Essar Projects

Making Mega Projects Possible….

28-09-12, Delhi

RESURGENT INDIA- VISION 2020 IN METALS AND MINERALS SECTOR

Utilization of Iron Ore Fines /

Pellets in Iron Making

Contents

• India – Steel Production and Iron ore scenario

• Why - Utilization of Iron ore fines

• Essar’s contribution in utilization of iron ore fines & slimes

• Benefciiation

• Agglomeration

• Slurry pipeline transport• Slurry pipeline transport

• Essar’s BF operation with pellets in burden

• Brief details of Essar’s iron ore Beneficiation plants, Slurry pipelines and

Pellet plants

• Initiatives required from Industry in usage of iron ore fines

• Essar Projects India Ltd – Brief EPC capabilities in Minerals & Metals

India – Steel Production & Iron Ore Scenario

• Annual production of steel In India is expected to reach close to 200 million

tonnes mark by the year 2020 making India world’s second largest steel

producer

Current Scenario of Iron ore reserves

• India has about 28.5 billion tonnes of Iron ore reserves

• Around 60% of Indian ore mined is in the form of fines with relatively lower

grade of irongrade of iron

• India is amongst the highest consumers of CLO for its steel production. About

25% - 30% of India’s steel production is through sponge iron route which is

excessively dependent on CLO as feed

• With the projected steel production, requirement of iron ore is expected to be

around 350 to 400 million tonnes per year. At this rate of consumption, the

available good quality reserves would probably not last more than a few

decades

• Improving the resource base and exploitation of Mineral resources remains one

of the most important geological and economical tasks in India and is the need of

the hour

• The conventional iron ore processing generates slimes to the tune of 10 to 15%

of run-off-mine (ROM)

• It is estimated that more than 600 million tonnes of Iron ore fines dumps are

Why - Utilization Of Iron Ore Fines

• It is estimated that more than 600 million tonnes of Iron ore fines dumps are

available across India and this needs to be clearly assessed.

• Fines/ Slimes occupy huge space and cause environmental and ecological

problems

• It is essential to beneficiate and recover the additional iron values from these

fines & slimes, not only to earn additional revenue to iron ore industries but also

from the view point of conservation of mineral wealth

Utilization Of Iron Ore Fines

• Beneficiation process is generally customized as per the ore mineralogy and

has to be established through laboratory and/or pilot scale tests

• Locating Beneficiation plant

� Close to the mine head or at a place with good connectivity from mines,

sustainable source of water & power, safe and easy disposal of tailings

� Nearby pellet plant / slurry transportation by pipe line to port based pellet � Nearby pellet plant / slurry transportation by pipe line to port based pellet

plant

• Beneficiated concentrate would need to be further processed for facilitating

its use in Iron making process

• Agglomeration processes of Sintering and Pelletizing enable the usage of

fines / concentrate in Iron making

ESSAR’S CONTRIBUTION TOWARDS IRON ORE

BENEFICIATION & PELLETISATION UTILISING

LOW GRADE FINES & SLIMES

Essar’s Strategy

• By installation of Iron ore beneficiation plants at mine head, Essar is able to

utilize low grade fines & Slimes(< 58% Fe Hematite ore) and impart value

addition

• Adoption of slurry pipe line for concentrate transportation eases logistics

and environmental issues

• Conversion of iron ore concentrate / pellet feed to pellets at port based

plants facilitates easy shipment to its ISPplants facilitates easy shipment to its ISP

