Final Text 01-04-08 - SIMA

Final Text 01-04-08 - SIMA

Final Text 01-04-08 - SIMA


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CHAIRMANN K PATNAIKVICE CHAIRMANS N JAJOOEXECUTIVE DIRECTORS S BHATNAGARGOVERNING BODYN K PatnaikS N JajooSuresh ThawaniSushil MarooG K ChhanghaniNirmal AggarwalAnil Kumar PatwariNarayan TekriwalJames MathewAmitabh S MudgalAnil AhujaN C MohantyS S BhatnagarREGIONAL DIRECTORSPrakash TatiaG K ChhanghaniSurender DalmiaSunil GargEDITORIALThe Indian growth story so far has been an absorbingand inspiring tale of sustained progress. BeginningJan 1, 2005 the economy recorded a growth rate ofover 8% in 12 successive quarters up to 31stDecember, 2007. The economy is expected to maintaina growth rate of over 8% in current year also.Inspite of the American slowdown and its resultantimpact, emerging markets and developingeconomies have continued to expand strongly ledby China & India. The Indian economy has benefitedfrom the strong momentum of domestic demand andmore disciplined macro economic policyframeworks. Though inflation is a big worry for thecountry with agriculture output sagging andInternational prices of crude oil and food grains rising. The economicenvironment can be described challenging but full of big opportunities.The Indian Sponge Iron Industry continues to be global leader for 6thconsecutive year with a record production of 20 Million Tons for 2007-08.The economy seems to be passing through demand driven growth withGovernment focus on infrastructure, construction and housing sectors andits outcome is a robust and sustained demand for steel.Looking at the current situation of difficult availability of steel scrap and limitedreserves of coking coal coupled with unprecedented increase in the prices ofthese materials, it is evident that the steel industry will have to heavily dependon Sponge Iron sector for meeting domestic demand and for growth.The Indian Sponge Iron Industry is fully geared up to meet the fast risingdiversified demands of quality metallics by the steel sector. Sponge IronIndustry is globally competitive not only in terms of cost & quality but also interms of established benchmarks of efficiency and productivity. It is reallyunfortunate that this industry which has brought so much status, prestigeand pride to the country is faced with serious problems of cost and consistentavailability of vital raw material inputs. Constantly rising Iron Ore prices andinadequate availability are matters of serious concern. Due to difficult supplystatus of Natural Gas there was no capacity addition in Gas based SpongeIron sector despite long term demand of HBI and a high potential exportmarket. Three Gas based units are operating much below installed capacitiesand in large investments are grossly under utilised.These matters have been highlighted by SIMA at various platforms and forums.The Government authorities are fully aware of the problems which are seriouslyaffecting industry and it is hoped that some policy initiatives will be taken forlong term supply insurance of vital raw materials and infrastructural supportto help the industry to meet the demands of quality metallics in line withrevised national steel production targets.The role of SIMA is also changing and adapting itself to meet the requirementsof the members and also to effectively represent the problems and difficultiesof the industry to the concerned authorities in the fast changing businessenvironment.SIMA looks forward to close co-ordination and active participation of themembers so that it can provide the required value added services.Wishing you all a very successful and profitable business year 2008-09.Dinesh AgarwalS.S. BHATNAGAR

CHAIRMAN’S COMMUNIQUEIt’s time to cheer as our association has in the recentpast scaled new heights, received recognition at variousforums/levels including policy makers in Government andmore importantly expanded its wings internationally.While it seems to me as if it was ‘yesterday’ that westarted, in reality it will be ‘two years’ now during whichworld economy has seen phenomenal changes. We havenow learnt to sustain in the competitive and openeconomic environment. The passage of these two yearshave been and will be most memorable, most wonderfuland above all most learning experience of my life.The world has experienced extreme weather at beginningthis year, so has the prices of basic inputs for spongeiron making, freight and other input costs bothinternationally and locally. Along the expected lines, majorinternational players including Vale, Samarco, have hikediron ore/pellets prices ranging from 65% to 90%. Despitethis, all the producers enjoy order book almost for next1-2 years. What does this mean?. Developing countrieslike India will continue to grow. The signs of expectedrecession in US will not, in any way have a bearing onthese developing nations. It is reported that the rate ofgrowth in US has slipped and is lower in the fourth quarterof 2007 and was the weakest in the last five years.Back home, since availability of basic inputs for spongeiron making and their pricing has been of major concern.It is all the more necessary for Indian Government toallocate mines of iron ore/coal /gas fields to the producersof sponge iron/steel to prevent draining of our naturalresources through exports without any value addition.During a recent SIMA meeting in Delhi, we deliberatedon the possibility of SIMA, as a representative body,approaching the Government for allotment of mines forthe benefit of the members and particularly smaller units.We need to take this forward. This can be achievedthrough alliances/SPVs for exploration, prospecting,mining rights, mining, beneficiation, pelletsmanufacturing, power generation, long term assuredinput contracts for members.It gives me immense pleasure to note that India maintainsits pioneer status in production and capacity addition insponge iron sector. World DRI production in 2007 isestimated to cross 66.50 million tonnes showing a growthof 11.20% as compared to 59.80 million tonnes in 2006.India maintained the position of global leader by producing19.02 million tonnes of DRI in 2007and accounting for 28.60% of totalglobal DRI production with a growth of27.55 %. (global growth 11.20%). It isindeed more heartening to note thatthe growth of sponge iron is more thanthat of finished carbon steel and pigiron.I am highly delighted to inform all the members that ourassociation, to further boost its image, has brought outa first-of-its-kind video film with comprehensive detailsincluding vision and mission statement, for the first timein its history. I am thankful to one and all who contributed,suggested improvements and invested time andinformation to make this venture successful. I am surethis will be beneficial to the members and will be usefulin time to come but definitely with improvement.. I hopethe CD containing the film will reach every member verysoon. .During last Governing Body meeting in Delhi earlier thisyear, I have made some suggestions on vision,representation, value addition to the business, research& technology, branding & marketing, research andcommunication, alliance and collaboration withinternational sponge iron association to enhance imageand to strengthen the organization. SIMA’s conferencein association with Ministry of Steel enabled interest insetting up facilities using low grade iron ore, to improvethe iron content through beneficiation and pelletisationprocess since world over including India, low grade ironore is available in plenty. Further, SIMA has associatedwith Arab Steel Association and international HBIassociations for the benefit of the members.My sincere thanks and gratitude are due to all themembers of the association for their support.My greetings to you all for the bright future of the spongeiron industry.P R DHARIWALAPRIL-2008/1

