Indian Steel Industry INDIAN Perspective BHARAT HEAVY ELECTRICALS LTD.

1. Indian Steel Industry INDIAN Perspective BHARAT HEAVY ELECTRICALS LTD. Industrial Systems Group, Bangalore

2. CONTENTS

3. Indian Steel Industry – An Overview

4. Capacity Planned till 2020 Source: Report of the working group on steel industry 12TH plan and SAIL Vision 2020

5. Indian Steel Industry – Major Players Crude Capacity (P) 2011-12 5 Yr CAGR 15.4% 2016-17 RINL (4.1MTPA), Essar (1.7MTPA), Bhushan (3.7MTPA)NMDC(3MTPA) are under execution Source: Report of the working group on steel industry 12TH plan SAIL Vision 2020

6. Indian Steel Industry – Pellet Plant/ Ore Beneficiation Capacity Planned up to 2017 50 MTPA Pellet Plant 50 MTPA Ore Beneficiation Source: Report of the working group on steel industry 12TH plan Existing Plants Source: Web / Company

7. Raw Material for Iron Making • 1. Iron Ore • Hematite (Fe203) – 58% of Total Reserve • Magnetite (Fe304) – 42% of Total Reserve • 2. Limestone or Dolomite • 3. Coke • 4. Coal • Input Materials for Blast Furnace • Iron Ore (10/40 mm) • Sinter and Pellet • Limestone (Flux) • Metallurgical Coke (Fuel) Pig Iron Molten Iron taped from the BF Fe 90-95% OUTPUT PROCESS Total metallic yield Fe for pig iron will typically be in the range of 90 – 95 % which is comparable to #1 prompt scrap • Input Materials for Direct-reduced iron (DRI) • Iron Ore (5/40 mm) • Pellet • Limestone or Dolomite (Flux) • Natural Gas or Non Coking Coal Sponge Iron Iron produced as a solid by reduction of Iron Oxide Fe 90-92% OUTPUT • Input Materials for Smelting Reduction (SR) • Iron Ore (-6/30 mm) • Pellet • Limestone or Dolomite (Flux) • Oxygen and Non Coking Coal OUTPUT Liquid Iron Which utilize Oxygen and Non Coking Coal Fe 97%

8. Iron Ore: Techno-economical Issues

9. Agglomeration of Iron Ore Fines • Agglomeration of Iron Ore Fines basically involves two main methods • Sintering • Pelletising • Sintering is the agglomeration technique of Iron Ore Fines in the size rage of -10+0.15 mm to produce clusters by incipient fusion at high temperature. • Pelletisation is the other mode of agglomeration applicable for fines below 325 mesh size.

10. Ore Beneficiation, Pellet Plants and Sinter Plant

11. Ore Beneficiation & Pellet Plants

12. Ore Beneficiation . .

13. Agglomeration (Sintering & Pelletising) • Common methods of burden preparation related to the performance improvements of iron making (blast furnaces & direct reduction process) • Growth of steel industry with depleting resources of high grade ores have led to a very strong demand for both pelletising and sintering of iron ores.

14. Pellet Plant The process of Pelletisation helps converting Iron Ore Fines into “Uniform Size Iron Ore Pallets” that can be fed in the blast furnaces or in the DRI kiln (DRI). Pelletisation was invented to make use of ultra fine concentrate generated in the Iron ore beneficiation plants There are two main processes for producing iron ore pellets: (1).The Grate-Kiln System (2).The straight grate system

15. Pellet Plant-Grate-Kiln System Process adopts three equipment viz. grate, rotary kiln and annular cooler Green balls are first dried and preheated on the straight grate followed by hardening in a counter flow manner in rotary kiln and air cooling in an annular cooler

16. Pellet Plant-Straight Grate System In the straight grate system, a continuous parade of grate cars moves at the same speed though the drying, induration and cooling zones.

