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Report Kaimaumau Extraction Process & Operations Report Prepared for Resin & Wax Holdings Ltd Prepared by Beca Ltd (Beca) 19 August 2016

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Report

Kaimaumau Extraction Process & Operations Report

Prepared for Resin & Wax Holdings Ltd

Prepared by Beca Ltd (Beca)

19 August 2016

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Revision HistoryRevision Nº Prepared By Description Date

0 Adrian Dickison Draft for Comment 5/8/2016

1 Adrian Dickison Revised with RWL comments 15/8/2016

2 Adrian Dickison Minor revisions 19/8/2016

Document AcceptanceAction Name Signed Date

Prepared by Adrian Dickison Adrian Dickison 19/8/2016

Reviewed by Andrew Osborn Andrew Osborn 19/8/2016

Approved by Adrian Dickison Adrian Dickison 19/8/2016

on behalf of Beca Ltd

© Beca 2016 (unless Beca has expressly agreed otherwise with the Client in writing).

This report has been prepared by Beca on the specific instructions of our Client. It is solely for our Client’s use for the purpose for which it is intended in accordance with the agreed scope of work. Any use or reliance by any person contrary to the above, to which Beca has not given its prior written consent, is at that person's own risk.

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Executive SummaryThis concept study outlines the main site and operational parameters for a resin and wax extraction facility proposed for a site at Norton Road, Kaimaumau, Northland.

The information contained herein is preliminary and subject to revision through the execution of the project.

The overall design as presented is based on the best available information provided to Beca by Resin and Wax Limited at the time of writing.

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Contents

1 Introduction 12 Plant Location 13 Design Basis 2

3.1 Phase 1 23.2 Phase 2 23.3 Operating Regime 23.4 Total Staff Numbers 33.5 Safety in Design Principles 3

4 Process Facilities Description 54.1 Overall Process Block Diagram 54.2 Peat Extraction 64.3 Peat Drying and Screening and Storage 64.4 Extraction 64.5 Refining 84.6 Solvent Recovery 84.7 Product Packaging 94.8 Peat Disposal 104.9 Stormwater 104.10 Fire Water/Fire Fighting 114.11 Wastes 11

5 Utilities Description 125.1 Water 125.2 Steam 125.3 Hot Water 135.4 Chilled Services 145.5 Cooling Water 145.6 Nitrogen 155.7 Compressed Air 165.8 Vacuum 165.9 Effluent Treatment 165.10 Diesel Storage 165.11 Solvent Storage 165.12 Fire Fighting Water Supply 175.13 Electricity Supply 17

6 Offsites Description 186.1 Mobile Equipment 186.2 Heavy Vehicle Access 19

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6.3 Workshop/Store 216.4 Control Room 216.5 MCC Room 216.6 Consumables and Other Storage 216.7 Amenities 216.8 Construction 226.9 Road Access 22

Appendices

Appendix 1Bulk Flow Diagram

Appendix 2Site Layout

Appendix 3Design Basis Spreadsheet

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1 IntroductionResin & Wax Limited (RWL) is progressing the design and consenting of a peat extraction operation and processing facility to be located at Kaimaumau, Northland. RWL has requested assistance in preparing a package of conceptual engineering information to progress consenting. This report outlines the basic plant and operations concept for the extraction plant. Details of the peat extraction process will be outlined elsewhere.

2 Plant LocationThe project and plant site location is on Norton Road, West of the settlement of Kaimaumau on the Rangaunu Harbour.

Figure 1: Approximate Site Location

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Figure 2: Approximate Plant Location

The plant site is accessed via Norton Road and is located on the North-East side of the road.

3 Design Basis3.1 Phase 1

Referring to the attached bulk flow diagram (BFD) the phase 1 capacity will be 87 tonnes per day of dry basis peat, yielding 2200 tonnes per annum of final products comprising waxes, resins and asphalts.

3.2 Phase 2

The phase 2 capacity will be 354 tonnes per day of dry basis peat, yielding 9000 tonnes per annum of final products.

3.3 Operating Regime

Operating regimes;

Peat extraction: 12h/5d Extraction plant: 24h/7d Product packing: 12h/7d Supervision, laboratory etc.: 12h/7d Administration: 8h/5d

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Peat extraction and windrow drying and screening has been limited to daylight hours and weekdays. The extraction plant will run 24 hours, 7 days a week as it is a continuous process plant. Product packing will be done on a 12h/7d basis. Supervision and laboratory services will run on the same basis. A full time weekday administrator is also envisaged

Shift Rosters;

Phase 1 Peat extraction: 5 on/ 2 off, 1 crew of 2 Process plant: 4 on/ 4 off, 4 crews of 4 Product packing: 4 on/4 off: 2 crews of 1 Supervision, laboratory etc.: 4 on/4 off: 2 crews of 2 Administration: 5 on/2 off; 1 crew of 1

Total phase 1 staff: 27

Phase 2 Peat extraction: 5 on/ 2 off, 1 crew of 5 Process plant: 4 on/ 4 off, 4 crews of 6 Product packing: 4 on/4 off: 2 crews of 2 Supervision, laboratory etc.: 4 on/4 off: 2 crews of 2 Administration: 5 on/2 off; 1 crew of 1

