Ferrous Solutions - Outotec

Ferrous Solutions 

Pekka Erkkilä 

President, Ferrous Solutions business area 

Outotec’s Capital Markets Day 

November 15, 2011 

© Outotec - All rights reserved

Life cycle solutions – Ensuring Sustainability 

Market Operations 

Supply 

Business Infrastructure 

Strategy 

Non-ferrous Solutions 

Ferrous Solutions 

Energy, Light 

Metals & Environmental 

Solutions 

Services 

Technology Management 

Finance & Control 

Legal Affairs 

Human Capital 

for the processing of 

copper, nickel, zinc, 

lead, gold, silver, 

platinum group metals, 

industrial minerals as 

well as valuable minor 

metals 

for the production of 

concentrates, industrial 

minerals, pellets, sinter, 

pig iron, direct reduced 

iron, ferroalloys, and 

titanium feedstock 

for oil shale, oil sands 

and biomass processing, 

light metals and sulfuric 

acid production, off-gas 

handling, and industrial 

water treatment 

providing 

life cycle services 

Outotec has no 

face-to-face competitor, 

competitive landscape 

is fragmented 

Jacobs (Aker), Bateman 

Engineering, BSIET, Danieli, 

Downer, FLS, Kobelco, Metso, 

Midrex, Siemens, SMS Siemag, 

Tenova Pyromet 

Peers & competitors: 

Engineering companies: AMEC, Ausenco, Bechtel, Chalieco, Enfi, Fluor, Hatch, MCC, NERIN, NFC, SNC-Lavalin, SRK, Worley Parsons 

2 

Nov 15, 2011 

Outotec CMD/Ferrous Solutions 


Ferrous Solutions expertise and offerings 

• Sustainable solutions for processing iron ores and 

other ferriferous materials to produce concentrates, 

pellets, sinter, DRI/HBI, ferroalloys and titanium 

feedstock 

• Extensive research facilities 

• LSTK solutions as well as technology development, 

feasibility studies, engineering, process equipment, 

automation, project implementation, life cycle services 

Expertise 

Beneficiation (incl. crushing, grinding, 

magnetic/gravity/electrostatic separation, flotation) 

Agglomeration 

Smelting Reduction 

Direct Reduction 

• Fluidized Bed 

• Rotary Kiln 

Ilmenite Treatment 

Solutions 

the production of 

• Concentrates 

and Industrial Minerals 

• Pellets 

• Sinter 

• DRI/HBI 

• Pig Iron 

• Ferroalloys 

• Titanium Feedstock 

3 

Nov 15, 2011 



References 

• More than 400 sinter plants since 1920 

• More than 60 pellet plants since 1967 

• More than 60 SL/RN direct reduction 

kilns since 1967 

• 1 Circored® fine ore reduction plant 

• 1 Circoheat® ore preheater for HIsmelt® 

• 12 Steel Belt Sintering TM plants for 

ferrochrome furnaces, one for niobium 

Emission 

Optimized Sintering; 

Ijmuiden, NL 

World’s largest 

pellet plant 

(7.5 million tpy) 

Samarco; Brazil 

First commercial 

hydrogen-based 

direct reduction plant 

4 

Nov 15, 2011 



© Outotec - All rights reserved 

Energy efficient iron ore 

pelletizing solutions

Samarco 3 - project overview 

• Owned 50/50 by Vale and BHP Billiton 

• The world’s second largest seaborne exporter 

of iron ore pellets 

• Integrated mining activities include iron ore 

mining, beneficiation, concentrate, 

transportation, pelletizing and shipment 

6 

Nov 15, 2011 



Samarco 3 - project overview 

• Production capacity increase from 14 to 21.6 

mtpy 

• Total investment USD 1.18 billion 

• New concentrating plant in Germano (MG) 

• New pipeline approx 400 km long 

• New pelletizing plant in Ubú (ES). 

7 

Nov 15, 2011 



Samarco 3 – project overview 

• Outotec’s scope 

• Design, engineering, delivery and construction of the core plant 

(induration furnace) on a lump-sum-turnkey basis 

• Contract value 

• > EUR 160 million (200 USD) 

• Project implementation time 

• 30 months 

• Erection quantities 

• 5,623 tonnes of steel structure and 11,265 tonnes of equipment 

• Origin of supplies and services 

• Approximately 80% from Brazil 

• Approximately 20% from abroad 

8 

Nov 15, 2011 



Overall View Samarco 

9 

Nov 15, 2011 



Lower energy consumption is the key benefit of 

Outotec technology 

• Low-speed process fans 

• Solid fuel optimization 

• CFD optimization 

• Optimized grate bar design 

• Hearthlayer re-screening 

• Dedicated pre-heating zone 

• Optimized zone split 

• High-pressure burners 

Process Gas Temperature [°C] . 