• Essar group has gained good experience in Beneficiation and Pelletization,

reducing dependence on foreign technology providers and equipment

suppliers

• Essar is already operating its Blast Furnace with ~55 % Pellet in burden

• Essar is in discussions with R&D institutes for building up a 100 kg/h pilot

scale Beneficiation & Pelletization plant using BHQ ores, high blaine index

and higher LOI concentrates for Pelletization

Essar’s Pioneering Value Addition To Iron Ore Fines/ Slimes

Facility Feed quantity

2X4 MTPA Beneficiation Plant in Kirandul,

Chattisgarh with Pellet Plant in Vizag10-11 MTPA of fines & slimes

3X4 MTPA Beneficiation Plant in Dabuna,

Odisha with 2 X6 MTPA Pellet Plant in

Paradip

17 MTPA of fines & dumps

to support Intergraded Steel Plants at

• 10 MTPA ISP at Hazira, Gujarat

• 4 MTPA ISP at Algoma, Canada

1X7 MTPA Integrated Pellet Plant in

Minnesota, USAAbout 23 MTPA of ROM

Integrated Steel Plant @ Hazira - Process Flow

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Advantages Of Beneficiation

• Utilization of available dumps

• Reduction in smelting cost due to reduction in quantity of feed processed

• Unwanted material is discarded at the site of ore processing reducing

logistics related costs and concerns

• Consistency in quality and uniformity in size of product obtained after

processing improving the efficiency of smelters

Advantages Of Slurry Transportation By Pipelines

• Slurry transportation ensures zero wastage as there is no in-transit material

loss

• Pipelines have high availability and low maintenance requirement

• Pipelines are techno- economically more viable when compared to other

transportation modes. It gives considerable savings on transportation,

specific to locations

• Eliminates dependency on logistics providers like Railways, Road, etc.

• Slurry pipelines are environment friendly, as they do not cause noise, dust

pollution or negative visual impacts

• Minimum land is required for laying the under ground pipeline and land can

be restored to its original condition

Sintering

• Sinter feed

� Ideal feed size range is 90% of material between10mm to 1mm

� Feed size below 1 mm is generally restricted to 10%

• Micro pelletization

� Imparts flexibility in the usage of ultra fines in the sinter feed mix

� Augments usage of ultra fines by additional 10 - 15%

• 100% utilization of ultra fines/Pellet feed as sinter feed through micro Pelletization is not possible as it adversely impacts the operation, productivity and quality of sinter

• Test works are being carried out to use pellet feed in sintering and assess the impact on quality/ production parameters

Pelletization

• The limitation in the utilization of beneficiated ultrafine concentrates in

Sintering could be overcome through the process of Pelletization

• In fact, it is desirable to have concentrates in the size range of 45 micron for

effective Pelletization

• Pellets have high resistance to abrasion and facilitate transportation over

long distances. This makes Pelletization an attractive option of long distances. This makes Pelletization an attractive option of

agglomeration either for captive consumption or as a merchandised product

• Lesser heat consumption than sintering

• The industry is gaining operational and economic advantages by the usage

of pellets in the Iron making process as compared to lump ore

• Sponge Iron Kilns have reported an increase in production by 25% due to

the utilization of pellets instead of CLO. Reduction in fines generation and

reduction in coal consumption by 10% is also experienced

• 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

• High porosity (i.e. ~ 20%) leads to faster reduction

Advantages Of Pellets In Iron making

• High porosity (i.e. ~ 20%) leads to faster reduction

• High strength of pellet (180 - 250 kg/cm2) provides good resistance to

disintegration during the descent of burden

• Uniform chemical composition compared to lump ore

• Benchmarked Blast Furnaces have 50% pellets in their BF burden.

14

BF Operation At Essar, Hazira

Description Unit Design With 30% pellet With 50% pellet

Hot metal prod. (Avg.) t/d 5000 4800 5200

Productivity (U.V.) thm/cum/day 2.27 2.18 2.36

Sinter % 55.0 42.0 40.0

Pellet % 30.0 30.0 54.0

Iron ore % 15.0 28.0 6.0

Slag rate kg/thm 380 328 324

Fuel rate kg/thm 530 564 540

Coal rate kg/thm 150 133 121

Si in hot metal % 0.8 0.6 0.66

Hot blast temperature 0C 1150 1165 1130

Oxygen enrichment % 3.0 3.2 – 3.4 2.8 – 3.0

Top pressure bar(g) 1.76 1.52 1.45

Essar’s Long Term Plans In India

• Essar is proposing to install ISPs at the following locations as a part

of its long term plans, with maximum utilization of pellets in Blast

furnace burden, thereby further usage of low grade fines in these

areas.

