METIX – A GLOBAL LEADER IN ELECTRIC SMELTER SOLUTIONS

April 25, 2019 1

Metix – SMS group in South Africa Confidential
 Introduction – Overview

The SMS group is a group of global players in plant construction and

mechanical engineering for the steel and nonferrous metals
processing industry.
The sole owner of the holding company SMS GmbH is the Familie
Weiss Foundation.

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Business units

Ironmaking &
direct reduction plants Forging plants

Metallurgical plants &

environmental technology Technical Service

Flat rolling plants Production

Processing lines & Electrics &

furnace technology Automation

Long products plants Digital Solutions

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Portfolio

One partner covering the complete process competence

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 No. 1 in Si-metal smelter technology for PCC
Representations
ternational locations - SMS Group

Moscow
Pittsburgh Beijing
New Wuhan
Delhi
Shanghai
Dubai

Essen
Sao
Mönchen-
Paulo Johannes- gladbach
burg
Düsseldorf,
Hilden,
Hilchenbach
Zurich Braunau
Milan Tarcento
Bilbao

Large international set-up also for international sourcing April 25, 2019 5
Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 History of SMS group

 1871: SMS group founded in Siegen/GER

 1906: First SAF sold
 2003: Metix founded by team of
Samancor and Bateman in
Johannesburg/RSA
 2011 Metix joint SMS group
 2013: SMS group as a result of successive
integration of major companies in SAF
area (such as GHH, Demag, Krupp)
 2018: Metix becomes SAF Centre of
Competence

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 History of Metix

 Established in 2003 by team from Samancor and Bateman

 Individual ferroalloy experience, 15 to 40 years involved in >60 furnace projects
 Metix joined the SMS group in 2011
 Access to SMS group know-how and financial backing resulted in:
 First order for 6-in-line rectangular furnace in Zambia in 2012
 EPC order from Sakura in Malaysia in 2013 (US$ 263 Mio)
 First application of SMS GCP on ferroalloy furnaces in 2014
 BFS for a 70 MW DC-furnace in RSA in 2014
 New business opportunities in cooperation with other SMS group units (CCM, converters, co
generation, bag filter plants, casting machines and HPA).

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 How do you benefit?

 > 100 Personnel for SAF technology and turnkey disciplines in RSA + GER
Key facts
 Individual silicon, ferroalloy and special processes experience

 Extended know-how in complete turnkey solutions

 Cost advantage through Metix organisation

 75
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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Submerged Arc Furnace technology

1 2
H He
3 4 5 6 7 8 9 10
Li Be B C N O F Ne
11 12 13 14 15 16 17 18
Na Mg Al Si P S Cl Ar
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As Se Br Kr
37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54
Rb Sr Y Zr Nb Mo Tc Ru Rh Pd Ag Cd In Sn Sb Te I Xe
55 56 57-71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86
Cs Ba La Hf Ta W Re Os Ir Pt Au Hg Tl Pb Bi Po At Rn
87 88 89-103 104 105 106 107 108 109 108 111 112 113 114 115 116 117 118
Fr Ra Ac Rf Db Sg Bh Hs Mt Ds Rg Cn Nh Fl Mc Lv Ts Og
26 14
Fe Si
26 24 SMS technology means a wide range of products and solutions
Fe Cr
26 28  More than 60 different types of products.
Fe Ni
26 41
 More than 15 different types of electrode technologies.
Fe Nb
 More than 110 years of experience.
22 8
Ti O 2  More than 30 references in Turn-Key in the past 10 years.
20 6
Ca C 2  More than 800 references
78 79 47
Pt Au Ag Submerged Arc Furnace is diversity
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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 History of electric smelters for silicon metal production

Si-metal furnace
of the 60ties
1906: First electric furnace
1935: 15 MVA furnace
1951: Rotating gear
1958: Hydraulically regulated E-column
1966: Encapsulated E-column
1970: Channel type water cooled roof
1975: Energy recovery system
2005: Compact E-column
2006: Si refining station
2012: 6-in-line-rectangular SCF from Metix
2015: 330 Mio US$ EPC plant on Borneo/Mal
2016: 135 MVA 6-in-line rectangular furnace Korea
2018: Waste recycling technology

SMS/METIX always sets the trends for submerged arc furnaces and electric smelters
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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Portfolio SAF and Electric Smelters

Basic systems Electrode systems Charging systems

 AC based or DC based  Pre-baked/graphite or self baking  Hot/cold charging
 Open design, semi-closed or closed  Composite system  Hollow electrode
design  Hollow electrode system charging
 Liquid charging
(launder)
Furnace shell types Furnace roof types
 Flat/dished bottom  Water cooled roofs (steel or copper)
 Cylindrical/conical/rectangular  Brick roof/cast roof (optional air
 Stationary/rotating cooling)
 Changeable/tiltable  Flat/arched shape

One partner covering the complete process competence

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Ferro alloy and other smelter - references

