Report 1

Report
1
Fiedl Engineering
Preliminary Review &

Business Case
Project: Phosphate Hill H2SO4 plant

Client: The University of Sydney
Consultants: Fiedl Engineering
Date: 27/10/2006
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REPORT 1: PRELIMINARY REVIEW AND BUSINESS CASE
Contents Page
1. Executive Summary........................................................ 3
2. Introduction ................................................................... 3
2.1 Report scope and objectives................................................................................ 4
3. Stakeholder Requirements and Expectations ................ 5
4. Market Analysis ............................................................. 8
4.1 Price of Sulphuric Acid....................................................................................... 8
4.2 Demand ............................................................................................................... 9
4.3 Supply ............................................................................................................... 10
4.4 Competitors....................................................................................................... 11
4.5 Outlook ............................................................................................................. 12
4.6 The Market for Sulphur .................................................................................... 12
5. Plant Capacity and Location....................................... 14
5.1 Plant Capacity .................................................................................................. 14
5.2 Plant Location ................................................................................................... 15
6. Plant Resources ........................................................... 18
7. Sulphuric Acid Production Processes ......................... 23
7.1 Nitrogen Oxide Processes ................................................................................. 23
7.2 Contact Processes.............................................................................................. 24
7.3 Process Comparisons ........................................................................................ 30
7.4 Process Decision Criteria.................................................................................. 31
8. Economic Analysis....................................................... 34
8.1 Business Risk and Mitigation ........................................................................... 34
8.2 Initial Estimate of Profitability – Discounted Cash Flow................................. 36
8.3 Preliminary Sensitivity Analysis....................................................................... 37
9. References.................................................................... 40
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1. Executive Summary
This report examines the issues surrounding the feasibility of constructing a plant to
supply sulphuric acid to the Incitec Pivot fertiliser plant at Phosphate Hill in Queensland.
As a result of a business opportunity arising from the threatened viability of an Xstrata
sulphuric acid plant, a feasibility study has been performed. This feasibility study
involved determining the requirements and expectations of the stakeholders in the plant,
such as the University of Sydney and Queensland Fertilizer Operations.
The market for sulphuric acid and sulphur were analysed. The Australian and
international markets do not have a large proportion of sulphuric acid destined for the
merchant market, so that the only substantial competitor is the Xstrata sulphuric acid
plant. Sulphuric acid prices are likely to increase from the current levels of US$55-65 in
the near future due to increases in demand, indicating that conditions are favourable for
the construction of a sulphuric acid plant. The extensive costs in transportation and the
likely prospect that China will build more plants to supply its growing demand indicate
that exporting sulphuric will expose the plant to too much risk, and it is recommended
that the production be limited to 841,500 tonnes per year of sulphuric acid, enough to
replace the current consumption of sulphuric acid by Phosphate Hill with a safety margin
of 10%.
It is recommended that the plant be located in Phosphate Hill to minimise the cost of
sulphuric acid transportation and safety issues. Utilities are available and it is likely that
process water can be obtained at no cost. The sulphur required (as recommended by the
process decision making procedure) can be imported from Canada, where the political
and environmental conditions are favourable.
Several sulphuric acid processes were surveyed, including the nitrogen oxide and contact
processes. It is recommended that the double contact process be used to achieve 99.7%
conversion of SO2, in compliance with environmental regulations. Elemental sulphur as a
feedstock is recommended to remove the uncertainty with metallurgical gas feeds.
Elemental sulphur is also more economical than other sulphur sources, such as pyrite and
gypsum.
An initial estimate profitability of the plant was also made. Given an interest rate of 6%
and an initial investment of $160 m, which is suggested by the capital expenditure of
similar plants, a discounted cash flow analysis indicates a payback time of eight years,
and a project value of AUS$-32.2 m at the end of ten years. The project does not appear
to be profitable, but the cost must be incurred if the fertiliser plant is to continue
operation. The impact of this project on the overall profitability of the company should be
evaluated before deciding whether to proceed.
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2. Introduction
The recent decline in the price of copper is threatening the viability of the current supplier
of sulphuric acid to the phosphate based fertiliser production plant located at Phosphate
Hill in Queensland, and operated by WMC. The plant is located at Mt. Isa, Queensland,
approximately 135km north-north-west of Phosphate Hill (Wallace, 2006). The WMC
sulphuric acid plant derives its feedstock largely from waste gas (high sulphur content)
generated by the copper smelting process, which arises from mineral ore processing in
Mt. Isa. The loss of viability of the WMC Mt. Isa Sulphuric acid plant presents a business
opportunity to produce sulphuric acid by other means to maintain the continued operation
of the Phosphate Hill fertiliser plant. Refer to Figure 1 for the relative locations of the
aforementioned sites.
2.1 Report scope and objectives
This report identifies the relevant stakeholders in the plant, and examines their
requirements and expectation. The market for sulphuric acid was analysed in terms of
international and domestic demand and supply, and opportunities for sulphuric acid
export were assessed. Several different processes currently in use to produce sulphuric
acid are outlined, and a recommendation made, which takes into account the economic
and environmental issues, as well as the stakeholder requirements. The location, capacity
and resources for the proposed plant are discussed. An initial estimate of profitability is
made using similar data from industry and the recent price history of sulphuric acid.
Townsville
Mount Isa
Phosphate Hill
Figure 1: Image locating Mt. Isa, Phosphate Hill and Townsville in the Australian state of
Queensland (Google Earth, 2006).
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3. Stakeholder Requirements and Expectations

The major stakeholders in this project are the University of Sydney and the fertiliser
works at Phosphate Hill. The design of the plant should take into consideration not only
these immediate stakeholders, but also other stakeholders including the levels of
governments, employees and contractors, suppliers, customers, local community, local
and related industries, and the indigenous community. These requirements and
expectations should be addressed in order to guarantee the sustainability and successful
operation of the plant.
1. The University of Sydney, the client:

The primary stakeholders are the investors and upper management of the plant, the
University of Sydney, who have commissioned this feasibility study. The brief from the
client was to design a sulphuric acid plant to supply WMC fertilisers. A feasibility study,
economic and safety analysis, and design reports are required by the client when
requested. It is expected that the recommendations in the report be economically and
technically feasible, and that these are delivered in a timely manner.
2. Queensland Fertiliser Operations, the customer:

The sulphuric acid plant’s primary customer is the Phosphate Hill fertiliser production
plant, owned by Queensland Fertiliser Operations (QFO). The requirement from QFO is
to build a plant with the appropriate capacity to enable the Phosphate Hill facilities to
continue operations at the current level. The quality of the product, sulphuric acid, from
the plant should be at least the same, or better, than the current Mount Isa operations that
will meet the fertiliser plant feedstock specifications. The customer would also expect
that operations and supply would be uninterrupted, especially during the transition from
Mount Isa to the new sulphuric acid plant, and while willing to pay a premium to
guarantee sulphuric acid supply, will be expecting a competitive price for the
construction and operation of the plant. Early and frequent communication with the
customer is a necessity to ensure design is consistent with the fertiliser plants
requirements and to generate relations.
3. Government:
The Australian federal, state and local levels of government are all stakeholders, in that
the plant is expected to operate within the limits of the law and relevant operational
codes. The plant is required to comply with government regulations and standards
concerning business operation and tax, legal obligations concerning supplier ad customer
contracts, occupational health and safety, equal employment opportunity, plant design
and operation procedures to Australian standard requirements, approval for construction,
compliance with regulatory guidelines concerning emissions and environmental conduct,
and thorough auditing systems in place for both plant safety aspects and business
operations.
4. Employees:
The employees working in the plant, whether they are in plant operations, administrative
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or management roles require safe working conditions. Employees expect workers

compensation, occupational health and safety, industrial relations, anti-discrimination and
equal employment opportunity. Worst case scenarios can be identified and addressed and
good manufacturing practices and design standards should be employed as dictated by
Australian standards.
5. Suppliers
The plant’s suppliers are also stakeholders. Suppliers rely on the plant’s function to
continue their own operations and profitability. The primary supplies for raw materials
are the elemental sulphur suppliers, the Phosphate Hill power plant and water supply
from mine dewatering or local aquifers at Phosphate Hill, Queensland Rail for freight,
initial labour and for plant construction and commissioning, and hired labour for
operations and administration. Other suppliers include the various companies that will
supply equipment and construction needs.
6. Broader community
The local community will be affected by the creation and operation of the plant. The
community may require a liaison or community representative to be in constant
communication with the plant. The plant may be expected to share details with respect to
operations – noise, pollution, traffic, etc. The local community would also expect a safe
design such that an inherent design flaw does not jeopardise the health of safety of the
local community. The indigenous community needs to be consulted, respected and
included in the development of the plant and of operations to ensure that the plant
development is accepted by the indigenous community. Table 1 below identifies the
stakeholders and summarises the requirements and expectation for each.
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Table 1: Stakeholder requirements and expectations.