� 6 MTPA ISP at Paradip � 6 MTPA ISP at Paradip

� 3 MTPA ISP in Chattisgarh

� 6 MTPA ISP in Jharkhand

BRIEF DETAILS OF ESSAR’S

IRON ORE BENEFICIATION PLANTS, IRON ORE BENEFICIATION PLANTS,

SLURRY PIPELINES AND PELLET PLANTS

12 MTPA Beneficiation Plant At Dabuna

3x4 MTPA Beneficiation Plant At Dabuna

• Conceptualized the process flow

based on the lab & plant scale

tests

• Plant based on “modular design”

concept

• Equipment selected based on • Equipment selected based on

latest technologies and

operational expertise

• Equipment sized basedon

availability & operational

flexibility to process wide range of

quality of ores

Usage Of Slimes At Kirandul Beneficiation Plant

7 MTPA Beneficiation Plant At Minnesota

• Crusher

� Primary crusher

� Scalping grizzly

� Secondary crusher

• Concentrator

� AG mills

� Ball mills

� Magnetic separators

� Floatation cells

� Thickeners

� Slurry pipe line

Essar’s Beneficiation Plants-Summary

Particulars KirandulDabuna (under

implementation)Minnesota (under implementation)

Capacity 8 MTPA (2x 4 MTPA ) 12 MTPA (3 x 4 MTPA) 7 MTPA (3 x 2.17 MTPA )

SourceBailadila range iron ore fines & slimes of NMDC

Pvt. Mines around Barbil-Joda sector

Butler Taconite mine near Nashwauk, Minnesota

Iron ore & natureHematite fines and slimes, 58%Fe

Hematite, 58-60%(BF)

Hematite, 62-64%(DR)

Total Fe, % 30.36Magnetic Fe, % 20.46

Plant output Concentrate, 66.5% (DR)Concentrate,63.8%(BF)

Concentrate,66.2%(DR)

68.5 to 69.5 % (DR)66.0 – 66.3 % (BF)

Yield 80% to 84% ~70% /75%29.75% (DR)30.8% (BF)

Key processesGravity separation, Magnetic separation

Scrubbing, Gravity separation, Magnetic separation

Magnetic separation, Hydro-cyclones & flotation

Benchmark operability

NMDC slimes feed alongwith fines

Recovery of Fe units from plant tailings

All flux hindered separator & small capacity SLONs, future plans to process BHQ

Dry cobber & flotation circuits

Kirandul – Vizag Slurry Pipe Line

Kirandul to Vizag Slurry Pipe Line

Essar Slurry Transportation Facilities-Summary

Particulars Kirandul - Vizag Dabuna – Paradip Minnesota

Distance 267 km 253 km 3.5 km

Benchmark

operability

India’s longest slurry

pipeline

2nd longest iron ore

slurry pipeline in India--

Control Supervisory control and data acquisition systems (SCADA)Control Supervisory control and data acquisition systems (SCADA)

Pumps

Diaphragm type

positive displacement

pumps of GEHO make

Diaphragm type

positive displacement

pumps of GEHO make

Differential Head

pumps

Coverage area

Pipeline passes

through 3 states in

India (Chattisgarh,

Odisha, Andhra

Pradesh)

Across OdishaCoverage within

plant premises only

2X6 MTPA Pellet Plant At Paradip

Flow Sheet Of Pelletization Plant At Paradip

Consistent Value Addition In Pelletisation-Summary

Particulars Vizag Paradip Minnesota

Capacity8 MTPA (1 x 420 m2 &

1 x 444 m2) 12 MTPA (2 x 744m2) 7 MTPA (1 x 744 m2)

TechnologyLurgi’s Straight grate

process

Aker Solutions’

straight grate process

Aker Solutions’

straight grate process

Capacity enhancement

through zone

Customized process

based on previous

Processing taconite

ore, Improved

Process

improvement

through zone

rearrangement and

introduction of after

cooler

based on previous

learning, multi-staged

screening of green

pellets

ore, Improved

environmental

performance – SOx,

NOx and Mercury

emission control

Grade of pellet BF & DR grade BF & DR grade BF & DR grade

Fe Content64 % (BF)

66.5% (DR)

63.8% (BF)

66.2% (DR)

60.5- 61% (BF)

66.5- 67 %(DR)

Essar’s Unique Initiative

• Essar’s unique initiative – Environmental regulations at Minnesota

• NOx mitigation at source

� Collaborated with FNAC, USA

• Treatment of gaseous emissions

� Collaborated with FLSmidth to implement solutions for

treatment of Hg and SOx emissions in the process exhaust

INITIATIVES REQUIRED -

USAGE OF IRON ORE FINES/DUMPS/SLIMESUSAGE OF IRON ORE FINES/DUMPS/SLIMES

Technology Look Ahead

• Develop indigenous & viable technology to improve yield and effective

utilization of low grade iron ore including BHJ/BHQ/BMQ, fines & slimes to

produce quality concentrate by deep beneficiation.

