TN295 Mk^k--: m :'fe m.' Ill wm9' ';i': '■ ,'.>'<,■'''. ■:''('':f|i 1; liV' ,. F i:;!(!'v: iVl'i-l'Ki'i |iii|v||;: ■', ,■>■'-!;-■'■ ,, ^^Hb'I i ''1)1, illitlf.^y'ii' 'ii''' ;■;!,; ■;-V,::;-:i, '■■; '■;■;';.'" ;i';'; ^^^^^^^^wii'''tl}['^ '''''''' '' ' V;irv' ' !■ ^^^^^^^^^^H ' 1 1 H r'.' 1 ,' ' ' ' tiiriv!--' •;,,:;; ^gif,;!-'' ■v^'- ■. ...'!:'■•" ill i> ^-c oV/MW* >V^ ■^^ .rails* a'? ^^ -;S'^\./^^^^fe' "^ /V^"\ ^'^^^''\ /^^'^"\ ^ '^^-^ <^' < '^^/^rrr-^- ^'?-' '5> .o"-^ <{.. *° ^-^ .^'B^ -^^ .-o, -^ V'^^.^J.:^-* /^Ci^ .0 .. ^^•i^ .<^^ cO""* ^ ^°-^^^ .^ ,1^ » *^ "*. .A. .-^^^ 0^^ \''f>.^'A^ V^^\0^ \-.^\'V %-*^:Tf^\G^' '^'' 6 <"">* '*<>'. <• . N ^^0^ 4 o^ "^^ V .^L'A^-^ c> .\. rP*..- '^% -^o. 'bV" ./X '^ 5.* i-^^vt. « V .^^\^;»^^% ./.v¥/;^%. .^^\^^^*^V .^^.^-^'-^^ "vo^^^ ^^-v. ^\ ^ -^^^^^ ^^^, :* . '^'' ""^ . -.^^.^ ./ '^U. < ^ *"^* . /.c:^% 0 3^ 4 ex 5 \^ .^^--^^ V ^^:^^-/ %^^^\^^' %'^^*/ \^?tf:.V %'^^%°'' \' '^^''\ ^'' / "^^^ %^^^\^.* , ^^ ^^ ■'■°"° \ .'^--^^-^ /«-^i-\ .'°':^a.'> y«-^&'\ cov----*^ > *-,..* i^- \/ .•^', %,♦* .-m-v \/ ■ /J.* ** •; .«"=- '.' 3>^ "V A ■" * O « O » IJ,^ "^ ^j^. A Bureau of Mines Information Circular/1986 Availability of Elemental Sulfur and Pyrite Concentrate— IVIarket Economy Countries A Minerals Availability Appraisal By D. A. Buckingham UNITED STATES DEPARTMENT OF THE INTERIOR Information Circular 9106 w Availability of Elemental Sulfur and Pyrite Concentrate— Market Economy Countries A Minerals Availability Appraisal By D. A. Buckingham UNITED STATES DEPARTMENT OF THE INTERIOR Donald Paul Hodel, Secretary BUREAU OF MINES Robert 0. Norton, Director As the Nation's principal conservation agency, the Department of the Interior has responsibihty for most of our nationally owned public lands and natural resources. This includes fostering the wisest use of our land and water resources, protecting our fish and wildlife, preserving the environment and cultural values of our national parks and historical places, and providing for the enjoyment of life through outdoor recreation. The Department assesses our energy and mineral resources and works to assure that their development is in the best interests of all our people. The Department also has a major responsibility for American Indian reservation communities and for people who live in island territories under U.S. administration. Library of Congress Cataloging-in-Publication Data Buckingham, D. A. (David A.) Availability of elemental sulfur and pyrite concentrate— market economy countries. (Information circular ; 9106) Bibliography: p. 16 Supt. of Docs, no.: I 28.27:9106 1. Sulphur industry. 2. Sulphur mines and mining. 3. Pyrites. I. Title. II. Series: Infor- mation circular (United States. Bureau of Mines) ; 9106. TN295.U4 [HD9585.S82] 622 8(338.27668] 86-600186 Ill PREFACE The Bureau of Mines is assessing the worldwide availability of selected minerals of economic significance, most of which are also critical minerals. The Bureau iden- tifies, collects, compiles, and evaluates information on producing, developing, and ex- plored deposits, and on mineral processing plants worldwide. Objectives are to classify both domestic and foreign resources, to identify by cost evaluation those demonstrated resources that are reserves, and to prepare analyses of mineral availability. This report is one of a continuing series of reports that analyze the availability of minerals from domestic and foreign sources. Questions about, or comments on, these reports should be addressed to Chief, Division of Minerals Availability, Bvu-eau of Mines, 2401 E St., NW., Washington, DC 20241. CONTENTS Page Preface iii Abstract 1 Introduction 2 Commodity overview 3 Production 4 Consumption 4 Commodity prices 4 Methodology 6 Cost estimation 7 Economic analysis 7 Availability curves 7 Geology 7 Native sulfur deposits 8 Pyrite deposits g Sulfur resources 9 Extraction and processing technology 11 Capital and operating costs 11 Capital costs 12 Operating costs 12 Elemental sulfur 12 Pyrite concentrate 12 Elemental sulfur and pyrite concentrate 13 Elemental sulfur availability 13 Pyrite concentrate availability 14 Conclusion 16 References I6 ILLUSTRATIONS TABLES Page 1. Estimated distribution of world production of all forms of sulfur by source, 1984 4 2. Sulfur-H2S04 supply and end-use relationship 5 3. Minerals Availability program deposit evaluation procedure 6 4. Location of elemental sulfur and pyrite concentrate operations 8 5. Mineral resource classification categories 10 6. Comparison of world sulfur resource estimates 10 7. Section through a typical Frasch sulfur production well 11 8. Total availability of elemental sulfur 13 9. Total annual elemental sulfur availability from producing operations 14 10. Total annual elemental sulfur availability from temporarily closed operations 14 11. Total availability of pyrite concentrate 14 12. Annual availability of total primary and coproduct pyrite concentrate 15 Page 1. Evaluated properties, status, mining and beneficiation methods, and sulfur products recovered 3 2. Estimated 1984 world sulfur production in all forms, by country and source 4 3. Elemental sulfur market prices, f.o.b. mine or plant 6 4. Pyrite concentrate and commodity market prices 6 5. Estimated world sulfur resources, by deposit type 9 6. Estimated resources of elemental sulfur and pyrite concentrate 10 7. Estimated average capital cost investments for elemental sulfur and pyrite concentrate operations 12 8. Summary of estimated operating costs, elemental sulfur operations 12 9. Summary of estimated operating costs, pyrite concentrate operations 13 10. Estimated total elemental sulfur availability 13 11. Estimated total pyrite concentrate availability 14 12. Comparison of total potential pyrite concentrate availability, by country 15 VI UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT °c degree Celsius Mmt/yr million metric tons per year km kilometer pet percent lb pound tr oz troy ounce mt metric ton US$/mt U.S. dollar per metric ton Mmt million metric tons yr year AVAILABILITY OF ELEMENTAL SULFUR AND PYRITE CONCENTRATE- MARKET ECONOMY COUNTRIES A Minerals Availability Appraisal By D. A. Buckingham^ ABSTRACT Engineering and economic evaluations were performed by the Bureau of Mines on 14 Frasch sulfur, 1 native sulfur, and 21 metal sulfide operations in 11 market economy countries. The evaluation included discounted-cash-flow rate-of-retum economic analyses at 15 pet to determine the average total cost of production of these two com- modities and the potential availability of elemental sulfur (S) and pyrite concentrate. The Bureau evaluated the potential availability of elemental sulfur and pyrite con- centrate. Approximately 279 million metric tons (Mmt) of pyrite concentrate at 46 pet S is potentially recoverable from 422 Mmt of in situ metal sulfide ore. Nearly 89 pet of the total pyrite concentrate is available at an average total cost of production below the January 1984 pyrite concentrate market price ($43/mt). About 185 Mmt S is potentially recoverable from 253 Mmt of in situ elemental sulfur. About 99 pet of this sulfur is available at an average total cost of production below its January 1984 market price ($131/mt). 'Geologist, Minerals Availability Field Office, Bureau of Mines, Denver, CO. INTRODUCTION This Bureau of Mines report evaluates the availability of elemental sulfur and pyrite concentrate from market economy countries (MEC's). Some coproduct pyrite concen- trate is evaluated here because it is recovered, for its sulfur content, along with other metal concentrates. Secondary sulfur, such as recovered elemental sulfur from the desulfurization of sour natural gas, petroleum, and tar sands, and byproduct sulfuric acid (H2SO4) from conversion of roaster and smelter off gases, is not included. Byproduct pyrite concentrates are not included since they are generally considered waste and are not recovered for their sulfur con- tent. Recovery of secondary sulfur sources is nondiscre- tionary and cannot be adjusted to sulfur demand, since pro- duction from secondary sources is based on market re- quirements for low sulfur or sulfur-free products, or on removal of sulfur and its compounds for environmental reasons. This report is part of a continuing series of reports in which the availability of selected mineral resources from domestic and foreign sources and factors affecting their availability are analyzed. The purpose of the analysis is to quantify engineering, economic, and resource parameters that would affect this availability. Table 1 lists the 21 pyrite concentrate properties and 15 elemental sulfur properties included in this analysis. Jacobs Engineering Group, Inc., obtained information on 21 foreign properties under Bureau contract J0225020. Domestic deposit information was provided by personnel at the Bureau's Intermountain Field Operations Center, Denver, CO. Elemental sulfur and pyrite resources located in the Soviet Union, China, and other centrally planned economy countries (CPEC's)^ were not analyzed in this study. Production cost estimates could not be supported because of the difficulty in collecting quantitative resource information. This study consoUdates past work and recent information from nimierous sources as of January 1984. For each prop- erty demonstrated resources and commodity grades were defined, capital investments and operating costs for the ap- propriate mining and beneficiation methods were estimated, transportation costs to the nearest market were assessed, and an economic evaluation was performed. The analysis was performed in terms of January 1984 U.S. dollars. Individual property evalutions were aggregated in- to availability curves and tables to show potential elemental sulfur and pyrite concentrate availabilities at various average total costs of production. Selection of properties is limited to known operations that have significant demonstrated resources of native sulfur or pyrite ore that can be mined using existing technology. The objective was to analyze the availability of at least 85 pet of known MEC resources from producing, past producing, developing, and explored deposits. ^ CPEC's: Centrally planned economy countries comprise the following: Albania, Bulgaria, China, Cuba, Czechoslovakia, the German Democratic Republic, Hungary, Kampuchea, the Republic of North Korea, Laos, Mongolia, Poland, Romania, the U.S.S.R., and Vietnam. TABLE 1.— Evaluated properties, status, mining and benefication methods, and sulfur products recovered Property Production status' Mining method Beneficlation method Sulfur product' Map reference' Cyprus: Kambia (Kampia) Mathiatis Sha (Shia) Iraq: Mishraq Italy: Campiano Fenice Capanne Niccloleta Japan: Hanaoka Kosaka Shakanal Toyoha Yanahara Mexico: Coachapa Jaltipan Texistepec Norway: Grong Gruber . . . Sulitjeima Portugal: Aljustrei Lousai Spain: Herrerias La Zarza-Calanas Tharsis Sweden: Kristlneberg Langsele-Udden Turkey: Asikoy' Keciborlu United States: Louisiana: Caillou Island* — Caminada Garden Island Bay Grand Isle Texas: Boling Dome . . . . Comanche Creek Culberson Fort Stockton' . . . Long Point Phillips Ranch . . . P NP NP P P NP P P NP NP Open pit ..do.... ..do.... Frasch . . Room and pillar . . . do Sublevel stoping Flotation ..do.... ..do.... Filtration Sizing . . Flotation Sizing . . Horizontal cut and fill ..do ..do ..do Sublevel stoping Flotation ..do.... ..do.... ..do.... Sizing . . Frasch ..do.. ..do.. None* . . Filtration . .do . . . . Open stoping . . Room and pillar Flotation ..do.... Horizontal cut and fill Opening stoping Room and pillar Fill stoping .... Open pit Sizing . .do . . ..do.. Sizing . .do . . Horizontal cut and fill . ..do Open pit-underground . Open pit-horizontal cut and fill. Frasch ..do .. ..do.. ..do.. Flotation ..do.... ..do Flotation and direct melting. None* ..do. ..do . ..do. .do .do .do .do .do .do , ..do.... ..do.... ..do.... ..do.... ..do.... Filtration Pyr 17 Pyr 18 Pyr 19 S 14 Pyr 20 Pyr 22 Pyr 21 Pyr 33 Pyr 34 Pyr 35 Pyr 36 Pyr 32 S 13 S 11 S 12 Pyr 31 Pyr 30 Pyr 26 Pyr 27 Pyr 25 Pyr 23 Pyr 24 Pyr 29 Pyr 28 Pyr 16 S 15 S 7 S 8 S 10 S 9 8 5 S 4 S 2 S 3 S 6 S 1 ' P= Producer; NP = Nonproducer; D = Developing. 