Blast Furnace Technology & Ironmaking Process RBS Investor Lunch

Transcription

1 Port 22 nd January Kembla 2003 Steelworks Blast Furnace Technology & Ironmaking Process RBS Investor Lunch OSCAR GREGORY, General Manager Iron & Slab Australian and NZ Steel Manufacturing Businesses File Reference: u:\guidelines - BlueScope Lysaght PowerPoint Template October 2010

2 Important notice THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFORMATION OR OPINIONS CONTAINED IN THIS PRESENTATION AND, SUBJECT ONLY TO ANY LEGAL OBLIGATION TO DO SO, BLUESCOPE STEEL DOES NOT ACCEPT ANY OBLIGATION TO CORRECT OR UPDATE THEM. THIS PRESENTATION DOES NOT TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR INVESTOR. THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS MAY, WILL, SHOULD, EXPECT, INTEND, ANTICIPATE, ESTIMATE, CONTINUE, ASSUME OR FORECAST OR THE NEGATIVE THEREOF OR COMPARABLE TERMINOLOGY. THESE FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE OUR ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS, OR INDUSTRY RESULTS, TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCES OR ACHIEVEMENTS, OR INDUSTRY RESULTS, EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. TO THE FULLEST EXTENT PERMITTED BY LAW, BLUESCOPE STEEL AND ITS AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, ACCEPT NO RESPONSIBILITY FOR ANY INFORMATION PROVIDED IN THIS PRESENTATION, INCLUDING ANY FORWARD LOOKING INFORMATION, AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ON ANYTHING CONTAINED IN OR OMITTED FROM IT OR OTHERWISE ARISING IN CONNECTION WITH THIS. Page 2

3 ?? Overview of Steel Production Processes Steel Scrap STEEL PRODUCTION SEMI s FLAT PRODUCTS Scrap Ladle Electric Arc Furnace Slab Hot rolled strip mill Cold rolled strip mill Wide coil Narrow strip Cut lengths SCRAP ROUTE Electrical coil Metal Coated coil Painted coil Laminated coil Molten Steel Ladle Reversing mill Plate LONG PRODUCTS Continuous Casting Machine Bloom Heavy section mill H-section I-section T-section U-section Z-section L-section Rail MOLTEN IRON ROUTE Basic Oxygen Furnace (converter) Molten Iron Bar/Sectio n mill Round Square Half Round Flat H-section I-section Blast Furnace Torpedo Ladle Billet Rod mill Wire rod Wire drawing Wire Seamless tube mill Tubes Welded tube mill 3

4 Steel Production Processes Integrated Plant and Mini-Mill Flat Products Integrated Plant SINTERING Flat Products Mini-Mill EAF/Thin Slab Caster BLAST FURNACE Iron Ore Coal Slag Sintered ore Molten pig iron Coke COKE OVEN Scrap & HBI CONVERTER (BOF) ELECTRIC ARC FURNACE Graded Liquid Steel REFINING STAND Graded Liquid Steel Raw liquid steel Slab ROLLING MILL CONTINUOUS CASTING REHEAT FURNACE ROLLING MILL REFINING STAND THIN SLAB CASTING TUNNEL FURNACE Hot Rolled Coils Hot Rolled Coils e.g. Port Kembla Steelworks e.g. NorthStar BSL 4

5 Overview of Steel Production Process Pt Kembla SINTERING BLAST FURNACE Iron Ore Coal Slag Sintered ore Molten pig iron Coke COKE OVEN CONVERTER (BOS) Graded Liquid Steel REFINING STAND CONTINUOUS CASTING Slab ROLLING MILL REHEAT FURNACE FLAT PRODUCTS Hot Rolled Coils Slab Hot rolled strip mill Cold rolled strip mill Electrical coil Wide coil Metal Coated coil Narrow strip Painted coil Cut lengths Laminated coil Reversing mill Plate Tubes Welded tube mill 5

