gas

Prima is interested in any JV Partnership that provides employment for local people while at the same time uses Environmentally Responsible Technology leaving no waste products. Prima recognizes the importance of families and local communities, and both the Manjimup Project and the Gove Project are specifically targeting areas of low employment.

Disclaimer: “The information presented herein is neither intended nor implied to be a substitute for professional advice. The views and opinions shared in the interview section of www.alcircle.com are unique to the interviewees and do not necessarily reflect the viewpoint of www.alcircle.com.”