2 Pyr = Pyrlte concentate; S = elemental sulfur. ' Refers to location on figure 4. ' No beneficlation is performed. ' Property Is scheduled to come on stream by mid-1985. ' Property was closed in May 1984. ' Property closed permanently owing to depleted resources in May 1985. COMMODITY OVERVIEW Sulfur differs from most major mineral commodities in that it is used as a processing and manufacturing reagent. Many agricultural and industrial products (phosphatic fer- tilizers, Ti02 pigments) use intermediate sulfur chemicals in their manufacturing and processing. Elemental sulfur and other sulfur compounds must be converted to these in- termediate chemicals (H2SO4 or CS2) prior to use. After the use of these intermediate chemicals, most, if not all, of the sulfur content is discarded as a waste product and not incor- porated into the final product. The consumption of sulfur in one form or another has been regarded as an index of a Na- tion's industrial development. Sulfur occurs in a wide variety of forms, from native sulfur to sulfur compounds. Most elemental sulfur is ob- tained from native sulfur deposits and the desulfurization of sour natural gas, petroleum and tar sands. Sulfur also oc- curs in the form of pyrites, in ferrous and nonferrous metal sulfide deposits, from which pyrite and metal concentrates can be recovered. These concentrates are roasted to pro- duce SO2 which is converted to H2SO4 (1, p. 877-898).3 ' Italic numbers in parentheses refer to items in the list of references at the end of this report. PRODUCTION Approximately 65 pet of the world's total sulfur produc- tion comes in the form of elemental sulfur from native sulfur deposits and the refining of sour natural gas, petroleum, and tar sands. The remaining sulfur production comes from pyrites, metallurgical operations, and other sources such as coal gasification and gypsum. Most of this sulfur is recovered as H2SO4. Figure 1 illustrates estimated world production distribution of all forms of sulfur by source for 1984 {2, pp. 831-849). No single coimtry is the dominant producer or supplier of sulfur and sulfur compounds. Approximately 50 pet of the world's total sulfur production comes from countries in which the industry is either partially or entirely government owned and/or operated. Table 2 lists total estimated 1984 world sulfur production by country and source. The CPEC's produce an estimated 35.6 pet of the world's sulfur; during 1984 the U.S.S.R. produced 9.3 Mmt; Poland, 5.4 Mmt; and China, 2.5 Mmt. The leading MEC producers in 1984 were the United States with 10.7 Mmt; Canada, 6.6 Mmt; Japan, 2.6 Mmt; and Mexico, 1.9 Mmt (i, pp. 877-898; 2, pp. 831-849). FIGURE 1.— Estimated distribution of worid production of ail forms of sulfur, by source, 1984. TABLE 2.— Estimated 1984 world sulfur production in all forms, by country and source (Thousand metric tons of 100 pet S equivalence) Country Natural gas and petroleum Frasch and native sulfur Pyrite Metallurgy Other Total Share of total, pet MEC's: Canada Japan Mexico Portugal Spain United States Other MEC's CPEC's: China Poland U.S.S.R Other CPEC's Total 19,848 Source: Morse (2). 5,727 7 875 6,609 12.8 1,140 260 1,172 2,572 5.0 461 1,364 100 1,925 3.7 105 5 110 .2 7 1,100 120 3 1,230 2.4 5,214 4,193 W 962 283 10,652 20.5 4,661 710 2,004 1,716 1,041 10,132 19.5 200 2,100 350 2,650 5.1 30 5,000 300 20 5,350 10.3 2,600 2,600 3,300 800 40 9,340 18.0 8 5 682 30 589 1,314 2.5 14,072 9,558 6,075 2,331 51,884 100 CONSUMPTION COMMODITY PRICES Sulfur is consumed in a wide variety of forms; the most common are elemental sulfur and H2SO4. Figure 2 details the sulfur-H2S04 supply and end-use relationship. These two materials find a wide variety of uses including agricultural products, nonferrous metal and iron and steel processing, plastic and synthetic products, paper and pulp manufacturing, and pigment production. In 1983, total world consvmiption of all forms of sulfur was about 53.5 Mmt: Production of H2SO4 accounts for nearly 85 pet of the consumption of all forms of sulfur. Fertilizer manufacture consumes 55 pet of all forms of svilfur, mostly as elemental sulfur that is converted to H2SO4. The United States and the U.S.S.R. are the world's leading consumers of all forms of sulfur, each consuming about 11 Mmt/jT {3, p. 783). After 1965, the historically stable elemental sulfur market experienced a period of short supply in MEC's, with the deficit being made up by heavy withdrawals from producers' stocks in the United States. This, coupled with a rapid growth in the fertilizer industry, resulted in abnormally high prices in 1967 and most of 1968. In late 1968, a serious oversupply developed, the effects of which were magnified by a retrenchment in the fertilizer sector, the entrance of low-priced imports, and a weakening of export prices. The subsequent general collapse of the sulfur market continued through most of 1973. Prices began to rise again in 1974, decreased in 1977, then after a slight increase in 1978, became quite volatile, resulting in record high prices by 1981. Frasch sulfur Recovered elemental sulfur Pulp and paper products Paints and allied products, industrial organic cfiemicalst and other chemical products Other industrial inorganic chemicals Synthetic rubber, cellulosic fibers, and other plastic materials and synthetics Agricultural chemicals Petroleum refining and petroleum and coal products Imported elemental sulfur Pyrite, H2S, SO2 Reclaimed H2SO4 Byproduct H2SO4 H2SO4 Pulp mills Nitrogenous fertilizers Other chemical products* Other inorganic chemicals* Inorganic pigments paints and allied products Water treating compounds Undefined sources Petroleum refining'and other petroleum and coal products * Cellulosic fibers including rayon Copper ores Pharmaceuticals Uranium and vanadium ores Soaps and detergents* Other ore Industrial organic chemicals" Other primary metals Other paper products Other agricultural chemicals Steel pickling" Nonferrous metals Storage batteries-acid* Unidentified Exports Sources of spent acid for reclaiming FIGURE 2.