Executive Summary. Ton / day. Iron Ore Barajamda / Banspani area Non coking Coal

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1 Executive Summary Site Details The site is located at Village: Marhand, P.O. Lila Nagar, Dist Hazaribag, in the state of Jharkhand and is about 1.5 KM from the National Highway No. 33 and 2.0 Km from the state highway connecting Hazaribagh to Barkagoan. Land measuring 15 Acres is in the possession of the unit in the vicinity of Marhand Village in Hazaribagh District of Jharkhand State. Project Description JHARKHAND SALES AGENCIES PVT. LTD. incorporated on 29th October Present directors include Mr. Praveen Kumar Agarwal, Mr. Raman Mehra Mr. Pawan Kumar Tulsyan and Md. Ezhar Ansari. The proposal was to produce Sponge Iron 200 TPD i.e TPA capacity along with Induction Furnace (1x 12 ton) with CCM to manufacture billets 113 TPD i.e TPA and 8 MW Captive Power Plant based on WHRB 4 MW and AFBC 4 MW for which the ToR was granted on , Public hearing was conducted on and EC was granted on 18 th June 2010.Only 1x 100 TPD DRI kiln installed from the configuration mentioned in EC. no other unit installed or initiated due to various organizational & personal reasons. Plant is currently under total shut down stage. REQUIREMENT OF RAW MATERIALS Raw Consumption Consumption Consumption Source material /Ton Ton / day Ton / annum Iron Ore Barajamda / Banspani area Non coking Coal Ramgarh & Hazaribagh coalfields Dolomite/ Limestone Daltainganj / M.P TOTAL BILLETS (INDUCTION FURNACE) Raw material Consumption Consumption Consumption Source /Ton Ton / day Ton / annum Sponge Iron In-house Production Scrap/Pig Out Source/

2 Local TOTAL RAW MATERIAL REQUIREMENT FOR POWER GENERATION A. WHRB Hot Flue Gases 2 x Nm3/hr from ABC of DRI kilns B. AFBC Item Composition Per unit of Fuel Requirement MT per day Requirement MT Per year a Dolochar (CV 1300 Kcal/Kg) b Coal Fines (CV 2100 Kcal/Kg) c Coal (CV 3200 Kcal/Kg) Total (Avg. CV 2300 Kcal/Kg) During the peak construction (remaining units) and erection period, around persons will be required. The work will be done through contractors and most of the work force will be from nearby villages. During operation and maintenance period, around 240 persons will be employed. The total water requirement of the project will be 400 M 3 /day and total power requirement of project for plant and machinery will be 7.5 MW and 2 D.G Set of 500 KVA will be installed and total fuel requirement will be 90 KL/annum. The capital cost of the project is Rs Crores. The project has been designed for setting up Mini Steel Plant starting from primary metal up to the final end products. ----@@----

3 provided - Fire hydrant system, Portable fire extinguishers and Manual fire alarm system 2. 5 PROPOSED SCHEDULE FOR APPROVAL AND IMPLEMENTATION The time period of project implementation is approximately months from the date of placement of orders for major plant equipments and start of activities at site. 2.6 TECHNOLOGY AND PROCESS DESCRIPTION Selection of suitable production process and the capacity of the production units form the nucleus around which the basic concept of a plant is developed. While the selection of a process takes into account various factors including environmental pollution, the capacity selection of major units would depend on the volume of production, available unit sizes, economies of scale etc SPONGE IRON - TECHNOLOGY The process of manufacture of Sponge Iron is very simple. The percentage of oxygen associated with iron as oxide is removed from the ore particles and the percentage of iron forming a part of the whole iron, and which exists in the metallic form, is called the degree of metallization in sponge iron making technology. There are two well established processes for the manufacture of Sponge Iron, namely:- a) The reformed natural gas process i.e. by the gaseous reduction of the iron ore. b) Coal based Rotary Kiln Process Solid Reduction. Reformed Natural Gas Direct Reduction Process However it is difficult to implement this process in this region for the following reasons:- 1. The availability of natural gas is problematic. 2. The raw material has to be partly in the form of pellets which are expensive. 3. The landed price of natural gas is quite high. ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-14

