Indian Steel IndustryIndian Steel IndustryINDIAN PerspectiveINDIAN Perspective

BHARAT HEAVY ELECTRICALS LTD.BHARAT HEAVY ELECTRICALS LTD.

Industrial Systems Group, BangaloreIndustrial Systems Group, Bangalore

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CONTENTSCONTENTS1 Indian Steel Industry – An Overview

2 Iron & Steel Making Process

3 Raw Material for Iron Making

4 Iron Ore: Techno-economical Issues

5 Agglomeration of Iron Ore Fines

6 Ore Beneficiation, Pellet Plants and Sinter Plant

7 Assessment Of Situation

8 Initiation By ISG

9 Conclusion

Indian Steel Industry – An OverviewIndian Steel Industry – An Overview3RD largest steel producer in the world

Largest producer of Sponge Iron in the world – 26.3 mT in 2010

Per capita steel consumption in the country, currently estimated at 52 kg (2010). World Average 203 kg

Production of Finished steel in 2010-11, 66.01 mT (Prov.) a growth of 5.8%

Apparent Consumption of Finished Steel in 2010-11 – 65.61 mT, growth of 8.8%.

India’s exports of Finished Steel in 2010-11, 3.46 mT, Imports 6.8 mT

Huge Iron Ore resources & reserves – Approx. 26 bn. Tonnes

Indian Steel Producers are increasingly looking for overseas acquisitions in steel as well as raw materials.

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Capacity Planned till 2020Capacity Planned till 2020

73 78 89

191

256

0

50

100

150

200

250

300

2009-10 2010-11 2011-12 2016-17 2017-20

mT

Source: Report of the working group on steel industry 12TH plan and SAIL Vision 2020

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Indian Steel Industry – Major PlayersIndian Steel Industry – Major Players

SAIL14%

Tata Steel8%RINL3%

JSW7%Essar

5%JSPL3%

BSL2%

Others58%

Company 11-12

(MT)

16-17 (MT)

Addition

Arcelor Mittal 0 30 30

SAIL 12.49 28.99 16.5

Tata Steel 6.8 24.3 17.5

JSPL 2.4 13.4 11

POSCO 0 12 12

RINL 2.9 7 4.1

JSW 6.6 6.6 0

ESSAR 4.6 6.3 1.7

NMDC 0 6 6

Bhushan SL 1.5 5.2 3.7

OTHERS 51.71 51.71 0

Total 89 191.5 102.5

Crude Capacity (P)Crude Capacity (P)2011-12

Arcelor Mittal16%

SAIL15%

Tata Steel13%

JSPL7%

POSCO6%

RINL4%

JSW3%

Essar3%

NMDC3%

BSL3%

Others27%

2016-17

5 Yr CAGR 15.4%

RINL (4.1MTPA), Essar (1.7MTPA), Bhushan (3.7MTPA)NMDC(3MTPA) are under execution

Source: Report of the working group on steel industry 12TH plan SAIL Vision 2020

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Indian Steel Industry – Pellet Plant/ Ore Indian Steel Industry – Pellet Plant/ Ore BeneficiationBeneficiation

Sl. No. Customer Plant Capacity (MTPA)

1 Jindal Steel & Power Ltd., Barbil 11 2 Global Supply Ltd. (Essar group Company), Dabuna 8 3 Brahmani River pellets Ltd., Barbil 4 4 Shri Bajrang Power & Ispat Ltd., Raipur 1.8 5 Sree Metalliks Ltd., Keonjhar 1.2 6 Bhushan Power and Steel Limited, Jharsuguda 8 7 Indrani Pattnaik, Barbil 1.2 8 KJS Ahluwalia, Barbil 1.2 9 Janki Corporation, Bellary 1.2

10 Korp Resources, Keonjhar 0.5 11 SSAB Energy & Minerals Ltd., Barbil 0.5 12 Sriram Mineral, Barajamda 0.5 13 Madras Cements Ltd., Alathiyur 2.6 14 Ankit Metal & Power Ltd., Bankura 1.1

Source: Web / Company

Existing PlantsExisting Plants

Source: Report of the working group on steel industry 12TH plan

50 MTPA Pellet Plant50 MTPA Ore Beneficiation

Capacity Planned up to 2017Capacity Planned up to 2017

Raw Material for Iron MakingRaw Material for Iron Making1. Iron Ore

•Hematite (Fe203) – 58% of Total Reserve •Magnetite (Fe304) – 42% of Total Reserve