-— Sulfyr-H2S04 supply and end-use relationship. The reasons for these price increases were relatively com- plex and include (1) a rapid increase in demand by fertilizer manufacturers, both domestically and worldwide; (2) the high profitability of the fertilizer sector, which allowed high sulfur prices to be passed on to consumers; (3) the recogni- tion that sulfur production costs, especially those of Frasch sulfur, has increased substantially; and (4) logistical prob- lems that restricted deliveries. The economic recession that began in late 1981 caused a decrease in sulfiu" demand both domestically and worldwide through 1982 and into 1983. In 1982 and 1983, Saudi Arabia brought large volumes of recovered elemental sulfur to the world market, and Iraq, despite the ongoing war with neighboring Iran, was able to return to the world marketplace. Because of this, sulfur prices softened in 1982 and fell fiui;her in 1983 (3, p. 790; 2, pp. 831-849). In 1984, elemental sulfur prices began to rise, reaching their highest level since 1981, partially because of decreased production from Saudi Arabia, owing to damage to their Jubial sulfur-prilling facilities, and to decreased oil production. Table 3 lists the average reported price for elemental sulfur over the last 5 yr. Prices for a pyrite concentrate containing 45 to 51 pet S have remained stable over the past 10 yr owing to low de- mand. However, with the recent increase in demand and ris- ing price for elemental sulfiu", more interest has been given to pyrite production. Table 4 lists the pyrite concentrate and other commodity prices used in the economic analysis. TABLE 3.— Elemental sulfur market prices,^ f.o.b. mine or plant Year Price,' US$/mt 1980 $97.36 1981 121.11 1982 120.74 1983 100.76 1984' 130.90 ' Listed prices are U.S. market prices, f.o.b. plant or Gulf port, Louisiana and Texas. ' Actual year dollars. ' Elemental sulfur market price used in this analysis. Sources: Morse (2, p. 834); Engineering and Mining Journal {4, p. 27). TABLE 4.— Pyrite concentrate and commodity market prices' Price, January Commodity 1984 US$ Pyrite concentrate, 51 pet S' per mt. . $42.99 Copper per lb . . .71 Gold per tr oz. . 370.89 Lead per lb. . .25 Silver pertroz.. 8.18 Zinc per lb. . .49 ' Based on U.S. market prices. ' Market price of a pyrite concentrate used In this analysis. Source: Engineering and Mining Journal {4, p. 27). METHODOLOGY The Bureau of Mines (5) has developed a methodology for the analysis of long-run mineral resource availability. An in- tegral part of this system is the supply analysis model (SAM) (6), "developed by personnel of the Bureau's Minerals Availability Field Office. This interactive computer system is an effective mathematical tool for analyzing the effects of various parameters upon the economic availability of domestic and foreign resources. The flow of the Bureau's Minerals Availability program (MAP) evaluation procedure from deposit identification to development of availability in- formation is illustrated in figure 3. Identification and selection of deposits Tonnage and grade determination Engineering and cost evaluation ■" Mineral "" Industries Location System (MILS) data MAP computer data base Taxes, royalties, cost indexes, prices, etc... Deposit report preparation MAP permanent deposit files Data selection and validation Variable and parameter adjustments Economic analysis Sensitivity analysis Availability curves Analytical reports Data Availability curves Analytical reports FIGURE 3.— Minerals Availability program deposit evaluation procedure. Resurce grade and tonnage data included in this report are derived from contractor-supplied company data, published and unpublished sources, and Bureau and U.S. Geological Survey sources and estimates. Tonnage quan- tities and grade as of January 1984 are evaluated based on these data in relation to physical and technological condi- tions that exist at each deposit. Certain assumptions are in- herent in this evaluation. First, all operations are assumed to produce at full design capacity throughout the productive life of the deposit, except when the actual production capaci- ty is known. Second, operations are assumed to be able to sell all of their elemental sulfur or pyrite concentrate output at the determined average total cost of production and ob- tain at least the minimum specified discounted-cash-flow rate of return (DCFROR) of 15 pet. COST ESTIMATION Capital investments and operating costs for appropriate mining and processing methods are evaluated for each operation. Actual costs are used where available. However, if actual data are lacking, costs are developed based on data from similar existing operations or from the Bureau's cost estimating system (CES) manual (7). Where appropriate, capital and operating costs have been updated to January 1984 U.S. dollars according to local currency exchange rates and individual country inflation indices, weighted pro- portionately by the percentage share of labor, energy, equipment, and materials