Bulk Raw MaterialsPresented By: Prashant Raghavan

Commercial Department, GHCL Ahmedabad

INTRODUCTION

GHCL Limited, a prime Soda Ash manufacturing unit, has a current production capacity of 8.5 Lacs Tons, one third of the nation’s installed capacity and intends to expand to 11 Lacs Tons.

60% of variable cost is due to bulk raw materials. Major challenge in expansion of Soda Ash capacity is

sourcing of raw materials.

INDEX

1

• Bulk Raw Materials in Soda Ash Industry

2

•Raw Materials Occurrence / Manufacturing Process

3

•Procurement quantities and location

4

•Challenges & Way Ahead

‘DRY LIMING’ SODA ASH PROCESS

• The AKZO Nobel "Dry-liming" Soda Ash process is in principle based on the well-known (Solvay) ammonia process. The ammonia soda ash process is based on the principle of dissolving CO2 in an ammoniated brine (NaCl solution), which results in the precipitation of bicarbonates.

•  The precipitated bicarbonates are separated from the brine and transformed into soda ash by calcination. The AKZO "Dry-liming" process uses the burnt lime directly in the distillation, while the classical process makes first milk of lime. In this way the heat of hydration of the lime is completely used for disengaging the ammonia. This results in considerable lower steam consumption for the ammonia recovery.

•  The soda ash is produced from the raw materials salt (brine) and limestone, according to the overall equation:

2 NaCl + CaCO3 = Na2CO3 + CaCl2

‘DRY LIMING’ SODA ASH FLOW CHART

BrineNaCl & H2O

Ammoniated Brine

AmmoniaNH3

LimestoneCaCO3

Lime KilnCaCO3 = CaO + CO2

Carbonation TowerNaCl (aq) + NH3 + CO2 + H2O =

NaHCO3 (s) + NH4Cl (aq)

Filter

Heat

Product Na2CO3 Soda Ash

Ammonia RecoveryCa(OH)2 + 2NH4Cl =CaCl2 + 2H20 + 2NH3

By-ProductCaCl2

Lime SlakerCaO + H20 = Ca(OH)2

NH3

NH4Cl

Ca(OH)2

CO2

H2O CaO

CO2

INTRODUCTION

Major Raw materials used for manufacture of Soda Ash is Salt, Limestone and Fuel.

1. Salt - Common salt or halite (NaCI) occurs in massive, granular, compact, and crystalline forms. It contains 40 % sodium and 60 % chloride by weight.

2. Limestone - Chemical grade limestone with silica content not more than 2-3% is essentially required. Higher silica containing limestone gives considerable trouble in limekiln operation due to formation of lumps and clinkers. Higher % of carbonate is preferred for low consumption of limestone per ton of Soda Ash. Limestone required for burning in limekiln should be of uniform size between 20 – 120 mm. Limestone smaller than 20 mm tend to over burn and limestone over 120 mm remains unburnt in limekiln.

3. Fuel (Lignite / Coal / Coke) - Soda Ash process requires large amount of steam and power. Fuel in burnt in boiler to generate steam which is used to produce power in Turbo Generator.

QUANTITIES (In Lac MT)

Item Sources Existing Capacity

Post - Expansion

Salt

Captive 7.00 7.00

Purchase 6.50 13.00

Total 13.50 20.00

Limestone

Captive 6.00 7.00

Purchase 8.00 15.00

Import 1.5 0

Total 15.50 22.00

Coal Purchase 2.50 3.50

Lignite

Captive 1.75 2.50

Purchase 0.50 1.00

Total 2.25 3.50

SALT

SALT IONS IN SEA WATER

SALT HARVESTING

SEA WATER

Solar Evaporation

(8.5 °Bu)

Solar Evaporation

(24.5 °Bu)

Solar Evaporation

(27 °Bu)