1.400 

1.200 

1.000 

800 

600 

400 

200 

Hematite 

+Carbon 

Magnetite 

+ Sulfur 

Hematite/ 

Goethite 

0 

0 10 20 30 40 

Indurating Time [min] 

• Improved thermal insulation 

10 

Nov 15, 2011 



With Outotec technology, the total energy consumption in 

a pelletizing plant is significantly reduced 

350 

300 

287 

250 

228 

Total Energy [kWh/t] 

200 

150 

100 

50 

-26% 

0 

Overall Energy 

Guaranteed/Reference Value 

Achieved Value 

Operation Samarco 3, May to September 2008 

11 

Nov 15, 2011 



Outotec: a pioneer in developing technologies to 

significantly reduce CO2 emissions 

100,0 

90,0 

90,2 

-20% CO2 emission 

84,9 83,8 83,7 82,6 82,1 82,0 82,0 81,1 

80,0 

79,6 79,0 

Specific CO2-Emission [kg CO2/t of pellets] 

70,0 

60,0 

50,0 

40,0 

30,0 

20,0 

Traditional 

technology 

67,8 67,8 

65,5 

Outotec - 

new 

generation 

10,0 

0,0 

Plant 3 Plant 4 Plant 7 Plant 10 Plant 2 Plant 1 Plant 11 Plant 9 Plant 8 Plant 5 Plant 6 Tubarão 

VIII 

MBR 

Samarco 

3 

12 

Nov 15, 2011 



Samarco 3 – Outotec’s unique sustainable technologies help 

customers to comply with environmental standards 

ENVIRONMENTAL 

• Recycling all waste material to the 

main material flow 

• Compliance with all environmental 

standards (emission of dust, 

noise, dust concentration at 

working place) 

• Reducing total energy 

consumption by >25% 

SOCIAL 

• Supply of 80% of all services and 

supplies from Brazil 

• Supply of 30% of all mechanical 

equipment supply from the state 

of Espírito Santo 

• Strict HSE-policy, which resulted 

in a record-low accident and 

incident rate 

ECONOMICAL 

• Reducing project implementation costs by local procurement on a 

competitive basis through minimization of import taxes, and minimization 

of transport costs 

• Reducing operating expenditures through energy savings by 1.0 – 1.5 

million BRL/month 

13 

Nov 15, 2011 



© Outotec - All rights reserved 

Outotec® Ferrochrome Process

Topics 

1. Outotec® ferrochrome process 

2. Two contracts won in China in 2011 

3. An energy efficient process 

4. CO-gas utilization and reduction of CO 2 

emissions 

5. BAT reference 

6. Summary 

15 Nov 15, 2011 Outotec CMD/Ferrous Solutions 


Outotec® ferrochrome process 



Steel belt furnace pelletizing plant 

• Process phases: 

• Dosing 

• Grinding 

• Filtering 

• Pelletizing 

• Sintering 

• Product screening 

• Proprietary equipment 

developed for chromite 

• Utilization of energy 

from cooling gases in 

sintering phases 

• Efficient gas cleaning – low emissions 

Nov 15, 

17 Outotec CMD/Ferrous Solutions 

2011 


Ferrochrome smelting plant 

• Automatic batching system 

• Electric saving Preheating technology 

• Enviromentally 

friendly Smelting 

furnaces 

• Energy saving 

off-gas utilization 

• Granulation of slag 



Outotec ferrochrome plant 



Chinese environmental regulations are tightening thus 

increasing the demand for Outotec’s sustainable technology 

• Ferrochrome plant for Mintal Group to Baotou, China 

• 700,000 mtpy of chromite pellets 

• two 69 MVA smelting furnaces with preheating technology 

• 300,000 mtpy of ferrochrome 

• The ferrochrome plant is expected to be operational in 2013 

• New ferrochrome plant for TISCO joint venture Jinzhong, China. 