2. Limestone or Dolomite3. Coke4. CoalInput Materials for Blast Furnace

Iron Ore (10/40 mm)Sinter and PelletLimestone (Flux)Metallurgical Coke (Fuel)

OUTPUT

Pig IronMolten Iron taped from the BF Fe 90-95%

Input Materials for Direct-reduced iron (DRI)Iron Ore (5/40 mm)PelletLimestone or Dolomite (Flux)Natural Gas or Non Coking Coal

OUTPUT

Sponge IronIron produced as a solid by reduction of Iron OxideFe 90-92%

Input Materials for Smelting Reduction (SR)Iron Ore (-6/30 mm)PelletLimestone or Dolomite (Flux)Oxygen and Non Coking Coal

OUTPUTLiquid IronWhich utilize Oxygen and Non Coking CoalFe 97%

PROCESS

Total metallic yield Fe for pig iron will typically be in the range of 90 – 95 % which is comparable to #1 prompt scrap

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Iron Ore: Techno-economical IssuesIron Ore: Techno-economical IssuesThe country’s iron ore requirement is going to increase substantially (almost 340 Mt/yr by 2020)The ration of Lump to Fines produced is 2:3

The percentage of Fines to lumps is generally rising as mining goes deeperFines generated as such cannot be used for Iron Making (BF/DRI)

Large portion of the Fines are being exportedLimited reserves of high grade iron ore (+62% Fe) pose a great challenge in long term sustainability of Indian iron & steel industryThere is a pressing need to utilize existing low grade iron ores including slimes and dump fines which are stockpiled in millions of tonnes in different mine heads

The availability of large quantities of subgrade fines and slimes in the mines has necessitated beneficiation of the same followed by pelletisation.Beneficiation of low grade ores, mostly at micro-fines level, provides concentrate which can be used in iron making in the form of pellets

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Agglomeration of Iron Ore FinesAgglomeration of Iron Ore FinesAgglomeration of Iron Ore Fines basically involves two main methods

1. Sintering2. Pelletising

Sintering is the agglomeration technique of Iron Ore Fines in the size rage of -10+0.15 mm to produce clusters by incipient fusion at high temperature.

Pelletisation is the other mode of agglomeration applicable for fines below 325 mesh size.

1% replacement of calibrated lump by Sinter or Pellet reduces the Coke rate by 1.5Kg/T of hot metal produced20 to 70% Sinter can be used successfully in Blast Furnace

Use of Pellet gives rise to improved permeability compared to Lump Ore or Sinter

15 to 20% of pellets are used in many furnaces along with lump ore & sinter

Ore Beneficiation, Pellet Plants Ore Beneficiation, Pellet Plants and Sinter Plantand Sinter Plant

Ore Beneficiation & Pellet PlantsOre Beneficiation & Pellet Plants

Ore Beneficiation Ore Beneficiation

.

.

Major Equipment

Ball mills for primary grinding and regrinding

Concentrate, tails & hydro-cyclone over-flow Thickeners

Hydro-cyclones for classification and de-sliming

Slime Tanks with agitators & Sumps

Wet high intensity magnetic separator

Very low grade Iron ore cannot be used in metallurgical plantsNeeds to be upgraded to increase the iron content and reduce the gangue contentA process adopted to upgrade ore is called BeneficiationEach source of Iron ore has its own peculiar mineralogical characteristicsSpecific beneficiation and metallurgical treatment to get the best product out of itSeveral techniques such as washing, jigging, magnetic separation, advanced gravity separation and flotation are being employed to enhance the quality of the Iron ore

Agglomeration Agglomeration (Sintering & Pelletising)(Sintering & Pelletising)

• Common methods of burden preparation related to the performance improvements of iron making (blast furnaces & direct reduction process)

• Growth of steel industry with depleting resources of high grade ores have led to a very strong demand for both pelletising and sintering of iron ores.

Pellet PlantPellet PlantThe process of Pelletisation helps converting Iron Ore Fines into “Uniform Size Iron Ore Pallets” that can be fed in the blast furnaces or in the DRI kiln (DRI).

There are two main processes for producing iron ore pellets: (1).The Grate-Kiln System (2).The straight grate system

Pelletisation was invented to make use of ultra fine concentrate generated in the Iron ore beneficiation plants

Major Equipment

Pulverizing mill for lime stone, bentonite and coal

Travelling grate complete with burners, lubricating system and accessories

Intensive Mixer with accessories Rotary kiln with accessories

Swing Belt Conveyor & wide belt conveyor Annular Cooler

Roller screen for screening green pellets

Pellet Plant-Grate-Kiln System Pellet Plant-Grate-Kiln System Process adopts three equipment viz. grate, rotary kiln and annular cooler

Green balls are first dried and preheated on the straight grate followed by hardening in a counter flow manner in rotary kiln and air cooling in an annular cooler

Pellet Plant-Straight Grate System Pellet Plant-Straight Grate System In the straight grate system, a continuous parade of grate cars moves at the same speed though the drying, induration and cooling zones.