6 Overview of Steel Production Process Integrated Conventional Slab Casting 3 to 5 Mt/a 500 to 800 m 1-2m/minute Gas cutter Rougher Coil box Cooling mm thick Reheat furnace m Finisher Run out table cooling 4-6 m/minute 50-60mm thick Holding furnace 1-10mm thick metric ton coil Finisher Coiler Minimill Thin-Slab Casting 1 to 2 Mt/a 300 to 400 m m Run out table cooling 1-10mm thick Coiler metric ton coil Scale Control Chamber Strip Casting 0.5 Mt/a m/minute 60 m Mill Run out table cooling 60 m mm thick Coiler metric ton coil 6

7 Steel Production NZS has a Unique Process Ironsand From Mine MHF Off-Gas PC MHF 5 MHF 4 KILNS MELTERS KOBM/LTS CCM Kiln Off-Gas Kiln 5 Kiln 4 Storage Hopper Melter 2 Dry PC & Electricity Slag Millscale Added Liquid Raw Iron & Vanadium Slag Processed Liquid Iron VRU KOBM Fluxes LTS Continuous Casting Machine Coal & Limestone MHF 3 MHF 2 Kiln 3 Kiln 2 RPCC Melter 1 Dry PC & Electricity Weigh Bridge Vanadium Slag Scrap Slag Steel Slab Melter Off-Gas Slag Millscale Added MHF Cogeneration Kilns Cogeneration Continuous Ironmaking Process Batch Slabmaking Process To Electricity Grid 7

8 Markets and Supply Chain Port Kembla Western Port Building & Construction Illawarra Direct Domestic Export Distribution & Solutions Australia Manufacturing Distributors Pipe & Tube 8

9 Consumption of primary raw materials at Port Kembla Steelworks Volume consumed in production (dry mt) Indicative use rate FY2008 FY2009 FY2010 per slab tonne Iron Ore Fines t Lump t Pellets t Total t Coal Coking (1) Includes around 300kt t PCI consumed t Anthracite for export t coke Total t despatches (2) Reflects mix shift from sinter plant upgrade (+1.1mtpa fines, -1.0mtpa pellets) Possible slight shift towards higher PCI use in future in lieu of hard coking coal Scrap (3) t Raw Steel Production Export Coke Despatches 264kt 282kt 175kt Note: (1) coking coal volumes shown are dry tonnes; market pricing is typically for wet tonnes, 8% moisture content difference to dry tonnes (2) measure shows tonnage rate used in steel making, and excludes coal used for export coke making (3) 40% of scrap feed is sourced externally; balance, internally sourced scrap. Page 9

10 PKSW Production & Despatch Flow Port Kembla Steelworks Slab Production FY 2010 FY ,724 3,517 Slab 1,678 1,098 Domestic 21 0 Export Inventory movements & yield losses Interco Western Port (2) Port Kembla Steelworks Despatches (1) FY 2010 FY ,636 3,466 Hot Strip Mill HRC 2,648 2,075 Domestic 555 (3) 425 Export 535 (4) 409 Interco 1,558 1,241 Domestic 1, Export Springhill (5) / Distribution Asia / Nth Am (6) Legend: Product / Dest FY10 kt FY09 kt Plate Mill Plate Domestic Export Interco Domestic Notes: (1) Slab, HRC and plate. Variances of totals from sum of constituents is be due to rounding (2) See Coated Australia Annual Capacities slide for Western Port Works capacities (3) Domestic HRC ex Port Kembla Steelworks only; ie excludes export HRC despatches from Western Port when reconciling from the ASX Release, Attachment 1 (4) Export HRC ex Port Kembla Steelworks only; ie excludes export HRC despatches from Western Port when reconciling from the ASX Release, Attachment 1 (5) See Coated Australia Annual Capacities slide for Springhill Works capacities (6) See ASX Release, Attachment 1 for detail Distribution Page 10