• 700,000 mtpy of chromite pellets 

• 69 MVA smelting furnaces with pre-heating 

technology 

• 300,000 mtpy of ferrochrome 

• The new plant is expected to be 

operational in 2013 

• Contracts are a breakthrough for Outotec’s 

ferroalloys technology in China 



Significant energy savings with 

Outotec’s BAT solution 

• Unique process technology 

• Use of chromite ore pellets 

• Preheating in shaft kiln on top 

of the smelting furnace 

• CO-gas as fuel 

• Preheating of every 100 ºC 

saves up to 70 kWh/t electric 

energy 

• Increased capacity of smelting 

furnace up to 20% 



Outotec FeCr process is superior to 

any other FeCr process 

Outotec Process 

Open furnace 

Electricity consumption 

2,950-3,300 kWh/t FeCr 

with pellets+lumpy 

4,200-4,800 kWh/t FeCr 

with conc./fines+lumpy 

3,800 kWh /t FeCr with 

pellets+conc./fines+lumpy 

Cr recovery 83-90% 72-80% 

Consumption of electrode paste 7-10 kg t/FeCr 15-25 kg/t FeCr 

Availability, based on operating hours 95-98% 85-94% 

Formation of furnace gas (CO 85-90%) 700 Nm 3 /t FeCr CO is burned and lost 

Gas amount/heating value 

(e.g. 60 MW) 

12727 Nm 3 /38.1 MW Lost /Lost 

Cr 6+ in dust 5-100 ppm 1,000-7,000 ppm 

CO 2 emissions 

1,330 kg 

CO 2 /t FeCr 

1,400-1,470 kg 

CO 2 /t FeCr 



Reduction of CO 2 emissions 

• CO 2 emissions are the primary green house gas 

contributor from ferrochromium production 

• Outotec has been able to reduce CO 2 emissions by 

effectively utilizing the excess CO gas from the 

smelting furnace 

• Primary technologies to reduce CO 2 emissions 

• Steel belt pelletizing and sintering 

• Pre-heating of raw materials 

• Closed electric furnace 

• Electric energy cogeneration 



CO gas utilization and reduction of CO 2 

emissions 



BAT reference 

• Finnish expert report on best available 

technologies in ferrochrome 

production in June 1999 

• BAT = Best Available Technology 

• Cleantech prize – 2008 Finnish 

representative in EU 

• The BAT title was awarded to 

Outokumpu’s FeCr plant in Tornio in 

June 1999 

• Key factors were low total dust 

emissions, CO emissions, NO 2 and 

SO 2 emissions 

• Outokumpu operates Outotec® 

Ferrochrome process in Tornio 



Most recent technology references 

Owner Plant data Capacity Products Start-up 

OAO TNK 

Kazchrome, 

Kazakhstan 

Asa Metals (Pty) Ltd, 

South Africa 

Steel belt pelletising plant 700,000 tpa pellets Sintered chromite pellets 2009 

Steel belt pelletising plant 

Preheating shaft kiln 

600,000 tpa of pellets 

2 x 66 MVA 

EAF furnaces 

Sintered pellets 

Charge grade ferrochrome 

RDME France Refurbishment of furnace 102 MVA SAF High carbon 

Ferromanganese 

Samancor Chrome Ltd, 

Middelburg 

South Africa 

Samancor Chrome Ltd, 

Tubatse Ferrochrome, 

South Africa 


Upgrade of steel belt 

pelletising plant 

600,000 tpa 

of pellets 

2009 

2009 

Sintered pellets 2010 

to 620,000 tpa of pellets Sintered pellets 2010 

International Ferro Metals (SA) 

(Pty) Ltd, 

South Africa 

Clean gas 

project 

2x13 200 Nm3 

Co-gas filter 

Clean gas 2010 

Xstrata South 

Africa (Pty) Ltd 

Steel belt 

pelletising plant 

600 000 tpa of 

pellets 


e2012 

Outokumpu Chrome Oy, Finland 


FeCr smelting plant 

600 000 tpa of pellets 

100 MW SAF 


Charge grade ferrochrome 

e2012 

Mintal Group Co., Ltd. 

China 




2 x 69 MVA SAF 


HC ferrochrome 

e 2013 

TISCO joint venture, China 




2 x 69 MVA SAF 


HC ferrochrome 

e 2013 

Several ongoing negotiations with customers. 



Summary 

• Benefit of using Outotec® ferrochrome process 

technology (BAT): 

• High recovery of chrome 

• Low energy consumption 

• High furnace availability => high FeCr production 

• Low CO 2 emissions 

• Outotec as a lifetime partner will add value to 

customer 

• Investment in environmental protection will also 

improve profitability 

27 

Nov 15, 2011 



Our mission: 

Sustainable use 

of Earth's 

natural resources. 

THANK YOU!

Ferrous Solutions - Outotec

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