Stakeholders Requirements Expectations
Design a sulphuric acid plant according
Information is to be complete, coherent
to objectives and constraints
Client – University of and comprehensive
Submit feasibility study, economic and
Sydney Integrate knowledge and experience to
safety analysis, overall design in a
complete a successful design
timely manner
Successful plant operations
Flexibility to explore and capitalise on
Cost and profitability
future options and markets
Queensland Fertiliser Sustainable capacity
Minimise financial risk
Operations, the Quality of product at parity to current or
Uninterrupted supply of phosphoric acid
customer better
during transition and when in full

operation
Act lawfully
Act within Occupational Health and
Government Comply with government regulations
Safety Guideline and Australian
Manufacturing standards
Create safe working conditions

Employees
Abide to Human Rights and Labour Safe work conditions
laws
Suppliers Fulfil any contract obligations Good business practices and
Provide correct specifications relationships
Local community Safe design and updates on plant
(including indigenous) Liaison activities
Respect of land
Social and environmental considerations
In future reports, environmental and social impacts of the sulphuric acid plant will need
to be analysed. These issues concern impacts upon the social structure of the
communities and employee considerations as well as any environmental impacts the plant
may have upon the local environment. For example water discharge or atmospheric
emissions. For example in Figure 2 a visible plume is observed to be emitted into the
atmosphere from the mine processing sit at Mt. Isa with the Mt. Isa community in close
proximity. Impacts such as these will be considered in detail in future reports.
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Figure 2: Mt. Isa emissions (Infomine, 2006).
4. Market Analysis
Sulphuric acid is one of the most versatile industrial chemicals. Common uses of
sulphuric acid in Australia include “phosphoric acid and fertiliser production (32%);
basic chemical synthesis, pigments, oil industries (58%); metal extraction, refining and
processing of metals (2%); batteries (0.8%), and other industrial uses such as pulp and
paper (7%)” (NICNAS, 2003). The pricing, demand and supply of sulphuric acid both
domestically and abroad will be examined to determine the economic viability of
production and potential markets.
4.1 Price of Sulphuric Acid
The market for sulphuric acid is fundamentally different compared with other
standardised commodities. Despite increased world-wide growth over the last decade,
only 25 – 30% sulphuric acid production made its way into the merchant market. This
relatively small contribution is arguably a direct consequence of the shift from elemental
sulphur production (virgin acid) towards recovery from smelter off-gas and refinery
sources. The diversity of the available production methods is reflected in the price. In
2003, the merchant spot on the east coast of America ranged between USD $5-25 per
metric tonne, while the 100% tank works virgin spot was simultaneously trading at USD
$60-90 per tonne (Savage, 2003). Prices also vary by location. In 2003, 100% tanks
works, Gulf coast spot, ranged between USD $55-65 per tonne. Figure 3 below shows
the average sulphuric acid (virgin) spot from 1999 to 2004. The latest North American
price data available (Nov 2005) indicates FOB spot prices ranging between USD $55-65
per tonne (Chemical Market Reporter, 2005). With a substantial portion of the world’s
production of sulphuric acid reliant on metal smelters (eg. copper or nickel), a fall in the
price of copper, as has been occurring recently, will be jeopardising the operation of
many plants, so it is forecasted that the price of sulphuric acid may well rise to be much
higher than USD $55-65.
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Figure 3: Average sulphuric acid (virgin) spot price between 1999 and 2004. Prices are shown in
USD per metric tonne (Chemical market reporter, 2005).
4.2 Demand
International Demand
Demand for sulphuric acid has in recent years remained fairly constant, with movements
closely tracking fertiliser production, which accounts for 75% of the world’s acid
consumption. In 2005, world wide fertiliser production was operating above 90%
capacity with annual growth estimated at 2%. Other less sensitive growth areas include
petroleum alkylation and production of pulp and paper (Savage, 2003). It is expected that
these increases will be met by higher sulphur recovery from refineries, as tighter emission
standards are implemented. Other traditional demand areas including mining, iron, steal
and inorganic chemicals production, have in recent years been in consistent decline.
In recent years demand has increased, with new markets opening in China. Savage (2003)
notes that strong sulphur demand, particularly from China, has made it difficult for ‘on
purpose sulphur suppliers’ to cover up their shortfalls. Demand for sulphuric acid from
China has increased an average 8.2% per year from 1994 to 2003 (Ober, 2004). The
influence of China on the market is evident from the fact that it rates as the world’s
largest producer of pyrites (over 56% of sulphur is in this form) while also leading world
sulphur imports (International Fertiliser Industry Association, 2005).
Australia’s position in Asia places it in close proximity to the growing market in China.
The economic viability of this, however, will depend upon the cost of transportation, and
also the price of sulphuric acid from local production. With the trends in production
leaning towards the use of SO2 as a feedstock (Ullman’s), the price of locally produced
sulphuric acid is likely to be much lower than sulphuric acid produced from elemental
sulphur and/or SO2 and transported from Australia. Exporting to China may provide
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economic benefits in the short run due to China’s growing demand for sulphuric acid
imports (see Table 2). However, this benefit is likely to decrease as China expands its
smelter acid production (British Sulphur, 2004). It is therefore difficult to justify
production for the export market, when this market is likely to be short-lived.
4.3 Supply
The volatility in sulphuric acid prices is almost entirely supply related. Smelter capacity
appears to be the single most important driver, indicative of the shift away from
elemental sulphur as the primary raw material. As a direct consequence, the supply of
raw material has a strong dependence on smelter output, which in turn is influenced
heavily by world commodity prices. The supply shortages in North America during
2003, which led to an increase in the spot price (see Figure 3), were in part due a
reduction in Canadian smelter production (Savage, 2006).
International Supply
The international production of sulphuric acid is shown in Table 2 below. It can be seen
that the total world demand for sulphuric acid is increasing, driven primarily by the
burgeoning economy of China. Other potential growth areas include developing
economies such as the “Middle East and North Africa, Eastern Europe and former Soviet
Union”. Elsewhere, demand is falling slightly, such as in North America, Western
Europe.
Table 2: Production of Sulphuric Acid by Region (Muller, 2006)

Location 1993 1997 2001
North America 41.3 49.5 40.6

Central and South America 6.2 13.4 15.1
Western Europe 17.0 18.7 16.1
Eastern Europe 19.6 4.0 3.7
Asia 33.5 24.0 67.3
Africa 16.4 17.6 18.1
Oceania 1.3 2.3 3.9
total world 135.3 157.6 164.8
Domestic Supply
The major producers of sulphuric acid in Australia are listed in Table 3. There are
currently six major sulphuric plants in operation in Australia, which use the sulphuric
acid for fertiliser manufacture or metal extraction processes. Table 3 below shows that
the national supply for sulphuric acid stands at approximately 3.8 MT/year.
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Within the past five years, three major producers have ceased the production of sulphuric
acid. CSBP closed its sulphuric acid production plant in 2003 following poor financial
performance, and now imports all of its sulphuric acid. PKC’s poor financial situation,
combined with the prohibitive capital costs required to improve its environmental
performance to an acceptable level, led to its sudden closure in 20031.
Table 3: Producers of sulphuric acid in Australia
Name Location Production Feedstock Consumers
(T/yr)
BHP Billiton (formerly 80% of sulphur released Phosphate Hill
Mt. Isa 800,000
WMC Fertilisers) from copper mining2 fertiliser works
99.7% of sulphur dioxide
BHP Billiton (formerly CSBP fertiliser
Kalgoorlie, WA 500,0003 released from Kalgoorlie
WMC) works4
nickel smelter
Queensland
5 Phosphate for
Korea Zinc 350,000 Zinc smelter
manufacture of
phosphoric acid
(450000 in
Pasminco (now Zinifex) Hobart, TAS Zinc, Lead, Copper
20006)
Zinc, Lead smelting.
Port Pirie, SA 95,0007
Some exported.
Cockle Creek, 149,000
Zinc, Lead
NSW (closed) (2000)
Elemental sulphur –
Kwinana, WA Now imports all
CSBP 200,000 allows higher purity,
(closed 2000) sulphuric acid.
premium on price.
Double absorption, Exported to VIC
Port Kembla, NSW
PKC 3500008 capturing 98% of SO2 (7000T in
(closed 2003)
from furnaces. November, 2000)
BHP Billiton Ravensthorpe, WA 16060009 Elemental sulphur BHP nickel mining
TOTAL 3801000
4.4 Competitors
Given the small size of the merchant market in Australia and worldwide, the single
largest threat faced by a potential sulphuric acid plant is the Mt. Isa sulphuric acid plant.
If the copper price were to increase, making operation of the copper smelter at Mt. Isa
profitable, it would be very unlikely that the proposed plant could undercut the Mt. Isa
plant’s sulphuric acid prices. This is because its feedstock, a waste gas stream, is virtually
1
(Causley and Sullivan, 1994)
2
(Queensland Fertiliser Operations, date unknown)
3
(House of Representatives Standing Committee on Industry, Science and Resources, 2000)
4
(Coogee Acid, 2002)
5
See (2)
6
(Pasminco, 2000)
7
(Zinifex Ltd, 2004)
8
(Port Kembla Pty Ltd, 2000)
9
See (9)
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free of charge, whereas a plant utilising elemental sulphur as a feedstock incurs