Total phase 2 staff: 38

3.4 Total Staff Numbers

38 permanent staff for peat harvesting, extraction process plant and packing operations Allow for up to 4 external maintenance contractors/visitors on site at any one time Total site population for amenities and parking design: 42

3.5 Safety in Design Principles

For this concept phase, the following safety in design principles have been applied to consideration of the overall layout;

Fire separation distances (between solvent storage tanks and extraction plant) Wind direction (location of amenities building upwind of other facilities with respect to the prevailing south-

westerly wind – see Figure 3 below for the Kaitaia wind rose) Separation of hazardous area plant (processing, refining and solvent storage) from non-hazardous plant

(utilities, control room, laboratory) Location of the stage 2 peat-fired boiler downwind of the extraction plant (potential dust nuisance) Location of the peat handling area downwind of the main facilities (potential dust nuisance) Separation of staff light vehicle, peat extraction traffic and heavy road traffic Containment of screened and dried peat to minimise fire hazard

The proposed plant layout has been based on the prevailing wind direction as indicated in Figure 3 below.

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Figure 3: Wind Rose for Kaitaia

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4 Process Facilities Description

4.1 Overall Process Block Diagram

The overall process comprises peat extraction, drying, storage, solvent extraction, product separation and packing. Other ancillaries include solvent recovery and in Stage 2, a peat biomass boiler.

Figure 4: Process Block Flow Diagram

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4.2 Peat Extraction

Peat is extracted and screened at the extraction location to remove large sticks and other debris. Peat is transported by tractor trailer units to the peat drying area.

4.3 Peat Drying and Screening and Storage

Peat is screened a second time then dried in windrows on a pad and reclaimed and stored in covered bunkers. A bulk stockpile is envisaged to maintain a sufficient buffer to feed the extraction plant continuously and be decoupled from the peat harvesting, screening and drying operations. A minimum of 1 week’s inventory of dried peat is anticipated for both stage 1 and stage 2 operations. This will allow 5 day a week mining operations in daylight only and also allow for a seasonal harvest of dry peat to bunkers to allow flexibility during the wet winter months. Storing peat in a bunker minimises the risk of fire and dust nuisance and minimises the issue of stormwater runoff from the prepared peat.

Figure 5: Possible configuration for dry peat storage bunkers

4.4 Extraction

Dried and screened feed material is fed from the dry peat bunkers to a feed hopper by a wheel loader. The material flows to a surge bin with a nominal capacity of 2 hours. Each extractor will have its own surge bin. Two extractors will be required for Stage 1 with expansion to a total of eight extractors in Stage 2.

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Figure 6: Typical elevator and surge bin arrangement

The peat will be metered into a counter-current extractor unit using a weigh belt. In the extractor, hot butyl acetate solvent at 80°C – 85°C is contacted with the peat. The mass ratio of solvent to peat is maintained at 5:1. The solvent moves counter-current to the peat in order to recover all the wax and resin.

Figure 7: Typical extractor unit

Comment [AD1]: This is based on the p44 of the 2012 presentation mass balance and not the 2.5:1 based on resin/wax content – needs to be verified. I don’t think 2.5:1 based on resin would drive dissolution necessarily

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After leaving the extractor the spent peat is conveyed to the desolventiser where it is stripped of residual solvent using heat provided indirectly by steam. The spent peat is then conveyed from the processing plant to a spent peat pad and taken back by tractor trailer unit as a backload to the excavated area for reinstatement. The spent peat has physical characteristics largely similar to the fresh peat, along with around 0.5% by mass residual butyl acetate solvent. This residual solvent will readily biodegrade in the natural environment.

In Stage 2 a significant proportion of the peat would be combusted in a biomass boiler to provide process heat for the plant and less would be available for back-filling the peat extraction area.

The miscella (a mixture of solvent, wax and resin) from the extractor is concentrated to increase the wax and solid content using multi-stage evaporation. The evaporated solvent is cooled and recovered for re-use and recycled back to the process. The concentrated miscella is then further processed in a series of steps (treated with methanol and hexane) to separate and refine the resin, wax and asphaltene fractions.

4.5 Refining

4.5.1 Resin Refining

The resins are extracted from the concentrated miscella by extraction with methanol. The resins are soluble in liquid methanol and go into solution. The solution is decanted, cooled and filtered to give a resin-rich liquid. The resin is separated by boiling off the liquid methanol under vacuum. Resin product is stored in heated, insulated storage tanks prior to drumming off.

4.5.2 Wax Refining

The insoluble or the solid fraction after the methanol extraction contains the wax and asphaltenes. This is treated with hexane to remove the asphaltenes and progressively cooled to lower temperatures to yield different wax cuts (grades). Wax and asphaltene products are stored in heated, insulated tanks prior to drumming off.

4.6 Solvent Recovery

Within the plant there will be solvent recovery systems for collecting process solvents and purifying them for reuse. All tanks and vessels within the plant will be vented into the solvent recovery system.