CHARGE PRE-HEATING THROUGH WASTE HEAT GASESIN COAL BASED SPONGE IRON MANUFACTURING PROCESS- A CDM OPPORTUNITYB.L. AGRAWALManaging Director, Godawari Power & Ispat Ltd., Raipur (C.G)During the last two years, a number of projects, basedon power generation through waste heat flue gasesissuing out of the coal based sponge iron kilns, havebeen registered by the United Nations FrameworkConvention on Climate Change (UNFCCC) as CDMventures. This has been on the premise of tappingalternate energy sources in the spectrum of cleantechnologies. Reduced emission of green housegases and replacing an equivalent amount ofelectricity from the usual carbon intensive power gridhave been the main planks for ‘additionality’considerations in terms of Kyoto Protocol to qualifythese projects as CDM options. This paperdeliberates on another aspect of sponge ironmanufacturing process which may fall in the ambit ofEnergy Efficiency. It considers an adjunct of preheaterin such rotary kilns where charge pre-heatingis done through waste heat gases of sponge iron kilnsbefore such gases are utilized for power generation.The exhibit on the next page depicts a flow diagramwhere charge pre-heating is included in the DRISystem. Here, the iron ore and dolomite, inpredetermined quantities, are taken to a common beltconveyor through weigh feeder to the pre-heaterforming an adjunct to the rotary kiln for sponge ironmanufacture where coal acts as reductant. The sizedcoal through a weigh feeder is led directly to mainrotary kiln and it is not pre-heated.The waste hot gases emanating from the sponge ironkilns contain substantial heat values andcombustibles along with carbon particles, unused COetc.It is possible to exploit gainfully such heat containedin flue gases to preheat the charge before it movesto the kiln proper and subsequently utilize the hotgases to produce steam to generate power in asuitably designed Waste Heat Recovery System(WHRS).This arrangement of pre-heating would entail lowercoal consumption and enhanced production ofsponge iron (1) . Such a scheme brings out anotherdimension of harnessing CDM potential of spongeiron industry which is worth pondering. Here, the‘additionality’ focus could be in terms of specificenergy consumption in comparison to a base linescenario. According to the indications available fromthe UNFCCC website (2)the nitty gritty of arecommended methodology in this respect seekinga final nod from the CDM Executive Board is beingtied up. To facilitate establishing a base line emissionfactor, the methodology insists that there should bea provision to feed the raw materials directly to thekiln without pre-heater equipment. A campaignmethod has been suggested to calculate the ratiobetween the measured values of specific energyconsumption of base line situation and theprospective CDM project. Since the ‘specific energy’is the key parameter in the methodology, the variablesthat may affect the specific energy consumption likequality of fossil fuel used, specification of rawmaterials, product output etc. would have the bearingin quantifying the emission reduction.The following points in relation to such projects tobe considered as CDM prospects are noteworthy:-(i)this will not be a ‘business as usual’ project, assuch projects are yet to be registered by the CDMBoard.(ii) charge pre-heating would provide enhanced IRRdue to lower specific fuel consumption. Thiscoupled with increased productivity of kiln couldtake care of financial additionality aspects.(iii) technological barriers can be addressed throughinnovation in pre-heater design.APRIL-2008/2

Breakthrough at Godawari Power & IspatLimited :-Godawari Power & Ispat Ltd, in its two kilns of 500TPD, which have been recently commissioned, havepre-heating adjuncts. After the process stabilizes,its benefits in terms of emission reduction andproductivity would be evaluated as a prospectiveCDM project. This could possibly be the first venturein the country on the kilns of such capacities. Insome smaller capacity kilns elsewhere trials havebeen conducted on this concept. While the benefitsseem to be substantial by adopting charge preheatingon these kilns, the related findings are yet tobe officially reported.The following reactions take place in the rotary kiln3 Fe 0 + Co = 2 Fe 0 + Co2Fe 03+ Co =3 4 23 Fe0 + Co3 4Fe0 + Co = Fe + Co22References:-1. B.L.Agrawal : Tapping CDM Potential in Indian Sponge Iron Industry - A perspective :DRI Update May 2007 (a publication of Sponge Iron Manufacturers’ Association)2. www.cdm.unfccc/intAPRIL-2008/3

