Role of Iron ore Pellet in development of Indian DRI Industry

M.Ravindranath

Head- Technical Services

Essar Steel India Ltd, Vizag Operations

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INDIA-Iron Ore & Steel : Now & Then

4.5 Times

9 Times

Reduced

1.35 Times

4.3 Times

2.5 Times

1.25 Times

2.3 Times

Indian DRI Industry – An Outlook

A 3 Bil

MT B 3.6 Bil

Mt C

1.2 Bil

MT

States Total installed

capacities

Total No. Of plants installed Major areas

Odisha 10.5 MTPA 108 No's Rengali, Koramunda, Barbil est.

Chhattisgarh 8 MTPA 68 No's Siltara, urla est

West Bengal 4.2 MTPA 57 No's Durgapur, Raniganj, Barjora est.

Karnataka 1.8 MTPA 39 No's Bellary, raichur, Mangalore est.

Jharkhand 2.4 MTPA 37 No's Chandil

Other states 2.4 MTPA 21 No's Like Andhra Pradesh, Tamilnadu, Maharashtra est

14.7 MTPA DRI Capacity – Coal

based

10.4 MTPA DRI Capacity – Coal

based

Remaining Capacities for coal

based pant

9.6 MTPA gas based DRI in Gujarat and

Maharashtra

Coal Based DRI Plants in india

Odisha & WB

Chhattisgarh & Jharkhand

Karnataka & Others

• India is world’s highest DRI producing country. • Indian DRI production in AY 2013 is at 18.10 MTPA, which is 26% of the world DRI production (69.6 MTPA).

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Indian DRI Industry – Concerns

FY 12-13 Installed Capacity Production Capacity Utilization

Coal Based DRI 28.06 MTPA 15.5 MTPA 55.24 %

Gas Based DRI 9.6 MTPA 2.61 MTPA 27.18 %

India’s DRI Capacity Utilization

Concerns affecting growth of DRI

• Iron Ore Mining (218 MT in 2010 to 140 MT in 2013). • Availability sized quality ore. • Natural Gas Non Availability & unviable Pricing (Applicable for Gas based DRI). • Coal availability and linkages in india. (Applicable for Coal based DRI). • Higher scrap Utilization and cheaper hot metal scrap. • Reduced Market margins and economic slowdown.

** Highest DRI production was 23.25 MTPA in 2010 which has now reported a drop by 22% where as the steel production have reported a steady growth of 15% (70.6 MTPA in 2010 to 81.5 MTPA in 2013)

• India is the 6th largest iron ore reserves in world with a share of 7% of the total world reserve.

Indian Iron Ore – Future Prospects

• India is the 6th largest iron ore reserves in world with a share of 7% of the total world reserve.

• Total Indian Mineral Inventory is 28.1 Bil MT, out of this proven resources are 8.11 Bil MT (99.7% of this is Hematite).

• 60-70 % of the above is a low grade and medium grade ore which cannot be used directly in the iron making process.

As per IBM Vision 2020, India would need to produce 200 million tonnes steel by 2020. To achieve this additional 119 million tonnes in next 6 years cannot be produced entirely from conventional BF-BOF route due to limited availability of coking coal in India & worldwide, high capital cost and long gestation period.

28 billion tonne Hematite-17.88 Bil.MT

Proposed Production 2020 = 400 Mil MT

Exploitation of High grade ore and increasing un-utilization of low grade

ores.

Will last for next 40-50 years ? Usage of Low grade ores and

iron ore fines utilization in iron and steel making

High Alumina Intricate nature Poor liberation

Complex association of Hematite (white) with

Goethite (dull grey), Quartz (gray) and Clay (brown)

• Development of efficient Centrifugal separators, Flotation, Magnetic Separation, gravity separators, Solid–liquid separation.

• Improved sintering technology • Pelletization with improved properties

Adoption of Beneficiation & Agglomeration.

• Total beneficiation • Optimize lumps to pellet • Higher proportion of blue dust in

sinter • Low grade fines for DR processes • Exploitation of low grade ores >45%

Fe • Utilization of residual slimes/

tailings • Cost Economics

Indian Iron Ore

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Challenges/Support in Future for combined development of pellet & DRI industry

Increasing Fines Ratio and depleting Fe% during mining operations.

Need for Beneficiation and Agglomerations Technologies for usage of low grade ores

in iron & steel making.

Increased acceptance of Pellets in iron making and reduced dependence on Lumps.

Controlled fines pricing to elevate the usage of the agglomerated products in iron

making.

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Beneficiation is a process in which waste materials are separated from a low grade ore to produce an enriched high grade concentrate.

Principles steps involved in mineral beneficiation a) Liberation of desired constituents (valuable) from the matrix of unwanted gangue, by means

of size reduction. b) Concentration of valuable materials as concentrate and rejection of gangue as tailing.