The solvents are valuable and the plant is designed to minimise any loss of them and minimise any effect on the environment. The solvents will be stored in standard double-skinned tanks used for petrol storage since the solvents are of the same flammability class as petrol.

Most of the solvent is recycled in the process by evaporation and condensing and only a small amount of fresh solvent is used for process make-up. It is expected that the residual butyl acetate content in the desolventised peat will be 0.5% by mass.

Some solvent is lost as vapour discharge in the evaporation process, but all significant vents will be ducted to condensers and recovered. All the drains from the chemical process area will be collected and treated before discharge.

Any foul gas containing non-condensibles and any residual flammables will be sent to the boiler system for co-firing disposal.

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Figure 8: Typical solvent recovery plant

4.7 Product Packaging

Molten wax and molten resin will be pumped from storage tanks to the packing shed for packing. Packing will be done on day shifts.

The wax will be held in insulated and steam or hot water heated Wax Packing Tanks from where it will be drawn off to the drum filling line.

Molten resin will be held in the Resin Packing Tanks from where it will be drawn off to the drum filling line.

Asphaltenes will be packaged in a similar manner.

Any mixed residues due to product changeover will be recycled back to the product separation process.

The 200L drums will be managed on a manual conveyor on wooden pallets in groups of 4. A load cell arrangement and positive displacement pump will be used to tare and fill the drums. Figure 9 shows a typical drum filling line for molten products.

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Figure 9: Typical drum filling station for molten products

4.8 Peat Disposal

Peat ex the desolventisers will be conveyed to a waste peat stockpile for recovery and placement back into the peat extraction area as a backload for the fresh peat operation. In stage 2 part of the peat stream will be recovered to a peat day bin located next to the peat/biomass boiler. The anticipated peat feed rate to the boiler will be of order 1 tonne per hour.

4.9 Stormwater

4.9.1 Hardstanding

Hard standing areas will be minimised and areas left pervious where possible in compacted gravel. If dust nuisance is expected or encountered some areas may be concreted or asphalted where required. Truck turnaround areas will be concrete or asphalt.

4.9.2 Roof water

Roof water will be collected for domestic purposes, treated and filtered as required. Excess roof water will flow to stormwater.

4.9.3 Permeable Areas

Permeable areas will be variously graded and swaled to direct surface water flows to the stormwater receiving body.

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4.10 Fire Water/Fire Fighting

Dual fire water pumps with electric and diesel motors will be provided to supply high pressure and deluge fire water systems. Two ring mains will provide these services around the extraction and refining plant and the bulk solvent storage area. A fire-fighting pond initially estimated to be of volume 530 m³ will be required to service the volume of flammable solvents.

4.11 Wastes

4.11.1Emissions to air

Process vents will pass via condensers using cold glycol to condense the majority of solvent vapours. Any remaining solvent vapours and foul air will be sent to either a flare or the power boiler system(s) for co-firing disposal.

Some butyl acetate solvent (0.5% by mass of the spent peat) will be absorbed on the spent peat and will pass to landfill, where it will bio-degrade. In stage 2 a fraction of the peat will be burnt in the biomass boiler

4.11.2Emissions to water

Expected emissions to water will be treated using a package wastewater treatment plant. These include any boiler and cooling tower blowdown, vacuum pump seal water and any plant spillages. Treated water will be discharged to the local watercourse.

4.11.3Solid Wastes

Solid wastes are expected to include broken pallets, retired balage bags or wrappers, miscella filter waste, spent filter cartridges or elements and minor laboratory waste. In Stage 2 if a biomass boiler is retained, ash will also be produced that will require landfilling.

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5 Utilities Description

5.1 Water

5.1.1 Process Water

Bore water will be provided by two deep well pumps and used as supply for potable and process water and for makeup in the fire pond.

5.1.2 Potable Water

Potable water will be provided by rainwater caught from the utilities building and extraction plant building and treated for potable domestic uses.

5.2 Steam

5.2.1 Stage 1

Steam will be raised in a diesel-fired package boiler. The nominal duty is expected to be of order 2 MW. The steam pressure will be of order 17.5 bar(g).

Figure 10: Diesel-fired package boiler

5.2.2 Stage 2

Steam will be raised in a peat or other biomass fired boiler on the opposite side of the plant to the general utilities area on the other side of the extraction plant. The nominal duty is expected to be of order 5 MW. The operating pressure will be the same as stage 1.

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Figure 11: Typical peat/biomass fired boiler system

5.3 Hot Water

Hot water will be generated using primary steam and be stored in a 20 m³ insulated storage tank adjacent to the stage 1 diesel boiler.

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5.4 Chilled Services

5.4.1 Glycol

Chilled glycol will be generated using an air-cooled package chiller located outdoors at grade. The nominal duty is 300 kWr. Glycol will be stored in two 40 m³ insulated storage tanks adjacent to the chiller package. Tankage is sized for the stage 2 capacity and will not be required to be expanded later. In stage 2 a water-cooled chiller with cooling tower is envisaged with an additional 550 kWr capacity.