New Coal Distribution Policy of the Govt. of India and the impact ofthis policy on Sponge Iron IndustryN. K. Patnaik, Chairman -SIMAA study of the new Coal Distribution Policy of the Govt., as circulated by the Coal Ministry, through its officememorandum No. 2311/4/2007 CPD dt.18.10.2007, shows the following advantages and disadvantages tothe industrial coal-consumers of the country, with particular reference to the sponge iron sector.I. Advantages to the coal-consumers in the new Coal Distribution Policy:1. Responsibility of the Govt. / CIL to meet the full coal-requirement of the country, even byresorting to imports, if necessary.Although, in view of ‘deregulation’ of coal by the Govt., coal may no longer be considered to be anessential commodity strictly as per the statute, still the fact remains that,(i)(ii)‘coal’ continues to play its important role in the economic development of the country, andthe public sector Coal Co. (i.e. CIL, including its subsidiary companies) have been given themonopolistic powers for production, distribution and pricing of the national coal-resources of ourcountry, without any other competitor in this field.Now, it is heartening to note that as per the New Coal Distribution Policy, the Govt. has rightly acceptedthe responsibility of the nationalized Coal Co. in the country (i.e. CIL, including its subsidiary Coal Co.’s &SCCL) to meet the full requirement of coal for all sectors of coal consumers, even by resorting to imports,if necessary.2. Supply of the normative coal-requirement of various sectors of coal-consumers.The coal-consumers in the power sector, including the CPP’s will get 100% of their normative coalrequirementfrom CIL / subsidiary Coal Co.’s through FSA’s at fixed prices, as notified by CIL.Other coal consumers, including cement & sponge iron units, will get 75% of their normative coalrequirementfrom CIL / subsidiary Coal Co.’s through FSA’s, at fixed prices, as notified by CIL and thoseconsumers will also get their balance 25% coal-requirement from CIL / subsidiary Coal Co.’s through E-auction / import of coal, as per their preference.3. Coal Supply to consumers in the small and medium sector.As per the new policy, the small and medium sector coal-consumers, whose coal-requirement is upto4200 tons / annum, will get their coal-requirement from the State Govt. nominated agencies, at notified coalprice,plus actual freight and upto 5% service charge. This policy will help the small and medium coal consumersthrough out the country, to get coal at reasonable price, without under going the hurdles / formalities of coallinkageLOA, FSA etc.APRIL-2008/4

4. Forward E-auction of coal for the coal-consumers.As per the new policy, the CIL / Coal Co.’s will earmark a fixed quantity of coal every year for supply tothe actual non-power sector industrial coal-consumers, through separate E-auction (now termed as ForwardE-Auction) so that such industrial consumers can meet a part of their balance coal-requirement (i.e. balance25% of their normative coal-requirement) if they become successful bidders in this special E-Auction (ForwardE-auction).II.Disadvantages to the coal-consumers in the new Coal Distribution Policy:1. Dilution of the well-established system of coal-supplies, directly to the coal-consumers,through coal linkage and re-introduction of the middlemen / traders in the channel of coal suppliesto the industrial coal-consumers:After nationalization of the coal industry in 1972 / 1973, the then CMAL (Coal Mines Authority Ltd.)and CIL (Coal India Ltd.) systematically adopted coal-distribution policies aimed at eliminating the role ofmiddlemen / traders in reaching coal from the Coal Co.’s to the coal-consumers. Coal used to be supplieddirectly to the industrial consumers through grant of “coal-linkage” without any necessity of middlemen ortraders in the channel of coal supplies to the industrial consumers. This system of coal-supply to the industrialunits through “linkage”, ensured an assured supply of the required qnty. of coal from fixed sources / collieriesat fixed prices notified by CIL from time to time.But, gradually, some unscrupulous coal-consumers misused the system of taking coal against linkageand indulged in diverting such coal to the secondary market or black market.The Govt. / CIL, instead of taking effective steps to plug the loop-holes to check the flow of coal to theblack-market, stopped the grant of issue of coal linkages to new non-power sector consumers and introduceda new system of supply of a substantial quantity of coal through E-Auction, where the traders and the “actualcoal consumes” were treated at par in taking part in bidding in the E-auction. The big traders managed tograb the major quantity of coal offered in E-auction and the actual coal-consumes were forced to purchasecoal at exorbitant price from the so-called successful bidders in the E-auction.In the new coal distribution policy, the actual coal-consuming industrial units (who had not beengranted coal-linkage during the last 8 /10 years and who had to meet their coal requirements from thesecondary / black market at exorbitantly high price), expected to get coal in the regular channel through grantof coal linkages or LOA’s & FSA’s. But the new Coal Distribution Policy addressed this issue only for the powersector consumers, including the CPP’s. The other non-power sector including cement & sponge iron unitshave been asked to take 75% of their normative coal requirement through the normal channel of linkages(now LOA’s & FSA’s) and depend on the secondary / black market for their balance 25% coal requirement.APRIL-2008/5

