Outotec`s Pelletizing Technology, Process Influencing Factors and Market Demands

54th meeting of Blast furnace and Sinter plant Operating committee at MECON, Ranchi 21.-22.07.2011
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Content
Outotecs recent Pellet Plants Agglomeration of Iron Ores Cost Comparisson Sinter Plant vs. Pellet Plant Market Demand Outotecs Pellet Plant Developments

22.07.2011

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Pelletizing
Traveling grate based pelletizing
Plant Capacities
Between 1.0 and 9.25 million t/a in one strand Grate areas between 189 and 816m

References
Total more than 60 pellet plants Last contracts
Pelletizing plant Samarco 3, Brazil

2011 Samarco 4, Brazil: LSTK indurating machine for the worlds largest pellet plant with 9.25 million t/a plant 2011 Stoilensky GOK, Russia: Technology Package for 6 million t/a plant 2009 BPSL, India: Technology package for 3.85 million t/a plant 2008 Tata Steel, India: LSTK with Indian partner for 6.0 million t/a plant 2008 Caofeidian, China: Technology package for 4.0 million t/a plant 2006 MBR, Brazil: EP contract for 7.0 million t/a plant 2005 Samarco 3, Brazil: LSTK indurating machine for the worlds largest pellet plant with 7.5 million t/a plant 2005 Vale, Tubarao 8, Brazil: Engineering and technical assistance for 7.0 million t/a plant 2005 LKAB, Malmberget, Sweden: LSTK indurating machine for 4.0 million t/a plant 2003 Gol e Gohar, Iran: Engineering and supply of a 5.0 million t/a plant 1998 Vale, So Lus, Brazil: Engineering for 6.0 million t/a plant
3 May 4, 2011
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Content
Outotecs recent Pellet Plants Agglomeration of Iron Ores Cost Comparisson Sinter Plant vs. Pellet Plant Market Demand Outotecs Pellet Plant Developments

22.07.2011

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Why Pelletizing
Ore with low iron content Ore with high iron content

Beneficiation

Screening

Fines

Concentrate

Sintering

Pelletizing

Lump ore

BF
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DR

Why Pelletizing

Conventional Sintering changes for the worse permeability and consequently decreased productivity if feed materials become finer than 100 m. Transportation of Sinter over a large distance is irrational due to its degradation. 1911: A.G. Anderson applied for Swedish patent for drum rolled iron ore balls, too fine for sintering, and their subsequent firing to harden them. Sinter Feed: Pellet Feed: 10-15% > 10mm, 10% < 0,125m 100% < 150m, 85% < 45m

22.07.2011

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Content
Outotecs recent Pellet Plants Agglomeration of Iron Ores Cost Comparisson Sinter Plant vs. Pellet Plant Market Demand Outotecs Pellet Plant Developments

22.07.2011

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Sinter Plant Feed Material and Productivity

Sinter Feed
0,15 3,0 mm

Pellet Feed
< 150 m

Sinter Plant Sinter Feed Mixture Pellet Feed 35 40 t/d m 28 32 t/d m 19 20 t/d m

Pellet feed processing can drop productivity up to 50% ! Specific operational cost per ton of sinter will exceed those of comparable pellet plant
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Total Cost Comparison Sinter & Pellet Plant Scenario:

Capacity: Location: Raw Materials: Options: 4.0 mtpy EU Brazilian Iron Ore a) Sinter Plant without Recycle Materials b) Sinter Plant with 10% Recycle Materials c) Pellet Plant d) Import of Pellets and Lump Ore

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Total Cost Comparison Sinter & Pellet Plant Plant Specifications

Sinter Plant without recycle material Sinter Plant with 10% recycle material Pellet Plant Pellet import

Raw Material Bedding and Blending to Product Grinding to Storage Screening Product Screening, incl. Raw Material Storage Gas Cleaning with MEEP Gas Cleaning with conventional ESP ---

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Total Cost Comparison Sinter & Pellet Plant

Sinter Plant Electrical Energy Thermal Energy Carbon Carrier 30 kWh/t 22 kWh/t 108 MJ/t 80 MJ/t Pellet Plant 52 kWh/t 210 kWh/t 13 kg/t 91 kWh/t 353 kWh/t 327 MJ/t 1.267 MJ/t 187 MJ/t 755 MJ/t

50 52 kg/t 350 kWh/t 1.255 MJ/t 1.443 MJ/t

Total Energy

402 kWh/t

Total Energy Consumption of the Pellet Plant is approx. 12% lower than for the Sinter Plant

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Total Cost Comparison Sinter & Pellet Plant

Sinter Plant without recycle materials Investment Cost Average Capital Cost depreciation allowance Operational Cost Ore Energy Others Total Cost per annum Total Cost per t 100% 100% 100% 100% 100% 90% 97% 100% 93% 93% 87% 112% 71% 92% 92% 146% 0% 0% 92% 92% 100% 100% 100% Sinter Plant with 10% recycle materials 100% 100% 100% Pellet Plant 120% 120% 100% Pellet & Lump import 5% 5% 100%