and supplies within each category on a countrywide basis. Capital expenditures are determined for acquisition, ex- ploration, and development; purchase and construction of mine and mill equipment and facilities; infrastructure; and working capital. Infrastructure includes capital costs for development of the operation that cannot be allocated to specific elements (mine, mill, smelter), such as access roads, utilities, personnel accommodations, and port facilities. The working capital is a revolving cash fund calculated on the basis of 60 days of operating expenses. Environmental costs for items such as water treatment and land reclamation are included if known. Initial capital costs are depreciated from the actual investment year to January 1984. The undepreciated portion is treated as a capital investment in January 1984. Reinvestments varied according to capacity, production life, and age of facilities. Total operating costs include labor, materials, overhead, utilities, and research. Transportation costs to market facilities (port terminal, sulfuric acid plant, or smelter) are also determined for each operation. ECONOMIC ANALYSIS Data are entered into the Bureau's SAM system, once all costs and engineering parameters are estimated. Economic analyses are performed on each operation, using DCFROR techniques to estimate the constant-dollar long-run price at which elemental sulfur and pyrite concentrate would need to be sold so that revenues are sufficient to cover all costs of production, including a prespecified rate of return on invest- ment. For this analysis, a 15-pct DCFROR was considered necessary to cover the cost of capital plus risk. The DCFROR is most commonly defined as the rate of return that makes the present worth of cash flow from investments equal to the present worth of all after-tax investments (8). The SAM system contains a separate tax-records file for each nation and State. Relevant taxes under which a mining firm would operate include corporate income taxes, proper- ty taxes, and any royalties, severance taxes, or other taxes that pertain to mining and processing of elemental sulfur and pyrite concentrate. These taxes are applied to each property with the assumption that each operation represents a separate corporate entity. AVAILABILITY CURVES Upon completion of the DCFROR analysis, all evaluated properties are simultaneously analyzed and aggregated into a total availability curve. This availability curve is the total amount of elemental sulfur and/or pyrite concentrate poten- tially available from the evaluated operations. Two total availability curves were generated: one for the elemental sulfur properties and one for the pyrite concentrate proper- ties. Elemental sulfur and pyrite concentrate availability are presented in these curves as a function of the average total cost of production associated with each operation, ordered from properties having the lowest average total cost of pro- duction to those having the highest. The potential availabili- ty of each commodity is determined by comparing these values with a long-run constant-dollar market price. The total recoverable tonnage potentially available at or below this price-cost value is read directly from the availability curves. Annual availability curves can also be constructed. These curves represent the total availability of elemental sulfur and/or pyrite concentrate in any given year, based on the development and production schedules proposed for each operation. GEOLOGY Sulfur is widely distributed in nature. It is found in a wide variety of rocks and environments in its elemental form, as combined sulfide and sulfate minerals, and as organic com- pounds in fossil fuels. It is the 13th most abundant element and constitutes 0.6 pet of the earth's crust. Sulfur- containing deposits can be divided into six types: elemental or native, petroleum and tar sands, sour natural gas, coal and oil shale, metal sulfide (pyrite), and sulfate (gypsum) deposits. Elemental or native sulfur deposits, metal sulfide (pyrite) deposits, and sour natural gas are the most impor- tant and supply most of the world's sulfur. Only native sulfur and pyrite deposits are discussed in the following sec- tions, since they are the only deposit types covered in this report. Figure 4 shows the location of the elemental sulfur and pyrite concentrate operations {1, pp. 882-883: 9, pp. 607, 613-617). United StQt'-b / Phillips Ronch 2 Culberson Fort Stockton Comanche CreeK Boling Dome Long Point CoiMou Island Commodo Grond Isle Gordefi Island Bay Me // Jaltipan 12 Temsteper 13 Lotirhupo Mothiotis Shu IX. 14 Mishroq Turhpy 15 Keciborlu 16 Asihoy 17 Kambio H^ Compiono Zl Nicrioletu 22 Fenice Caponne Spoin P'.rtugo 26 Aljustrel 27 Lousal Sweden 28 Longsele-Udden 29 Knstineberg NorviOy JJ Honooko 54 Kosoka 35 Shokanai 36 Toyohj ^^ Lq Zorza-Colonas 24 Tharsis i") Helenas 30 Sulitjelmo 31 Grong Gruber Jopon LEGEND ^ E'emental sulfur operations • Pyite concentrate operotrons 32 Yonohora FIGURE 4.