considerable cost in purchasing sulphur.
4.5 Outlook
The sulphuric acid market is expected to remain tight despite increases in supply resulting
from improvements in smelter capacity. Most sources indicate that forecast demand will
remain fairly constant, in line with projections with world wide fertiliser output. High oil
prices and associated freight costs are expected to offset improved supply capacity from
being translated into lower market prices. Fuel surcharges will also increase the FOB
price differential between geographic locations. For countries such as Australia which
are distant from the main export locations (Canada, Russia and Saudi Arabia), the
additional freight costs are expected to result in higher domestic prices. Annual growth
for world wide sulphuric acid in 2006 is predicted at 1.8% (chemical market reporter,
2005).
4.6 The Market for Sulphur
The world wide market for sulphur has undergone a transformation in the last decade,
evident from the demise of the once prevalent native sulphur industry. In 2004
worldwide production via this discretionary source, as it is now known, fell to 9.4% (US
Geological Survey Yearbook, 2004). It appears that native sulphur recovered from mines
using processes such as Frasch, are no longer considered cost effective compared to by-
product sulphur that can be recovered from refinery and smelting operations. This
relatively new form of supply explains the consistent fall in sulphur prices seen in Figure
4 below. The spike in sulphur prices between 2002 and 2004 resulted from a
combination of high demand for fertiliser (primary end product), drops in smelter
capacity and a strong US economy (Chemical market reporter, 2005). The actual spot
price can vary substantially on a regional basis for reasons similar to those outlined in
sulphuric acid pricing. For example, in late 2004 the spot price for elemental sulphur at
terminals in Tampa, Florida was between USD $61.50 to 64.50 per ton, while the average
value of shipments for all elemental sulphur reported by USGS was USD $32.50 per ton
(US geological survey yearbook, 2004).
Despite the high prices in 2004 signalling a tight market in the short to medium term,
most market observers predict prices to fall given the surplus stocks of world wide
sulphur. The US Geological Survey Yearbook (2004), goes as far as suggesting that
unless demand for less traditional sources of elemental sulphur increase significantly, an
over-supply situation will result, leading to ‘tremendous stockpiles accumulating around
the world’. Tampa spot prices in October 2005 remained steady at USD$ 31.95 to 33.4
per tonne (Chemical Market Reporter, 2005) suggesting the over-supply scenario is still
some way off. The argument however does have merit considering world wide refinery
output is expected to increase and environmental regulations imposed by governments
mandating minimum sulphur levels in petroleum products are strengthened.
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Figure 4: Average price of sulphur in actual and constant dollars (US Geological Survey Yearbook,
2004)
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5. Plant Capacity and Location

5.1 Plant Capacity
The required plant capacity is calculated from the current Phosphate Hill fertiliser plant
production. The production will not be much higher as the market analysis recommended
that exporting sulphuric acid was not viable. Phosphate Hill uses the sulphuric acid to
create phosphoric acid, from which fertilisers are made (Equation 1):
3 H2SO4 + Ca3(PO4)2 + 6 H2O ↔ 2 H3PO4 + 3 CaSO4· 2H2O Equation 1
The current maximum capacity of the phosphoric acid plant is 1,500 tonnes per day
(QFO, 2006). Assuming the molar masses of H2SO4 and H3PO4 are equal (98.07 and 98
amu respectively), 2250 tonnes (3/2 x 1500) per day of H2SO4 is required. Based on 340
production days per year, this is 765,000 tonnes per year. A safety factor of 10% gives a
required production rate of 841,500 tonnes per year, or 2475 tonnes per day.
Using a production rate of 2475 tonnes per day of sulphuric acid which is equal to 25,255
kmol per day, the amount of sulphur, air and water feedstock required can be calculated.
S(s) + O2(g) Æ SO2(g) Equation 2 (Sulfur is burned in air)
2SO2 (g) + O2(g) Æ 2SO3 Equation 3 (Sulfur is burned in air in presence of
a V2O5 catalyst)
SO3 (g)+ H2O(l) Æ H2SO4(l) Equation 4 (SO3 is treated with water)
From the above equation set stoichiometry, for each mol of sulphuric acid, 1 mol of
water, 1 mol of SO3 is required (and hence 1 mol of sulphur), and 0.5 mol of oxygen are
required. This preliminary assessment assumes 15% excess O2, therefore 43565 kmol of
O2 is required for this process. These numbers also assume 100% conversion of the
reactants to the products for the purposes of this preliminary investigation only. A
summary of this information is provided in Table 4.
Table 4: Preliminary feedstock requirements and plant products.

Molecular Mol Mol Mol Mass Mass Mass
weight (kmol/yr) (kmol/day) (kmol/hr) (tonne/year) (tonne/day) (tonne/hr)
(AMU)
Sulphur (S) 32 8586700 25255 1052 274720 808 34
32
Oxygen (O2) 14812100 43565 1815 473960 1394 58
FEEDSTOCK
18
Water (H2O) 8586700 25255 1052 154700 455 19
Sulphur
64 8586700 25255 1052 549440 1616 67
dioxide (SO2)
Sulphur
PRODUCED 80 8586700 25255 1052 686800 2020 84
trioxide (SO3)
Sulphuric
98 8586700 25255 1052 841500 2475 103
acid (H2SO4)
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5.2 Plant Location
Client location
This section provides a preliminary assessment of the locations available to the client for
the construction of the sulphuric acid plant. It should be noted that upon request, the
client did not provide any preference, nor did it specify any conditions, in matters relating
to the location of the plant. This is reflected in the decisional methodology used.
Selected sites
Based on the geographic location of Queensland Fertilizer Operation’s processing and

distribution facilities, three locations were identified for site consideration. These sites
are located in Phosphate Hill, Townsville and Mt. Isa, refer to Figure 5 for location map.
• Phosphate Hill
Figure 5: Map of Queensland, Australia. Potential plant locations have been highlighted (Infomine,
2006)
Each location has its own unique advantages. Positioning the acid plant adjacent to
Phosphate Hill’s processing facilities would significantly reduce product transportation
costs and remove some of the logistical constraints associated with the delivery of supply.
A preliminary assessment of utilities in the area suggests services are adequate to meet
the requirements of the proposed plant. Power is supplied to the area by the recently
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constructed (Aug 1999) Phosphate Hill power station, rated at above 25 MW (CEIS,
2006), this power station uses steam driven turbines and solar panels to generate
electricity with a back up diesel generator in case of a system malfunction (CEIS, 2006).
Water is supplied by a local aquifer or potentially from mine dewatering operations,
taking advantage of waste water from the phosphate mine. Further investigation is
required to determine whether supply can be secured from either source, and also if the
quality meets design specifications for the proposed process i.e. whether the water
available needs to be treated before use in the sulphuric acid plant.
Townsville was considered primarily because of its infrastructure and international port
facilities. Its proximity to storage and handling facilities would reduce raw material
transport costs. However, this would be offset by higher freight costs in transporting
sulphuric acid to Phosphate Hill, which is higher than the cost of transporting sulphur
alone, due to its higher density. Utilities and access to labour are likely to be superior at
this location, which may reduce capital costs. In addition, the plant does not sell sulphuric
acid to a range of customers, so the advantages of Townsville as a product distribution
centre cannot be used.
Mt. Isa was considered based on the fact that it is the location of QFO’s current sulphuric
acid plant. The location itself offers little, if any strategic advantage. The original plant
was constructed at this location out of requirement rather than preference. Currently
sulphur dioxide is sourced from the copper smelter at Mount Isa Mines Limited (Xstrata
Plc). By positioning the new plant adjacent to the existing one, it may be possible to
integrate certain aspects of the process, thereby minimising costs. Access to current
freight services and utilities may also provide some short term benefits, however the cost
and safety aspects of transporting the sulphuric acid to Phosphate Hill from Mt. Isa and
from Townsville) are larger than positioning the plant at Phosphate Hill and freighting in
the raw materials. It is advised that the client clarify its position in relation to what it
considers to be a ‘standalone plant’. Should it be desired to construct a completely
independent plant, it is recommended that Mt. Isa is not considered.
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Decision making methodology
Based on the preceding discussion, an arbitrary scoring system was devised to assess and
rank each potential site. Each consideration was assigned a score (refer to Table 5) which
was identified separately for each location. These were then weighted (refer to
Table 6) based on factors aimed primarily at minimising operating costs and those which
would result in strategic advantages for the client. The scores and weights were combined
to determine the overall rank.
Table 5: Client location scoring system.

Score Description
0 Very poor, non-existent, not feasible
20 Below minimum requirements, further action required for project to go ahead
40 Acceptable, will not however result in an operating advantage
60 Above average, adequate for the project to go ahead
80 Noteworthy, advantageous to the business in the long-run
100 Excellent, little that can be improved
Table 6: Client location weighting system.

Weighting Description
0 Has no bearing whatsoever on operations
0.2 Minor consequence to operations
0.4 Has some importance, not critical in the long-run
0.6 Important consideration
0.8 Very important, critical for day-to-day operations
1 Cannot operate without this
Table 7: Client location decision matrix
Phosphate Hill Townsville Mt. Isa

Consideration Weight Weighted Weighted Weighted
Score Score Score
average average average
Infrastructure & town amenities 0.8 40 32 80 64 40 32
Utilities 0.8 60 48 80 64 60 48
Distance to Phosphate Hill
0.6 100 60 20 12 60 36
processing facilities
Distance to nearest shipping port 0.4 40 16 80 32 40 16
Freight services - access, type,
0.8 80 64 100 80 80 64
reliability
Land area and zoning constraints 1 80 80 40 40 80 80
Transportation of product and
0.8 100 80 20 12 40 24
safety issues
Availability of labour 0.4 40 16 80 32 40 16
Proximity to built-up residential
0.4 60 24 20 8 60 24
areas
Total 600 420 520 344 500 340
Rank 1 2 3
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shows the decision matrix used. The results found that Phosphate Hill only marginally
out scores Townsville as the preferred location. However, the client should be aware that
despite the systematic processes employed, the scores and weights assigned are
ultimately subjective and sensitive to a number of assumptions. The exact location of the
plant cannot be determined until a detailed environmental impact statement is undertaken
and social impacts are examined, although from an economic perspective, it would be
desirable to construct the plant as close as possible to the existing processing facilities.
6. Plant Resources
There are a number of resources required to operate a sulphuric acid plant. Selection of
these resources impacts upon the cost-effectiveness of the plant. The key resource
considerations include the plant feedstock and source of the feedstock, freight and
transportation, land cost, the utilities of water and electricity, and labour force.
There are two general options available for sourcing the sulphur feedstock. One is from
smelter waste gases, such as the feedstock supplying the existing sulphuric acid plant in
Mt. Isa, and the other is from elemental sulphur obtained from refinery waste products or
from sulphur (brimstone) mines. Elemental sulphur has been selected due to the
uncertainty in smelting output related to the fall in metal prices as stated in the project
brief (see Section 7.4). This decision is also supported through the highly probable
increase in oil refinery sulphur by-product output as environmental regulations increase
in stringency. This will most probably decrease the price of sulphur as supply increases.
Phosphate Hill Townsville Mt. Isa