Although the new policy has a provision of a separate E-Auction only for the actual coal consumers(which is now termed as Forward E-Auction), only time will tell to what extent this special provision of E-Auction (Forward E-Auction) will fulfill the actual requirement of coal for the non-power sector industrialconsumers.2. No time schedule given in the new policy for grant LOA’s & execution of FSA’s: -Before adoption of the new Coal Distribution Policy, the Coal Ministry / CIL had practically stoppedgrant of new coal-linkages for the last 6 / 8 years, without officially announcing stoppage of grant of newlinkages. This stoppage of grant of new linkages coupled with the re-reintroduction of the middlemen / tradersin the coal supply channel (through E-Auction), had created a chaos, leading to legal battles in the courts.On the intervention of the Hon’ble Supreme Court, the new Coal Distribution Policy had been adoptedby the Govt.But, the new policy does not mention any time-schedule or time-frame for grant of LOA’s and executionof FSA’s. As usual, the Govt. including the CIL & the subsiding coal co.’s. may take unduly long time, evenunlimited years, to grant LOA’s and execution of FSA’s. In that case, the new units & expansion units, mayhave to continue to depend on the secondary / black market for meeting their coal requirement.3. Conversation and optimal use of “superior quality coal.”The reserves of superior quality non-coking coal are limited in our country. There is urgent need forconservation and optimal use this limited valuable unreplenishable national resources of the country.The Sponge Iron Manufacturers Association (SIMA) had been repeatedly bringing to the notice of theGovt. and CIL that superior quality non-coking coal (Gr. B/C/D) should be conserved for metallurgical use bythe steel / sponge iron industry, of the country instead of burning such valuable high grade coal in the boilersof Power houses, which are designed to use low grade coal (Gr. E/F). But, the Govt./ CIL continue to supplya substantial quantity of such high grade coal ( 70 to 80 mtpa) to the boilers of power houses and supplylower grade coal (Gr. E/F) to the sponge iron sector which needs superior grade coal.Due to lack of vision, our predecessors used to burn good quality coking coal in the boilers of Railwaylocomotives. As a result of depletion of the reserves of good quality coking coal in our country, the steelindustry is now dependant on imported coal. Similar national blunder is committed by our policy makers in theGovt. and nationalized Coal Industry, by burning the limited reserves of superior quality non-coking coal inthe boilers of the power house instead of conserving such coal for future metallurgical use.Surprisingly, the new Coal Distribution Policy is fully silent on this vital issue of national importance.APRIL-2008/6

4. Determination of normative requirement of coal for industrial units.The new Coal Distribution Policy has emphasized the need of supply of coal to meet the normativerequirement of coal for the industrial units.But, no time limit has been specified to determine the “norms” of consumption of various “grades” ofcoal (with different coal-characteristics) for use in various industrial units.The Govt. / CIL should engage technical bodies viz. CFRI / CMRI / National Research Laboratories orBureau of Indian Standards (BIS) for expeditious determination of normative consumption of various types /grades of coal in various industrial units.5. Efficient use of coal in various industrial units.In the new Coal Distribution Policy, the Govt. has realized the importance of “efficient” & “economic”use of coal which is a scarce and unreplenishable fuel.About a decade ago, there used to be a “technical cell” in the Coal Making Division of CIL, with multidisciplinetechnical personnel viz. fuel technologists, chemical engineers, coal-preparation experts, miningengineers. Officers from this cell used to visit various industrial units and they used o render expert technicaladvice to the plant-personnel about “efficient” and “economic” utilization of coal depending upon the coalburningequipments used in the plants.The Govt. / CIL should revive the earlier practice of rendering “technical” service to the cost consumers.The help of technical organizations like CMRI, CFRI, Indian school of Mines, IIT’s etc. may be taken in promoting“efficient” and “economic” use of coal.6. Absence of any Provision of Regularity Authority in the new Coal Distribution Policy :The new Coal Distribution Policy does not have any provision or any mechanism with statutory authorityfor grievance redressal of the coal-consumers. The Govt. should have set up “Grievance Redressal Body orRegulatory Authority in Coal Distribution System so that the coal-consumers get a fair deal from CIL / CoalCo.’s who enjoy monopolistic powers as regards fixation of price and supply of “quality” coal .Coal Regulatory Authority, both at the Central level and State level, should be formed to look after theinterest of the coal-consumers & Coal Co.’s in the same way as Electricity Regulatory Authority at the Central& State level.APRIL-2008/7

HOT BRIQUETTED IRON ASSOCIATION (HBIA)Dedicated to Promoting Hot Briquetted IronAs the Ideal Source of Merchant Steelmaking MetallicsBy ALBERTO HASSAN, President & Frank Griscom, Executive DirectorDirect Reduction GrowthOver the 10-year period 1996-2006, the productionof DRI and HBI skyrocketed 80 percent, from 33.3million tonnes per year (t/y) to 59.8 million t/y. Evenmore remarkable was the 115 percent increase inshipments of DRI and HBI, which climbed from 6.8million t/y in 1996 to 14.6 million t/y in 2006.Sixteen countries account for the world’s supply ofDRI and HBI, and four of these countries (India,Venezuela, Iran, and Mexico) together produce morethan half of the total output. Venezuela and Indiaalso are HBI producers.In 2006, Venezuela accounted for 4.6 million tonnesof the roughly 7.0 million tonnes of HBI produced.Russia, Libya, Malaysia, and India made up thebalance of HBI production.Approximately 80 million tonnes of HBI have beenshipped worldwide since the Fior de Venzuela plantmade its first delivery to the US in 1978. Of thattotal, 65 million tonnes have been transported overwater (ocean and inland). Plants located inVenezuela have accounted for 50 percent of all HBIshipments since 1978.Direct from Midrex lists more than 20 million t/y ofdirect reduction capacity capable of producing HBIthat are either operating, under construction orinstalled but inactive (see Table I). However, a closerlook at Table I reveals that almost 8.5 million t/y areallocated first to an adjacent or nearby steel mill andsecondarily to export.Although the primary purpose for these directreduction plants is to feed a company-ownedsteelmaking operation, the managements of thesecompanies have provided themselves an additionalrevenue stream and another value-add use of theirnational energy resources by including the capabilityto produce HBI for export.Country Company Product(s) Capacity Start-up Status(Mt/y)Venezuela Operaciones rDI (Fior) HBI 0.40 1976 InactiveMalaysia Antara Steel HBI (Lion Group) HBI 0.65 1984 OperatingIndia Essar Steel HBI/HDRI 0.88 1990 Operating(Plants 1 & 2)Venezuela CVG/FMO (formerly OPCO) HBI 1.00 1990 OperatingVenezuela Venprecar HBI 0.815 1990 OperatingIndia Essar Steel HBI/HDRI 0.44 1992 Operating(Plant 3)India Vikram Ispat (Birla Group) HBI 0.75 1993 OperatingLibya Libyan Iron & Steel HBI 0.65 1997 Operating(Plant 3)Venezuela COMSIGUA HBI 1.00 1998 OperatingTrinidad Mittal-ISG Trinidad HBI 0.50 1999 InactiveRussia Lebedinsky GOK HBI 0.90 1999 Operating(Plant 1)* President - HBI Association Ltd. (HBIA), Caracas, Venezuela** Executive Director – HBI Association Ltd. (HBIA), Matthews (Charlotte area), North Carolina, USAAPRIL-2008/8

