COREX - Economic and Environmental friendly Iron …m-n.marketing/downloads/conferences/ecic2016...Binder for coal Briquetting, Molasses t 120,0 assumption Energy cost Fuel, BF/COREX

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COREX® - Economic and Environmentalfriendly Iron ProductionECIC, 14.09.2016Design Center Linz

Restricted © Primetals Technologies 2016 All rights reserved.

1. Challenges for ironmaking2. References & status of plants3. Modules sizes available4. COREX® main developments5. Economics of hot metal production6. Conclusions & outlook

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Content


Global Challenges for IronmakingA Driving Force for Alternative Technologies

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References & Status of Plants

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COREX® / FINEX® ReferencesPlants in operation


POSCO Pohang Works (Korea) –1 x COREX® C-2000 Module = FINEX® Demonstration Plant

• Start-up of COREX® in 1995

• The COREX® export gas was utilized for power generation.

• In parallel agreement for the joint development of the FINEX®

process POSCO.

• Conversion to the FINEX® Demonstration Plant in 2003

• In July 2014 the operation was stopped and currently it is

under investigation to relocate the plant.


ArcelorMittal South Africa / Saldanha Works1 x COREX® C-2000 & 1 COREX® gas based MIDREX™ DR plant

• The COREX® C-2000 plant and the MIDREX™DR plant started-up in 1999.

• The COREX® plant operation is based on thehigh ratio of approx. 82% (!) local lump ore.

• Typical annual production capacity for theCOREX®/MIDREX™ DR plant combination is700,000 t/a HM and 700,000 t/a DRI.

• Compared to other ArcelorMittal plants, this steelworks is within the plants with the lowestproduction cost.


Jindal South West Steel (India)2 x COREX® C-2000 & 1 COREX® gas based MIDREX™ DR plant

• Start-up in 1999 and 2001.

• Originally the COREX® export gas was utilized for pelletproduction, for internal steel works use and for power generation.

• In 2014 a COREX® gas based 1.2 million t/a MIDREX™ HDRIplant was successfully added.

• COREX® export gas from both modules is partly used for Hot DRIproduction which is subsequently transferred to a new adjacentEAF steel plant via a hot transport system.

• During the relining in 2012 and 2013 an Arial Gas Distribution(AGD) system was introduced in the reduction shaft of eachCOREX® module.


Shanghai Baosteel Group (China)2 x COREX® C-3000 Modules

• The plants started-up in 2007 and 2011.

• Due to declining prices for heavy plate and as part of a strategicrealignment of production in the Shanghai area, Baosteelceased steel production in the Luojing Works in 2012

• The COREX® Module 01 has been transferred to Bayi Steel inthe Xinjiang Province and started operations in autumn 2016.

• In contrast to the conventional blast furnace route, the COREX®

plant at Bayi Steel allows local coals to be used, which aresignificantly cheaper in Xinjiang area.


Essar Hazira Ltd. (India)2 x COREX® C-2000 Modules

• Both COREX® plants were relocated from former Hanbo,Korea to Gujarat, India.

• Plants started up in 2011

• The COREX® Export gas is mainly utilized at the existingMIDREX™ DR Modules to minimize natural gasconsumption and for internal heating purposes.

• Most of improvements available at the time of start-up havebeen incorporated leading to a smooth start-up andcontinuous operation of both COREX® plants.


COREX® Main Developments


COREX® DevelopmentsSuccessful development of coal briquetting


COREX® Raw MaterialsQuality of coals used in COREX®


COREX® DevelopmentsAreal Gas Distribution (AGD)

Effect of AGD:• Improves distribution of reduction gas and contained dust• Decreases down pipe gas flowBenefit:• Higher gas utilization• Higher metallization• Less ore disintegration• Lower fuel rate, less slag• Less specific reducing gas required• Increased lump ore rate• Low agglomeration tendency - reduces shaft cleaning frequency• Lowers shaft dp• Decreases top gas temperature