4 Coal Based Direct Reduction Process The coal based direct reduction process is more commercially viable and is currently in use in India. Most of the solid reducing based process use noncoking coal as reducing agent. As the non- coking coals are available abundantly in our country the processes utilizing the non- coking coal as reducing agent are of much significance to us. Of the different coal based processes available, the most widely accepted is the coal based rotary Kiln- DRI process. The technology of coal based rotary Kiln- DRI process has been envisaged for this project. The sponge iron unit is also a source of power for captive consumption, through waste heat recovery and use of dolochar as fuel in AFBC INDUCTION FURNACE & CCM (BILLETS) - TECHNOLOGY Induction Furnace is an established process for production of liquid steel using 100% solid charge comprising appropriate proportion of Scrap / DRI / HBI / Pig Iron. India has witnessed an un-precedent growth in induction furnace steel making in just two decades. The Continuous casting process technology in the global steel scenario has brought a significant change in technology where it has been proved that the steel produced of sponge iron mixed with cast or pig iron and MS melting scrap coupled with Electric Induction Furnace, medium Frequency, Constant Power Track can offer better economies at relatively smaller scale operations. The technology for the proposed mini steel plant is selected as 12 T Induction Furnace (steel melting) Casting (billets) with an installed capacity for production of TPA MS Billets. ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-15

5 2.6.3 MANUFACTURING PROCESS SPONGE IRON Direct reduction process is classified based on the reductant used namely gaseous and solid. No DRI plant uses liquid fuel or reducing agent. All gas based plants use natural gas and these are situated along with HBJ pipeline namely Essar Steel, Ispat Industries, and Vikram Ispat with combined installed capacity of 3.86 million tons. Most solid reduction process use non-coking coal as reducing agent due to abundantly available non-coking coal. The different coal based processes include retort / shaft (Echeverria Kinglor Meter, Wiberg), Tunnel Kiln (Hoeganes) rotary kiln ( ACCR/ OSIL,Lurgi, Krupp Renn, DRC TDR, CODIR, Sill- SL/ RN)the SL / RN process is applied world wide with capacities raining form 12,000 TPA to 150,000 TPA, Units most of which are in operation. The process proposed to be adopted is the rotary kiln proposes using low grade non-coking coal and sponge grade iron ore. Locally available raw material to set up low capacity kilns and the lowest capital cost per of installed capacity has promoted the promoters to adopt this process. Iron are undergoes the following reduction reaction in all the processes Fe 2 O CO = 2 Fe + 3 CO 2 And /or Fe 2 O H 2 = 2 Fe + 3 H 2 O As shown in above reactions, carbon monoxide and hydrogen are reducing gases. These reducing gases can be obtained by controlled combustion of natural gas in the gas- based processes. In the coal based process gasification of the solid coal, according the Boudouard reaction produces carbon monoxide. C + O 2 -- > CO 2 C + CO 2 --> 2CO As maintained earlier direct reduction is the conversion of oxide feedstock to the metallic state with such conversion taking place entirely in the solid state (at no time does the material become molten). The carbon monoxide (CO) produced as ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-16