Venezuela Orinoco Iron HBI 2.20 2000 OperatingVenezuela MATESI HBI 1.50 2000 OperatingIndia Essar Steel HBI/HDRI 1.00 2004 Operating(Plant 4)India Essar Steel HBI/HDRI 1.50 2006 Operating(Plant 5)Russia Lebedinsky GOK HBI 1.40 2007 OperatingPlant 2)Qatar Qatar Steel DRI/HBI 1.50 2007 Operating(Plant 2)Oman Shadeed Iron & Steel HDRI/HBI 1.50 2008 ConstructionMalaysia Lion Group HDRI/HBI 1.54 2008 ConstructionSource: MidrexTable I – DR Plants Capable of HBI ProductionToday, HBI is shipped to iron and steel producersthroughout the world. In 2006, 43 percent of the HBItraded worldwide found its way to North America.Europe consumed 24 percent of the HBI shipped,followed closely by Asia at 20 percent. South Americaand Africa received 8 percent and 5 percent of HBIshipments, respectively.Venezuela is the site of the only operating HBI plantsin the Western Hemisphere and primarily servicesNorth America and Western Europe. Russia, withabundant natural gas and iron ore reserves, isemerging as a key exporter of HBI into Europe andthe Near East; while new direct reduction capacity inthe Middle East will make HBI available both in theimmediate region, as well as to export markets. Thepresence of indigenous iron ores and the prospectsof new natural gas allocations make Indian HBIproducers potential suppliers to customers in theSEAISI countries and throughout Asia and the PacificRim. There may be additional HBI available for exportfrom Malaysia (Labuan Island) when the Lion Groupstarts up its new direct reduction plant later this year.Of the 42 million t/y of DRI and HBI capacity that areidentified as under design, construction, or inoperation, 35 million t/y will come from plants locatedin Russia, India, the Middle East, and North Africa.Why HBI?The first modern day direct reduction plants were builtadjacent to steel mills, and the DRI was intended forlocal use. As demand developed in areas wherecaptive plants were not feasible, merchant shipmentsof DRI began. However, incidents involving DRIcargoes eventually led to increased insurance ratesfor shippers and a subsequent decline in oceantransport. A safer way to ship DR products had to befound in order for the merchant market for directreduction products to grow.The answer was hot briquetted iron (HBI).The International Maritime Organization (IMO) issuesguidelines for safe shipping and handling of variousocean-going cargoes. The IMO Code of SafePractices for Solid Bulk Cargoes (BC Code) is thebasis for national shipping regulations and for settingbulk cargo insurance rates.HBI or DRI A, as it is known by IMO and DRI in lumpand pellet forms or DRI B are included in the IMO BCCode.Due to the greater density of HBI, which gives itsuperior handling, shipping, and storingcharacteristics, IMO guidelines are less stringent thanthose for DRI. Ship owners/operators, charterers,and the Property & Indemnity (P&I) Clubs, which setand regulate insurance rates for the transport of bulkcargoes, prefer HBI for long, open-ocean voyages.What is HBI?HBI, a compacted form of DRI, was first produced byFior de Venezuela in 1976. Today, dedicatedmerchant HBI plants are in operation in Venezuela,Russia, India, Malaysia, and Libya.APRIL-2008/9

