DRI and Pellet Production in Iran

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1 In The Name of God DRI and Pellet Production in Iran Mahmoud Arbabzadeh Operation Deputy Mobarakeh Steel Company Abu Dhabi, April 2013

2 Crude Steel Production in World (Mtpa)

3 Competitive Advantages of Iran Steel Production Production & Consumption Unsaturated Market Demand. Need for increasing production capacities. Resources Availability of domestic energy and iron ore Access to skilled and educated workforce and technological expertise High Experience in steel industry Available infrastructures for implementation of steel plants throughout the country

4 Crude Steel Capacity in Iran (Mtpa) Source: IMIDRO

5 Percentage Share of different Steelmaking Processes in The World and Iran Iran World

6 History of Direct Reduction Technology in Iran IRAN decided to install 3 plants with 3 technology in Ahvaz Steel Company In 35 years ago: 1-3 Module of HYL Module of Purofer 3-3 Module of Midrex

7 Iran is the Second Greatest DRI Producer in The World Oman Indonesia Sound Africa Argentina Malysia Gatar UAE Egypt Trinidad & Venezuela Rusia Saudi Arabia Mexico Iran india (Midrex Report in 2011)

8 In Operation DRI Plants in Iran No Name of Plant/Module Total Capacity (Mtpa) No. of Modules Product Type Process 1 Mobarakeh Steel Group Cold DRI Midrex 2 Khouzestan Steel Co (KSC) Cold DRI Midrex 3 Ghaem DR plant Cold DRI Ghaem 4 Khorasan Steel Co Cold DRI Midrex 5 Gadir /ARFA Steel Co Cold DRI Midrex 6 South Kaveh Steel Co (SKS) Cold DRI Midrex Total

9 Under Construction DRI Plants in Iran No Name of Plant/Module Total Capacity (Mtpa) No of modules Product Type Process Place 1 Gole Gohar Co CDRI/HDRI Midrex Sirjan 2 NISCO Cold DRI Midrex 4 places 3 NISCO Cold DRI PERED 4 places 4 SABA Co HBI Midrex Bandar Abbas 5 Bardsir Steel Co Cold DRI Midrex Bardsir 6 Mobarakeh Steel Co Cold DRI Midrex Isfahan 7 Gadir /ARFA Steel co Cold DRI Midrex Ardakan (Yazd) Total

10 Neyshabour Sangan Isfahan Ardakan Ahvaz Bardsir Sirjan Bandar Abbas

11 In Operation & Under Construction DR Plants

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13 Crude Steel Capacity Mobarakeh Steel Group Plant Mobarakeh Saba Hormozgan Sangan Crude Steel Capacity 7.2 Mtpa 0.7 Mtpa 1.5 Mtpa * Pelletizing Plant 5Mtpa) * Iron Ore (concentrate)

14 DRI Capacity plants Mobarakeh Saba Hormozgan Sangan * 8 DRI Plants * Total Cap. 8.2 Mtpa * Actual Prod. 6.7 Mtpa *1 DRI Plant * 1.5 Mtpa Capacity *2 DRI Plant * 1.6 Mtpa Capacity * Pelletizing Plant 5Mtpa) * Iron Ore (concentrate)

15 Mobarakeh Steel DRI Specification Parameter Fe Total Metallization Carbon SiO 2 Al 2 O 3 CaO+MgO Bulk Density (ton/m 3 ) %

16 Economic Advantage of Increasing %DRI in Metallic Charge of EAF s 80% DRI + 20% Scrap 95% DRI + 5% Scrap Tons of DRI in Metallic Charge for Produce 1 ton heat (ton DRI/t.l.s) Tons of Scrap in Metallic Charge for Produce 1 ton heat (ton Scrap/t.l.s) Energy (Kwh/tls) Cost effect of Electric Energy for 1 heat (190 ton Liquid Steel) lower higher Cost effect of Metallic Charge for 1 Heat (190 ton Liquid Steel) higher lower Sum of Cost effects for 1 Heat (Electric Energy + Metallic Charge) higher lower -Melting Energy of DRI = 500 Kwh/ton DRI and Melting Energy of Scrap= 450 Kwh/t Scrap + 19

17 Sources of Oxide Pellets Suitable for DR Plants

18 In Operation & Under Construction Pelletizing Plants No Name of Plant Total Capacity (Mtpa) No of Units Place Actual Production Capacity (Mtpa) Remarks 1 Mobarakeh Steel Co (MSC) 7 1 Mobarakeh Khouzestan Steel Co. (KSC) 5 2 Ahvaz 5 3 Gol Gohar Pellet Pelant Sirjan Ardakan Pellet Plant Ardakan Gol Gohar Pellet Pelant Sirjan Under Const. 6 Gohar Zamin 5 1 Sirjan Under Const. 7 Zarand Kerman Under Const. 8 Bafgh 5 1 Bafgh Under Const. 8 Imidro 5 1 Sangan Planned 9 Mobarakeh St. Co. (MSC) 5 1 Sangan Under Const. 10 Sangan Khorasan Sangan Planned 11 Melli Bank Development Sangan Planned 12 Pars Kaveh Industries Sangan Planned Total

19 In Operation Pelletizing Plants No Name of Plant Total Capacity (Mtpa) No of Units Place Actual Production Capacity (Mtpa) 1 Mobarakeh Steel Co (MSC) 7 1 Mobarakeh Khouzestan Steel Co. (KSC) 5 2 Ahvaz 5 3 Gol Gohar Pelletizing Pelant Sirjan Ardakan Pelletizing Plant Ardakan 3.4 Total

20 In Operation Pelletizing Plants

21 Under Construction Pelletizing Plants No Name of Plant Total Capacity (Mtpa) No of Units Place Remarks 1 Gol Gohar Pellet Pelant Sirjan Under Const. 2 Gohar Zamin 5 1 Sirjan Under Const. 3 Zarand Kerman Under Const. 4 Bafgh 5 1 Bafgh Under Const. 5 Imidro 5 1 Sangan Planned 6 Mobarakeh St. Co. (MSC) 5 1 Sangan Under Const. 7 Sangan Khorasan Sangan Planned 8 Melli Bank Development Sangan Planned 9 Pars Kaveh Industries Sangan Planned Total 40 10

22 DRI Transportation (Outlook)

23 summary 1- by Completion of new projects on steel making and DRI plants in 2015 we will achieve to 30 mtpy of crude steel and 32 mtpy of DRI production. 2-access to skilled and educated workforce and technological expertize to run DRI&pellet and Steel Shop plants. 3- high potentials of design,manufacture and start up capabilities for DRI plants. 4-within 3 years most of the pelletizing plants projects will come in start up phase.

24 Thanks for Your Attention