• Use of tailings as building/construction material, ceramics, etc.

• New blast furnaces should have design provision to maximize pellet

utilization in their feed burdenutilization in their feed burden

• Upgrade the existing blast furnaces to accept higher pellet in burden

• Commercialization of alternate iron making technologies that directly use

low grade fines or concentrates as feed

Initiatives To Encourage Fines Utilization

• Significant steps have to be taken by the Ministry of Steel to encourage the

establishment of beneficiation and pellet plants

� Ascertain proven reserves of fines/dumps and allot the resources to

pellet or pellet feed producers – Mine owners/integrated steel producers

� Ensure long term securitization of ore linkage of a specific range of � Ensure long term securitization of ore linkage of a specific range of

quality to entrepreneurs so that periodical capital infusion is avoided

� Improving the infrastructure and logistics support at mine head

� Encourage rotary kiln based DRI producers to use pellets instead of

CLO

Initiatives To Encourage Fines Utilization

� Providing tax incentives

� Facilitate easy sanction of right of way for slurry pipelines

� Establishing dedicated pipeline corridors for trouble free and safe

operation of slurry pipelines

� Developing pellet hubs close to consumer points / seaports

� The technologists, R&D institutions and the steel industry as a whole,

need to support the development of cost effective and environmentally

friendly solutions and processes

EPC Capabilities

EPC Capabilities

• Essar has a mixture of Design & Engineering, Operating, Maintenance and

Construction/Project knowledge. As a result the plants designed will be

operator friendly taking in to account all practical aspects

• For Iron & Steel plants Essar has the exposure to alternate routes of various

processes and ready access to operating plants

• With in-house operating plants, Essar has ready made access to all• With in-house operating plants, Essar has ready made access to all

operating data useful for improving successive designs.

• Having the practical knowledge of the plant, Essar is in better position to

select technology and equipment (giving better OPEX & CAPEX).

Expertise In Iron & Steel Making

Beneficiation And Pellet Plant Projects

• Pellet plants executed by EPIL on EPC basis

� Vizag – Essar Steel Limited, 8.0 MTPA

� Paradip – ESOL, 12.0 MTPA

� Minnesota, USA – 7.0 MTPA

� Vale, Oman – 8.0 MTPA (Engineering and procurement assistance)

• Other Beneficiation and Pellet plant activities

� Front end loading studies for 6.0 MTPA pellet plant project of Vale, Malaysia

� Process audit of Sarda Mines Pvt. Limited Beneficiation plant

Sl. No.

Description Beneficiation PlantSlurry

PipelinePellet Plant

1Technical know-

how & lab testing

Flow sheet development

by laboratories

Tech

supplier

Only Induration area by a

Tech Supplier

2Basic

Engineering

EPILEPIL

EPIL

(excl Induration area)

EPC capability in Beneficiation & Pellet Plants

Engineering (excl Induration area)

3Detail

EngineeringEPIL EPIL EPIL

4Supply of

equipmentEPIL EPIL EPIL

5Construction &

commissioningEPIL EPIL EPIL

EPIL Advantage…. Creating Enduring Value

• Group with experience of executing projects from concept to commissioning

• Pan India presence with offices at all key locations

• Hands on experience of setting up & operating Iron & Steel, Power, Refinery

and Ports in India & overseas locations

• State of the Art Engineering Centre & Reference Engineering Data available

from operating plants

• Construction infrastructure with modern tools & a large fleet of construction • Construction infrastructure with modern tools & a large fleet of construction

machinery

• Global Procurement team conversant in dealing with steel plant equipment –

ongoing sub-vendor relations & logistics support

• Steel available for EPIL on priority from the Essar’s plant

• Strategically located fabrication / manufacturing facility along the waterfront

@ Hazira for efficient & hassle free shipment

• “A Positive Attitude Powered by Positive Action”

LET’S BEGIN …..THANKS