HBI is manufactured to be shipped over greatdistances and melted in a variety of iron and steelprocesses. It is available throughout the year unlikescrap, which tends to have a “collection season.” Thechemical composition of HBI is certified by theproducer, and ISO quality standards are strictlyfollowed.Physical characteristics are the real reasons that HBIwas created. As mentioned earlier, its greater weightthan DRI in pellet and lump forms allows rapidpenetration of the furnace slag layer. It is 100 timesmore resistant to reoxidation and will pick up 75percent less water than DRI. HBI generates few fines,which provides greater value to the user and reducessafety concerns during handling and shipping. It ispillow-shaped and of sufficient size to be transferredby standard materials handling equipment.Advantages of HBIHBI is a product of the direct reduction of natural ironore fines, lump ores, and/or iron oxide pellets. Allforms of direct reduced iron (DRI) share theseadvantages:●●●●●●●Attractive cost structure when compared withprice of imported scrap in countries that haveabundant and inexpensive natural gas resources.Availability of annual supply contracts avoidsprice spikes of spot market.Year-round production (no “collection season”).Well-defined, consistent chemistry withguaranteed specifications.Low residual content (Cu, Ni, Cr, Mo, Sn, Pb, andV):ooDilutes impurities in lower quality scrap.Blends with other metallics for best totalcharge economics.Applicable for full range of products, from rebarto sheet steel.Continuous feeding maximizes power-on time,increases bath weight.●●●●●●●Promotes foamy slag and reduces EAF nitrogenlevel.Shields refractory to reduce damage.Excellent for AC or DC furnaces, long or shortarc operationIncreases iron production in BF, reduces cokerate and CO emissions.2Compatible with injected fuels and oxygen.Metallic yield in BOF similar to hot metal.Predictable mass and heat balances.In addition to the advantages of DRI, HBI providesthese unique characteristics and benefits:●●●●●Density greater than 5.0 grams per cubiccentimeter (g/cm 3 ), which allows for rapidpenetration of the furnace slag layer.Higher thermal and electrical conductivity forfaster melting.Less fines generation for added value to thecustomer.Less reactive with water for safer ocean andinland transport.Easy to handle, store, and transferring in all typesof weather and with standard materials handlingequipment.Introduction of HBI Association Ltd. (HBIA)The Hot Briquetted Iron (HBI) Association or HBIA isa not-for-profit corporation whose purpose is:●●●To promote HBI as the preferred source ofmerchant steelmaking metallics.To inform ship owner/operators and charterersand terminal operators of the handling, shipping,and storage benefits of HBI.To assist iron and steel producers in the effectiveuse of HBI.HBIA has four types of members:APRIL-2008/10

●●●●Producers – Companies with the ability toproduce HBI, have begun construction of an HBIplant, or assume the operations of an HBIproducer.Associates – Companies engaged on acontinuing basis as either an HBI plant builder ora supplier of technology, goods, or services tothe HBI Industry.Traders – Companies engaged on a continuingbasis in selling or brokering HBI.Special – Individuals who have had outstandingcareers or are currently involved in the HBIIndustry or a related academic field.Each HBIA member company is encouraged toparticipate in the three standing committees:Promotion, Technical, and Transportation. Thesecommittees determine the public relations,educational, research and development, and lobbyingprograms of the Association.As an HBIA member, companies have:●●●●●●Access to and network with the major producers,suppliers, and traders of HBI and othersteelmaking metallics.Representation at major worldwide conferences,trade shows, and meetings.Source of news, information, and statistics aboutHBI and the global steel industry.Voice in international forums that set guidelinesfor handling, shipping, and storage of merchantsteelmaking metallics.Entry into Members Only area of HBIA Web site(www.hbia.org).Roster of member companies and contactinformation.HBIA is an Affiliated Member of the South East AsiaIron and Steel Institute (SEAISI) and has workingrelationships with the International Pig IronAssociation (IPIA), and the Sponge IronManufacturers Association (SIMA).CRACKERS INDIA (ALLOYS) LTD.NEW MEMBERSGANESH SPONGE PVT. LTD.Head Office : Station RoadBarbil, KeonjharOrissaPhone : (06767) 275520Fax : (06767) 275520Corporate Office : B-40, Sahid NagarBhubaneswar-751 007OrissaPhone : (0674) 254507Fax : (0674) 2545009Email : sahoo_ore@yahoo.co.inInstalled : 0.30 Lakh TonsCapacityEmailInstalledCapacity: vikash@ganeshsponge.in: 0.30 Lakh TonsContact Persons :Mr. N.K. PatnaikDirectorMr. Srinibash SahooManaging DirectorContact Persons : Mr. S.K. DalmiaChairmanMr. Vikash DalmiaDirectorAPRIL-2008/11


TATA SPONGE IRON BAGS GOLDEN PEACOCKNATIONAL QUALITY AWARDGolden Peacock National Quality Award was found to distinguish and accredit companies for their consistentachievement of outstanding results, as an outcome of their sustained avidity for excellence and their resolutecommitment to employees, customers, other stakeholders and their communities. Developed on the lines ofinternational famous European Foundation for Quality Management (EFQM), the model works to capture thebest practices of successful organizations and to turn this knowledge into practical resources for the businesscommunity.It is a matter of pleasure & pride for Tata Sponge, when the company was declared Winner under the smallcategory, thus registering its unwavering priority to quality during the year under review, in all walks ofperformance. The award was jointly received by Mr.Suresh Thawani, Managing Director and Mr.R. Somnath,Sr. Executive Officer (Corp. Affairs) during a formal ceremony held in New Delhi on 13th January ’08, byformer Chief Justice of India Justice Mr.RC Lahoti.As per the rigid strictures that the competition stipulates for its the participants, an applicant has to furnishdetails in nine evaluation criteria covering every aspect of company operations & management ably supportedby a sustained level of profitability, setting examples for good corporate citizenship and formulating short &long term strategies & interacted action plans for business growth to secure a robust future for the company,besides addressing a host of other issues concerning the protection of stakeholders’ interest.APRIL-2008/13


With Best Compliments from :-RASHMI ISPAT LIMITEDRegd. Office : City Office :At.- Raghunathpur,‘ASHOKA HOUSE’,P.O. - Jhargram – 7215073A, Hare Street, 4 th Floor,Dist. - Paschim Medinipur (W.B.) Kolkata – 700 001.Phone No. :- (03221) 255590/258633 Phone No. (033) 2248 0630/31APRIL-2008/15