Consideration Weight Weighted Weighted Weighted
Score Score Score
average average average
Infrastructure & town amenities 0.8 40 32 80 64 40 32
Utilities 0.8 60 48 80 64 60 48
Distance to Phosphate Hill
0.6 100 60 20 12 60 36
processing facilities
Distance to nearest shipping port 0.4 40 16 80 32 40 16
Freight services - access, type,
0.8 80 64 100 80 80 64
reliability
Land area and zoning constraints 1 80 80 40 40 80 80
Transportation of product and
0.8 100 80 20 12 40 24
safety issues
Availability of labour 0.4 40 16 80 32 40 16
Proximity to built-up residential
0.4 60 24 20 8 60 24
areas
Total 600 420 520 344 500 340
Rank 1 2 3
Table 8: Sulphur feedstock decision variables.
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Socio-Economic Production
Environmental
Country and Political (metric kt Other Comments
Risk
Stability per year)10
At risk of Primary production is located in the Gulf Coast
United States11 Stable natural disasters 9,380 (rec) and susceptible to natural disasters.
8,271 (p) Leading exporters, 2nd in production; estimated
Canada12 Stable Minimal 621 (m) 160,000 thousand metric tonnes in reserves.
Large production and reserves but limited
Russia13 Unstable Minimal 6,000 (all) exporting; potential future reserves.
2,600 (all) Sources from metal smelting and rock mining;
China14 Unstable Minimal 3,730 (pyr) major importer and limited export
Stable to 1,895 (p) Net importer of minerals; exports sulphur mainly
Japan15 unstable Minimal 1,263 (m) to China and Korea
60 (p) Production not significant to sustain need;
Australia16 Stable Minimal 900 (m) primarily from metal processing.
Not significant source, reserves are present but not
New Zealand17 Stable Minimal n/a fully explored and mined.
At risk of
Indonesia18 Unstable natural disasters 83 Source as by-product from fertiliser plants
There are two key factors to consider when determining the source of the elemental
sulphur as there are a large number of potential suppliers with various advantages and
disadvantages as shown in Table 8. One is continuation or security of supply and the
other is the cost of freight. In terms of continuation of supply, political stability of the
source country, potential for environmental disruptions, and life-time of supply must be
considered.
Based on the information contained in the table above, the elemental sulphur feedstock
required for the proposed sulphuric acid plant will be sourced from Canada. The decision
is based on the economic and political stability of the country and the constant large
supply of sulphur available. The elemental sulphur from Canada is recovered from the
natural gas and oil sand processes and Canada is the largest exporter of sulphur to the
world (Ober, 2004). While some countries including Russia and Indonesia have large
production capacities for sulphur, based on social-economic stability and environmental
risks, they will not be considered as suppliers. Similarly, China and Japan also will not
be considered largely as a result of sulphur production required for their respective
markets. Furthermore, these two countries are large importers of sulphur. The U.S is the
largest producer of elemental sulphur and similar to Canada, it is largely obtained from
10
Rec – recovered, m – from metallurgical processes, p – from petroleum processing and refining, Pyr –
from pyrite mining, all – all sources.
11
http://minerals.usgs.gov/minerals/pubs/commodity/sulphur/sulphumyb04.pdf
12
http://minerals.usgs.gov/minerals/pubs/country/2004/camyb04.pdf
13
http://minerals.usgs.gov/minerals/pubs/country/2003/cismyb03.pdf
14
http://minerals.usgs.gov/minerals/pubs/country/2004/chmyb04.pdf
15
http://minerals.usgs.gov/minerals/pubs/country/2004/jamyb04.pdf
16
http://minerals.usgs.gov/minerals/pubs/country/2003/asmyb03.pdf
17
http://minerals.usgs.gov/minerals/pubs/country/2003/nzmyb03.pdf
18
http://minerals.usgs.gov/minerals/pubs/country/2004/idmyb04.pdf
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natural gas, coking and petroleum refining processes. However, its position on the world
political stage and involvement with critical world issues, in combination with the risk of
natural disasters affecting the main production area (i.e. Hurricane Katrina in 2005)
raised some potential risks for the consistency of supply when importing sulphur from the
U.S. Local resources in Australia, Indonesia and New Zealand were considered in an
attempt to reduce the costs involved in shipping. However, in Australia and New
Zealand, production wasn’t sufficient to sustain the needs of the plant, and the Indonesian
security of supply is not certain.
The nearest port to Phosphate Hill, which is connected by rail, is the Port of Townsville
in North Queensland. As a result, the sulphur will be imported and shipped to the Port of
Townsville. It is assumed that the company the sulphur is sourced from will pay for the
freight (FOB), vessel fees and harbour dues at the port. This will ideally be arranged in a
contractual agreement. It is also assumed that the solid sulphur at ambient temperatures
will be transported in container loads that will be taken from the port to the rail facilities
in Townsville. The containers used for shipping are assumed to be acceptable for rail
transport. The information obtained from Queensland Rail concerning container
dimensions are 6.0m by 2.4m by 2.4m (Love, 2006). This results in a volume of 34.6m3.
Knowing the container volume and the density of the sulphur at ambient temperature
being 1960kg/m3 (WebElements, 2006), the mass of sulphur per container can be
determined. The mass of sulphur per container is approximately 67.7 tonnes. The cost of
freight of each container from the rail depot at Townsville to Mt. Isa is Au $1197 as at
August 2006 (Love, 2006), it is assumed that as the distances from Townsville to Mt. Isa
and Townsville to Phosphate Hill are similar, the cost of transporting each container is
the same. Therefore Queensland rail can transport the sulphur in 67.7 tonne container
loads at Au $1197 each from Townsville to Phosphate hill. Queensland rail freight
services from Townsville to Mt. Isa run every Wednesday and Sunday, it is also assumed
that this freight train can deliver to Phosphate Hill simultaneously.
Refer to Table 9 for a summary of rail freight costs and considerations and Figure 6 for
the Mt. Isa system network, showing the Mt. Isa and phosphate Hill lines operated by
Queensland Rail. Note that an initial stockpile of 4 weeks of sulphur feedstock is
developed as a result of potential shipping and rail unreliability or unforeseen events.
Table 9: Summary of rail freight data.

Volume of rail and shipping container (m3) 34.6
Density of sulphur (kg/m3) @ 25 degrees C 1960
Mass of sulphur per container (tonnes) 67.7
Cost of rail per container (AUS$) 1197
Frequency of rail freight per week 2
Weekly sulphur feedstock requirement (tonnes) 5656
Number of rail containers 85
Rail freight cost of weekly feedstock (AUS$) 101,800
Establish monthly stockpile (tonnes) 22624
Number of rail containers 338
Initial cost of establishing monthly stockpile (AUS$) 404,600
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Townsville
Mt Isa
Phosphate Hill (935km)

Figure 6: Overview of the Mt. Isa rail line as a part of the Queensland rail network (Queensland Rail,
2005).
Information concerning the cost of land was obtained through correspondence with the
Mt. Isa city Council (Graham, 2006). The cost to build a plant on 30 hectares of land in
Mt. Isa would be approximately Au $2 million including electricity and water. The cost
of land in Phosphate Hill is inferred from this price, and is assumed to be Au $1 million
un-serviced. Utilities on site will have to be developed and locally sourced for additional
cost.
By locating the plant in Phosphate Hill, it can take advantage of QFO’s mine dewatering
program which discharges approximately 1,200 megalitres per annum (QFO
environment, 2006). QFO also pumps 11,000 mega litres pf water from bores per annum,
twice what is required to support mine operations, the remainder is discharged into the
local creek, Kolar creek (QFO environment, 2006). The requirements of process water for
the plant are approximately 155 megalitres per annum. At present the quantity of water
required for heating and cooling processes on site is unknown. However, as the mine
dewatering and current bore pumping capacity is well above the requirements of the
sulphuric acid plant, it is expected that excess water from the mine can be treated and
used in the process. A contractual agreement and quality specifications will need to be
assessed, as well as associated cost. However, due to process integration, it is expected
that this cost will be minimal. If mine water waste is not feasible for some reason, an
application to the local council and state government concerning bore and aquifer water
will need to be developed and processed.
Electricity can be sourced from the 25MW Phosphate Hill power plant which uses solar
and steam driven turbines and has back-up diesel generators. There is the potential to
generate electricity on site through a combination of natural gas and renewable resource
electricity generation. However, this needs to be investigated further.
Business rates of electricity from the national grid have been obtained from Ergon
Energy, the Queensland rural electricity suppliers in the Mt. Isa region. The cost of
electricity for facility such as the sulphuric acid plant would be approximately:
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4.829 cents per kW/h

