Professional Documents
Culture Documents
Razaz
Razaz
Working Paper for the ITmk3 Family Conference Kyiv, April 3, 2009 Prepared by Razaz Younes Managing Director Hares Engineering GmbH.
Iron and Steel Industry Main Problems In addition to several issues, the Iron and Steel Industry is facing the following main problems:
The BF and BOF are facing the serious problem in the supply of its raw material, which it is:
Iron Ore pellets produced from the magnetite ore with sufficient iron content (about 67%) Metallurgical coke
EAF is facing the shortage in the Scrap supply The environmental situation in world starts to be in position that it is not possible to produce more steel with current emissions level; serious solution should be developed to avoid more harms to our nature At the same time, a stable demand on the steel will always exist due to increase of the world population. The new coming generations will be in need of steel to build their civilization
ITmk3 is producing the pig iron nuggets The raw material of ITmk3 is the iron ore concentrate Pig iron is producing in Blast Furnace The raw material of BF is the pellets Pellets are produced from the iron ore concentrate Summarized calculations : Production of the pig iron by classic technology (blast furnace) costs 300-325 USD per ton, the sales price of pig iron is 340-360 USD per ton and capital investment is equal to 300 USD per ton of production. To produce the pellets it is required to invest 50-60 USD per ton of capacity. Therefore, investment capital for each ton of pig iron starting from concentrate (as ITmk3) is equal to 300+60= 360 USD Production of the pig iron by ITmk3 technology costs 150 USD per ton, the sales price is 340 USD , and the capital investment is equal to 300 USD per ton of production. As summary: production cost per ton of pig iron nuggets by ITmk3 is less by 50% from the production cost in Blast Furnace, and capital investment per ton in case of ITmk3 is less by 20% of the investment required in case of Blast Furnace.
Beneficiation Plant
Pelletizing Plant
Pellets
Blast Furnace
Production costs: 300 $ per ton Capital costs: 60 $ per ton Total capital costs:360 $/T (60 $/T for pelletizing +300 $/T in Blast Furnace)
Beneficiation Plant
ITmk3 Plant
Production costs: 150 $ per ton Total capital costs: 300 $ per ton
Units# t t t t t
$/t HM
65.00 -
1.60
100.00
160.00 225.00
0.23 32.87
Nm3
6.40
%Cap
0.02
GJ t
8.29 0.25
0.80 7.75
Case Study Item Iron Ore (t) Reductant Coal (t) Binder (t) Fluxes(t) Hearth Material (t) Fuel (MMBtu) Electrical Power (kWh) Water (m3) N2 or Inert Gas(Nm3) Chemicals Royalty Variable Cost Total 1.56 0.37 0.02 0.19 0.11 6.6 200 2.0 20.0 57.0 4.6 0.050 0.01 0.04 Cons. /t-Ng 25.0 90.0 320 Price $ 39.00 33.30 6.23 14.80 6.27 30.40 9.93 0.03 0.80 1.00 5.00 146.8 2.5 5.0 7.5 Cost $
40
154.25
Kobe Steel and Hares Engineering are now in process of developing investment opportunity for KGOKOR Project, based on ITmk3 technology, by implementing international financing scheme
Conclusions
By ITmk3 and Oxidized Iron Ore it is possible to generate the Money stocked in the Oxidized Iron Ore Mines The ITmk3 opens new investment opportunity to exploit the hematite iron ore, especially, in Ukraine where almost all mining companies stocking this raw mineral resource without good capitalization, creating another environmental problem and loosing good investment opportunity ITmk3 produces the pig iron nuggets with less energy consumption and less environmental emissions In Ukraine, exploitation of the hematite by efficient technology like ITmk3 will support the national income and will improve the investment in the national resource In addition, The ITmk3 and EAF as Ukrainian Strategy to produce the Steel using the national resource of energy will lead to:
Reduction in consumption of the NG and forwarding its saved volume to other consumers Energy saving in production of one ton of steel More efficient use of the national resource of the energy Improvement of the environment with keeping the steel productivity of the country Will generate additional national income
Confirmed Projects
EuroChem Project
EuroChem has contracted Hares Engineering to prepare PPS Study to install two plants at its mining company called Kovdorsky GOK. The study should be accomplished in April 2009 and two companies will decide on the next stage The laboratory testing of the iron ore concentrate of Kovdorsky GOK showed positive results
OMK Project
OMK is one of the biggest producer of the steel pipes in Russia and Europe It is one of the main suppliers of pipes for the North Stream Project to build the gas pipe line under the sea between Russia and Germany The Iron Nuggets product provides OKM with the possibility to produce the goods of higher quality with less energy consumption which will provide OMK with higher efficiency for its industry OMK has contracted Hares Engineering to prepare PPS study to install two ITmk3 plants The study will be accomplished in May, 2009
In Ukraine
Metinvest is the biggest iron ore miner in Ukraine, it owns three mines in the country called SEV-GOK, C-GOK and IN-GOK Hares Engineering is working with Metinvest for the last two years to prepare the PPS for its mines and accomplished two study for SEVGOK and C-GOK Metinvest requested Hares Engineering to use Hatch company as independent engineering company to evaluate the PPS study for SEVGOK and C-GOK and to decide about the best technology comparing ITmk3 with other nine technologies. Hatch confirmed the accuracy of Hares Engineering study and recommended Metinvest that ITmk3 is the best technology for its mines Metinvest is thinking about production of 2.5 million tons of Iron Nuggets, which means five ITmk3 Plants Hares Engineering and Metinvest is still working on the last PPS study before the final decision
KGOKOR Project
ITmk3 is the only technology that could offer to this Project a real technical solution that provides the plant with the workable efficiency Hares Engineering and Kobe Steel is creating consortium for the common investment in this Project The Consortium contacted the Ukrainian Authority, who decided to cooperate in developing technical and economical solution for the KGOKOR Project The Consortium is fulfilling preliminary engineering study to confirm the main objectives and the efficiency of the project (PPS Study) The Consortium is working with the Governments of Japan and Ukraine to include this project under GIS Agreement between the two countries The Consortium is discussing this project with potential investors and financiers. The results are encouraging