Figure 12: Typical air-cooled chiller package as proposed for Stage 1

5.4.2 Chilled Water

Chilled water will be generated on demand using the return glycol stream on an on-demand basis via a heat exchanger, no additional tankage will be required.

5.5 Cooling Water

A cooling tower in stage 1 and a second cooling tower in stage 2 are envisaged with duties of approximately 2 MW and 5 MW respectively. These are located at grade in the utilities area.

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Figure 13: Typical cooling tower

5.6 Nitrogen

Nitrogen for blanketing will be generated using a membrane nitrogen generator with a small surge storage vessel.

Figure 14: Typical membrane-type nitrogen generation unit

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5.7 Compressed Air

Compressed air will be generated at 7 bar(g) by an oil-injected screw compressor package.

5.8 Vacuum

A vacuum pump with recirculating cooling water or chilled water will provide plant vacuum.

5.9 Effluent Treatment

A proprietary oily water effluent treatment package will treat any solvent-bearing water streams and/or any blowdown water streams before discharge to the local watercourse.

5.10 Diesel Storage

Diesel storage will be provided for the stage 1 boiler operation. This will require approximately 27 tonnes per week of diesel which will be stored in a similar petroleum vessel envisaged for the solvents. This vessel will be recharged by road tanker. In stage 2 this tank can be re-purposed for solvent storage or decommissioned and removed from site once the peat biomass boiler planned for stage 2 has been successfully commissioned.

5.11 Solvent Storage

The table below shows the quantities of solvent that are expected to be required for the operation;

Table 1 – Estimated Solvent Storage

Solvent Stage 1 Volume (t) Stage 2 Volume (t)

Butyl acetate 110 450Methanol 10 40n-Hexane 50 190Mineral Oil (if required) 10 40Diesel 50 -

The estimated solvent storage is required is the equivalent of the requirement for six hours operation for both fresh and recycled solvents, considering likely minimum delivery volumes for fresh solvents.

5.11.1 Fresh Solvent

Fresh solvent will be stored in double-skinned proprietary horizontal vessels in an area located away from the extraction plant.

5.11.2 Recycle Solvent

Recycled solvent will be stored in double-skinned proprietary horizontal vessels in an area located away from the extraction plant.

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Figure 15: Typical double skinned solvent storage tanks

5.12 Fire Fighting Water Supply

Fire-fighting water supplies will be supplied from a fire water pond located adjacent to the facility. The pond shall be sized based on the largest solvent vessels. Electric and standby diesel firewater pumps will be provided.

Figure 16: Typical diesel driven firewater pump

5.13 Electricity Supply

An initial transformer supply estimated to be of 0.75 to 1 MVA capacity will be situated on the site road boundary. This will be expanded with a further unit for stage 2. We understand the local transmission lines still have nominal capacity available that was utilised during the original Kaurex operations. Comment [AD2]: Electrical network

supply to be confirmed

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6 Offsites Description

6.1 Mobile Equipment

This equipment is likely to consist of;

Tracked digger at the peat harvest location Rotating screen for primary screening at the peat harvest location Tractors with trailers (10m³ capacity) to transport peat from harvest point screen to the drying pad screen Drying pad vibrating screen for secondary screening at the drying pad location Spreader/windrower unit at the drying pad for placing secondary screened material Baler or big bag filling system for dry peat harvest Wheel loader equipped with grabs for bale/big bag handling and screen oversize material skips Wheel loader with bucket for back-loading tractor trailers with spent peat

The number of mobile equipment items will be optimised once the preferred sequence and methodology has been further developed.

Figure 17: Typical wheel loader for peat handling

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Figure 18: Tractor propelled peat-turning windrower

Figure 19: Tractor with tipper trailer

The above equipment would be supplied and operated by the peat harvest contractor

Another wheel loader would be provided and operated by the extraction plant to feed from the dry barn to the extractor peat feed surge bin(s).

6.2 Heavy Vehicle Access

Heavy vehicles delivering solvents (in 20 tonne isotainers), diesel (by tanker), and 40’ containers of drums and pallets will access via a dedicated access way with controlled access. Semi-trailer side loaders will drop the 40’ containers under a canopy where drums and pallets can be unloaded under shelter.

Comment [AD3]: RWL to check if this is what is required

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The maximum frequency of isotainer, 40’ container and other trucks is as follows;

Table 2 – Road Truck Movements

Cargo Stage 1 (trucks/week) Stage 2 (trucks/week)

Solvents 1 4Diesel 2 -Products 3 11Solid waste (estimated) 1 3

Figure 20: Side loader with 40’ container

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Figure 21: Isotainer used for solvent delivery

6.3 Workshop/Store

A small workshop for tool storage, minor repairs and storage of spares, consumables and lubricants will be sited adjacent to the control room.

6.4 Control RoomA control room containing plant computers and HMI screens is envisaged where operators will manage the operation of the process plant and utilities. This may be a lean-to structure adjacent to/integral with the MCC room. For reasons of blast protection no portable buildings are foreseen for the site.

