Kobe s Activity in Iran providing MIDREX DR Plant Kobe Steel, Ltd. MB Iron and Steel Conference at Kish Island, IRAN 14-16 th September, 2015 1
Presentation Topics Introduction of KSL s MIDREX technology Position of Iran from DR perspective Kobe s Activity in Iran 2
Introduction of KSL s MIDREX technology 3
History 1969 1974 1983 1st MIDREX Process plant was constructed in Oregon USA Midrex Corporation was purchased by the Korf Group and moved to Charlotte, NC USA KSL purchased the MIDREX DR Process Technology in August, 1983, and positioned KSL as the world leader and innovator in direct reduction ironmaking technology. Continuous R & D for New Iron Making Technologies in cooperation with MIDREX Technologies Inc. Process Owner & Licensor Construction Licensee MIDREX DR Process FASTMET Process FASTMELT Process ITmk3 Process 4
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2014 World Shaft Furnace Production by Process Reliability Flexibility Simplicity 2014 Total World DRI Production by Shaft Furnace 59.2 mtpy MIDREX 20.4% 79.6% Others 6
Features of MIDREX Process Reliability Proven long term availability demonstrated by the annual production of MIDREX Plants worldwide Actual Data NOT extrapolated data Ongoing technology development allows existing plants to improve the capacity, production cost, and quality, and remain competitive. Built on state-of-the-art technology - provides reliable operation, increased performance while minimizing capital & operational costs Flexibility Widest range of oxide pellets and lump 3 hot transport solutions for variety of site layouts all of which minimize fines generation Simultaneous production of CDRI/HDRI/HBI without interruption of process or product output Simplicity Low pressure - less complex operation Better availability MIDREX Reformer- Unique to MIDREX Process eliminates need for CO2 Removal System, Process Gas Heater, steam generation, etc. Short ramp-up period 7
Features of MIDREX Process (Reliability) The following table shows the long term capacity utilization of MIDREX and another technology provider. Year MIDREX Process Other Process 1998 104% 89% 1999 100% 98% 2000 119% 82% 2001 104% 78% 2002 112% 85% 2003 120% 91% 2004 122% 109% 2005 128% 79% 2006 134% 73% 2007 119% 86% 2008 110% 78% 2009 100% 82% 2010 105% 96% Average 113% 86% Source: Compiled from Annual Issues of World Direct Reduction Statistics MIDREX Process Capacity Utilization = Average 113% over 13 years Far more reliable than others Capacity Utilization = Sum of actual production of operating plants Sum of rated capacities of those same plants 8
Features of MIDREX Process (Flexibility) An elegant and simple process that is proven to consistently produce highly metalized quality product Process gas experience allows for use of: Natural Gas, syngas from coal, pet coke, refinery bottoms, coke oven gas (COG) and off gases from technologies such as COREX and FINEX. MIDREX is the only DRI process that provides the ability to simultaneously produce any combination of product types Hotter Higher Quality HDRI with less fines due to mechanical conveying solution. Less fines Produced is crucial to CDRI & HBI yield More flexibility than any other DR technology 9
Features of MIDREX Process (Flexibility) Ability to produce three separate product streams 10
Features of MIDREX Process (Flexibility) KSL s MIDREX can provide three different Hot Discharge options to offer the client maximum flexibility in downstream operations Others: Egyptian Sponge Iron & Steel Company Others: Jindal Steel and Power Limited, JSW Steel Ltd, SULB Company BSC Others: Essar Steel (Module Ⅰ-Ⅴ) HOTLINK direct gravity feed (DR plant close to EAF) HOT TRANSPORT CONVEYOR moderate distance to EAF HOT TRANSPORT VESSELS longer distance to EAF 11