EXPERIENCE AT MONNETTHE LONGEST CAMPAIGN OF KILN NO.1C.S. Tewari, CEO & B.C. BARMAN, Sr. GM (Production)Monnet Ispat & Energy Ltd.INTRODUCTION:Monnet Ispat & Energy Ltd. has an excellentmanufacturing setup for Sponge Iron, Steel Billets &Ingots, Ferro Alloys, Power generation in Raipur,Chhattisgarh state, close to the source of its mainraw material – Iron Ore and Coal. To increase itscompetitive edge Monnet has entered into anotherintegrated steel manufacturing setup at Raigarh andMining of Coal & Iron Ore from captive mines.The success story of Monnet started with thecommissioning of 1 Lac Ton per annum Sponge IronPlant setup in Raipur unit in 1994, mostly by the lowcost second hand equipments and machineries withthe direct involvement of Legend late Shri O.P. Jindaljiand our respected MD Shri Sandeep Jajodiyaji.Gradually, along with the expansion of Steel, FerroAlloys, and Power Plant, the Sponge Iron Division ofMonnet Raipur, also, has ensured augmentation of acapacity to 3 Lac Ton per annum by installing one350 TPD and two 100 TPD in 2001 & 2003respectively.SUCCESSFUL CAMPAIGN OF KILN 1:The Kiln-1 (1 Lac TPA) of Monnet, Raipur started its58 th No. Campaign on 29 th July 2006 and aftercompletion of 526 days of successful non-stopoperation, its un-tired long journey ended on 5 thJanuary 2008 with a glorious landmark of everlongestcampaign life.This kiln is having an adventurous history behind thisachieve-ment, which reinforces the adopt that nothingis impossible, given the will to achieve and will toWIN. It was a tremendous painful period during2002-2003, when almost everyday the Workers,Engineers, Managers used to shed their sweat totackle the broken girth gear problem, which wasrunning with bolting and welding at four different parts.Being an old and indigenous kiln it got its owntechnological limitation also. Still, just like a war likesituation, the entire DRP team left the kiln runningfor more than two years.Subsequently, two capital repairs in two phases werecarried out: first in April 2004 to July 2004 for majoroverhaul of girth gear change along with the entiredrive unit comprising of pinions, gear boxes. Two tyreshells, outlet cone, and entire refractory also replaced.The second overhaul was taken in July 2006 for onemonth, mostly for repairing and new castable liningin ABC, new wet scrapper and for new pollutioncontrol system in product separation Plant. Inbetween these two phases of overhauls, the kilnstarted giving good production at the rate of 9500APRIL-2008/16

MT per Month with a campaign life of 150-200 days.Then after the last overhaul, it started 58 th campaignon 29 th July 06, which ended on 5 th January 08 after526 days of relentless journey. Definitely this journeywas not without obstacles, which at different occasiontried to break heart for whether to continue orterminate. After 200 days we started facing theproblem of air tube damage in bunches, causingrestriction to maintain same production rate andquality. Small agglomerates and fuse massesbecame inevitable in the product. To make DRI freefrom this contamination, we deployed number ofworkers round the clock for on-line picking and thanksGod, by this way, we could avoid hardly any complaindo? It seemed almost impossible to overcome thisproblem except going for shutdown. But the teamrefused to stop the journey.A brave decision was taken to cool the kiln moderatelyfor 12 hours. Then, after opening the transfer chutedoor, the cooler mouth was dummied with movableplate. The team along with the leaders entered thecooler, completes the fitting, welding, and refractoryjob of the damaged ring within 12 hours and restartedfrom the market. The entire problem was tackledeffectively by the coordinated effort of the concerneddepartments. However, for the damage of air tubes,we could manage to maintain the same feed rate of22.5 TPH by adjusting from the other air tubes or toallow the airflow through damaged air tubes too.Ultimately, in two installments at different time wereplaced four air tubes each from hot kiln, whichcould have been only possible for the great teameffort. This episode took place in between 200-450days. Initially, the DRP team focused to cross 292days (previous highest campaign of Monnet in Kiln-2) and then the target was extended with anincrement of 30 days at every stage.Once after 425 days, Cooler Inlet Ring of TransferChute got damaged and the 100% hot materialstarted falling on the ground instead of passingthrough the Cooler. Again we were in a fix for what tothe operation immediately. This trouble-shooting tookjust 30 hours to resume the production.Apart from attaining the major breakdowns there wereso many important activities involved to carry on thiscampaign, which are also worthy to mention in thiswrite-up. Huge discipline in raw material size, closemonitoring of the process, minimum stoppages of thekiln, all contributed for a very sluggish growth ofaccretion inside the kiln. There was always a crisisfor feeding the kiln in a particular type of iron ore.APRIL-2008/17

The kiln had tested more than 20 types of lowgrade - soft type iron ore from different sources.The last 150 days of the campaign, the kiln wasoperated with 45-50% ash coal in blending with Bgrade coal. The cumulative production of the 526days of campaign was 166208 MT at the rate ofaverage 315 MT per day. The quality of theproduction was 96.56% “A” grade [i.e. > 81% Fe(M)], with average specific consumption of coal 1.08for the entire campaign. Another highlight of thecampaign was that the kiln availability was mostlymore than 99.5% and in average it was 98.2%inclusive four major break-downs, which took 24 to30 hours each to get it rectified.AT A GLANCE PLANT PERFORMANCE FORLONGEST CAMPAIGN 526 DAYSFROM 29 TH JULY 2006 TO 5 TH JANUARY 2008Total Total A Grade Total Total Average Feed Specific Specific KilnProduct- B+C Grade No. of Product Rate Ore Coal Availion Opert- ion (MT) TPH Consum Consum ability(MT) MT % MT % ing days per day ption ption %166208 160485 96.6 5723 3.4 526 315 22.50 1.62 1.08 98.2THIS EXPERIENCE OF “EVER HIGHEST CAMPAIGN” IS DEFINATELY A RESULTANT OF VISION,DEDICATION & HARD WORK OF “TEAM MONNET” AND IT HAS LAID A CHALLENGE TO DO STILL BETTER.NEW MEMBERVISA STEEL LTD.Corporate Office :HLL Building (2nd Floor)9, Shakespeare SaraniKolkata-700 0071Phone : (033) 30519000Fax : (033) 30519001Email : marketing@visasteel.comInstalled : 3.0 Lakh TonsCapacityContact Persons :Mr. V. SaranChairmanMr. Vishal AgarwalManaging DirectorAPRIL-2008/18