Sinter PlantSinter PlantSinter making is a method of fusing iron ore fines into larger particles suitable for charging into the blast furnace.

Major Equipment – Sinter PlantMajor Equipment – Sinter PlantProportioning

Mixing & Nodulizing

Sintering

Sinter Cooler

Cold Sinter crushing

Cold Sinter screening

Waste Gas & Plant de-dusting

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Indian Steel Industry – 12Indian Steel Industry – 12THTH Plan Plan2012-20172012-2017

• Steel production of the country will go up by 90 MTPA in 2016-17 from 89 MTPA likely in FY11-12.

• It is estimated with feasibility factor that 21 MTPA shall be installed

• 50 MTPA Ore Beneficiation• 50 MTPA Pellet Plant• As per SAIL Vision 2020 (60 MTPA)

Source: Report of the working group on steel industry 12TH plan

THANKSTHANKS

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ADVANTAGES OF PELLETS:• Good Reducibility:Because of their high porosity that is (25-30%), pellets are usually reducedconsiderably faster than hard burden sinter or hard natural ores/lump ores.• Good Bed Permeability:Their spherical shapes and containing open pores, gives them good bed permeability. Low angle of repose however is a drawback for pellet and creates uneven binder distribution.• High uniform Porosity (25-30%):Because of high uniform porosity of pellets, faster reduction and high metallization takes place.• Less heat consumption than sintering.Approx. 35-40% less heat required than sintering.• Uniform chemical composition & very low LOI:The chemical analysis is to a degree controllable in the concentration processingwithin limits dictated by economics. In reality no LOI makes them cost effective.• Easy handling and transportation.Unlike Sinter, pellets have high strength and can be transported to long distances without fine generation. It has also good resistance to disintegration.

Need for Pelletisation Need for Pelletisation Contd.Contd.

ORE BENEFICIATION AND PELLET PLANT UPCOMMING PROJECTS - 2020ORE BENEFICIATION AND PELLET PLANT UPCOMMING PROJECTS - 2020

Source: Projects Today/ Web

SL. NO. PROJECT/PROMOTERApprox. COST

(Crore) MTPA

1 Iron Ore Pellets (Jamtara) Project Rs. 1,500 1 Maa Chandi Durga Ispat Private Ltd.

2 Iron Ore Pellets (Haridaspur) Project Rs. 800 3 Rashmi Metaliks Pvt. Ltd.

3Iron Ore Beneficiation & Pelletisation (Motuda) Project Rs. 800 6

Indo Pellets Pvt. Ltd. Rs. 600* 2.4

4Iron Ore Benefication & Pelletisation (Jilling) Project Rs. 750 3.4

Essel mining & Industries Ltd. 2

5Iron Ore Beneficiation & Pelletisation (Raipur) Project Rs. 350 1.25

Bagadiya Brothers Pvt. Ltd.

6Iron ore Pelletisation (Sundargarh) Project Rs. 325 20 Lakh TPA

Shyam Steel Industries Ltd. 20 Lakh TPA

7Iron Oxide Pellets (Bommanahalli) Project Rs. 284 6 Lakh TPA

8 Iron Ore Pellets (Kotgarh) Project Rs. 260 6 Lakh TPA Shree Sai Shraddha Metallics Pvt. Ltd.

9Iron Ore Pellets (Hospet Vada) Project Rs. 250 3 Lakh TPA

Ishitha Mining Company Pvt. Ltd.

10Iron Ore Pellets (Hospet Vada) Project Rs. 250 3 Lakh TPA

Arun Metallurgicals Pvt. Ltd.

11Iron Ore Beneficiation & Pelletisation (Tilda) Project Rs. 150 6 Lakh TPA

Gopal Sponge & Power Pvt. Ltd.

12Iron Ore Pellets (Yerabanahally) Project Rs. 150 6 Lakh TPA

Kmmi Steel Pvt. Ltd. 13 Iron Ore Pellets (Dharsiwa) Project Rs. 50 6 Lakh TPA

Real Ispat & Power Ltd. 14 Iron Oxide Pellets (Bagalkot) Project Rs. 49 0.6

Doddanavar Najinzhaw Mining & Metallurgy Pvt. Ltd.