Tariff of a minimum $1600 per month (For 75kW/h at $22.91)
Service fee $32.64
For example, 75kW hours per month would cost approximately AUS$1640. The exact
energy usage is yet to be determined and whether electricity can be generated from the
exothermic processes on site, i.e. from steam driven turbines, or whether a power plant is
built on site or whether it is wholly supplied by the Phosphate Hill power plant.
Labour is an important consideration for the successful operation of any chemical plant.
The existing sulphuric acid plant at Mt. Isa employs 16 technically trained and
managerial shift work employees to run and operate the plant (Queensland Fertiliser
Operations, 2006). Therefore, it is assumed that 16 employees will be required for the
proposed plant, as well as 6 administration staff supervising operations at both Phosphate
Hill and the Port of Townsville. For the preliminary resource analysis it is assumed that
each labour resource will cost approximately AUS$100,000 per annum. This will amount
to AUS$2,400,000 per annum, this figure is assumed to be inclusive of fly in and fly out
mining operations and facilities at Phosphate Hill.
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7. Sulphuric Acid Production Processes

There are two distinct processes used for the commercial production of sulphuric acid in
a number of grades and concentrations; nitrogen oxide processes, and contact processes.
The older of the two processes, the nitrogen oxide process, produces a relatively dilute
acid (62%–78% H2SO4) while the contact process produces a purer, more concentrated
acid. However, the contact process requires purer raw materials and the use of expensive
catalysts (Columbia University Press, 2006). Both processes require sulphur dioxide to be
oxidised to sulphur trioxide, with sulphur dioxide is obtained by the combustion of
elemental sulphur, iron pyrites, smelting off-gases, or hydrogen sulphide gas (Columbia
University Press, 2006).
7.1 Nitrogen Oxide Processes
Lead chamber and tower processes are examples of nitrogen oxide processes. These
processes constituted the basis for sulphuric acid production from the late 1700’s to the
early 1900’s, but modern contact processes have almost completely replaced this
technology (Duecker and West, 1959). In the nitrogen oxide process, nitrogen oxides
serve as oxygen carriers to oxidise sulphur dioxide in to sulphuric acid in aqueous phase.
However, improved design adapted to specific cases in nitrogen oxide processes have
certain characteristics that may qualify them for use even today, despite certain general
disadvantages relative to contact processes (Muller, 2002).
Chemistry of Nitrogen Oxide Processes
Nitrogen oxide processes are one of the oldest industrial processes, and can be described
by the following equations (Muller, 2002):
SO2 + 2NOHSO4 + 2H2O Æ 3H2SO4 + 2NO Equation 5

NO + 0.5O2 Æ NO2 Equation 6
NO2 + NO ↔ N2O3 Equation 7
N2O3 + 2H2SO4 ↔ 2NOHSO4 + H2O Equation 8
(Muller, 2002)
The raw materials needed for the process are sulphur dioxide, oxygen and sulphuric acid.
Aqueous phase sulphur dioxide is oxidised by nitrosyl hydrogensulphate, NOHSO4
(“nitrosylsulphuric acid”), dissolved in ca. 70 % sulphuric acid (“nitroso acid”), to yield
sulphuric acid as well as releasing gaseous nitric oxide, NO (Equation 5). The insoluble
colorless gas produced, nitric oxide, reacts to regenerate nitrosyl hydrogensulphate,
NOHSO4 by reaction with oxygen, itself and sulphuric acid (Equations 6-8).
At sulphuric acid concentrations of higher than 70%, nitrosyl hydrogensulphate

(NOHSO4) becomes stable. In concentrations around 70 % sulphuric acid, nitrosyl
hydrogensulphate is metastable and behaves as a very reactive oxidant toward sulphur
dioxide. As a result, sulphuric acid of significantly higher concentration results in higher
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residual nitrogen oxide content (Muller, 2002).
The low concentration of acid (ca. 78%) produced in this manner has relatively few
applications today. High energy costs will be involved when concentrating the product
acid. As a result, the nitrogen oxides process is no longer competitive with contact
processes.
However, the low working temperatures involved in the nitrogen oxide process has
certain advantages in specific cases. For example, the process is suitable when processing
gases with extremely low sulphur dioxide contents, which cannot be converted in a
contact plant without supplementary heating. The nitrogen oxide process has also been
proposed to remove both sulphur and nitrogen oxides from flue gases (Gruber and Walitt,
1970).
7.2 Contact Processes
There are many variations of contact processes, but three will be discussed in this section:
1) Contact process based on sulphur combustion

2) Pressure-Contact Absorption
3) Dry-Wet contact process
4) Wet Catalysis Process
In contact processes, there are three main process steps in the production of sulphuric
acid from sulphur dioxide containing gases. These are:
1. Catalytic conversion of SO2 to SO3

2. Absorption of SO3
3. Acid Cooling (Muller, 2002)
The basic chemical reactions in the production of sulphuric acid from sulphur dioxide are
shown below:
S(s) + O2(g) Æ SO2(g) Equation 2 (Sulfur is burned in air)

2SO2 (g) + O2(g) Æ 2SO3 Equation 3 (Sulfur is burned in air in presence of
a V2O5 catalyst)
SO3 (g)+ H2O(l) Æ H2SO4(l) Equation 4 (SO3 is treated with water)
Contact process based on sulphur combustion
This process is quite commonly implemented, and will henceforth be referred to as the
‘standard contact process’. The arrangement shown in Figure 7 consists of a four bed
converter in a double contact process (ie. two absorber beds). The feed gas is produced in
a combustor (furnace) where elemental sulphur is oxidised to sulphur dioxide by
combustion with air. The air is taken directly from the atmosphere, and drawn through a
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filter that is irrigated with sulphuric acid, before being fed into a compressor (which is
not shown on the simplified diagram). The temperature of the converters and absorbers
are controlled by process water and a steam loop (not shown), for which the heat
exchangers provide some of the heat (as a recycle stream). The overall process produces a
concentration of 98.5% sulphuric acid.
One of the drawbacks of burning the sulphur is that small amounts of NOx are produced,
which have complex chemistry. However, this eventually forms nitrosylsulphuric acid,
which is collected in the mist eliminators, and thus the impact on the final product is
relatively negligible.
High levels of excess heat are produced in this process, which traditionally is used to heat
steam for the recycling of heat into the rest of the process. A basic PFD of the system is
presented below in Figure 7.
Converter
Heat
Exchangers
Sulfur Sulfur
Air Furnace SO2
Product
Primary Final
Acid
absorber Absorber
Process water
Figure 7: Simplified process flow diagram for the double contact process (Muller, 2002)
Typical unit operations in this plant, aside from the aforementioned compressor,
combustor/furnace, converter and absorbers (of which there are two, thereby making it
double absorption) include:
1. Steam, process gas and sulphuric acid pipelines

2. Mist eliminators
3. Heat exchangers (for cooling)
4. Filters
5. Drying towers
6. Boilers
Generally SO2 is fed into the converter with a concentration of 10-12% by volume, and
the air for conversion to SO3 is fed with a 1:1 stoichiometric ratio limit. Currently, these
plants have a capacity of around 3000 T/day (Muller, 2002), although it is possible to
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have plants with larger capacities. This number is based on the maximum capacities of
plants currently in operation.
With respect to energy consumption, the reactions that are involved for the process are all
exothermic, and as a result, a great deal of heat is generated. Roughly 5.4 GJ (Perry’s,
2004) of energy per tonne of sulphuric acid is produced. The overall thermal capacity of a
1000 T/day plant is therefore 63 MW. Because of the highly exothermic nature of the
process, the heat liberated needs to be controlled, so that the temperature inside the
absorbers, converters, and dryer circuits are within the optimum operating range. The
cooling system over the plant is therefore a highly important system, both to control the
temperature, and to maximise heat recovery.
97% of the heat generated is from the conversion of SO2 to SO3 (Equation 6). Up to 70%
(Muller, 2006) of the energy produced on a double contact/absorption process is recycled
to generate steam, normally 40 bar and 4000C. The rest of the heat generated is lost to the
environment. An overall sulphur dioxide conversion of 99.7% (EPA, 2006) is possible on
this type of plant, and this is usually attained with a five-bed converter.
Source of sulphur
The source of sulphur does not only have to be elemental sulphur. Other sulphur
containing compounds such as gypsum and pyrite may also be used. However, additional
costs are involved in using pyrite and gypsum, as the minerals must be roasted, and the
gases cleaned before they can be fed into the process. This corresponds to a doubling in
the capital expenditure required to build the plant, and a doubling in the electricity and
manpower consumption (Muller, 2006). Nevertheless, pyrite and gypsum may be viable
as a feedstock if local supplies are abundant, and the cost benefit outweighs the additional
process requirements.
Gypsum is produced as a by-product of the Phosphate Hill fertiliser works, however, it is