17. Sinter Plant Sinter making is a method of fusing iron ore fines into larger particles suitable for charging into the blast furnace.

18. Major Equipment – Sinter Plant

19. Indian Steel Industry – 12TH Plan 2012-2017 • Steel production of the country will go up by 90 MTPA in 2016-17 from 89 MTPA likely in FY11-12. • It is estimated with feasibility factor that 21 MTPA shall be installed • 50 MTPA Ore Beneficiation • 50 MTPA Pellet Plant • As per SAIL Vision 2020 (60 MTPA) Source: Report of the working group on steel industry 12TH plan

20. THANKS

21. Need for PelletisationContd. ADVANTAGES OF PELLETS: • Good Reducibility: • Because of their high porosity that is (25-30%), pellets are usually reduced • considerably faster than hard burden sinter or hard natural ores/lump ores. • • Good Bed Permeability: • Their spherical shapes and containing open pores, gives them good bed permeability. Low angle of repose however is a drawback for pellet and creates uneven binder distribution. • • High uniform Porosity (25-30%): • Because of high uniform porosity of pellets, faster reduction and high metallization takes place. • • Less heat consumption than sintering. • Approx. 35-40% less heat required than sintering. • • Uniform chemical composition & very low LOI: • The chemical analysis is to a degree controllable in the concentration processing • within limits dictated by economics. In reality no LOI makes them cost effective. • • Easy handling and transportation. • Unlike Sinter, pellets have high strength and can be transported to long distances without fine generation. It has also good resistance to disintegration.

22. ORE BENEFICIATION AND PELLET PLANT UPCOMMING PROJECTS - 2020 * Estimated Source: Projects Today/ Web

23. SINTER PLANT UPCOMMING PROJECTS-12TH PLAN Source: Answers Given By Minister of Steel in Rajya Sabha on 24/11/2011

24. Projects Details Up to 2020

25. SAIL up to 2017 Source: Report of the working group on steel industry for the 12TH five year plan *SAIL total projected 20.75 for terminal year # As per SAIL Web Site ** Proportionally changed for 2017 (26MT for 2020) SAIL Vision 2020 (60 MT) *** Estimated

26. Indian Steel Industry SWOT Analysis • STRENGTHS • Abundant resources of iron ore • Low cost and efficient labour force • Strong managerial capability • Strongly globalised industry and emerging global competitiveness • Modern new plants & modernised old plants • Strong DRI production base • Regionally dispersed merchant rolling mills • WEAKNESSES • High cost of energy • Higher duties and taxes • Infrastructure • Quality of coking coal • Labour laws • Dependence on imports for steel manufacturing equipments & technology • Slow statutory clearances for development of mines

27. Indian Steel Industry SWOT Analysis • THREATS • Slow growth in infrastructure development • Market fluctuations and China’s export possibilities • Global economic slow down • OPPORTUNITIES • Huge Infrastructure demand • Rapid urbanisation • Increasing demand for consumer durables • Untapped rural demand • Increasing interest of foreign steel producers in India

28. Growing Indian Economy

29. Indian Steel Industry – A Bright Future RESOURCES • Abundant Iron Ore reserves • Strong Managerial skills in Iron and Steel making • Large pool of skilled Man-power • Established steel players with strong skills in steel making OPPORTUNITIES • High economic growth driven increasingly by industry • Faster Urbanisation • Increased Fixed Asset Building • Automobiles and component industry growth POLICY • Pro-active stance of Govt. • Encouragement for overseas investments

30. Iron Making Process • The three different methods that can be used for production of iron from Iron ore are: • Coke-Ovens -Sinter-Blast Furnace (BF) Route • Direct Reduction Technique (DRI) • Smelting Reduction Technologies. • For producing Crude Steel, two types of techniques are adopted; • Basic Oxygen Furnace (BOF) type • Electric arc furnace (EAF) type Sinter Plant Sinter Plant Sinter Sinter