SL. NO. PROJECT/PROMOTERApprox. COST

(Crore) MTPA

15 Iron Ore Pellets (Badtumkela) Project 8

Singhal Sponge Pvt. Ltd.

16 Iron Ore Beneficiation & Pelletisation (Byree) Project [Phase I] 600* 2.1

Pro Minerals Pvt. Ltd. 300* 1.2

17Iron Ore Pelletisation (Jagdalpur) Project 3 Lakh TPA

Baldev Alloys Pvt. Ltd.

18 Iron Ore Pelletisation (Ethora Salanpur) Project 200* 5 Lakh TPA

Sangeeta Ispat Pvt. Ltd.

19Iron Ore Pelletisation (Paschimi Singhbhum) Project 900* 4

Steel Authority of India Ltd.

20 Iron Ore Pelletisation Plant (Bonai) Project 2 Lakh TPA

Patwari Forgings Pvt. Ltd.

21 Iron Ore Pelletisation (Horomoto) Project - Phase I 100* 0.6

Shyam Steel Industries Ltd.

22Iron Ore Pelletisation (Thakurani) Project 600* 2

Orissa Minerals Devp. Co. Ltd.

23Iron Ore Beneficiation & Pelletisation (Dharsinwa) Project 300* 15 Lakh TPA

Vandana Global Ltd.

24Iron Ore Pelletisation (Bagalkot) Project 250* 1.2

Shree Renuka Energy Ltd. TOTAL Rs. 5,968 48.75

* Estimated

SINTER PLANT UPCOMMING PROJECTS-12SINTER PLANT UPCOMMING PROJECTS-12THTH PLAN PLAN

Source: Answers Given By Minister of Steel in Rajya Sabha on 24/11/2011

Sl. No.

Project / Promoter Approx. Cost Rs. Crores

MTPA

1 Sinter Plant at Bastar, Chhattisgarh 750 3 NMDC Ltd 2 Sinter Plant at Kalingnagar, Odisha 1500 6 TATA Steel Ltd 3 Sinter Plant at Bastar, Chhattisgarh 1500 5.5

TATA Steel Ltd 4 Sinter Plant at Seraikela, Jharkhand 2250 12 TATA Steel Ltd

5 Sinter Plant at Paradeep, Odisha 1500 6 ESSAR Steel Ltd 6 Sinter Plant at Bastar, Chhattisgarh 750 3.2 ESSAR Steel Ltd 7 Sinter Plant at Chaibasa, Jharkand 750 3 ESSAR Steel Ltd 8 Sinter Plant at Bellary, Karnataka 1500 6 ESSAR Steel Ltd 9 Sinter Plant at Patratu, Jharkand 1500 6 JINDAL Steel

10 Sinter Plant, Asanboni, Jharkand 1500 5 JINDAL Steel

11 Sinter Plant at Jagatsingpur, Odisha 2250 12 POSCO India

12 Sinter Plant at Keonjhar, Odisha 750 3 Arcelor Mittal India

13 Sinter Plant at Bokaro, Jharkhand 2250 12 Arcelor Mittal India

14 Sinter Plant at Bellary, Karnataka 1500 6 Arcelor Mittal India

15 Sinter Plant at Jharkhand 750 2.8 ISPAT Industries

16 Sinter Plant at Jharkhand 750 2.8 ISPAT Industries Total 21,750 94.3

Projects Details Up to 2020Projects Details Up to 2020SL. No. Company / Place MTPA Status

12 TH PLAN STEEL PLANT

1NMDC -Bastar 3.0 MTPAChattisgarh

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SAIL 2 FCI SINDRI 5.6 MTPPA 6 3 POSCO -BSL 1.5 MTPPA 1.5 4 Vision 2020 - 9.0 MTPPA 9 Private Investors Tata Steel

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Bastar 5.5 MTPAChattisgarh

5.5 DPR Completed. Capacity of 5.5 mtpa likely to be

achieved by FY’2015

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Seraikela 12 MTPAJharkhand

12 DPR Completed. Capacity of 12.0 mtpa likely to be achieved by

FY’2016. Arcelor Mittal

7Keonjhar 12 MTPAChattisgarh

12 Project implemented stage – 2016

8Bokaro 12 MTPA 12 Project implemented stage – 2015 (3

MTPA)

9Bellary 6 MTPAKarnataka

6 Project implemented stage – 2015 (3 MTPA)

POSCO

10Jagatsinghpur 12 MTPAOrissa

12 Phase i: 3.0 MTPA

Jindal Steel & Power Ltd.