6.5 MCC RoomA MCC room, typically of tilt-slab concrete construction will be provided for electrical panels, variable speed drives, PLC input/output cabinets and other controls gear in the utilities zone of the plant.

6.6 Consumables and Other Storage

Consumables and other storage is included in the workshop.

6.7 Amenities

6.7.1 Staff change, lunchroom and kitchen

A staff facility for up to 20 staff on site at any one time will be provided.

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6.7.2 Laboratory

A small laboratory equipped with air-conditioning will be provided for site quality control purposes.

6.7.3 Staff/contractor car parking

Carparking for up to 20 vehicles will be provided. This will be provided with a separate access driveway isolated from the heavy transport.

6.8 Construction

Construction will require the delivery and placement of several package units including extractors, boilers, and solvent vessels and potentially pre-assembled pipe rack sections. The required cranage is expected to be able to be serviced by standard mobile cranes.

6.9 Road Access

Road access is via Norton Road. The plant is located to the north of Norton road. See the site layout plan for the precise orientation of the plant site with respect to the road.

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Beca // 19 August 20162934485 // NZ1-12910234-7 0.7 // page 23

Appendix 1

Bulk Flow Diagram

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ANNUAL PRODUCTION CAPACITY

STAGE 1: 2200 T/yr Resin and Wax at 8% d.b peat input + 30% w/w H20STAGE 2: 9,000 T/yr

SOLID WASTE/RECYCLINGSpent peat is rehydrated and goes back into swampSkip on wheels and tractor to mine siteOR some to steam raisingLater stage: Dry peat used for burning/ power generation

REFRIGERATIONStage 1: 1 x A/C package chiller (rental?)Stage 2: 1 x W/C package chiller + cooling tower

PACKAGING MATERIALSDrums 240LPalletsArriving in 40' containersStage 1: 3 containers/weekStage 2: 11 containers/week

FIRE SYSTEMFire pond 530m3

WASTEWATER TREATMENTPackage unit for ProcessSeptic tank for Ablution

RAW MATERIALSStage 1: 3604 kg/h 2200 TPAStage 2: 14744 kg/h 9000 TPA

STAFFStage 1: total staff: 27Stage 2: total staff: 30

FUELStage 1: dieselStage 2: peat

2934485-BFD-001

WATERProcess: 1 x BoreDomestic: roof water1 x package process water treatment

NITROGEN1 x Membrane Package

COMPRESSED AIR1 x compressor

CHEMICALSSolvent: BuAC (0.5% loss replaced) = 746 TPA (stage 1) / 3052 TPA (stage 2)Hexane = 80 TPA (400 TPA) estimateMethanol = 80 TPA (400 TPA) estimate1 x Set water treatment chemicalBulk-solvents: Isotainers to day tanks

POWER0.75 MVA Stage 11.5 MVA Stage 2(ESTIMATE)

PROCESS

AA

ASSUMPTIONS345 days/year operating Mobile equipment maintenance offsite

TRAFFIC (TRUCK/DAY)Product & chemicals Basis: 40' containersStage 1: 4 x 40' containers/week + 2 diesel tankersStage 2: 15 x 40' containers/week

DRAFT FOR REVIEW ONLY

STEAMStage 1: 1 diesel package boiler 2MW at 17.5bar(g)Stage 2: peat biomass boiler 5MW at 17.5bar(g)

COOLING TOWER WATERStage 1: 1 x cooling towerStage 2: 2 x cooling (W/C chiller)

Issued for Information

DESIGN PRODUCTION RATE

2200 T/yr Resin & Wax8% of Peat≈266 kg/h Resin & Wax

OPERATIONS PLANMINE: 8h x 5days

PLANTS: 24h x 7days (4/4 roster 12h shifts)ANCILLARIES: 12h x 7days (4/4 day shift)

24 Hours/day – 4 ppl/ shift7 days/week – 345 days/year

4 crews4 day shifts (Supervisor/Lab/Peat supply/Drumming)

PRODUCT STORAGE

Drumming Off & Strapping = Dayshift operation

1x Forklift

TANKAGE2 RESIN / 5 WAX / 1 ASPHALT

Stage 1: 8 x 20m3 Storage TanksStage 2: 14 x 20m3 Storage Tanks

CIRCULATING FLUIDS: BuAC, Methanol, Hexane

LAYOUT REQUIREMENTS

Solvent Storage (zoned area)1 train of Solvent Recovery & Distillation

Non-hazardous area for feeding + screening (firewall required)

Non-hazardous area for utilitiesAmenities + Lab area

Product storage + packing area

TDResin & Wax Ltd. Kaimaumau 2000TPA Bulk Flow Diagram

AD AD 5/8/16

JADIRH

Printed: 5/08/2016 3:43 p.m.