Features of MIDREX Process (Simplicity) Simple, energy efficient closed loop gas system. Iron ore reduction to metallic (elemental) Fe occurs in MIDREX Shaft Furnace Reducing gases generated in MIDREX Reformer Simple design, minimized moving parts and unit operations, and no steam system results in very high availability 12
Recent Projects of MIDREX plants (1/2) VOESTALPINE GO WEST Capacity: 2.0 million tpy HBI Furnace Type: MIDREX MEGAMOD Hot Discharge Furnace (7.15 m ID) Location: Corpus Christi, Texas USA Schedule: Start up 2016 13
Recent Projects of MIDREX plants (2/2) TOSYALI Capacity: 2.5 million tpy HDRI / CDRI Furnace Type: MIDREX MEGAMOD Hot Discharge Furnace (7.65 m ID) Products: 100% CDRI or HDRI / CDRI Location: Oran, Algeria Schedule: Start up 2017 14
Position of Iran from DR perspective 15
World No.1 Market of MIDREX Process Iran is world Biggest market for of MIDREX Process DRI Production Volume by MIDREX Process over 30% Iran World over 60% Source: Kobe s own research 16
Map of DR plants in Iran Iranian DR projects map (as of Sep. 2015) 25 16 15 14 1 2 6 17 3 4 5 7 8 Chador Malu Mining Gol-E-Gohar Mining 24 Chogart Mining 9 10 11 12 13 28 18 19 20 21 22 23 27 Sangan Mining 26 : PERED Project Capa (mtpy) Status 1 Mobarakeh A-F 4.0 O 2 Shahid Kharzi (Mobarakeh G, H) 3.0 O 3 SABA (Zobahan) : MIDREX Process : HyL 1.5 O 4 Arfa 0.8 O 5 Ghadir 0.8 O 6 Chador Malu 1.5 C 7 Ardakan 0.8 C 8 Neyreeze(PERED) 0.8 H 9 Syrjan (Jahan Foolad) 0.8 C 10 Bardisir 0.8 O 11 GEG No.1 1.7 C 12 GEG No.2 1.7 C 13 Baft (PERED) 0.8 H 14 Khuzestan Steel 3.0 O 15 Shadegan (PERED) 0.8 H 16 Dena 1.5 P 17 CHBK(ChaharMahal) 0.8 C 18 South Kaveh (No.1 & 2) 1.6 O 19 HOSCO (No.1 & 2) 1.6 O 20 Persian Gulf SABA 1.5 C 21 Khorasan I(IMPADCO) 0.8 O 22 Khorasan II 0.8 O 23 Gaenat 0.8 H 24 Sabzevar 0.8 H 25 Miyeneh (PERED) 0.8 H 26 Makran 1.5 E 27 Torbat (HyL) 1.5 P 28 Butia (HyL) 1.5 P O; Operating C; Constructing E; Engineering P; Plan H; On Hold
Kobe s Activity in Iran 18
Aimed MIDREX Business Structure VALUE CHAIN Diagnosis for Plant Performance & Engineering for Enhancement Market and/or Technology Feedback <Process Licensor> Meet the market demand Market and/or Technology Feedback Updated Marketing Strategy and Support for Construction Licensee(s) <Process Licensee> Clients Cooperation for Plant Performance Improvement with KSL Market and/or Technology Feedback <Construction Licensee> IRITEC MMTE 19
MIDREX Process Licensee Family Policy Technical assistance service <Process Licensor> Share of new technologies, improvements Maintenance chain MIDREX Family <Process/Construction Licensee(s)> Interacted Communication Among Family Members Interacted Communication Among Family Members Example; Relevant spare parts supplied by KSL s group company; Industrial Services International, Co., Ltd (ISI) Keyword; To keep enhancing the value of MIDREX process 20
Technical assistance service for MIDREX Process Licensee Family Step 1 Plant Diagnosis Step 2 Engineering for Performance Improvement and Enhancement Step 3 Implementation for Enhancement and Modification KSL has recently conducted plant diagnosis for some of Process Licensees. Furthermore, engineering work for performance improvement is also on going. Capacity enhancement (doubling the designed capacity) Decrease of water consumption (to less than 30 %) Conversion to Hot/Cold DRI to reduce electrical power consumption in EAF 21
Conclusion KSL and Construction Licensee(s), i.e., IRITEC & MMTE are committed to success for Process Licensee(s) 1. Teamwork is essential to meet expectations of the market. 2. Research & technology development and streamlined communication among the Family are key. Establishment of Leading & Strong Position 22
Thank you very much 23