11 Cokemaking 11

12 Cokemaking Process Overview 3.0Mtpa BLENDED COAL GAS PROCESSING SULPHATE TAR BTX (Benzene) 39Kt 86Kt 23ML 1 tonne of coke solids is equivalent to 1.30t coking coal Export coke BlueScope approach is to sell excess production on a spot basis. COKE PLANT Generally offered in 30-45kt cargo sizes. 2.3Mtpa COKE SOLIDS COKE SCREEN 5% BREEZE (< 10 mm) 2% NUT (10 25 mm) COKE OVENS GAS 19,000TJ 7% TATA (20 50 mm) 86% LUMP (25 80 mm) Coke usage Blast furnaces Sinter plant Export Interworks energy (boilers, furnaces) Types of coke solids produced Lump Tata Nut Breeze 1.9Mtpa 0.2Mtpa 0.2Mtpa 2.3Mtpa 12

13 Coke Ovens Process Coal is blended and charged into an oven The coal is levelled to allow passage for the gas generated to exit STANDPIPE CHARGE HOLES For Filling Oven with coal COLLECTOR MAIN CHUCK DOOR GAS PASSAGE COAL MASS After levelling OVEN DOORS OVEN DOORS 13

14 OVEN OVEN Regenerators REFRACTORY BRICK - HEATED Air and gas are preheated by separate regenerators and the heat distributed across the refractories next to the oven wall The oven heats the coal for approx hrs driving off the volatiles, leaving behind relatively pure carbon (88%) + ash (10-12%) in what is termed coke. G A S A I R G A S A I R The surplus gas produced (Coke Ovens Gas (COG) and other by-products (Ammonium Sulphate, Benzene, Tar) are collected The coke is pushed from the oven and quenched with water Coke is then mixed with iron ore in the Blast Furnace to make iron 14

15 What is Metallurgical Coke? Solid residue after pyrolysis of a coking coal the coal is heated to >1000 º C in the absence of air largely carbon plus some hydrogen, nitrogen, sulphur and inorganic minerals Desirable physical properties strong and large lumps withstand the blast furnace environment without generating fines an irregular shape, so that it doesn t pack tightly (permeability) very porous (react with Blast) Chemical properties Low Sulphur & Phosphorus ( Steel quality) Low Ash (less slag, less fuel, lower hot metal cost) Coal & Cokemaking Course March,

16 Coking and Non-Coking Coals Only a limited range of coals are suitable for making metallurgical coke bituminous coals need to exhibit plasticity and swelling depending on the quality of the coke produced can be classified as hard, semi-hard, semi-soft or soft coking coals Non-coking coals form a char when heated fine powder approximately the same size as the original coal Key processes that form metallurgical coke during pyrolysis Softening, swelling (dilatation) and agglomeration Shrinkage Binds individual coal particles into large lumps; feed coal typically 85% < 3.35 mm to coke with mean size 50 mm. Affects coke size, strength and oven wall pressure (OWP) through the generation of fissures and micro-fissures Coal & Cokemaking Course March,

17 Push Side - 6 Battery OVENS RAM REGENERATORS 17

18 Charger - 7 Battery CHARGE HOLES CHARGER RAM COKE WHARF 18

19 Coke Side - 7 Battery Coke Wharf QUENCHER COKE 19

20 Ironmaking Department 6BF 5 BF PCI Sinter & RMH 20

21 What we look for in IRON ORES High % Fe yield of hot metal Low combined gangue (SiO 2, Al 2 O 3 ) = less slag volume (costs) Low Phosphorus (P) = quality of steel Low Loss on Ignition (LOI) combined water = freight cost & fuel Low Specific Trace elements Ti, V, Cr and alkali (Zn, K 2 O) LUMPS ( Typically 61-64% Fe) As received from the Mine, has -6mm material which are screened out and treated as Fines ( secondaries ). Yield normally 72% Lump (+6mm) Remaining Lump Ore (+6 60mm) is direct charged to BF However difficult to control chemistry comes as Mother Nature including variability in SiO 2, Al 2 O 3, Phos, MgO, CaO etc Therefore non ideal smelting in the BF wide temperature range ; affects zones in BF Generally limited to < 20% of Burden mix, however in lower productivity scenarios can use higher proportions Comes with penalty of increased slag volume (gangue) and fuel costs 21