STORMWATER1 x settling pond

PRODUCTS41% Wax 46% Resin 13% Asphalt4rums – 200 L Steel DrumsStage 1: 2200 TPA at 345 days/yrStage 2: 9000 TPA at 345 days/yr

TRAFFICKED AREASAll gravel – no impermeable surfaces 25 car parksLaydown for 12 x 40' containers

PEAT SUPPLY TRAFFIC1 x 10m3 Truck day shift 8h/5days operation Stage 1: 46 truck loads / day Stage 2: 188 truck loads / day(CONTRACTED)

PEAT DRY STORE AREAStage 1: 1200m2

Stage 2: 4800m2

Stage 1 Stage 2Fresh-BuAc- MeOH-HexaneRecycle -BuAc- MeOH-Hexane

50m3

50m3

50m3

+50m3

+50m3

+50m3

100m3

10m3

20m3

+200m3

+10m3

+40m3

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Kaimaumau Extraction Process & Operations Report

Beca // 19 August 20162934485 // NZ1-12910234-7 0.7 // page 24

Appendix 2

Site Layout

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2934485-NA-K001 APRELIMINARY SITE LAYOUT MECHANICALRWL

KAIMAUMAUEXTRACTION PLANT1:250

1:500

A.OSBORN 05.08.16M.PHILP 05.08.16

NOT FOR CONSTRUCTIONPRELIMINARY

A FOR REVIEW MP AO AD 05.08.16No. AppdRevision By Chk Date

Drawing Originator:

DO NOT SCALE

* Refer to Revision 1 for Original Signature

Scale (A1)

Scale (A3)Reduced

Dwg Check

Dsg Verifier

Drawn

Original DesignConstruction*

Date

Approved For Client: Project:

IF IN DOUBT ASK.

Title:

Drawing No.

Discipline

Rev.

Drawing Plotted:

OFFICE / SECURITY \ABOLUTIONS / FACILITIES

GATE

EMPLOYEECAR PARKING

DRYING PAD &SCREENING STATION

(300m X 300m)

FUTUREPEAT

BOILER

EX 1 DESOLV 1

EX 2 DESOLV 2

EX 3 DESOLV 3

EX 4 DESOLV 4

EX 5 DESOLV 5

PIPE BRIDGE

CROWNBUAC

RECOVERY

WEIGHFEEDER

SURGEHOPPER

BUCKETELEVATOR

C6RECOVERY

BuAc RECOVERY

2ND

BuAc

RECO

VERY

REFININGPRODUCTSTORAGE

STORE

MCC+UPS

LAB CONTROLROOM BOILER

N2

CHILLER 2

CHILLER 1

COMPRESOR \FILTER \ DRYER

PUMPS

H20PROCESS

DIESELTANK

CHEMSTORE

COOLINGTOWER

PUMPSH20 TANK

GLY TANK

GLY TANK

FUTURE

TRUCKTURNAROUND

SOLV

ENT

OFFL

OADI

NG

PUMPS

WATERSTORAGE POND

STORM WATER RUNOFF SETTLEMENT

FUTUREDRUM

FILLING

FUTUREWATER

STORAGEPOND

40' SHIPPINGCONTAINER

FUTURECOOLINGTOWER

FUTUREPUMPS

BORE HOLE

PUMP SETS50m3

50m3

50m3

50m3

50m3

50m3

50m3

50m3

50m3

50m3

HOT WATERTANK

FEEDHOPPERS

SPENT PEATSTOCKPILE

EX 6 DESOLV 6

EX 7 DESOLV 7

EX 8 DESOLV 8

NORTON ROAD

DRUMFILLING

FRESH PEATBUNKER

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2934485-NA-K003 APRELIMINARY SITE LAYOUT MECHANICALRWL

KAIMAUMAUEXTRACTION PLANT1:500

1:1000

A.OSBORN 23.08.16M.PHILP 23.08.16

NOT FOR CONSTRUCTIONPRELIMINARY

A FOR REVIEW MP AO AD 23.08.16No. AppdRevision By Chk Date

Drawing Originator:

DO NOT SCALE

* Refer to Revision 1 for Original Signature

Scale (A1)

Scale (A3)Reduced

Dwg Check

Dsg Verifier

Drawn

Original DesignConstruction*

Date

Approved For Client: Project:

IF IN DOUBT ASK.

Title:

Drawing No.

Discipline

Rev.

Drawing Plotted:

OFFICE / SECURITY \ABOLUTIONS / FACILITIES

GATE

EMPLOYEECAR PARKING

DRYING PAD &SCREENING STATION

(300m X 300m)

PIPE BRIDGE

TRUCKTURNAROUND

SOLV

ENT

OFFL

OADI

NG

PUMPS WATERSTORAGE POND

STORM WATER RUNOFF SETTLEMENT

FUTUREWATER

STORAGEPOND

FUTUREPUMPS

BORE HOLE

SPENT PEATSTOCKPILE

NORTON ROAD

FRESH PEATBUNKER

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No. AppdRevision By Chk Date

Drawing Originator:

DO NOT SCALE

* Refer to Revision 1 for Original Signature

Scale (A1)

Scale (A3)Reduced

Dwg Check

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Original DesignConstruction*

Date

Approved For Client: Project:

IF IN DOUBT ASK.

Title:

Drawing No.

Discipline

Docu

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No.