likely to be contaminated, and difficult to treat. Gypsum production in Australia in 2003
was equal to 4,000,000 metric tonnes. Most of the gypsum in Australia is found in South
Australia and Western Australia (Lyday, 2006), The cost of transporting Gypsum over
more than 1000km and the cost of possibly installing infrastructure to transport the
gypsum (or increasing transportation distance) to the sulphuric acid plant would most
probably be excessive and not cost-beneficial to the plant’s operation.
Pyrite deposits are often not concentrated in one area, rather dispersed throughout mineral
deposits. Pyrite deposits are varying in composition from region to region and within
regions. This uncertainty of pyrite quality and uncertainty of deposit extent in Australia
indicates that pyrite roasting may not be a viable feedstock option.
Both gypsum and pyrite have the issue of varying sulphur content and therefore
presenting a process risk to the plant, potentially affecting output and conversion, as well
as presenting issues of waste deposition and recovery from process streams to prevent
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contamination. A further issue is the crushing of the minerals and the energy
requirements before heating or roasting of the minerals to liberate the SO2 occurs
(Muller, 2006). There is also the issue of fluidisation and larger flow rates of air required
to maintain fluidisation in process units. Therefore it is recommended that gypsum and
pyrite not be used as feedstock to the plant.
Pressure-contact process
The pressure-contact process is a variant of the sulphur burning contact process, with the
primary difference being from production at elevated pressure, as the name implies
(Muller, 2002). Catalytic conversion occurs at 5 bar, compared to atmospheric pressure
for the standard double contact process. Elevated pressures provide two primary
advantages. The first advantage is that more sulphur trioxide is produced as the
equilibrium shifts to the left, thus giving higher conversion efficiencies, and using less
catalyst. The operating volume is lower and the capital cost of the plant is 10-17% less
than a comparable double absorption plant, as smaller equipment can be used (Bauer and
Vidon, 1978).
Nevertheless, these savings would most likely be nullified by the higher material grades
and wall thicknesses that would be required arising from safety regulations regarding
pressure vessels (Bauer and Vidon, 1978). Plants of this type use more electricity and
have fewer opportunities for heat recovery than standard double absorption plants
(Muller, 2002). Only one plant in France currently uses this process (Vidon, 1972).
Dry – Wet contact process
The dry-wet contact process differs from the standard double contact process in that when
the pure sulphur is being oxidised with air, some hydrogen sulphide, carbon disulphide,
and carbonyl sulphide are present (an example of this is industrial waste air from a staple
factory). There are several variations of this process. The impurities in the feed gas
oxidise instantaneously with the combustion of sulphur. The resultant gases are 9 to 10%
by volume of SO2, and less than a stoichiometric amount of water needed for the
formation of 98.5% sulphuric acid is present (thereby requiring an external additional
source of water).
An additional difference is that, in the converter, water is only present in the first two
stages of the converter, where it is then ejected (with the reacted SO3, to help move
equilibrium to the SO3 side of the reaction) and then ejected into the absorbers through a
venturi unit. The following design is then exactly the same as the standard contact
process.
Only one plant of this kind is currently in operation in the world, and produces 120
T/day. This capacity is too low for this company’s required capacity, and is quite an
uncommon design. This is thus rejected as a possible design.
Wet catalysis process
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Wet catalysis process is the same as the standard contact process, with the exception that
metallurgical gases as the feed stock. These plants are also known as cold gas plants, as
the feed is a cold gas which requires heating before entering the converter (usually with
the heat generated from the sulphur dioxide oxidation reaction). Typically, hydrogen
sulphide cannot be processed as a feedstock on its own; however, slight variations in the
Concat and WSA processes allow purities higher than 90%, and the processing of
hydrogen sulphide contaminated streams. The gases entering the reactor are typically wet,
and are filtered to remove dust. The only difference between this process and the process
based on the burning of sulphur is the way in which the SO2 stream is obtained. A
schematic of the double contact process using a metallurgical gas feed is shown in Figure
8.
SO2 H2SO4
Converter
Clean air
Gas-gas
coolers
Absorption
system (see
Drying Figure 7)
tower SO3
Clean
metallurgical Water for H2SO4
gases (SO2)
Figure 8: Metallurgical double contact process additions to original double contact process (Muller,
2002)
The main difference between the standard contact process and this process is the wet feed
gas, which is consequently dried, and the water used for the production of H2SO4. Heat is
also recycled between the gas-gas heat exchangers, with the product SO2 gas heating the
inlet stream, thereby also controlling the heat in the converter.
This type of plant is appropriate for the production of sulphuric acid from off-take mine
gases. Final conversions from this form of plant are similar to those based on elemental
sulphur feed, greater than 99.5% (EPA, 2006). These plants also require frequent
alteration in operating conditions, as the feedstocks will often fluctuate based on the
output of the plants providing the feed gas. Additionally the composition of the feed
material will fluctuate. Particular attention needs to be given to the water balance around
the feed gas, as this is essential for the final sulphuric acid absorber units, and if there is
not enough water, some will need to be injected from an external source. It would be
preferable to have a feedstock that has a relatively consistent composition, so that
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operating conditions and costs of the plant would not fluctuate.
With respect to energy recovery, 92% (Muller, 2002) of the heat generated from the
reactions is recovered, though accounting for the 30% waste heat to the environment
decreases this recovery to 62%, which is worse than the standard double contact process
for elemental sulphur feed. Roughly 2.7 GJ of energy is produced from this process per
ton of sulphuric acid produced, which is 31 MW for a 1000 T/day plant (Perry’s, 2004),
which is half of that from an elemental sulphur plant. The majority of this energy is
accounted for by the roasting of elemental sulphur in a furnace. This heat produced is
controlled by the concentration of the sulphur dioxide in the feed gas, which can be as
little as 4%vol to maintain appropriate auto-thermal operation (i.e. that which doesn’t
require an external heat source).
For a similar output capacity, the relative costs would be expected to be similar, as the
pure elemental sulphur feed requires the use of more natural resources, such as water and
steam heaters. The use of the metallurgical gases is more a closed loop system than the
pure sulphur feed (which would make it more optimal from an environmental
perspective). However the metallurgical gases require several more heat exchangers and,
as mentioned, would require constant changes in operating conditions which would have
an effect on the control system and the drier (as well as the downstream absorbers). This
constant fluctuation would take its toll on the equipment and constant modification would
be required.
Single absorption contact process vs double absorption contact process
The contact process was originally designed to produce acids of high concentration using
a single stage absorber (among the other standard unit operations). This process converts
of 98 to 99% (Muller, 2002) of sulphur dioxide to sulphur trioxide over a vanadium
catalyst, which forms sulphuric acid by reaction with water. This grade of sulphuric acid
is appropriate for all practical uses of H2SO4. The amount of waste sulphur dioxide that
the process produces is 27lbm per ton of acid. However, the NSPS19 (New Source
Performance Standards) (Muller, 2006) state that, for the contact process, limit the
amount of SO2 produced to four pounds per ton, which is far below what the single
contact process can produce. In theory, this corresponds to an overall conversion of
99.7% (NZIC, 2006), which is higher than the single contact process can achieve.
The double contact process on the other hand can produce sulphuric acid up to 100% with
a conversion of 99.7% to meet the stringent environmental constraints. Thus it is
recommended that if a contact process is selected, a double contact process be used, and
not a single contact process, as this will result in non-conformance with emission
standards.
19 The NSPS is a regulatory body for certain businesses, which include sulphuric acid, which are under the EPA in the USA to control
the airborne emissions of gases, http://www.cdphe.state.co.us/ap/nsps.html#nsps
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7.3 Process Comparisons

Table 10 below summarises the advantages and disadvantages of the different methods of
sulphuric acid production below.
Table 10: Comparison of different processes for sulphuric acid production.

Process Advantages Disadvantages
Nitrogen oxide processes • Suitable to process gasses with • Low concentration of sulphuric
low sulphur dioxide contents acid (78%) obtained
which cannot be converted by • High energy costs
contact process • Less heat recovery
• Remove both sulphur and • Outdated
nitrogen oxides from flue gases
Contact process based on • High energy recovery • Not as environmentally friendly

sulphur combustion • High conversions possible as metallurgical gas feed
• Standard proven technology (doesn’t process waste gas).
Pressure contact • Produces more sulphur trioxide • Higher material grades
based on equilibrium position • More expensive to construct
• Higher conversion • Less heat recovery
• Lower operating volume
Dry-wet contact • Uses metallurgical gases as feed • Low sulphuric acid production
stock, and can process capacity
contaminated gases. • Unusual, processes hydrogen
• High conversion and sulphide and carbon disulphide
concentrations possible as feed.
Wet catalysis • Uses metallurgical gases as feed • Constant changes in operating
stock, reduces SO2 emissions to conditions.
the atmosphere. • Not typically operated for
• Feedstock is essentially free. economic profit.
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7.4 Process Decision Criteria
The decision of which process is most suitable for the production of sulphuric acid at
Phosphate Hill will depend on environmental, economic and client specified factors, and
these are discussed below. The decision on which process was to be used was done by
using a weighted decision matrix.
The weighting criteria are base on a number between zero and one, where zero
corresponds to a factor of trivial importance, and one corresponds to a factor essential to
the plant. This weighting determines how important the issue (concentration, availability
of feedstock, etc.) is with respect to plant design and our overall aims. A score for each
process is given to each process to reflect how well that process deals with the specific
issues. This is a score between zero and one hundred. A higher score reflects better
suitability to the needs of the client.
Purity/concentration
The end use of the sulphuric acid is for the production of fertiliser at Phosphate Hill. A
sulphuric acid purity of 70% is typically used for the production of phosphate fertilisers
(Persson, 2002). The reaction rate of the fertiliser is known to depend on the
concentration and amount of sulphuric acid.
At a concentration of approximately 98.5%, the vapor pressure of a mixture of water,

sulphur trioxide and sulphuric acid is at a minimum. Below this concentration,
irreversible aerosols of sulphuric acid mists are formed (Kirk Othmer), which may lead to
unacceptable atmospheric emissions of sulphuric acid.
The purity also has an impact on the corrosiveness of the acid. For stainless steel alloy
316, for example, corrosion of the steel is >50 mpy at 15-75% concentration, but above a
concentration of 85%, the corrosion is less than 2 mpy (NACE International, 2002). A
higher purity than 70% may therefore reduce the costs associated with corrosion of
equipment and piping.
The final purity is of medium importance as it is important to have a process that

produces high concentration acid. Thus a weighting of 0.7 is placed on this category. A
high score in this section will reflect the ability of the selected processes ability to make
sulphuric acid of high concentration.
Feedstock and Availability of Feedstock
The source of SO2 which is fed to the (catalytic) converter is an important consideration
when choosing the appropriate process. There are two common sources; waste gas
streams from metal smelting, and elemental sulphur (other forms of sulphur such as
gypsum and pyrite were excluded previously). The feedstock type, to an extent,
determines the ease of design of the plant and the fluctuations that the plant will
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experience, as mentioned in the section of feed based on metallurgical gases. The