— Location of elemental sulfur and pyrite concentrate operations. NATIVE SULFUR DEPOSITS Elemental sulfur deposits are associated with anhydrite caprock overlying salt diapirs and bedded anhydrite evaporite formations. Bacterial attack on anhydrite pro- duces lenses of limestone impregnated with elemental sulfur {9). Examples of these types of salt diapir deposits occur on the gulf coasts of Louisiana and Texas in the United States, and of Vera Cruz, Mexico {10). Bedded evaporite deposits of exploitable native sulfur occur both in west Texas, and in the Mogul region of northern Iraq. The west Texas deposits are associated with lenses or chimneys of anhydrite collapse breccia. The Iraqi deposit is associated with a dome-shaped anticline structure (11-12). The only native sulfur deposit of volcanic origin evaluated in this report is the Keciborlu sulfur operation in western Turkey. Sulfur mineralization occurs in a soft, highly altered, and decomposed rhyolite dike as veinlets and irregular nodules, and was formed as a sublimate from sulfur-rich volcanic gases (IS). PYRITE DEPOSITS Ferrous and nonferrous metal sulfide deposits are also sources of sulfur. Ferrous metal sulfide deposits are the most important; they are generally massive high-grade ore bodies containing pyrite averaging about 40 pet S. These deposits are primarily exploited for their sulfur content in the form of pyrite concentrates, which can be converted to H2SO4. These deposits may also contain small amounts of copper, lead, zinc, gold, and silver that can be recovered as byproducts. Such deposits occur widely throughout the world. Examples are found in the Iberian Pyrite Belt of southern Portugal and southwestern Spain. Stratiform polymetallic pyritic ore bodies occur within a suite of felsic and mafic volcanic rocks and siliceous sediments. Three types of sulfide mineralization are recognized. The first two types are massive and disseminated pyritic ores ranging from less than 35 to 51 pet S; both are syngenetic-sedimentary in origin. The third type is epigenetic stockwork pyritic ore of about 5 to 25 pet S {U, p. 63, 65; 15, p. 32). The ferrous metal sulfide deposits of Cyprus occur as both massive and disseminated pyritic ore bodies associated with pillow lavas, which fringe the Troodos Massif. Ore bodies that occur as disseminations in the pillow lava average about 20 pet S. Massive ore bodies, where replace- ment of the pillow lava is more complete, range from 40 to 48 pet S. Shapes and sizes of individual ore bodies vary from irregular to near horizontal-lenticular and range from 200 m wide and 600 m long to 15 m wide and 100 m long (16, pp. 38-39). Italy's three pyrite operations are associated with hydrothermal deposition along faulted contacts between phylhtic schists and cavernous limestones of the Tuscany series. Both massive and disseminated vein pyrite ore bodies are present. The sulfur grade of the pyrite for the three operations ranges from about 8 to 41 pet S. Another system of sulfide ore bodies is the Kuroko type deposits of the Akita Prefecture in northeastern Japan. These ore bodies are stratabound polymetallic sulfide- sulfate deposits that occur in acidic volcanic rocks. The deposits are closely related to submarine volcanic eruptions of dacite or rhyolite rock types and are important sources of copper, lead, zinc, gold, and silver; but they are considered here because of the large amount of pyrite contained in the ore. Four ore zones have been recognized: a barite- spharlerite-galena zone (Kuroko ore ) consisting mostly of chalcopyrite, pyrite and tetrahedrite; a barite, pyrite, and chalcopyrite zone (Han-Kuroko ore); a zone of almost all pyrite and chalcopyrite (Ohko ore); and a zone of pyrite, chalcopyrite, and quartz (Keikoh ore). Kuroko type deposits can show very irregular shapes and variable sizes. Average pyrite-sulfure grade can range from 19 pet (Keikoh ore) to 47 pet (Ohko ore). Kuroko deposits are consideed to be of submarine hydrothermal sedimentary origin {17, p. 171; 18, p. 137). The Yanahara Mine in southwestern Japan in the Okayama Prefecture is a massive ore body of almost pure pyrite with some intrusions of rhyolite. Pyrrhotite and magnetite are found near the margins. The average sulfur grade of the pyrite is 46 pet. The two Norwegian pyrite deposits are related to the Koli Nappe sequences of the central Norwegian Caledonides. The Joma deposit of the Grong Gruber opera- tion is imbedded in a sequence of basaltic greenstones. This deposit consists of (1) a massive pyritic layer interbedded with meta-limestone and chlorite schist lenses, and (2) layers of massive chalcopyrite-pyrrhotite. The average grade of the pyrite is 32 pet S for this deposit. The Sulit- jelma deposits lie at the base of the Sulitjelma Amphibolites and contain massive pyrite, disseminated pyrite, and chalcopyrite-pyrrhotite ore averaging approximately 14 pet S {19, p. 745; 20, p. 311). Sweden's principal pyrite mines, the Kristineberg, and Langsele-Udden operations, are located in northeast Sweden in the south-central part of the Skellefte field. These ore bodies occur in the contact zone between a volcanic and a phyllite series. A few occur several meters below the contact. Ore bodies range in size from a few hun- dred metric tons to several million metric tons. They are generally elongated lenses and slab-shaped bodies of massive pyrite with varying amounts of chalcopyrite, sphalerite, galena, pyrrhotite, and arsenopyrite. Minor amounts of antimony and bismuth as well as gold and silver may also occur. Sulfur content of the pyrite ore ranges from about 12 to 36 pet {21). The Asikoy Mine is located in northern Turkey. The associated ore body occurs in a lens of mafic volcanic rock isolated within a younger graywacke-argillite sedimentary sequence. Pyrite is dominant with variable amounts of chalcopyrite and some bornite concentrated in the upper part of the ore body. Two types of ore exist and are somewhat gradational. The disseminated sulfide ore is prin- cipally pyrite (35 pet S) disseminated in a pillow lava breccia. The massive sulfide ore also consists of pyrite (42 pet S) with some copper sulfide mineralizations. SULFUR RESOURCES Resources in this report are categorized according to the mineral resource-reserve classification system developed jointly by the U.S. Bureau of Mines and the U.S. Geological Survey (USGS) {22). (See figure 5.) Table 5 lists estimated world sulfur resources by type and level. World sulfur resources are considerable. Estimates vary widely owing to the different deposit types and the lack of data for many of these deposits. The Bureau