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Section: CRUSU Industry News

Attempts to rein in smelter overcapacity

The Chinese government has issued a development plan for the country’s copper smelting industry covering the years 202527 which is looking to reduce the level of overcapacity in the sector. New copper smelters must now control sufficient copper mine supply via ownership or equity stakes to cover their production requirements, something few smelters do at present. Chinese smelter output has reached record levels, with treatment charges falling to historically low levels as producers compete for copper concentrate – China imports around 85% of its copper concentrate. Meanwhile more smelter capacity is planned, with around 1 million t/a of new capacity scheduled for 2025. The country aims to boost domestic copper mine resources by 5% to 10% in three years to secure raw material supply, according to the government plan. China will also encourage copper smelters to sign long-term purchase agreements with global miners, boost imports of copper blister and anode, and encourage scrap imports.

NextChem awarded refinery SRU improvement contract

Maire Group says that its NextChem (Sustainable Technology Solutions) subsidiary has been awarded a three-year contract by Saudi Aramco Total Refining and Petrochemical (SATORP) – a joint venture between Saudi Aramco and TotalEnergies – to provide engineering and technology services related to the sulphur recovery complex of SATORP’s refinery in Jubail, Saudi Arabia. NextChem will provide process and engineering advisory services to enhance performance, support operational troubleshooting, and improve energy efficiency and the carbon footprint of the three units (sulphur recovery unit, amine regeneration unit and sour water stripper) which comprise the sulphur recovery complex. The services will also include recommendations for capital investment opportunities, design enhancements, and technology improvements.

Nickel Asia sells its stake in Coral Bay

Nickel Asia Corp. (NAC) says that it has completed the sale of its 15.6% stake in Coral Bay Nickel Corp. to its Japanese partner Sumitomo Metal Mining. Nickel Asia says that the sale has been due to “unfavourable market conditions” for the high pressure acid leach (HPAL) nickel processing plant. Although Coral Bay is regarded as one of the most efficient HPAL units in the world, nickel prices have been extremely volatile over the past few years and stood a 4-year lows in January at around 15,000/t, their lowest level since September 2020. Nickel Asia still owns a 10% stake in the Taganito HPAL Nickel Corp.

Gas treatment plant for Basra

TotalEnergies and its partners Basra Oil Company and QatarEnergy have begun construction works at ArtawiGas25, a processing facility for the associated gas from the Ratawi field, located in the Basra region. The facility, part of the Gas Growth Integrated Project (GGIP), represents an investment of around $250 million and will process 50 million scf/d of gas which would previously have been flared. The gas will supply local power plants, covering the demand of approximately 200,000 households in the Basra region. The GGIP project is a $10 billion project designed to enhance the development of Iraq’s natural resources and improve the country’s electricity supply. It includes a large-scale gas processing plant, with a first phase of 300 million scf/d that will recover gas being flared on three oil fields and supply gas to 1.5 GW of power generation capacity.

TotalEnergies to decarbonise its refineries in Northern Europe

TotalEnergies has signed agreements with Air Liquide to develop two projects in the Netherlands for the production and delivery of some 45,000 t/a of green hydrogen produced using renewable power, generated mostly by the OranjeWind offshore wind farm, developed by TotalEnergies (50%) and RWE (50%). These projects will cut CO2 emissions from TotalEnergies’ refineries in Belgium and the Netherlands by up to 450,000 t/a and contribute to the European renewable energy targets in transport.

Attack on sour gas plant

Russian media reports suggest that a large scale Ukrainian drone strike on February 3rd attacked a number of oil and gas processing facilities, including Gazprom’s Astrakhan Gas Processing Plant. Video of the site showing fires burning were posted to social media. Astrakhan is one of the largest sulphur producing sites in Russia, with an output of around 3.5 million t/a in 2024. The Moscow Times reported that production had been shut down at the site, and would likely remain so for “several months”.

Sulphuric Acid News Roundup

Chile’s environmental regulator SMA has filed a charge against state-owned Codelco, alleging emission violations at its Potrerillos copper smelter in the Atacama region of northern Chile. An audit showed the company had not implemented a monitoring system for sulphur dioxide emissions and other procedures in accordance with environmental standards for the plant, Reuters news agency reported. The SMA labelled the charge as serious, which could lead to a fine of around $4.1 million, and possible revocation of the environmental permit or closure. Codelco had ten days to submit a compliance plan, and 15 days to present a defence.