Salt

Washing / Ionization

Recycle Clear Liquor

By-Product

GYPSUM

Vacuum Salt / Caustic Potash

Bromine / Mg(OH)2, Double

Salt

Salt Manufacturing is a process where sweet water is separated from sea water

Liquor

SALT - STATISTICS

In ‘000 MTCountry 2010 2011China 62750 65000United States 43300 44000India 18600 22100Germany 19100 20000Australia 11968 13000Canada 10537 11000Pakistan 11000 11000Chile 8400 9000Mexico 8431 8800France 6100 6000United Kingdom 5800 5800Other Countries 58470 61900World total (rounded) 2,80,000 2,90,000

Quantities in Lacs MT

State2009-10

2010-11

2011-12

2012-13

Gujarat 179 145 170 194

TN 24 21 23 24

Rajasthan 30 14 22 18

Others 7 6 6 10

Total 240 186 221 246

Use Quantity (In Lacs MT)

2009-10

2010-11

2011-12

2012-13

Edible 56.42 60.34 59.66 59.07

Ind. 100.58 107.58 112.88 114.38

Export 28.95 38.67 37.71 50.03

Total 185.95 206.59 210.25 223.48

SALT - SOURCING

Sr Description 2013-14

A Captive (Amreli Dist.)

50%

B Purchase 50%

1 Maliya 50%

2 Bhavnagar 5%

3 Rajula 20%

4 Jamnagar 25%

TOTAL 100%

Sr Type 2013-141 Organized Sector 25%

2 Small Scale Manufacturer 20%

3 Traders 40%4 Yard / Hub 15%

TOTAL 100%

SALT

SALT

SALT – CHALLENGES & WAY AHEAD

Major Challenges are:1. Non-availability of Govt. wasteland for salt cultivation.2. Salt production or yield is depended on weather conditions.3. Salt production will further reduce due to development of

SEZ’s / Ports along costal regions (eg. KPT land issue).4. Captive - Present yield in existing leases is average 60-70 MT /

Annum per Acre which is below industry standards. In view of Soda Ash expansion, there is immediate need to

enhance present salt capacities or acquire new salt farms.

SALT – CHALLENGES & WAY AHEAD

Sr Description Activities

1Development of new salt fields.

We have already applied for salt lease at Jamnagar, Bhavnagar and Kutch Dist. Indentified more than 1 lac Acres of land and applied for approx. 25000 Acres

21 Million MT stock before Monsoon.

Planning to maintain 1 Million MT salt stock before monsoon (Plant + Captive + Hub of Purchase Salt) over a period of 2 to 3 years.

3

Book & shift quantities from small scale manufacturers

Hub Development in Maliya, Rajula and Jamnagar.Unwashed salt to be procured and washed at hub (natural

or artificial).

4Technological improvements

Partnership with CSMCRI / Technical Institutes to increase yield or introduction of new technology or extract new products from bittern.

LIMESTONE

• Limestone is a sedimentary rock, made up mostly of the mineral calcite, a form of calcium carbonate, CaCO3.

• The calcium carbonate is originally produced by living animals (such as shellfish). Later, much of it goes into solution in sea water, and then is deposited as limestone. Calcium carbonate gets precipitated when the physical condition of the water changes. For example, if the concentration of CaCO3 is high, then a temperature drop, or a pH (acidity) change, can cause precipitation.

GUJARAT – Mineral Map

Mineral In Mn T DistrictsBasemetal 9 BanaskanthaBauxite 105 Kutch, JamnagarBentonite 105 Kutch, Bhavnagar, SabarkanthaCalcite 0.84 SabarkanthaChalk 58 Junagadh, RajkotChinaclay 163 Kutch, Banaskantha, Mahesana,

SabarkanthaDolomite 720 Bhavnagar, VadodaraFluorite 11.6 VadodaraFireclay 155 Surendranagar, Sabarkantha, RajkotGypsum 24 Kutch, JamnagarLignite 1072 Bharuch, Kutch, Bhavnagar, SuratLimestone 11860 Amreli, Kutchh, Kheda, Jamnagar, 