22 What we look for in IRON ORES FINES Typically (58-63% Fe) - South American 66%Fe Generally the cheapest, due to lower %Fe and higher gangue Not suitable for direct charge to Blast Furnace (too fine, gets blown out as dust) Requires agglomeration into larger solid forms such as Sinter or Pellet by : o Blending the fine ores to control chemistry & size 22

23 Raw Materials Handling Area - Ore storage yards Secondary Ore Blending yard facility 2 Beds (Each 300kt nominal capacity) One variable speed Barrel Reclaimer Bed consumed over days 23

24 What we look for in IRON ORES FINES Typically (58-63%Fe) - South American 66%Fe Generally the cheapest, due to lower %Fe and higher gangue Not suitable for direct charge to Blast Furnace (too fine, gets blown out as dust) Requires agglomeration into larger solid forms such as Sinter or Pellet by: Blending the fine ores to control chemistry & size Then add fluxes (Limestone (CaCO 3 ) & Dolomite (MgO) & Serpentine (SiO 2 ; MgO) Add Fuels (Coke & Anthracite) and layered on a moving grate 24

25 Sintering Process Coke is ignited by Nat Gas Burner; and Air is sucked through the material bed The Air and the Coke react to partially soften and reduce the ferrous materials with the slag forming materials bonding everything together into a sintered (Cooked) lump of Solid Sinter Air Suction MOVING GRATE 25

26 26

27 SINTER 27

28 Ore Preparation Sinter & Raw Materials Handling No.3 Sinter Machine Built Revamped Grate Area 480 m 2 Production 6.6 Mtpa Productivity t/m 2 /d BF Burden ~60-70% 28

29 Recent Upgrades made to the No.3 Machine New Strand Feeder and New Ignition Furnace Higher Strand Pallets Strand Extended and New Cooler Feed Chute Zone 1 added to the Electro-Static Precipitators Waste Gas Main & Spillage Conveyors extended Sinter Cooler wider and more fan power

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31 IGNITION FURNACE SINTER BED 31

32 DISCHARGE STRAND + SINTER IGNITION FURNACE 32

33 ROTARY COOLER SINTER 33

34 What we look for in IRON ORES PELLETS (65-67% Fe) Similar to Sintering process where fine ore is agglomerated into solid, lump material - pellets Generally the ores for pelletising are already very fine and soft and easier for grinding and balling i.e. Magnetites generally too fine and also because of oxidised state, impede sinter bed permeability Due to greater amount of grinding, balling and binding required, Pellets generally more expensive to produce, however preparation allows improvement of grade, i.e. Increased % Fe and lower gangue. Consequently selling price / tonne also more expensive Pellets generally used in High Productivity scenarios, higher Fe yield - where high cost is justifiable, however, first material to shed in downturn scenario, due to cost. Typically used at between 10-20% of Burden Mix (although some plants use at 50% 80%) 34

35 Whyalla Fines Carajas Fines FINE ORES Yandi Fines Mt Newman Fines PELLETS Blended and Fluxed in Sinter Machine to Produce Sinter LUMP ORES Savage River Pellets PREPARED BURDENS Sinter Mt Newman Lump Prefer: 80% Prepared Burden BLAST FURNACE 20% Lump Ore 35

36 Ironmaking Blast Furnaces No.5 Blast Furnace No.6 Blast Furnace No.5BF No.6BF Built Relined 1978, 1991, Inner Vol m Work Vol m (88%) 2749 (86%) Campaign Life yrs 20+ yrs Output 2.7 Mtpa 2.7 Mtpa 36

37 Direct Reduction Indirect Reduction Blast Furnace Function of a Blast Furnace is to Remove Oxygen from Iron Oxide Remove gangue from the Iron Ore to form Slag This is achieved through the used of Carbon Monoxide gas from the combustion of Carbon from Coke & Coal There are key Zones in the BF Lumpy zone - still solid in Shaft Cohesive zone start to soften Deadman Coke & Liquids Raceway Gas Reaction Hearth - Iron & Slag Key Zones 850~950 C Upper Shaft 950 ~ 1200 C Lower Shaft 1200~1400 C Cohesive >1400 C Deadman C Raceway Hearth 1500 C Combustion