Ferro alloys + silicon Special application

References since 1970: > 180 References since 1970: > 30

Non ferrous metals Hot metal and waste recycling

References since 1970: > 40 References since 1970: > 10

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Recent references

2 modern FeSi furnace for POSCO/Korea (20 MW World largest FeCr plant for Kazchrome/Kazakhstan (4 x 72 Modern FeMn plant for Rainbow Minerals/Malaysia (2 x
furnaces with doors; IBN 2013) MW furnaces; IBN 2013) 81 MVA furnaces, EPC contract; IBN 2015)

World largest Cu-slag furnace for Kansanshi/ Zambia World largest FeNi furnace for POSCO SNNC/ Korea (102 2 modern silicon furnaces for Mississippi Silicon/USA (2 x 24
(24 MVA 6-electrode furnace; IBN 2013) MW 6-electrode furnace; IBN 2015) MW furnaces; IBN 2015)

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Core business

 Engineering, Procurement and Construction (EPC or LSTK)

 Engineering, Procurement and Supply (EPS)

 Engineering, Procurement and Construction Management (EPCM)

 Feasibility studies

 Specialized furnace equipment e.g. electrode columns, including

failsafe slipping devices, hydraulic power packs, heat shields,

forged copper pressure rings, contact shoes, bus tubes, HT power
supply, furnace roofs, shells and refractory linings
 General equipment e.g. conveyors, feed chutes, CO gas

reticulation and other multi disciplinary plant equipment

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Models and tools

 Furnace parameters and design

 Mechanical equipment design (furnace eq., conveyors, etc.)

 Materials flow (time and motion)

 MB, process and technology evaluation

 ANSYS Multiphysics FEA Software

 CAPEX, OPEX and risk evaluation

 Control budget estimate

 Integrated cost & procurement software

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Equipment (examples)
Electrode columns – Bottom part Slipping device Copper Roofs

Electrode columns
Forged Copper

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Equipment (examples)

Round Furnaces – AC or DC Rectangular Furnace Roofs (pipe-to-pipe CW)

Busbars Roof Sealing

Gas Cleaning Systems Electrical Systems

Preheating Tap Holes

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Equipment (examples) – new developments

Cu Tap hole improvements Optic fibre lining monitoring

Air sealed off gas ducts

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Competences in sinter plants

Hernic F4
 78 MVA closed submerged arc furnace
with preheater
 350,000 t/a sinter plant
 EPCM project, commissioned 2005

MFC PSP3
 600,000 t/a sinter plant and auxiliaries
Xstrata Wonderkop  EPCM project, hot commissioned in 2010
 2 x 600,000 t/a sinter plant

ASA Sinter Plant

 600,000 t/a sinter plant and auxiliaries
 LSTK project commissioned 2009

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Environment

 Low NOx smelters

 CO2 reduction
 Seeking for CO2-free energy and
reductant sources
 Efficient secondary de-dusting
 Energy efficiency and flexibility

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Economics

 High efficient furnaces

 Reliable energy-efficient electrode types
 High automation degree
 Attractive financing options

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Safety

 Water free furnace with ILTEC

 General safety engineering included in
design, drawings, manuals and training
 Automated stoking machines
 Optional semi-automated tap hole opening
and closing
 Safe channel type cooled roof
 Water leakage detection system
 HD monitoring of furnace shell lining
 Preventive maintenance based on
digitalization

Safety is of highest priority for SMS to protect people

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Sustainability

 High plant availability by using high quality

equipment and robust design
 Preventive maintenance based on
digitalization

Slipping device after 30 years

of operation
Rotating gear after 30 years of operation

Our track record confirms highest plant availability at long life time cycle
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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Turnkey/EPC competence – reference Sakura

 Turn-Key (EPC) contract signed in December 2013, US$ 330 Mio

 Supply of a 200 000 tpa FeMn/SiMn production plant
 Using 2 x 81 MVA Furnaces and auxiliaries
 Planned commissioning date of F1 - Oct 2015, F2 - Jan 2016
 Achieved dates: F1 April 2016, F2 July 2016
 During construction 1500 workers on site
 Fatality free hrs 7,3 million, LTR 2,6 million
 Challenges:
- creation of Metix Malaysia
- remote site location
- local regulations
- Chinese sub-suppliers
- heavy rainfall
- demanding customer
 Performance test passed Dec 2016

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
 Brownfield competence – reference Glencore and
Samancor
Glencore Samancor

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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
Digitalization

Real-time, cross-linked, unique data source of truth

Intelligent, autonomous Production Planning

steel production

Product Quality
Plant Condition

The intelligent metallurgical plant optimizes auto-adaptively its production process from raw
material to finished product as part of an integrated supply chain with physical and data
driven models.
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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH
Conclusion and outlook

 First SAF was commissioned more than 100 years ago

 Many brown and green field plants rely on SMS/METIX technology
 Competent team in RSA and GER ensure reliable, efficient and environmental friendly units
 SMS continues the evolution regarding ecological, economical optimization, safety improvement
 We offer intelligent solutions in digitalization – adaptation of achievements in steelmaking
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Metix – SMS group in South Africa Confidential All rights reserved © SMS group GmbH