6 above reduces iron oxide to metallic iron. Fe 2 O CO -> 2Fe + 3 CO 2 However, the reduction form oxide to metal does not occur in one step, but by gradual removal of oxygen giving, rise to various intermediary oxides. The reduction sequence can be expressed as follows: 3 Fe 2 O 3 -> 2 Fe 2 O 4 -> 6 FeO -> 6 Fe Hemitite Magnetite Wystite Iron For Sulphur removal in the ore, dolomite/ limestone is used and the reactions are as follows: FeO + H 2 S -> FeS + H 2 O FeS + CaO + CO -> Fe + CaS + CO 2 Reaction mechanism The reaction occurring inside the bed of iron ore and coal are heterogeneous in nature. Two sets of reaction take place. Set 1: Between coal, carbon dioxide and oxygen Set 2: Between iron ore particles and CO. Each particle/ lump of ore may be considered as a porous. Reaction between the particle and the gaseous reactant can be visualized to occur in 5 successive steps Step 1 Step 2 Step 3 Step 4 Step 5 Diffusion of gaseous reactant through the film surrounding the particle to the surface of the solid. Penetration and diffusion of the reactant through the blanket of the reacted outer layer to the surface of the un-reacted core. Reaction of gaseous reactant with solid at this reaction surface. Diffusion of gaseous products through the reacted layer to the exterior surface of the solid. Diffusion of gaseous products trough the gas film back to the main body of the gas. Since the reaction takes place in several steps and each in succession, any of ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-17

7 them having the least rate could be the rate controlling. Be it diffusion or reaction, the rate should be primarily a function of the following three parameters. a) Concentration of reactants at active interface temperature. b) Active area of reaction. The reaction time or time for completion or reaction varies inversely as the rate. The rotary kiln process considers reduction of iron ore (5-18 mm) with solid carbonaceous material like coal heated up to a temperature of C in rotary kiln and then cooled in a rotary cooler with external water cooling system. The products are screened and magnetically separated. Sponge Iron being magnetic gets attracted and gets separated form non- magnetic char. The iron ore and coal crushed and screened to respective sizes are fed to rotary kiln through feed tube in pre-determined ratio. The rotary kiln is slightly inclined at an angle 1.5 deg and rotated by AC variable speed motor at a steeples variable speed ranging form rpm. Due to inclination and rotary motion of the kiln, the material moves form feed end to discharged end in about 5-6 hrs. the fine coal is blow form the discharge end to maintain the required temperature and the carbon concentration in the bed. The kiln has 7 shell air fans mounted on the top which blow air in the respective zones to maintain the required temperature profile. The material and the hot gases move in the counter current direction, as a result the iron ore gets pre- heated and gradually reduce by the time if reaches the discharged end. The hot reduced material is transferred to rotary cooler via the transfer chute. The cooler is also inclined at and rotates of a steeples variable speed of 0.3 to 1.2 rpm driven by an AC variable speed motor. Water is sprayed on top of shell to cool indirectly the inside material. The material gets cooled to 80 deg C and discharged on the belt conveyor but the double pendulum value, which acts as a seal for prevention of atmospheric air into the kiln cooler system. The cooler discharge is sent to the product separation system where material is screened to various size fractions and magnetically separated. Gases flowing in counter current direction to material go to the dust settling chamber where heavier particles settle down and latter dust particles are ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-18

8 arrested in pollution control equipment like an ESP. The gases which flow in the counter current direction of the material go to the dust settling chamber (DSC) where the heavier particles settle down. These particles are continuously removed by the wet scrapper system. The gases then pass to the after burner chamber (ABC) where the residual carbon or CO are burned by the excess air available. The gases are of high temperature and have a lot of heat energy which can be utilized for the power generation through the waste heat recover boiler. The hot gases after the heat recovery boiler gets cooled to C, the gases then are passed through an ESP and the clean gases are let of to the atmosphere at C through the chimney. ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-19

9 PROCESS FLOW CHART FOR MANUFACTURE OF SPONGE IRON Raw Material Feeding at ground hopper (Coal, Ore) Coal Sized Iron Ore Crushing Crushing Over Size Over Size Screening Screening Coal Bin Limestone Bin Iron Ore Bin Setting up of production of mixed raw materials for kiln feed Processed in rotary kiln with air control Indirect cooling in rotary cooler with water spray Screening of mixed end product (Sponge Iron and unburnt coal) Sponge Iron Lumps + Char Sponge Iron Fine + Dolo Char Drum type magnetic Separator Drum type magnetic Separator Sponge iron Lumps Bin Char Bin Fines Bin Dolo Char Bin ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-20