Rev.

Drawing Plotted: 26 Sep 2011 4:30 p.m.

DRAW

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KAIMAUMAU EXTRACTION PLANT
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LAYOUT SKETCH
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RWL
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AD
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BIOMASS POWER PLANT
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SPENT PEAT STOCKPILE
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STAGE 1 - GREEN
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STAGE 2 - PINK
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LABORATORY AND CONTROL ROOM
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DIESEL BOILER
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SOLVENT TANK FARM
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FIRE WATER POND
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40' CONTAINER LOAD IN/OUT
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GLYCOL TANKS
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NITROGEN PLANT
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FEED HOPPERS
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CHEMICAL STORE
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DIESEL TANK
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NO.1 EXTRACTOR
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TANK FARM PIPE BRIDGE
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POWER PLANT BAGHOUSE
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FUTURE CHILLER
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STORMWATER POND
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HOT WATER TANK
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PROCESS WATER TANK
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2934485-NA-K004 APRELIMINARY SITE LAYOUT MECHANICALRWL

KAIMAUMAUEXTRACTION PLANT1:20000

1:40000

A.OSBORN 23.08.16M.PHILP 23.08.16

NOT FOR CONSTRUCTIONPRELIMINARY

A FOR REVIEW MP AO AD 23.08.16No. AppdRevision By Chk Date

Drawing Originator:

DO NOT SCALE

* Refer to Revision 1 for Original Signature

Scale (A1)

Scale (A3)Reduced

Dwg Check

Dsg Verifier

Drawn

Original DesignConstruction*

Date

Approved For Client: Project:

IF IN DOUBT ASK.

Title:

Drawing No.

Discipline

Rev.

Drawing Plotted:

REFER DRAWING2934485-NA-K003

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Kaimaumau Extraction Process & Operations Report

Beca // 19 August 20162934485 // NZ1-12910234-7 0.7 // page 25

Appendix 3

Design Basis Spreadsheet

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Title: Resin & Wax Preliminary Mass BalanceJob No.: 2934485Date: 4/08/2016Author: Adrian Dickison

Peat Movement per yearUnits Comments

Description Stage1 Stage2 Stage3Finished product Mt 2200 4500 9000Solids in Miscella to Refining unit Mt 5% refining losses 2316 4737 9474Extractable solid in feed to Crown Mk IV Mt 3% process loss extraction 2387 4883 9767Dry peat feed to extraction plant Mt Avg 8% extractables 29843 61042 122084Peat feed entering extractor plant Mt Feed 30%water 70% dry-matter 42632 87203 174405 Use These values as plant feedPeat feed as-mined Mt As-mined peat 65% water 85264.708 174405.1 348810.17Mined peat loss (fines,handling&transport) Mt loss 20% 17053 34881 69762Mined Peat MT 102318 209286 418572Mined Peat cubic metres Density 0.65*1000+0.35*300=755kg/m3 135520 277200 554400Mined area Average peat depth 3 metres 45173 92400 184800Mined area Ha 5 9 18

Peat feed to drying pad m³/y 112933 231000 462000 Mined peat volume x peat feed mass/peat mined mass

Transport basis m³ 10 10 10 Truck or trailer volume

Operations basis Operating days per year 345 345 345 daysWeeks per year 49.3 49.3 49.3 weeksMining operations hours basis h/w 40 40 40 hours/weekMining operating hours 1971 1971 1971 hours

Truck/trailers delivering to drying pad trucks/hour 5.7 11.7 23.4 trucks/htrucks/shift 45.8 93.7 187.5 trucks/shift

Round trip haul distance km 2 2 2 kmAverage speed km/h 15 15 15 km/h

hours/trip 0.1333333 0.133333 0.1333333 hminutes/trip 8 8 8 min

truck capacity trips/hour 7.5 7.5 7.5 trips/htrucks required truck utilisation 76% 156% 312% %

Number trucks 1 2 4 no.

Drying Pad Volume/Area Requirementsrun-of-pit volume m³ 112933 231000 462000Weeky volume m³ 2291 4687 9374Area requirements at depth (m): 0.15 15276 31246 62493 m²

0.3 7638 15623 31246 m²0.5 4583 9374 18748 m²

Big Bale Volume (assumed) 6 m³382 781 1562 bales per week

Dry Barn Requirements based on 1 week feed

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Average depth m 2 2 2Area required m² 1146 2343 4687

Simplified Energy Requirements Mass peat feed tpa 29843 61042 122084 tpa dry basis mass flow rateOperating Hours 8280 8280 8280 h/yHourly Feedrate 3604 7372 14744 kg/hDaily feedrate 87 177 354 tpdInstantaneous feedrate 1.0011624 2.047832 4.0956642 kg/sWater Content 30% 30% 30% wet as-received basisWater to evaporate 0.300 0.614 1.229 kg/sLatent heat 2200 2200 2200 kJ/kgHeat Duty 661 1352 2703 kW

Butyl Acetate Solvent Rate Solvent/Peat Ratio 5 5 5 kg/kg Based on p.44 description of elements table1° Butyl Acetate Feedrate 18021 36861 73722 kg/h Need recycle solvent day tank