has established a reserve base for sulfur. This reserve base includes demonstrated resources (measured plus indicated) that are currently economic, or marginally economic (marginal reserves) and some that are subeconomic (subeconomic resources). Figure 6 compares Bureau and USGS resource estimates with the resource estimates analyzed in this report. The demonstrated resource evaluated in this report total approximately 675 Mmt (253 Mmt S and 422 Mmt pyrite ore). This tonnage comprises about 2 pet of the USGS total of 32 billion mt and about 25 pet of the Bureau's reserve base estimate of 2.7 billion mt {3, p. 785). Table 6 compares the demonstrated resources of this report with the Bureau's reserve base estimates. Direct comparison of the demonstrated resources of this report with the Bureau's reserve base is difficult owing to the lack of a breakdown of the reserve base by deposit type. TABLE 5.— Estimated world sulfur resources, by deposit type (Million metric tons) n^.^^., 1^^.,* Hypotlietlcal Deposit type ^ -o- '^en^' speculative Natural gas and petroleum:' United States NA 285 1,204 Remaining world' NA 1,037 2,107 Elemental sulfur: United States 67 234 254 Remaining world' 186 386 203 Metal sulfides: Pyrites: United States NA 102 20 Remaining world 294 534 534 Base metals: United States NA 102 305 Remaining world 128 290 168 Other:' United States NA 29,059 104,044 Remaining world NA NA NA Total 675 32,029 108,749 NA Not available. ' Data from the 36 MEC properties evaluated in this report. ' Includes demonstrated. ' Includes tar sands. ' Includes native sulfur in volcanic deposits. 'Includes other MEC's and CPEC's for the identified, hypothetical, and speculative resources. ' Estimate is large; Includes organic sulfur compounds and pyrite in coal and oil shale, and sulfate (gypsum) desposits. Source: Bedenlos (9, pp. 613-617). 10 Cumulative production IDENTIFIED RESOURCES Demonstrated Measured indicated Inferred UNDISCOVERED RESOURCES Hypothetical Probability range (or) Speculative ECONOMIC MARGINALLY ECONOMIC SUB- ECONOMIC Reserve base Inferred reserve base + + Other occurrences Includes nonconventional and low-grade materials FIGURE 5.— Mineral resource classification categories {22). Demonstrated resources, 2.1 pot Identified (USQS). 89.5 pet n Reserve base (Bureau of Mines), 8.4 pet FIGURE 6.— Comparison of world sulfur resources esti- mates (total 32,029 Mmt). TABLE 6.— Estimated resources of elemental sulfur and pyrlte concentrate {Million metric tons) Demonstrated resources* Country' Reserve In situ Recover- Recov- base' able' ered* ELEMENTAL SULFUR Iraq 135.1 W W 200 Mexico 50.1 37.5 37.2 100 Turkey 1.4 W W NA United States 66.5 66.5 66.4 175 Total 253.1 200.0 184.5 475 PYRITE CONCENTRATE Cyprus W W W NA Italy 36.9 35.4 29.1 15 Japan 75.6 78.2 29.7 10 Norway 25.4 26.8 11.0 NA Portugal 139.3 97.4 97.4 NA Spain 115.1 98.4 98.4 30 Sweden W W W NA Turkey W W W NA Total 421.6 363.4 278.9 55 NA Not available. W Withheld to avoid disclosing company proprietary data; included in total. ' Data from other countries are not available. ' Estimated as of January 1984, as analyzed in this report. ' Pyrite concentrate estimate includes mine dilution; Japan and Nor- way have the highest dilution, averaging 20 and 39 pet, respectively. * Some loss may occur during processing. ' Bureau of Mines estimate; total world reserve base for combined sulfur in all forms is estimated at about 2.7 billion mt (3, p. 785). 11 EXTRACTION AND PROCESSING TECHNOLOGY Frasch mining and processing technology, developed by Herman Frasch in 1894 {23, p. 40), involves injecting large amounts of superheated water (163° C) dovi'n wells drilled through the sulfur deposit. Heat from the water is transferred to the formation, thus melting the sulfur, which, being heavier than water, accumulates in a pool at the bottom of each well. Compressed air is injected down each well to raise the molten sulfur to the surface. Figure 7 is a cross section through a typical Frasch sulfur production well. Once on the surface, liquid sulfur (97 to 99.8 pet S) may require only filtration, generally through a mixture of H2SO4 and diatomaceous earth to remove organic impurities; it is then pumped to surface storage facilities. Injected water migrates through the forma- tion and is extracted through bleeder water wells located along the flanks of the structure away from the mining area. In some mining areas (e.g., Iraq and Poland) where the formation is not porous enough to promote sulfur and water migration, the rock is fractured by blasting the formation near the bottom of the well. The Frasch process is used exclusively on salt diapir forma- tions along the Gulf of Mexico off Louisiana and Texas in the United States and the State of Vera Cruz, Mexico, and on bedded evaporite formations in west Texas, the Mogul region of northern Iraq, southern Poland, and the U.S.S.R. Elemental sulfur deposits not amenable to the Frasch proc- ess use open pit and underground methods. High- to medium- grade ore from these deposits can be roasted directly, with the resulting SO2 gas converted to H2SO4. Low-grade ores are treated by a wide variety of processes, including direct melting, distillation, agglomeration, solvent extraction, and flotation to produce elemental sulfur. Sulfur ores of the Keciborlu sulfur operation near Isparta in western Turkey are mined by open pit and horizontal cut-and-fill methods. Both direct melting and flotation beneficiation processes are used to produce an elemental sulfur product. Open pit and underground mining methods are also used on pyrite deposits. High-grade ore (45 pet S and above), after minor beneficiation consisting of crushing, grinding, screening, and washing, is roasted followed by direct conversion of the SO2 gas to H2SO4. Examples of these types of operations can be found in Cyprus and along the Iberian Pyrite Belt of Portugal and Spain. Lower grade pyrite ores are generally upgraded with flota- tion methods from which a pyrite concentrate can be recovered. This concentrate is then roasted, producing SO2 that is converted to H2SO4. Examples of these types of opera- tions are the operations in Sweden and Norway and those in the Kuroko type deposits of Japan. \iMM^ y\ \y\\y\\y FIGURE 7.