11Patratu 6 MTPAJharkhand

6 completion of 3 MTPA (Phase 1) capacity will be 2013.

12Asanboni 5 MTPAJharkhand

5 First phase would be completed by 2015

Sub-Total 90 Existing Capacity 89 RINL Ongoing Project 3

NMDC, Nagarnar 3 Others 6.5

Total Capacity up to 2017 191.5

SL. No. Company / Place MTPA Status

1 SAIL Vision 2020 (60 MTPA) 31.01

2Tata Steel Ltd. Orissa Greenfield project at Kalingnagar 6

3Essar Steel Orissa Ltd. Orissa Greenfield plant at Paradeep 6

4Essar Steel Chhattisgarh Ltd. Chhattisgarh Greenfield plant at Bastar 3.2

5Essar Steel Jharkhand Ltd Jharkhand Greenfield plant at Chaibasa 3

6Essar Steel Karnataka Ltd., Karnataka Greenfield plant at Bellary 6

7Ispat Industries Ltd, Jharkhand Greenfield project 2.8

8Ispat Industries Ltd. Karnataka Greenfield project 2.8

9Visa Steel Ltd Chhattisgarh Greenfield plant at Raigarh 2.5

10Visa Steel Ltd. Orissa Greenfield plant at Jajpur 1.5

64.81 Total Capacity up to 2020 256.3

SAIL up to 2017SAIL up to 2017SAIL Existing Capacity Addition

SAIL 24MT (2013) * # 16MT (2017)**

5.6 MT at sindri, Dhanbad

Rs. 22,960 Cr ***

1.5MT at BSL with POSCO

Rs. 6,150 Cr ***

9MT (Estimated) Rs. 36,900 Cr ***

Total Rs 66,110 Cr

*SAIL total projected 20.75 for terminal year# As per SAIL Web Site** Proportionally changed for 2017 (26MT for 2020) SAIL Vision 2020 (60 MT)*** Estimated

Source: Report of the working group on steel industry for the 12TH five year plan

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Indian Steel IndustryIndian Steel Industry SWOT Analysis SWOT Analysis

STRENGTHS•Abundant resources of iron ore

•Low cost and efficient labour force

•Strong managerial capability

•Strongly globalised industry and emerging global competitiveness

•Modern new plants & modernised old plants

•Strong DRI production base

•Regionally dispersed merchant rolling mills

WEAKNESSES•High cost of energy

•Higher duties and taxes

•Infrastructure

•Quality of coking coal

•Labour laws

•Dependence on imports for steel manufacturing equipments & technology

•Slow statutory clearances for development of mines

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Indian Steel IndustryIndian Steel Industry SWOT Analysis SWOT Analysis

OPPORTUNITIES

• Huge Infrastructure demand

• Rapid urbanisation

• Increasing demand for consumer durables

• Untapped rural demand

• Increasing interest of foreign steel producers in India

THREATS

• Slow growth in infrastructure development

• Market fluctuations and China’s export possibilities

• Global economic slow down

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Growing Indian EconomyGrowing Indian Economy

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Indian Steel Industry – A Bright FutureIndian Steel Industry – A Bright Future

RESOURCESRESOURCESAbundant Iron Ore reservesAbundant Iron Ore reservesStrong Managerial skills in Iron and Steel makingStrong Managerial skills in Iron and Steel makingLarge pool of skilled Man-powerLarge pool of skilled Man-powerEstablished steel players with strong skills in steel makingEstablished steel players with strong skills in steel making

Pro-active stance of Govt.Pro-active stance of Govt.Encouragement for overseas investmentsEncouragement for overseas investments

High economic growth driven increasingly by industryHigh economic growth driven increasingly by industryFaster UrbanisationFaster UrbanisationIncreased Fixed Asset BuildingIncreased Fixed Asset BuildingAutomobiles and component industry growthAutomobiles and component industry growth

OPPORTUNITIESOPPORTUNITIES

POLICYPOLICY

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Iron Making Process Iron Making Process The three different methods that can be used for production of iron from Iron ore are: •Coke-Ovens -Sinter-Blast Furnace (BF) Route•Direct Reduction Technique (DRI)•Smelting Reduction Technologies.

For producing Crude Steel, two types of techniques are adopted; •Basic Oxygen Furnace (BOF) type •Electric arc furnace (EAF) type

Sinter Plant

Sinter

Sinter Plant

Sinter