Pablo Duarte COMMERCIAL VP/TENOVA HYL June.2016 New York INNOVATION ON DRI PRODUCTION

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Pablo Duarte COMMERCIAL VP/TENOVA HYL June.2016 New York INNOVATION ON DRI PRODUCTION

How is technology innovation driving the future for steel manufacturing? Currently, there are 3 approaches for producing steel: BF-BOF ROUTE High single module productivity 2.5-5 Mtpy High quality steel High environmental impact (specifically high Carbon-footprint) No flexibility in productivity IO PIG IRON LIQUID STEEL BF BOF SCRAP-EAF ROUTE Low quality steel (due to metallic residuals in the scrap) Low environmental impact High flexibility in productivity SCRAP LIQUID STEEL EAF DRP-EAF ROUTE Low single module capacity (now no so low; NUCOR: 2.5 Mtpy) Any quality steel (also high quality) Reduced environmental impact High flexibility in productivity IO DRI/HBI LIQUID STEEL Superior steel grades demanded by such users as automotive steelmakers can be produced. DRP EAF

How is technology innovation driving the future for steel manufacturing? ENERGIRON: DR Technology prepared for the future of steelmaking FLEXIBILITY: Same scheme for ANY energy source ENVIRONMENTAL: lowest NOx emissions CO 2 as by-product Iron Ore Steelmaking driven by Carbon-footprint reduction CO 2 removal H 2 O From Total Carbon input: NG, Syngas COG others CO 2 (+H 2 S) fuel O 2 Flexible, reliable and safe Transport system of DRI to EAF s Hot DRI & Cold High-Carbon DRI HBI 62% as SELECTIVE CO 2 Approx. 256 kgco 2 / t DRI can be sequestrated and/or sold as by-product DRI quality: >94%Mtz; 3.5%C

How is technology innovation driving the future for steel manufacturing? ENERGIRON: DR Technology prepared for the future of steelmaking FLEXIBILITY: Same scheme for ANY energy source ENVIRONMENTAL: lowest NOx emissions CO 2 as by-product; up to ~90% with minor modification Iron Ore Steelmaking driven by Carbon-footprint reduction CO 2 removal H 2 O From Total Carbon input: NG, Syngas COG others CO 2 (+H 2 S) PSA H 2 fuel O 2 Flexible, reliable and safe Transport system of DRI to EAF s Hot DRI & Cold High-Carbon DRI HBI ~90% as SELECTIVE CO 2 Approx. 356 kgco 2 / t DRI can be sequestrated and/or sold as by-product DRI quality: >94%Mtz; 3.5%C

% CO 2 Emissions from DRP How is technology innovation driving the future for steel manufacturing? ENERGIRON: DR Technology prepared for the future of steelmaking 100% %CO 2 emissions from ENERGIRON DRP 80% 60% 40% 20% Iron Ore 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% % H 2 Feed to DRP (w/o CO2 off-taking) (w/co2 off-taking) CO 2 removal H 2 O Renewable Energy NG + H 2 Flexibility of the ENERGIRON ZR scheme in the direction of 0 CO 2 emissions with renewable energy sources CO 2 (+H 2 S) H 2 fuel O 2 Hot DRI & Cold High-Carbon DRI HBI Flexible, reliable and safe Transport system of DRI to EAF s

How is technology innovation driving the future for steel manufacturing? Reduction of Carbon footprint; ENERGIRON the most suitable solution Paris COP21; U.N. pact signed by 174 countries, including USA BF BOF 100% 87% DRP BF BOF 83% 51% 33% DRP EAF 38% 25% DRI quality: >94%Mtz; 3.5%C Notes: (*) Without CO 2 off-taking / commercialization (**) With CO 2 off-taking / commercialization

What are the new plant concepts for producing value-added steel grades? Quality IO + Right DR technology Quality DRI-metallic Any steel grade High-C DRI Analysis Nucor DRP Metallization 96% Carbon 4.3% Fe Total 90.9% Fe 3 C 58.5% Gangue 3.8% Achieving: Highest overall efficiency Lowest integrated Opex Highest DRI-steel quality Lowest environmental impact

How will plant design impact workforce development? Specialist / compact man-power Considering that steelmaking is shifting from coal to NG and renewable energies, DRP as the future Ironmaking route will impact on: More specialized personnel on chemical processes; A DRP is more a chemical system than a conventional steelmaking facility Less personnel requirements; typical satellite facilities & utilities to be eliminated; i.e.; Coking plant sinter plant, gases purification/cleaning, wastes recovery / disposal units Collateral impact on other related industries and services; Coal mining Energy transport; pipe for gas instead of ships/trains for coal

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