Tailings are a mixture of fine clay, sands, water and residual bitumen produced through extraction processes used with surface mining production, and are held in massive “ponds”. While coarse solids settle rapidly, fine solids remain in a suspension called fluid fine tailings. The fluid fine tailings concentrate to about 30% mass solids in two to three years but only very slowly thereafter, according to Alberta’s Energy Resources Conservation Board (ERCB). This material, termed mature fine tailings (MFT), is impounded in the early years of a project in an external pond and in-pit when the mine advance makes space available in-pit. Schemes may have many MFT ponds. MFT is a concern because it may have to be impounded indefinitely and because there is currently no demonstrated means to reclaim it without further processing. (Earlier post.)

Tailings ponds contain toxic contaminants such as heavy metals, polycyclic aromatic hydrocarbons (PAHs) and naphthenic acids. Naphthenic acids in particular break down very slowly and pose a long-term threat to the groundwater of the region.

Newalta expects to commence operations for this contract on 1 June 2012 with revenue averaging approximately $20 million per year over three years. Operations will be seasonal and are expected to average approximately six months per year. Newalta’s capital investment for the contract is estimated to be between $25 million and $30 million. Under the terms of the contract, Newalta will design, build and operate a commercial-scale centrifugation demonstration plant to process MFT.

The contract with Syncrude builds on Newalta’s current base of eight contracts including customers that are using Steam Assisted Gravity Drainage (SAGD) production, said Craig Wilkie, Executive Vice President of Newalta.