10 RAW MATERIAL REQUIREMENT AND SPECIFICATIONS The major raw materials required for production of sponge iron are iron ore, coal and limestone. The specifications should preferably as below: Raw Material Constituent Composition A. IRON ORE Fe (Total) % min TPA Silica + Alumina 5.00 % max Sulphur 0.01 % max Phosphorous 0.06% max B. COAL Fixed Carbon % TPA Volatile Matter % Ash % Sulphur 1.0 % max C. LIME STONE CaO + MgO 42 % min 1800 TPA Silica + Alumina 10 % max The operational efficiency and product quality are mainly dependent upon quality of raw material; hence care will be taken in procuring and sizing of the same. Availability of Raw Materials Iron ore Requirement of iron ore shall be met by purchasing it from Banspani - Barajamda region of Orissa/Jharkhand. Long term supply arrangements can be made with some of the mines. Non Coking Coal Non Coking Coal will be used in manufacturing of Sponge Iron. The coal availability is in proximity in the district of Ramgarh, Dhanbad and Hazaribagh. Limestone Limestone is available in Jharkhand, Orrisa and Madhya Pradesh. This limestone is characterized by impurities like silica etc. In view of this, it has been proposed to utilize the better quality of limestone available in Satna area of Madhya Pradesh which is known as Central India limestone. ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-21

11 2.6.4 MANUFACTURING PROCESS BILLETS The Continuous casting process technology in the global steel scenario has brought a significant change in technology where it has been proved that the steel produced of sponge iron mixed with cast or pig iron and MS melting scrap coupled with Electric Induction Furnace, medium Frequency, Constant Power Track can offer better economies at relatively smaller scale operations. The process involves the charge of raw materials- mainly sponge iron 70%, cast iron 20%, MS steel skull and bundled Scrap 10% into melting bath (crucible) where through heat energy the iron & steel is melted at a temperature of 1550ºC. Scrap containing higher carbon percentage are used for sandwiching sponge iron. Sponge iron contains less percentage of carbon and cast iron with high percentage of carbon makes the mix charge perfect to melt. As soon as the mix charge is completely melted, necessary Ferro Alloys and deoxidiser are added. The liquid metal from the furnace is tapped into one of the ladles and the ladle is brought to the casting position. After ascertaining the temperature of liquid metal it is poured into the tundish for distribution to the mould. The mould tube is made of copper. Primary water circulates around the periphery of the mould. During casting a lubricants agent is fed to the inner mould walls to reduce the friction between mould and solidified strand. The mould oscillator oscillates the mould to facilitate easy stripping of the solidified strand. The newly formed strand leaves as a thick shell and is cooled further from all sides by spraying water to complete the solidification process. The cooling water volume can be adjusted to suit the steel grade, strand and size and casting speed. The Exhauster sucks off steam arising during water cooling. The strand reaches the withdrawal-cum-straightening unit through strand guide frame. The strand cutting facilities & roller tables are arranged after the withdrawal-cum-straightening unit. The strand cutting requires oxygen which will be available from the proposed captive oxygen plant. Before starting to cast the mould is closed by a dummy-bar head which is connected to a dummy bar. The ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-22