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Total Cost Comparison Sinter & Pellet Plant

Sinter Plant
CAPEX OPEX Raw Material Preparation Raw Material Qualities Feed of Recycle Materials Product Quality lower spec. cost

Pellet Plant
higher spec. cost raw material depended

processing of ore as delivered high Fe content possible acc. BF requirements

grinding to pelletizing fineness low Fe content possible with upstream beneficiation very limited standardized for global market Commodity, transport cost are substantial part of total cost higher spec. waste gas volumes with lower contaminant loads

Transport

very limited

Enviromental
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lower spec. waste gas volumes with higher contaminant loads

Overview BF pellet properties

Overview pellet properties for Blast Furnace:
Pellet Type Acid Basic/fluxed Olivine Compression ++ + + Reducibility + + Swelling + +

Type Acid Olivine Basic fluxed

Basicity2 < 0.15 <0.15 ~0.8 1.0 ~1.1 1.3

Fe% 64 67 % 64 67 % 60 64 % 60 63 %

SiO2 % 25% 2.5 5 % 3.5 5.5% 3.5 5.5 %

MgO % <0.2 % 1.3 1.8 % 1.3 % 1.5 %

Compression strength 250 300 150 200 200 250 200 - 250

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Content
Outotecs recent Pellet Plants Agglomeration of Iron Ores Cost Comparisson Sinter Plant vs. Pellet Plant Market Demand Outotecs Pellet Plant Developments

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Global Steel Production 2005 - 2019

2000 1800 1600 1400 1200 1000 800 600 400 200 0 2005 2006 2007 2008 2009 2010e 2011f 2012f 2013f 2014f 2015f 2016f 2017f 2018f 2019f
Source: MBR, IISI

20 % 15 % 10 % 5% 0% -5 % -10 %

Rest of world production (mt)

Chinese production (mt)

World growth rate

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Source: MBR, 03.2011

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Pellet Production 1999 - 2019

700 600 500 capacity mt/y 400 300 200 100 0
World Pellet Capacity Asia Pellet Capacity

17

May 4, 2011

Source: MBR, 03.2011

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Pellet Production 2005 - 2019

500 450 400 350 300 250 200 150 100 50 0

Source: MBR

Global BFI Pellet Demand (m tonnes)

Global DR Pellet Demand (m tonnes)

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Source: MBR, 03.2011

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Typical Blast Furnace Burden

100%

80%

60% Pellet 40% Sinter Lump 20%

0%

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Source: MBR, 03.2011

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Blast Furnace Burden Development in India

100%

80%

60% Pellet Sinter 40% Lump

20%

0%

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Source: MBR, 03.2011

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Content
Outotecs recent Pellet Plants Agglomeration of Iron Ores Cost Comparisson Sinter Plant vs. Pellet Plant Market Demand Outotecs Pellet Plant Developments

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Typical flowsheet

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Typical layout of a 7 million t/a plant

Green pelletizing Induration

Central plant dedusting

Substation
Process gas cleaning

Filtration

Cooling Fuel oil system system

Additive Dosing preparation & mixing

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Regrinding

Homogenization

Wet grinding

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Typical Layout 189m Pellet Plant

Substation Dosing and Mixing Green Pelletizing Process Gas Handling Central Plant Dedusting

116 m
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Traveling Grate Induration Machine

Pellet Screening

192 m

Typical Layout 189m Pellet Plant

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Pelletizing plants built since 2003

Technology/supplier
Outotec traveling grates Other traveling grates Grate kiln

Installed annual capacity 54,6 million t/a 21,0 million t/a 26,0 million t/a

Plant size >3.5 million t/a, status 04/2011

LKAB KK4 5.0 million t/a LKAB MK3 2.5 million t/a M-GOK 5.0 million t/a

Gol-e-Gohar 5.0 million t/a Essar MIS 6.0 million t/a

Grate/Kiln: 26,0; 26%

Caofeidian 4.0 million t/a WISCO 5.0 million t/a

GIC 6.0 million t/a CVRD Sohar 2x4.5 million t/a Samarco 3 7.25 million t/a BRPL 4.0 million t/a Paradeep 6.0 million t/a

BPSL 3.85 million t/a JSPL Barbil 4.0 million t/a

Travelling Grate: 75,6; 74% 26 7/22/2011

MBR 7.0 million t/a Tubaro VIII 7.0 pelletizing technology Outotec's million t/a

Tata Pellet 6.0 million t/a

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Samarco 3 pelletizing plant

22.07.201 1 Outotec - All rights reserved

27

Outotec's pelletizing technology

Thank you!

Sustainable use of Earth's natural resources.

Stefan Mehl Head of Traveling Grate Sintering stefan.mehl@outotec.com

28 May 4, 2011

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