Indian Iron ore & Pellet Scenario. S.Venkatesan CEO : Pelletization Operations Essar Steel India Ltd

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1 Indian Iron ore & Pellet Scenario S.Venkatesan CEO : Pelletization Operations Essar Steel India Ltd

2 Iron Ore Sector Prospects in India India has 6 th largest proven iron ore reserves in the World. The Proven reserves in India are only 28% of the total reserves. India is 4 th biggest mining nation in the world inspite of drop by 30% of mining capacity in last two years. (highest was in 2010 at 218 MTPA against 2014 output at 155 MTPA). State wise Iron Ore production Resources Mineral Inventory Total Iron Ore Bil.MT Hematite Bil.MT Magnetite 14% 9% 3% Bil.MT 51% Orissa Chattisgarh Jharkhand 23% Goa & Karnataka Others ** Steel Capacity is at 101 MTPA with production output at 81 MTPA. ** BF capacity is at 55 MTPA ; Coal based DRI is at 29.3 MTPA & Gas based DRI is at 9.6 MTPA. 2

3 Iron Ore Mining Hubs in India 3

4 Setbacks to Mining industry in india Restrictions in mining Odisha, Karnataka, Goa and Jharkhand. Current Export duty at 30% from 5% in FY Import pressures due to weak international prices. Hence the drop in Iron ore production & exports. Year Iron ore Production in MMTPA Iron ore exports in MMTPA * 117* Major exporting regions for India are China & Japan. Majority ore grade exported is < 62% Fe. * Highest till date 4

5 Iron ore Industry Future: Positive Outlook Active industrialization is being promoted by the Government. Improvement in process to expedite renewal of Mining leases and clearance of new mines. Many mines since resumed operations including mines of Tata and SAIL. major steel producers like More mines are expected to be cleared soon this year. (Ex. Few mines in Goa). Rationalizing the levies to improve the viability of mining Operations. Note : - Almost all the exporters in India export iron ore and pellets suitable for Blast furnaces. - M/s Essar is the only pellet producer offering DR grade pellets in India presently. 5

6 Ore characterization Odisha & Jharkhand Region Ore Characterization Focus Chhattisgarh & MP Bellary- Hospet in Karnataka Goa & West Maharashtra - Hematite is the major mineral with limonite & Goethite. - Lateritic ore with limonites, goethite and ocherous material. - Massive ore of high grade Hematite (64-68%) - Minor amounts of limonite and goethite. - Ore is associated with gangues like quartz, clay etc. - Hematite is the major minerals - Minor amounts of magnetite, martite, specularite and goethite contents. - Quartz and clay are main impurity. - Predominantly blue dust and fines with little lumps. - Goethite/Limonite and clay/gibbsite occurs with banded ferruginous quartize and ferruginous phyllite. - DR & BF Pellets - Sinter Feed - DR & BF Pellets - Sinter Feed - BF pellets - Sinter Feed - Sinter Feed. 6

7 Essar Steel India Ltd : Iron ore pelletization Essar is the largest Pellet producer in India and one of the earliest, operational since Current operating capacity is 14 MTPA, under expansion to 20 MTPA by end FY X 4 MTPA in Pellet complex in Vizag, AP & 2X6 MTPA at Paradeep, Odisha. Vizag pellet plant is the oldest facility installed to cater the captive requirement of 6.7 MTPA Midrex modules (6 Nos), 1.74 MTPA Corex(2 Nos) & BF (1 Nos) at Hazira. Vizag is capable of producing BF & DR Grade pellets and is currently only producer of DR pellets in the country. With Odisha Facility online, Vizag is now catering to external customers. Both pellets plants are located next to major ports & are supported with beneficiation facility and slurry pipeline. Good reducibility and metallization properties. Vizag Ops have secured Raw material supply with NMDC, a state owned Mining company in possession of one of the best quality hematite in world on long term agreement to secure raw material supplies for the expansion project. Odisha Ops have secured raw material supply from Odisha state miners. 7

8 Pellet Facility at Visakhapatnam, AP Kirandul Beneficiation Plant 2 X 4 MTPA Iron Ore Pelletization plant. 2 X 4 Beneficiation plant. 267 Kms long pipeline (India s largest)for Hydro transportation of Slurry. 25 MW Coal Based Captive Power Plant for power generation. Connected to Vishakhapatnam Port Trust though conveyors increasing logistical efficiency 8

9 Pellet Facility at Paradeep, Odisha 2 X 6 MTPA Pelletization Plant. 3 X 4 MTPA Beneficiation plant. 253 Kms Slurry Pipeline for Hydro transportation of slurry. Project planned with ability to use low grade iron ore fines. Connected to Paradeep Port through conveyors increasing logistical efficiency 9

10 Pelletization Technology Essar vizag operation is installed with straight grate travelling furnace technology supplied by M/s Lurgi (Now M/s Outotec) for Vizag & M/s Aker Kvaner for Paradeep. ** Other Known technologies are Shaft furnace & Grate-Kiln furnace for pelletization. 10

11 Vizag Pelletization Plant Vizag pellet plant was installed to cater the captive feed requirement of Hazira Midrex modules. 6.7 MTPA Midrex Capacity at Hazira : 6 Nos (Including 2 Nos Mega modules) Pellet Feed quality requirement of Midrex is : Fe% SiO2 + Al2O3 CCS Size : 9-16 mm - 5 MM Red.% (Linder Hrs.) 3.35 mm (Linder) 66 % < 4% 250 Min 95% 4 % 95 % Min 2 % Max Based on iron ore quality available and pellet quality requirement as above, Travelling grate Pelletization technology was finalized to provide the suitable feed for the Midrex modules of Hazira. Note : largest modules (1.5 MTPA) are operating for many years with highest efficiency and good metallization. 11

12 Pelletization Technology Key Quality Comparison Grate Kiln Travelling Grate Operation Grate & Kiln Travelling grate CCS Kg Kgs Tumble 96-97% 94-95% Abrasion Index 2.5-3% 4-5% Porosity 24-26% 28-32% Reducibility Medium Good Metallization % % Key Highlights of the technologies: Grate Kiln a. High Pellet CCS and Low abrasion. b. Energy Intensive process. Travelling Grate a. Good Porosity and reducibility. b. Energy requirement is less by min 10% compared to grate kiln. 12

13 Our Strength Technology : Iron Ore Pelletization In-house commissioning, stabilizing and optimizing of the Grinding, Filtration, Green Balling and Induration Travelling Grate Technology for production of Iron Ore Pellets. Handling wide range of ore & only operating plant installed with all the proven solid liquid separation technologies. Technology : Iron Ore Beneficiation In-House development of Flow Sheet for Iron Ore Beneficiation. Handling wide variation in Iron Ore Fines Quality because of advanced technologies like HGMS, Slons est. with best in class Fe enrichment to weight recovery ratio. Technology : Slurry Transportation Operating 267 Kms and 253 Kms long slurry Pipeline. Construction & technology Know How. 13

14 Expansion Plans Vizag Pellet plant Expansion Plans Current Capacity Expansion by Total Capacity 2020 End Beneficiation Plant 8 MTPA 8 MTPA 16 MTPA Slurry Pipeline 8 MTPA 8 MTPA 16 MTPA Pellet Plant 8 MTPA 8 MTPA 16 MTPA Odisha Pellet plant Expansion Plans Current Capacity Expansion by Total Capacity 2015 End Beneficiation Plant 6 MTPA 6 MTPA 12 MTPA Slurry Pipeline 12 MTPA - 12 MTPA Pellet Plant 6 MTPA 6 MTPA 12 MTPA 14

15 Thank You 15