5.0058 10.2392 20.4783 kg/sLatent heat butyl acetate 330 330 330 kJ/kg EsimateHeat Duty 1652 3379 6758 kWHeat Recovery % 60% 60% 60% AssumptionPrimary Heat Duty 661 1352 2703 kWSolvent Loss Rate 0.50% 0.50% 0.50% RWL AssumptionSolvent Loss Flux 90 184 369 kg/h

15138 30963 61926 kg/week746 1526 3052 tonnes per annum

20t Isotainers per week 1 2 4 Additional truck movementsEstimated Storage Volume 110 230 450 tonnes based on double 3 hours throughput@ 0.7 t/m3 157 329 643 m³

Methanol Solvent Rate Solvent Extract Ratio 40 40 40 kg/kg Based on p.44 description of elements tableExtract mass flow rate 38 78 155 kg/hMethanol Feed Rate 1518 3106 6211 kg/h

0.4217 0.8627 1.7253 kg/sLatent heat methanol 1155 1155 1155 kJ/kg Approximate (Eng. Toolbox)Heat Duty 487 996 1993 kWHeat Recovery % 60% 60% 60% AssumptionPrimary Heat Duty 195 399 797 kWEstimated Storage Volume 10 20 40 tonnes based on double 3 hours throughput

Hexane Solvent Rate Solvent Extract Ratio 200 200 200 kg/kg Based on p.44 description of elements tableExtract mass flow rate 38 78 155 kg/h Assume same as for methanolHexane Feed Rate 7600 15600 31000 kg/h

2.1111 4.3333 8.6111 kg/sLatent heat hexane 365 365 365 kJ/kg Approximate (Eng. Toolbox)Heat Duty 771 1582 3143 kWHeat Recovery % 60% 60% 60% AssumptionPrimary Heat Duty 308 633 1257 kWEstimated Storage Volume 50 100 190 tonnes based on double 3 hours throughput

Total Plant Heat Demand (excluding heat recovery) Total Primary Heat Duty 2000 3000 5000 kW Assuming 60% heat recovery rounded up to nearest MW

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Fuel Demand Diesel @ 44 MJ/kg 44 MJ/kgPeat @ 20 MJ/kg 20 20 MJ/kg (dry basis ex desolventiser)Fuel Feedrate 0.045 0.150 0.250 kg/s

164 540 900 kg/h27 91 151 tonnes/week

diesel peat peat20T tankers per week 2

Estimate of Cooling Loads Cooling Water 85% 85% 85% Assumption based on Total Plant Heat DemandChilled Services 15% 15% 15% Assumption based on Total Plant Heat DemandCooling Tower Duty 1700 2550 4250 kWChiller Duty 300 450 750 kW

Drums/Pallets/Containers Finished Product Tonnages 2200 4500 9000 tpaAverage density 0.7 0.7 0.7 t/m³Drum volume 0.19 0.19 0.19 m³ Based on 200L DrumNo. Drums 16541 33835 67669 -Operating Days 345 345 345 daysDrums per day 48 99 197 -Hours per day 12 12 12 4/4 12h dayshift rosterDrums per hour 4 8 16Drums per week 336 693 1379Drums per 40' container 128 128 128 128 drums per 40' container40' containers per week 3 6 11 Assume empty in full out for trucks

Product Tankage Calculations Product Stream Split 41% 41% 41% Wax (5 streams)46% 46% 46% Resin (2 streams)13% 13% 13% Asphalt (1 stream)

Weekly total product mass 45 91 183 tonnesProduct density 0.7 0.7 0.7 t/m³Weekly total volume 63.8 130.4 260.9 m³Weeky stream volumes 5.2 10.7 21.4 m³ Wax 1

5.2 10.7 21.4 m³ Wax 25.2 10.7 21.4 m³ Wax 35.2 10.7 21.4 m³ Wax 45.2 10.7 21.4 m³ Wax 5

14.7 30.0 60.0 m³ Resin 114.7 30.0 60.0 m³ Resin 28.3 17.0 33.9 m³ Asphalt

Daily Stream Volumes 0.75 1.53 3.06 m³ Wax 10.75 1.53 3.06 m³ Wax 20.75 1.53 3.06 m³ Wax 30.75 1.53 3.06 m³ Wax 40.75 1.53 3.06 m³ Wax 52.10 4.29 8.57 m³ Resin 12.10 4.29 8.57 m³ Resin 21.18 2.42 4.84 m³ Asphalt

Glycol storage capacity Glycol 35% w/w solution

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Cp 3.465 kJ/kgKStorage time 0.5 hourDuty 300 450 750 kWCold storage 540000 810000 1350000 kJTemperature split 5 5 5 KRequired mass 31169 46753 77922 kgNo. tanks (hot/cold) 2 2 2Density glycol (35% @-10°C) 1062.09 1062.09 1062.09 kg/m³Required Total Volume 29 44 73 m³Tank sizes (2 off) 40.0 m³

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