Iron ore Beneficiation

Economical Benefits in Beneficiation

• Increase in Fe in the boundary by 1% will increase hot metal productivity by 1.5% - 2%, decrease coke rate by 0.8 – 1.2%. This will result in reduction in production cost by Rs.60 – 70/thm

•1% reduction of alumina in iron burden will reduce the cost of hot metal by Rs.200 – 250/thm

•Lowering of silica in iron ore burden by 1% will reduce the cost of hot metal by Rs.50-100/thm

•Reduction in undersize in iron ore lump by 1% will lower hot metal production cost by Rs.50 – 60/thm

•Reduction in fluctuation in Fe chemistry by 1% will reduce the cost of hot metal by Rs.40 – 50/thm

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Conservation of mineral by use of fines / ultra fines to agglomerate, making it usable in the steel industry.

Iron ore pellets have aesthetic advantage over others due to the virtue of better shape and strength. This has not only made it possible in utilization of iron ore fines but also transport to longer distances.

Sinter Cold Briquette Pellet

Agglomeration

Advantages of pelletization

• Utilization of waste ores and lean ores as cheaper and

abundant raw materials

• Higher tumbling index and lower abrasion index

• Good porosity

• Better reducibility

•

• Choice of size

• Built in flux

• Higher bulk density compared to sinter

• Improved productivity

• Reduced coal consumption

Hazira

• 10 mtpa steelmaking capacity; 3 distinct iron making units (DRI, BF & Corex)

• Port based plant

• Steel Making Technologies:

– 4.6 mtpa Electric Arc Furnaces (4 units)

– 5.0 mtpa CONARC Furnaces (2 units)

• Product capacities

– 7.1 mtpa of Hot Rolled

– 1.4 mtpa of Cold Rolled

– 0.5 mtpa of Galvanized

– 1.5 mtpa Plate Mill

– 0.6 mtpa Pipe Mill

• Port based 8.0 mtpa pellet plant

• 8.0 mtpa beneficiation plant at Kirandul

• 267 km slurry pipeline

Vizag

• 0.6 mtpa Cold Rolling, 0.5 mtpa Galvanizing & 0.4 mtpa Color Coating facility Pune

• Port based 12.0 mtpa pellet plant (1st 6 MTPA plant is Commissioned & 2nd 6 MTPA Plant is in advanced stages of completion)

• 12.0 mtpa beneficiation plant at Dabuna ( Commissioned recently)

• 253 km slurry pipeline ( Commissioned recently)

With 20 MTPA pelletization capacity, Essar is going to be the biggest producer of pellets in India

Paradeep

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DR Pellet

DRI (Midrex) 6 modules 6.7 MTPA

Corex 2 No’s

1.74 MTPA

HBI/Hot DRI

Pig Iron

Liquid Iron

Finished Steel

SMS

Natural Gas

Corex

Gas

BF Pellet

BF 1.75

MTPA

Essar Steel : Insights on Operations

Essar Vizag Operations

2X 4 MTPA Pellet Plants at Vizag are installed with Straight grate technology by M/s Lurgi, One of the oldest plant in the country operating from last 20 years.

Beneficiation Plant Pellet Plant

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• Proportion Ore, Binder and Water

Mixing

• Forming GreenPellets

Balling

• Drying, Firing and Cooling Pellets

Induration

• Hearth Layer Separation

Product Handling

Iron ore Pelletization

Straight Grate and Travelling grate technologies are the two proven and widely used induration furnace technologies

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HGMS

Intermediate Thickener

Tailing Thickener

Hydro Cyclone

Ro.Sprirals

Primary Grinding

Secondary Grinding

Hydro Cyclone

Tailing Dam

Cl. Spirals

Conc.

Thickener

Slurry Tank (Krdl)

Pumping Station 1

Pumping Station 2

Slurry Tank (Ckd)

O/F

U/F

Tails Conc

Midl

Conc O/F

U/F

Conc

Tails

U/F

U/F

Slurry Tank (Vzg)

Mixing

Green balling

Double Deck Roller

Induration

HLSB

Pellets Shipped to

hazira

Iron ore from NMDC Kirandul, Chhattisgarh

2X 4 MTPA Pelletization at Vizag

2X4 MTPA Beneficiation Plant Kirandul, Chhattisgarh

267 Kms Slurry Pipeline (7 MTPA)

-9mm & + 16 MM

Filtration

(Vacuum)

Additive Grinding

Essar Vizag Operations – Changing Dynamics

Flow sheet in 2004

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Input/output raw material quality fluctuations.

Productivity reduction due to the quality fluctuations.

Increasing iron ore prices.

Reduced weight recovery and increased tail Fe% due to quality fluctuations.

Need for Beneficiation and Agglomerations Technologies for usage of low grade ores

Challenges faced during the period.