— Section through a typical Frasch sulfur produc- tion well. CAPITAL AND OPERATING COSTS Capital investments and operating costs were estimated for each property. These costs vary greatly depending on such factors as size of operation, mining and processing method, deposit location, and geology. 12 CAPITAL COSTS Most of the 36 properties evaluated in this report have been in operation for a considerable length of time; i.e., longer than 10 yr. Therefore, some of their initial capital in- vestment is assiuned to have been depreciated. Costs presented in table 7 reflect the remaining undepreciated portion of the original capital investment and investments required for the replacement of capital to enable the opera- tion to continue, or for construction of additional facilities or expansion of existing facilities to enable the operation to in- crease its production capacity. In some cases, costs reflect the investment needed to reactivate past-producing opera- tions. These properties are not specifically identified, as confidentiality of data could be compromised. OPERATING COSTS Operating costs include labor, materials and supplies, energy, overhead, taxes, royalties, and insurance. Transportation costs cover the cost of storage, handling, and shipping elemental sulfur or pyrite concentrates. Ship- ment is generally to the nearest sidfuric acid plant, roaster or smelter, or market terminal. Operating costs do not in- clude the conversion of elemental sulfur or pyrite concen- trates to H2SO4. Elemental Sulfur Weighted-average operating costs for the 15 elemental sulfur operations are summarized in table 8. All but one property (Keciborlu, Turkey, a combined surface- underground operation) use the Frasch process to recover elemental sulfur. Four use filtration, the only beneficiation method generally required for Frasch elemental sulfur. The deposits in Iraq and Turkey, which have the lowest and highest operating costs, respectively, are included together in table 8 to avoid disclosing company proprietary data. The 15 properties have an average operating cost of $50.82/mt of recoverable sulfur, with mining costs averag- ing 73 pet of total costs, transportation costs 21 pet, and milling (filtration) costs only 6 pet. After Iraq, Mexico has the lowest costs, despite high filtration costs at two of its three Frasch operations. Mexico's low overall operating costs ($49.40/mt) result from lower energy and labor costs. The Mexican Frasch operations are able to generate their own electricity from waste boiler heat and/or by recycling well bleed water, which requires less treatment and reheating, thus lowering energy costs. TABLE 7.— Estimated average capital cost investments for elemental sulfur and pyrite concentrate operations (January 1984 U.S. dollars, per metric ton sulfur) Remaining Estimated country Commodity und^eprec ^^^.^^^ recovered^. 2 capital replacement costs' costs* Cyprus Pyr $5.99 $8.35 Italy Pyr 6.73 12.44 Iraq S W W Japan Pyr .92 5.65 Mexico S 3.88 .88 Norway Pyr 9.13 25.73 Portugal Pyr 2.58 3.11 Spain Pyr .45 3.47 Sweden Pyr 5.67 1.90 Turkey Pyr, S WW United States S ^9 .44 W Withheld to avoid disclosing company proprietary data. ' Costs for the commodity pyrite (Pyr) are in terms of contained sulfur in the recovered pyrite concentrate. ' Costs for the commodity sulfur (S) are in terms of recovered elemental sulfur. ' Capital costs for mine and mill, development, plant and equipment, and Infrastructure, remaining as of January 1, 1984. * Estimated capital reinvestment for mine and mill development, plant and equipment, and infrastructure to be recovered over the life of the property. In contrast, U.S. producing and nonproducing proper- ties have costs nearly twice those in Mexico, despite far lower milling (filtration) costs -none for the five producers. Transportation costs account for 31 pet of the total for the producers but only 15 pet for the five nonprodueers. The much higher U.S. costs for transportation result from the necessity to use rail transport, at about $30/mt S; however, some operations use cheaper ocean barge and pipeline transport, at just $0.77/mt S. Mexico's properties use river barge transport at about $3.50/mt S, while Iraq and Turkey use truck and rail. Pyrite Concentrate Weighted-average operating costs for the 21 pyrite operations are summarized in table 9. Both surface and underground mining methods are used; beneficiation methods consist of flotation or sizing. As expected, surface mining and sizing result in lower costs than underground mining and flotation. The 21 properties have an average operating cost of $53.89/mt of contained sulfur in the pyrite concentrate. The two Portuguese and three Spanish properties have the lowest operating costs; all five use sizing beneficiation, but four of the five are underground operations. These lower TABLE 8.— Summary of estimated operating costs, elemental sulfur operations (U.S. dollars per metric ton recovered sulfur) Annual Operating costs Number capacity Country of range. Mine Mill Transportation operations 10' mt Iraq and Turl ♦ * • o a\.... "^^ ^••\ 1^ ••^- °- /.-^e^-X *'°.-^&>- y.^^-\ '° -^^'A • •t ' o H e i^s* A ^^^^ "Ml^'^^ '%^($ " .0^ o > o » «*i« '^♦.^^'^^ y^i .4 .-^^^ )i.'^-^\/ V^^'/ \-^-^\/ V^^"/ \.*^^\/ V' V''^*/ 'V'^*^?'* %'*^'/ "^-^/^^^Z "o^ •-& A^ "i'j?' '^ V ♦ .■^^''>. 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