Economics ofHot Metal Production Routes


Main Unit RatesCOREX + PP COREX + DR

Unit Cost/unit Cost/unit Source of informationUSD USD and remarks

Material unit costIron ore fines 58% Fe t 56,1 assumptionIron ore fines 62% Fe t 60,0 assumptionIron ore fines 65% Fe t 64,8 assumptionLump ore (56,5%) t 51,9 assumptionPellets, BF grade t 82,9 95,0 calculatedPellets, DR grade t - 100,0 calculatedLimestone / lime hydrat t 15,0 assumptionDolomite t 15,0 assumptionBentonite t 100,0 assumptionBinder for coal Briquetting, Molasses t 120,0 assumptionEnergy costFuel, BF/COREX-gas, LPG, NG MWhth 25,0 assumptionGas credit MWhth 25,0 assumptionPrime Coking Coal t 130,0 assumptionSemi Soft Coking Coal t 104,0 assumptionCoal fines, anthracite, non coking t 104,0 assumptionNon coking coal t 91,0 assumptionNut Coke t 141,1 assumptionElectric energy, purchased kWh - 0,080 assumptionElectric energy, own production COREX kWh 0,066 - calculatedOther operating suppliesPersonnel (average) Manyear 30.000 assumptionMaintenance of investment % 2,0% assumptionCapital ChargesDepreciation % 6,30% assumptionInterest % 8,00% assumptionSales pricesHot Metal t 255,0 assumptionDRI t - 235,0 assumptionElectrical Energy kWh 0,080 assumption


Production Cost Comparison Estimate –Corex Route + Power Production


Production Cost Comparison Estimate –Corex Route + DRI Production


Economic ConsiderationsMain Production Data

Plant Capacities Unit Alternative 1 Alternative 2

COREX –CCPP

COREX –DR Plant

Pellet Plant t/a 1.857.000 3.650.000

COREX t/a 1.500.000 1.500.000

Combined Cycle Power Plant MWel 273 39

DR Plant t/a - 1.253.000


Economic ConsiderationsTypical Operating Costs Estimate

Operation Cost Estimates Alternative 1 Alternative 2

COREX –CCPP

COREX –DR Plant

HM USD/t 179,0 197,5

Electrical Energy (own production) USD/MWh 45 -

DRI USD/t - 201


Investment Estimates and IRR

Investment Estimates BF 1 x C-1.5M+ CCPP

1 x C-1.5M+ DR + CCPP

Subtotal Ironmaking % 100% 80% 136%Subtotal Power Plant % 100% 256% 48%Total % 100% 110% 163%

IRR after 15 op. Years % 10,9% 16,8% 14,3%Pay Back Period after ironmaking start years 6,12 4,41 6,47


Conclusions & Outlook


Outlook

Based on the successful experience of the operating COREX® plants, further considerable knowledgebase has been accumulated during the recent years with respect to engineering and operation.

Considering all factors for an investment decision for the iron and steel industry it is shown, that plantconcepts based on COREX® technology and downstream gas utilization are competitive in a rapidlychanging and challenging environment due to:

• Both COREX® alternatives with power plant or the combined COREX®/DR provide the higher returnscompared with the blast furnace route

• Synergies between the blast furnace route and COREX®

• Raw material flexibility and waste material utilization

• Environmental consideration

• Available module sizes to meet customer requirements


The information (including, e.g., figures and numbers)provided in this document contains merely generaldescriptions or characteristics of performance based onestimates and assumptions which have not been verified.

It is no representation, does not constitute and/or evidence acontract or an offer to enter into a contract to any extent andis not binding upon the parties. Any obligation to provideand/or demonstrate respective characteristics shall onlyexist if expressly agreed in the terms of the contract.

These estimates and assumptions have to be analyzed on acase-to-case basis and might change as a result of furtherproduct development.

Primetals Technologies excludes any liability whatsoeverunder or in connection with any provided information,estimates and assumptions. The provided information,estimates and assumptions shall be without prejudice to anypossible future offer and/or contract.

Any use of information provided by Primetals Technologiesto the recipient shall be subject to applicable confidentialityobligations and for the own convenience of and of the solerisk of the recipient.

14.09.2016 BöhmPage 24

Christian BöhmHead of SalesDirect and Smelting Reduction

Primetals Technologies Austria GmbHTurmstrasse 444031 LinzAustria

M +43 (664) 6153304E [email protected]

primetals.com

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COREX - Economic and Environmental friendly Iron …m-n.marketing/downloads/conferences/ecic2016...Binder for coal Briquetting, Molasses t 120,0 assumption Energy cost Fuel, BF/COREX

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