Technological / Process up gradations done during 2008-2013

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HGMS

Intermediate Thickener

Tailing Thickener

Hydro Cyclone

Ro.Sprirals

Primary Grinding

Secondary Grinding

Hydro Cyclone

Tailing Dam

Cl. Spirals

Conc.

Thickener

Slurry Tank (Krdl)

Pumping Station 1

Pumping Station 2

Slurry Tank (Ckd)

O/F

U/F

Tails

Conc

Midl

Conc O/F

U/F

Conc

Tails

U/F

U/F

Slurry Tank (Vzg)

Filtration (vacuum)

+ Ceramic & Pressure

Additive Grinding

Mixing

Green balling

Double Deck Roller

Induration

HLSB

Pellets Shipped to

hazira 2X4 MTPA Beneficiation Plant Kirandul, Chhattisgarh

267 Kms Slurry Pipeline (7 MTPA)

2X4 MTPA Pellet Plant at vizag

Hyrate Thickener

HGMS

-9mm & + 16 MM

After cooler in PP1

- 1 mm Screen &

Desliming cyclones

Slon

Derrick Screen

Essar Vizag Operations – Changing Dynamics

Flow sheet - 2014

5th Geho Pump &

high density

Pumping

Slurrified coal

addition

Automation with inline

size analyzer

Coal Gasification

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Weight recovery increased from 80-85 to 88%

Tail Fe % reduced to </= 45%

Achieved rated capacity of 8MTPA with DR operations.

Overall reduction in moisture content by 1% in filterrcake leading to a reduction in

specific oil and power consumption.

Able to handle variation in the input feed quality ( Flexibility in operations) at

Beneficiation plant.

Major Improvements Achieved After Process

Innovations/Technological adoption.

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IOF Quality Vs Pellet Quality

IOF Chemical [On Dry Basis]

Fe 64-64.5 %

SiO2 4.5 %

Al2O3 2.5 %

LOI 2 %

IOF Chemical [On Dry Basis]

Fe 63 %

SiO2 5.5 %

Al2O3 3 %

LOI 2.5 %

Benef. IOF Chemical [On Dry Basis]

Fe 66-66.5 %

SiO2 1.8-2 %

Al2O3 0.8-1 %

LOI 1.8 %

Wt. recovery 80 %

Pellet Quality

Fe 66 %

SiO2 2.25 %

Al2O3 1.1 %

Cao + Mgo 1

CCS 260 Min

Porosity 28-30 %

Abrasion 4.5 %

Tumble 94 %

2004

2014 Pellet Quality

Fe 65.7-65.8 %

SiO2 2.5 %

Al2O3 1.25 %

Cao + Mgo 1

CCS 260 Min

Porosity 28%

Abrasion 4.5 %

Tumble 94 %

Benef. IOF Chemical [On Dry Basis]

Fe 66 %

SiO2 2-2.2 %

Al2O3 1 %

LOI 2 %

Wt. recovery 85-88 %

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Quality of DRI/Pig Iron with Pellets

M/s Essar have Gas based DRI and Blast Furnace where its is using pellet as feed Material.

• Utilization % in Blast Furnace : 60 % with pellet feed

• Utilization % in DRI : 100 % with pellet feed

Many Coal based DRI plants in Andhra Pradesh have also changed over to pellets especially in Hyderabad region where 100% Pellets are used as feed to the kiln.

The Typical Quality comparison with pellets & CLO in a 300 TPD DRI Kiln is as follows :

Input Burden

quality

Kiln Feed Pellet Feed/

MT DRI

Yield Fe% (M) Metallization

Pellet :63.5 % Fe 100% 1.47 67% 78 % 89%

CLO : 66 % Fe 100% 1.55 64 % 83% 88%

Input pellet

quality

Kiln Feed Pellet Feed/

MT DRI

Yield Fe% (M) Metallization

63.5 % Fe 100% 1.33 75 % 77 % 92 %

66 % Fe 100% 1.21 83% 82.3 % 93 %

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Benefits of Pellets in DRI (Coal & Gas) – Proven Facts

• Uniform quality & superior chemistry will enhance production by nearly 15% of their rated

capacity.

• Specific consumption of coal will come down by 10%.

• Campaign life will increase to almost double.

• As there will be no accretion and no fused lump formation, the refractory repairing cost will be

reduced by 50%

• There are no losses during handling, as pellets will not break during transport or handling.

• Better environment to work and dust generation will be low.

• Spherical shape of pellets gives better & uniform permeability resulting in smoother furnace

operation.

• Pellets have very high cold crushing strength resulting in negligible generation of fines in stock

house. Only 2-3% will be –5mm range.

• High porosity (i.e. ~ 23% Minimum) leads to faster reduction.

• Uniform chemical composition compared to lump ore.

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Thank You

8/14/2014