12 dummy bar is lowered at a pre-set speed as soon as the liquid metal reaches a pre-determined level in the mould. When the dummy bar has been severed from the hot strand by means of the torch cutter, the roller tables drive it into the dummy bar holder. The dummy bar holder is swung out of the area of the roller tables. The cut-to-length billets are conveyed on the roller tables up to the fixed stops. The skid bank pusher transfers the billets on to the cooling bed and then returns to home position. As soon as the ladle is empty, this is removed from casting position and a second ladle is placed in to casting position before it gets empty. Thus continuous or sequence casting is carried out CAPTIVE POWER PLANT In today s world, energy optimisation undisputedly assumes paramount importance. It is more so for a country like India where energy is a scarce and invaluable commodity. Coal based Sponge iron process provides good opportunity of energy saving by producing power from waste kiln gases and solid wastes which otherwise is wasted. The technology has been successfully commercially proven. The efficiency of the process can be increased substantially to around 25-30% through utilisation of above mentioned wastes. Through power generation, not only the internal demand of power from Sponge iron production can be met, but also there exists a substantial exportable surplus, which can be either used in down stream steel making units or be sold off. The off gas leaving ABC at about o C can be utilised to generate waste heat power of about 4 MW in a 200 TPD DRI plant. This not only reduced the cost of production of Sponge iron through cheap electricity on the one hand while on the other, it provides a stable uninterrupted source of power supply as well. The Power Plant will have a generating capacity of 8 MW. Steam required for generation will be met combined from WHRB & AFBC. 20% margin has been ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-23

13 considered in Boiler design capacity. One no. 20 TPH Air Fluidized Bed Combustion Boiler (AFBC) generating steam at 67 Kg/cm2, Temp C shall be installed to meet steam requirement for generation of 4 MW Power from dolochar, coal fines and coal as fuel. Boiler shall be designed for fuel consisting of Coal E Grade - 40% Average G.C.V. = 3200 Kcal/Kg approx. Coal Fines - 30% Average G.C.V. = 2100 Kcal/Kg approx. Dolochar - 30% Average G.C.V. = 1300 Kcal/Kg approx. Fuel requirement/unit shall be = 1.54 kg approx. The daily fuel requirement shall be 180 MT. approx. Yearly fuel requirement shall be MT approx. The plant will operate at a PLF of 85-90%. Plant availability shall be minimum 95%. The 8.0 MW Turbine Generator set will be of latest design, type bleed cum condensing. Bleed will be utilized to reheat condensate to ensure minimum feed water temperature of 110 C. Due to shortage of water at site, air cooled condenser shall be installed. In India many air cooled condensers have been installed & they are operating successfully & maintain a vacuum of 0.1 Kg/Cm 2 (a). Generated Power will be utilized for captive consumption in the plant having minimum requirement of 7.5 MW. The plant is being installed as Captive Unit to proposed iron & steel plant, therefore efficiency & profitability of the plant will be enhanced. The plant will generate employment opportunity for local people. The plant will be installed with all new & modern equipment. All measures will be taken to make the plant environmental standard compliant. Chimney height shall be 30.0 m. ECO CARE, Environmental Laboratory, Asansol, West Bengal CH2-24

14 85 15'0"E 85 17'30"E 85 20'0"E 85 22'30"E 85 25'0"E 85 27'30"E µ Study area map of the 10 Km Radius Toposheet NO. 73E5 24 0'0"N Project Site 1: '0"N Project Site B C 23 57'30"N 23 57'30"N A D SR_N Latitute Longitute ' " N 85 20' " E ' " N 85 20' " E ' " N 85 20' " E ' " N 85 20' " E 23 55'0"N 23 55'0"N Legend Study Area Project Site 23 52'30"N 23 52'30"N Key Plan Project: EC renewal of Mini Integrated Steel Plant along with Captive Power Plant (8 MW) at Khatian No. 90, village Marhand, P.O Lila Nagar, District Hazaribagh, Jharkhand Project Proponent: M/s. Jharkhand Sales Agencies Pvt. Ltd '0"N 85 15'0"E 85 17'30"E 85 20'0"E Kilometers '30"E 85 25'0"E 85 27'30"E 23 50'0"N Environment Consultant: Vardan Environet QCI-NABET Accrediated Environement Consultant Cetificate No. NABET/EIA/1316/IA001 Prepared By: Reviewed By: Approved By: Mr. Bhagwan Mr. Anshul Mr. S.K. Sahay Yadav Sharma