38 Chemical Process 2C + O 2 2CO Carbon Oxygen (Carbon Monoxide) (Coke & PCI) (Air) 3 Fe 2 O 3 + CO 2 Fe 3 O 4 + CO 2 Haematite Magnetite Carbon Dioxide (Iron Ore, Sinter, Pellets) Fe 3 O 4 + CO 3 FeO + CO 2 Wustite FeO + CO Fe + CO 2 Molten Iron (All reactions occur at various stages & temperatures & pressures within the furnace) 38

39 Blast Furnace Process Raw materials, Lump Ore, Sinter, Pellets, Coke & fluxes Charged Through top of furnace Excess Hot gases flow from top of Furnace to Gas Cleaning Plant and reused for heating Layers of Coke & Ferrous Materials descend over 8 hrs to bottom of furnace soften then melt and collect in the hearth 100 o C Cast Iron / Copper Stave Cooling system Molten Iron drained from taphole in side of furnace into brick lined torpedo shaped vessels. Slag converted to either sandlike particles in a Granulator or rock slag when cooled in pits 1500 o C 2200 o C Hot Air (including additional Oxygen) i+ PCI s blown into Furnace through Tuyeres. Temp = 1200 Deg C Pressure =370 Kpa Velocity = 230 m/sec Carbon Refractory Lining

40 Differences in Blast Furnaces Size BF are defined by Inner & Working Volumes Working Volume (M 3 ) = Volume from Tuyere Centreline to Furnace Top = SHAFT+BELLY+BOSH SHAFT Inner Volume (M 3 ) = Volume from Taphole Centreline to Furnace Top = HEARTH + BOSH + BELLY +SHAFT Europe use t/d/m 3 WV TUYERE CENTRELINE BELLY BOSH HEARTH Asia use t/d/m 3 IV TAPHOLE CENTRELINE Working Volume = 85% - 89% of Inner Volume 40

41 Differences in Blast Furnaces Size BF are defined by Inner & Working Volumes The size determines the output capability, expressed as Tonnes/day/m 3 IV (or WV) Results > t/d/m 3 IV is considered good and Campaign results of >10,000 12,000 t/m 3 IV are considered excellent i.e. on a 3400 m 3 IV BF = 41 Million tonnes during the campaign, over 15+ years Modernisation Degree of modernisation determines productivity, efficiency, quality, reliability and ultimately cost/tonne Eg. Furnace Top pressure- structure designed to operate under much higher pressures puts a back pressure on the process, slows down the velocity of gas in the furnace, gas stays in furnace longer to undergo more reaction = more production at lower fuel consumption No. of Casting floors 1 versus 2, 3, 4. Capable of handling greater volumes of liquid production; continuous casting still operate the other CHF whilst repair & maintain others. Automation - Labour saving devices and equipment Degree of computer control, automation, monitoring and assessment leads to greater product control, uptime and asset life Skilled operators / engineers Raw Materials Availability of high grade raw materials strategic advantage vs. forced to use localised domestic low grade materials requiring additional processing facilities and higher costs, product quality impact (NZS is classic example Titaniferous Ironsands, although not BF route) 41

42 Issues that impact Cost curve different globally Raw Materials - Coal, Iron Ores, Alloys & Scrap are single biggest contributor to Costs Depending on proximity (freight) and quality, as well as ownership (JV partnerships) Labour Costs developing countries have lower cost of labour for both operations and construction. Statutory Compliance Europe, Australia, Japan, Korea & Taiwan have significant Government control and statutory requirements for both environmental & safety performance requiring greater technological facilities installed (greater Capex & Opex) as compared to developing countries. Exchange Rate relativity of exchange rates will impact competitiveness 42