Junagadh, Panchmahals, Banaskantha,  Bhavnagar, Sabarkantha

Quartz 4 Panchmahals, VadodaraSiderite 5 Kutch, BhavnagarMarble 96 Panchmahals, Banaskantha, VadodaraOil 418 Ahmedabad, Mahesana, Bharuch, 

Surat, Vadodara, KhedaCoal 63000 MahesanaGraphite 2 Panchamahal, VadodaraMang. Ore 3 Panchamahal, Vadodara

Nepheline 1 Janagadh, Vadodara, SyeniteWoolstonite 3 BanaskanthaGranite 1645 Banaskantha, Sabarkantha, Vadodara,

Panchmahal

LIMESTONE SOURCING

Sr Description Source / Region 2013-14

A Captive Local 40%

B Purchase 50%1 Local region Sutrapada &

surrounding40%

2 Gadu Region 20%

3 New Areas Porbandar 20%

4 Sizer Boulders 20%

C Import Oman 10%

TOTAL 100%

LIMESTONE SOURCING

LIMESTONE – CHALLENGES & WAY AHEAD

Major challenges are:• Present reserves in existing leases is only 11 Million MT which is

sufficient for only 5-6 years.• Non-availability of land for mining. Govt. rules and regulation, Env.

Clearance etc.• Due to prolonged mining, chemical grade limestone available on the

surface has reduced. In view of Soda Ash expansion, there is immediate need to enhance

present limestone capacities or acquire new capacities

LIMESTONE – CHALLENGES & WAY AHEAD

Sr Description Activities

1Sourcing from new / virgin areas

1. Porbandar, Jamnagar and Rajasthan being explored.2. Good quality limestone being procured from these

areas.3. Limestone from Dump Permits

2 Imported Limestone To acquire limestone mines in Middle East or Africa.

3 New Mining Leases

1. Expedite all lease applications. Dedicated team for the same.

2. Private land acquisition for mining (To overcome hurdles like Env. Clearance & other Govt. regulations)

4

ZERO undersize in incoming. Limestone (Inventory of only sized material)

1. Procurement policy to be changed. Zero undersize from both Captive & Purchase.

2. Screening at site and not at Plant.

5 Hub Development

1. Hub development at areas like Porbandar, Gadu etc. 2. Sizing and screening using Sizer.3. Stocking material during peak period and shift to plant

during lean period, ie. Monsoon.

FUEL

Item Sources Existing Capacity

Post - Expansion

Coal Purchase 2.50 3.50

Lignite

Captive 1.75 2.50

Purchase 0.50 1.00

Total 2.25 3.50

FUEL – CHALLENGES & WAY AHEAD

– Coal

1. Coal is being imported from Indonesia and South Africa which is subjected to frequent price fluctuations due to global demand – supply imbalances and Rupee v/s Dollar movement.

– Lignite

1. The estimated reserves in Gujarat are 2722 Million MT which is GMDC controlled.

2. Lignite blocks in India are allocated to State run corporations. Only one block is allocated to Private sector, ie. GHCL Ltd. Our lignite block reserve at Bhavnagar Dist. is just sufficient to meet demand for the next 6 to 7 years (ie. 3 Million MT).

3. There is huge demand-supply gap coupled with poor quality of lignite in Kutch and Bhavnagar region (i.e. Low GCV & high Sulphur respectively). Present allocation is only 14000 MT per month during dry seasons.

FUEL

FUEL – CHALLENGES & WAY AHEAD

Sr Description Activities

LIGNITE

1More quantities from Purchase sources

• Long term agreement with GMDC Ltd. which controls lignite reserves in Gujarat.

COAL

1Acquire new Coal / blocks

Work needs to be done on,1. Acquisition of coal mines at Chhattisgarh, India.2. Acquisition of coal mines at Indonesia or Africa

(Mozambique and South Africa)

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