weighting of this section is 0.8, reflecting the high importance the client places on the
guarantee of feedstock for the production of acid. The waste gas stream from copper
smelting currently used is likely to be unreliable, and therefore continuity of supply plays
an important part in the decision, and processes relying on elemental sulphur score higher
than processes relying on metallurgical gases.
Environmental factors
The emission of SO2 is an important consideration, as the plant is bound by regulations

and legislations regarding its release. Different processes achieve different conversions,
with the lower conversion processes likely to release more SO2 if it is not scrubbed out of
the stream. Scrubbing may affect the economics of the plant. It was mentioned in the
previous section that the NSPS limits sulphur dioxide emissions from this type of plant to
below 2kg/T of sulphuric acid. This corresponds to an overall conversion of 99.7%, thus
a process needs to achieve this conversion as a minimum.
Other environmental factors include the emission of waste (liquid and solid), and water
and energy usage. Environmental factors that are taken into account are only those that
occur based on our plant, and not the feedstock and life cycle of the feedstock, or its
processing steps.
Environmental performance of a plant is having increasing concern socially and

politically, and it is Fiedl’s aim to comply with emission regulations, and hopefully
decrease emissions. Thus this is weighted as 0.8. A high score in this section will reflect a
process with a low impact on the environment.
Economic factors (efficiency and complexity)
Electricity, utilities and other resources have an environmental impact, but also have an
economic impact. A double absorption plant is more expensive than a single absorption
plant, but reduces environmental emissions. Different processes may increase the capital
expenditure required to build the plant, and also affect the continuous running costs (of
which the high pressure double contact process is an example). The environmental
benefits should be weighed against the increased cost. An efficient and simple plant will
also be more economic to build and run, and this is reflected in the economic factor.
This section also takes into account potential recycle energy and mass streams. A large
decision criterion in designing a plant is the amount of energy one can recycle
(specifically in this case in the form of heat). The aim is to be as efficient as possible, and
thus a weighting of 0.9 is placed on economic performance of the plants. A high score in
this section will reflect the technologies efficiency with respect to energy consumption,
and the lack of reliability on external resources (such as water and energy).
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Capacity of plant
Certain processes are restricted to operation below certain flowrates (eg. The dry-wet
process). These restrictions are based on the capacity of existing plants in operation
around the world currently. Building a plant with a much higher capacity than plants
already in existence may introduce extra scale-up risks. A weighting of 0.8 is placed on
this category, as the plant needs to have the ability to provide the appropriate amount of
sulphuric acid to the potential buyer. A high score in this section will reflect the processes
ability to supply the required amount of H2SO4.
Selection matrix results
The process selection matrix is shown in

Table 11. The standard double contact process based entirely on the sulphur feed (into the
furnace to produce sulphur dioxide) is the process with the equal highest overall score
(with the wet catalysis double contact process), but has the highest weighted score, due to
its superior purity, feedstock and economic factors. It is recommended that the double
contact process be used to produce the sulphuric acid, and that elemental sulphur be used
as the feedstock.
Table 11: Process Selection Matrix
Contact
Dry-Wet Contact Pressure Contact Wet catalysis Nitrogen oxide
(sulphur burning)
Consideration Weight
Weighted Weighted Weighted Weighted Weighted
Score Score Score Score Score
average average average average average
Purity and
0.6 100 60 70 42 100 60 100 60 10 6
concentration
Feedstock and
availability of 0.8 80 64 90 72 80 64 90 72 80 64
feedstock
Environmental
0.8 80 64 80 64 70 56 80 64 70 56
factors
Economic factors
(incl. efficiency, 0.9 80 72 60 54 50 45 80 72 60 54
complexity)
Suitability for
0.8 100 80 30 27 70 56 90 72 90 72
capacity required
Total - 440 340 330 259 370 281 440 340 310 252
Rank 1 4 3 2 5
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PRELIMINARY REVIEW AND BUSINESS CASE
8. Economic Analysis
8.1 Business Risk and Mitigation
Business risk refers to the uncertainties regarding the cash flow of the operation. There
are several business risks inherent to the commissioning of a new plant; some are
macroeconomic, such as exchange rate and interest rate risks, while others are isolated to
the sulphuric acid sector. Possible future demand and supply scenarios for sulphuric acid,
and problems with operability are considered. These risks, their causes and possible
strategies for mitigation are discussed below.
1. Overcapacity/weakening of demand or price
This could occur if:
• Copper prices were to rise, providing an incentive to increase copper production

at Mt. Isa. This increase would make the Mt. Isa sulphuric acid plant viable for
operation again, and lead to greater sulphuric acid production, which would put
down-ward pressure on the price. Assuming there are no users of sulphuric acid in
the immediate area and transportation costs are high, Phosphate Hill would most
likely be in a position to further negotiate the price in their favour. The Mt. Isa
plant uses the SO2 gas from the WMC copper smelter to produce sulphuric acid,
and is the current feedstock for the Phosphate Hill mine. The cost of the feedstock
is negligible (being waste gas), and transportation costs of SO2 to the plant is also
negligible, so it is very unlikely that the proposed plant will be able to undercut
the price of sulphuric acid from the Mt. Isa plant.
• A cheaper substitute product for fertilisers is introduced, or demand for fertiliser

decreases due to a downturn in the farming industry, reducing the demand for
sulphuric acid. This is quite unlikely as Australian soils are inherently
phosphorous deficient, so there is a constant local demand from the agricultural
sector (Department of Natural Resources, Mines and Water, 2006).
Mitigation:
The driving force for the building of the proposed plant is the guarantee of sulphuric acid
supply. This requires the use of elemental sulphur, but this process is slightly more
expensive than that at Mt. Isa. It is therefore essential that the terms of the contract be
arranged so that the demand for sulphuric acid is guaranteed for a sufficient duration to
enable recovery of the capital costs of building the plant, at the very least. The lifetime of
the Xstrata copper smelter comes to an end at approximately 11 years from now
(Infomine Inc., 2006). After this period of time, the Mt. Isa sulphuric acid plant will no
longer pose a risk to the proposed plant. In the short term the client should be aware that
any contract to fix demand would likely involve a sizeable ‘cannibalization charge’ to the
business. These costs will be incorporated into the DCF analysis, where practical, in
report five of the design proposal.
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2. Undercapacity/strengthening of demand
• Demand for fertiliser increases, increasing the demand for sulphuric acid. This
will not have a direct economic impact, but the company risks losing potential
profit due to inappropriate sizing of the plant.
• If the plant exports sulphuric acid, strengthening of demand by the burgeoning
economies of China and Korea could lead to the loss of potential profit.
Mitigation:
To some extent, risks surrounding changing demand and supply can be mitigated by
guaranteeing production and pricing for several years.
3. Unexpected increases in capital expenditure

• Increases in scope occur due to identification of possible process improvements or
deficiencies.
Mitigation:
This can be mitigated by factoring in a 10-15% safety factor in the allocation of capital
costs, and by ensuring that the design is reviewed exhaustively, so that large increases in
scope are unlikely.
4. Foreign Currency Risk

This may occur if:
• The contracts for the construction of the plant are denominated in a foreign
currency, and the Australian dollar subsequently falls.
• Acid is exported and the invoice is denominated in the foreign currency, there is
the potential for foreign currency risk.
• The raw materials (eg elemental sulphur) have to be imported.
Mitigation:
Payment should only be in Australian dollars (this may reduce export contracts).
Alternatively an appropriate hedge can be made by selling a forward denominated in the
foreign currency (for the first case). If the Australian dollar appreciates, the business may
have to cut prices to compete (if exporting), especially since there are no tariffs on H2SO4
imports. This should not be a concern for Phosphate Hill, given that its direct
competitors are expected to be domestic, and it has been decided that the export market is
not stable enough to make production for the export market feasible.
4. Interest Rate Risk

This is a risk borne by the investors in the plant. If interest rates were to rise, the
attractiveness of a sulphuric acid plant decreases, as its return on investment does not rise
correspondingly. This is shown in a discounted cash flow situation as a decrease in the
net present value of the investment.
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An increase in the interest rate also increases the cost of borrowing money, and may
decrease the real cashflows of the project if borrowing is required.
8.2 Initial Estimate of Profitability – Discounted Cash Flow
An initial estimate of the profitability of the plant can be made which takes into account
three factors; the capital costs incurred to build the plant, the price of sulphuric acid, as
well as the profit margin of the plant. Other regular costs such as wages, taxes and
maintenance costs will be incurred, but will not be taken into account at this preliminary
stage.
As discussed above, the most recent estimate for the price of sulphuric acid is
approximately US$55-65 per tonne (Chemical Market Reporter, 2005), and a value of
US$60 will be assumed for these initial calculations. The price of elemental sulphur is
approximately US$30 per tonne, as at 2004 (see Figure 4). Indicative capital costs for
similar sulphuric acid plants commissioned recently in Australia and abroad are provided
in Table 12 below. The figures vary considerably, possibly due to different definitions of
capital expenditure, differences in the cost of acquisition of property, or differences in the
process used to produce the acid. An assumption will be made that acquisition of land is
not necessary. The capital expenditure required has been estimated at $100m. BHP
Billiton spent the same amount to build a plant with approximately double that of the
proposed plant, and also burns elemental sulphur to make sulphuric acid.
Assumptions behind discounted cash flow:

• Investment of $160 m in year 0.
• Cash flow begins in year 2, with sales of 841,500 tonnes per year of sulphuric
acid at a price of US$65 per tonne
• Cannibalisation charge from Mt. Isa operations not included.
• Exchange rate of AUS$1=US$0.765
• Profit margin of 35% (implied cost of production is AUS$16 per tonne, assuming
a sulphur price of US$30 per tonne). Forecasts suggest the sulphur price is likely
to be an overestimate in T + 3 years.
• Discount rate of 6%
To determine whether the project is economically viable, the cash flows are discounted
by a discount factor, representing the opportunity cost of capital. A value of 6% has been
assumed for this calculation to compare the project to the risk free rate of return.
Table 12: Indicative capital expenditures for recently commissioned sulphuric acid plants
Name Commissioning Location Production Capital Expenditure
Date (T/yr)
WMC 2004 Kalgoorlie, WA 500,00020 $170m
BHP Billiton 2004 Ravensthorpe, 160600021 $100m (construction by
WA Monadelphous)22
20
(House of Representatives Standing Committee on Industry, Science and Resources, 2000)
21
See (9)
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Saudi Arabian 2006 4.455m US$240m (expected)

Mining (world’s (construction by Outokumpu)23
Company largest)
JSC 2004 Balkhash, 1.27m24 US$34m (design, specialised
Kazakhmys Kazakhstan equipment and materials by
Aver Kvaerner Canada)
-10
Project Value (Milliion AUD)
-30
-50
-70
-90
-110
-130
-150
-170
0 2 4 6 8 10
Time (Years)
Figure 9: Cash flow diagram based on discounted cash flow.
Table 13: Discounted cash flow for the proposed sulphuric acid plant.
Year 0 1 2 3 4 5 6 7 8 9 10 Total
Cash Flow -160 23.1 23.1 23.1 23.1 23.1 23.1 23.1 23.1 23.1 47.9
PV Cash Flow -160 0 20.6 19.4 18.3 17.3 16.3 15.4 14.5 13.7 12.9 -11.8
From Table 13, the net present value of the stream of cash flows is AUD$-32.3m,
corresponding to an internal rate of return of 4% on the initial $160m investment, lower
than the risk free return of 6%. Payback is achieved after eight years, which is very long
payback period for an ordinary project. The project NPV becomes positive after 11 years
of operation. The NPV can be considered the amount of money required to continue
fertiliser production. It should be noted that Phosphate Hill operations has an estimated
economic life of 35 years (Wallace, 2006). This is well in excess of the duration assumed
above to return a positive NPV.
8.3 Preliminary Sensitivity Analysis
Section 8.1 discussed factors that may impact on the profitability of the plant. The price
of sulphuric acid is directly related to the cashflows of the firm, and this price is likely to
be negotiated with the fertiliser plant. Figure 10 below shows the impact of changes in
22
(Monadelphous, 2005)
23
(Anonymous, 2006)
24
(Robinson, 2004)
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cash flow or the agreed sulphuric acid price on the net present value of the cashflows of
the firm. Two alternate scenarios are shown. The first is a $10 decrease in the assumed
price, to $55/tonne, which corresponds to a decrease in the cash flow of the firm of 8%.
This increases the NPV positive point by approximately two years to thirteen years. An
increase of $10 in the assumed price of sulphuric acid, corresponding to an increase in the
cash flow of the firm by 8%, decreases the payback period by one year to ten years. It can
be thus seen that the acid price has a large impact on the project value, with longer
payback periods increasing the uncertainty and risk for investors or debtors associated
with the project.
10
-10
$65/tonne or $60/tonne
-30
8% rise in
-50 cashflow
-70
$55/tonne or
-90 8% fall in
-110 cashflow
-130
-150
-170
0 2 4 6 8 10
Time (Years)
Figure 10: Sensitivity analysis of discounted cashflow to changes in cashflow/sulphuric acid price.
A second business risk faced is an unexpected increase in the capital cost. Two scenarios
have been considered; an increase or decrease in the capital cost of $20m. It can be seen
that an increase in the capital cost to $180m seriously jeopardising the viability of the
project, as the point at which the NPV becomes positive increases to thirteen years, and
NPV of -$32 m over ten years. It is therefore imperative that the costs of the plant be
documented as accurately as possible, and a contingency value incorporated into any cost
analysis, so that the economic viability of the project can be correctly assessed.
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Capex $140m $160m
-50
$180m
-100
-150
-200
0 2 4 6 8 10
Time (Years)
Figure 5: Sensitivity analysis of discounted cashflow to changes in capital expenditure.
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9. References
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Bauer, R.A., Vidon, B.P. 1978, Chem. Eng. Prog. no. 9, 68 – 69.
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from:
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_Year_Outlook_to_2014.pdf
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Columbia University Press, 2006, “Production of Sulfuric Acid”. Retrieved 9/8/06, from:
http://www.infoplease.com/ce6/sci/A0861350.html
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http://www.coogee.com.au/tank_terminals/cat.htm
Department of Natural Resources, Mines and Water, 2006, “Phosphate Rock”, The State
of Queensland. Retrieved 8/8/06, from: http://www.nrm.qld.gov.au
Duecker, J. R. West The Manufacture of Sulfuric Acid, ACS Monographs. (1959)
EPA, Sulfuric acid, AP-42, Chapter 8.10, Sulfuric acid, Environmental Protection
Agency.
Retrieved 3/8/06, from: http://www.epa.gov/ttn/chief/ap42/ch08/final/c08s10.pdf
Faith, W.I., Keyes, D.B., Clark, R.I., .Industrial Chemicals, Third edition, John Wiley
and sons. 1965
Google Earth 2006 [Computer software], (2006), United States of America, GoogleTM.
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1970.
House of Representatives Standing Committee on Industry, Science and Resources, 2000,

“Of material value? Inquiry into increasing the value added to Australian raw
materials: Appendix F – Australian Non-Energy Minerals Processing facilities
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Commissioned, 1993-1999”
http://www.aph.gov.au/house/committee/isr/val_add/appendf.pdf
Infomine Inc., 2006 “Mt. Isa Mines”. Retrieved, 8/806, from:

http://www.infomine.com/minesite/minesite.asp?site=mountisa#Overview
Kirschner, M., 2005, “Sulphur”, Chemical Market Reporter, Vol.268, Iss. 10; pg. 38.
ABI/INFORM GLOBAL.
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&SrchMode=1&sid=1&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQ
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Kirschner, M., 2005, “Sulphuric Acid (Virgin)”, Chemical Market Reporter, Vol. 268,
Iss. 15; pg 66. ABI/INFORM GLOBAL.
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&SrchMode=3&sid=1&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQ
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Lyday, T., (2003), The mineral industry of Australia’, retrieved 9th August 2006 from
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http://www.monadel.com.au/internet/web.nsf/Content/2005+Investor+Presentation+Full+
Year/$file/Investor%20Presentation%20Full%20Year%20Sept%202005.pdf
Muller, H., 2002, “Production of sulphuric acid and sulphur trioxide”, Ullman’s
encyclopedia of Industrial Chemistry, John Wiley and sons. Wiley Interscience.
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http://www.mrw.interscience.wiley.com.ezproxy.library.usyd.edu.au/ueic/articles/a25_63
5/sect4-fs.html
Muller, T., 2006, “Sulfuric acid and sulphur trioxide”, Kirk Othmer Encyclopedia of
Chemical Technology, John Wiley and Sons.
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New Source Performance Standards, 2006, Air pollution control division, Department of
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8/806, from:
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on_Sheets/ECIS_H2SO4_PDF.pdf
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Superphosphate”. Retrieved 10/8/06, from: http://www.nzic.org.nz/
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Chemistry, Wiley-VCH Verlag GmbH & Co. KGaA. Retrieved 6/8/06, from:
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Preliminary Review &

Project: Phosphate Hill H2SO4 plant

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2.1 Report scope and objectives

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3. Stakeholder Requirements and Expectations

1. The University of Sydney, the client:

2. Queensland Fertiliser Operations, the customer:

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or management roles require safe working conditions. Employees expect workers

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Table 1: Stakeholder requirements and expectations.

 Create safe working conditions

Social and environmental considerations

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Figure 2: Mt. Isa emissions (Infomine, 2006).

4.1 Price of Sulphuric Acid

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Table 2: Production of Sulphuric Acid by Region (Muller, 2006)

North America 41.3 49.5 40.6

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free of charge, whereas a plant utilising elemental sulphur as a feedstock incurs

4.6 The Market for Sulphur

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5. Plant Capacity and Location

Table 4: Preliminary feedstock requirements and plant products.

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5.2 Plant Location

Based on the geographic location of Queensland Fertilizer Operation’s processing and

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Decision making methodology

Table 5: Client location scoring system.

Table 6: Client location weighting system.

Table 7: Client location decision matrix

Phosphate Hill Townsville Mt. Isa

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Phosphate Hill Townsville Mt. Isa

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Table 9: Summary of rail freight data.

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Phosphate Hill (935km)

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4.829 cents per kW/h

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7. Sulphuric Acid Production Processes

7.1 Nitrogen Oxide Processes

Chemistry of Nitrogen Oxide Processes

SO2 + 2NOHSO4 + 2H2O Æ 3H2SO4 + 2NO Equation 5

At sulphuric acid concentrations of higher than 70%, nitrosyl hydrogensulphate

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residual nitrogen oxide content (Muller, 2002).

7.2 Contact Processes

1) Contact process based on sulphur combustion

1. Catalytic conversion of SO2 to SO3

S(s) + O2(g) Æ SO2(g) Equation 2 (Sulfur is burned in air)

Contact process based on sulphur combustion

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Create safe working conditions