A BRIEF REPORT ON SIMA DELEGATION VISIT TO DOHA, QATAR17 – 20 MARCH 2008The 8 th International Iron and Steel Summit was held from 17 th -20 th March 2008 organized by Arab Iron andSteel Union (AISU) in association with major steel producers and technology suppliers in the world. More than300 participants among 183 companies from 42 countries from various sectors attended the conferencewhich was a huge response from all over the world.SIMA delegation consisting of 7 members representing Indian sponge iron industry visited Doha, Qatar toattend this important conference. The visit helped the members to interact with iron and steel manufactures/technology suppliers outside India and exchange the ideas for further strengthening/progressing their business.Apart from sharing information such events help to develop the platform for networking too. Looking at Indianiron and steel industry growth perspective, such kind of visits on regular basis are quite useful and give asupport to the related industries like our sponge iron, its growth in future and maintaining its status as world’slargest producer. Most of the members felt that such overseas exposure is a must and SIMA should organizesimilar business delegations at least once a year.On behalf of SIMA, Mr. Suresh Thawani, Managing Director, Tata Sponge Iron Ltd. presented a technicalpaper on “Role of Sponge Iron in Indian Steel Industry” which was well appreciated by all delegates.Also around 30 working papers were presented by strategic analysts and experts from different countries inthe world. The topics presented in the conference discussed a number of issues concerning the steel and theallied industries in the world.As in the past Arab Iron and Steel Union (AISU) as a gesture of friendship and goodwill between two organizationspresented a memento which was received by Executive Director Mr. S S Bhatnagar on behalf of SIMA.All members of delegation felt happy, satisfied and expressed thanks to SIMA for organizing this very informativeand purposeful visit.APRIL-2008/20


ROLE OF SPONGE IRON IN INDIAN STEEL INDUSTRYSuresh Thawari, Managing Director, Tata Sponge Iron Ltd.India had scaled the peak of its civilization twocenturies back. This also meant supportingproduction of goods and services. It is estimated thatin that period, India contributed nearly one third ofthe world economic output. Fig 1 gives the dataregarding share of GDP of various nations in the worldeconomy since then. Even taking entire Europe asone nation, India occupied first position in economicoutput for nearly 1500 years.for steel production for the last five years. Whereasstrong increase in steel consumption in China isbacked by creation of manufacturing facilities &infrastructure, the growth in Indian Steel consumptionis poised to take off only now.Figure 1After 1500 AD, India started to decline in economicdominance due to various invasions and later due toBritish occupation of India for nearly 200 years till1947. Independent India, torn due to Second WorldWar and partition, poor education & infrastructurestarted its economic journey with slow growth. Onlyafter start of the liberalisation process since 1991,the economy has now started to depart from lowgrowth rates. Present growth story of BRIC nationsis well known which, as per available records controlsover almost 50% of world steel production. Amongstthese nations, GDP growth of India is next only toChina. Albeit starting with a low base, GDP growth inIndia in the range of over 8% for last five years hasmade the world sit up and notice this nation. Largepopulation in India provides a bigger market for allcategories of goods and services. With thrivingdemocracy, trustworthy banking, legal and financialmarkets, corporations across the world have evincedgreat interest in India Story.Strong economic growth in India and China hasboosted the world steel production. Fig 2 gives dataFigure 2Estimates of steel consumption in India till the year2020 are given in Fig 3. An estimated 75 milliontons per annum of steel consumption in the year 2010is likely to grow to over 200 million tons per annumby the year 2020.Figure 3Steel is manufactured through two well known routes(i) Integrated Steel Plants, (ISPs) (ii) Secondary SteelMaking. ISPs use Sinter, Coke, BF, BOF route forsteel making and need large CAPEX. These plantsAPRIL-2008/22

also need large portion of land to install the facilities.Steel plants using Secondary Steel Making route useElectric Arc Furnace to make steel; metallic feed forwhich consists of DRI/Scrap and Hot metal from blastfurnace. These plants are compact in size, need lowerCAPEX and take comparatively shorter time to install.In addition, as India does not have low ash cokingcoals, production of steel through non BF source ofmetallic iron is preferred. Considering these factors,there has been swap in the ratio of steel made byISPs and Secondary Steel Makers as given in theFig 4.Figure 5With this exponential growth in DRI industry in India,the country boasts of having 30% share of world DRIproduction as given in Figure 6. This makes Indiathe largest producer of DRI in the world – a positionthat India has retained for the past 5 years.Figure 4This trend is likely to continue since there are no majorISPs under construction and only capacity expansionin the ISPs is through brown field expansion. Indiaalso does not have enough iron & steel scrapgeneration and the demand of the same is metthrough imports. Further there is stagnation in thesteel scrap availability in the world. This has resultedinto requirement of metallic iron being met forSecondary Steel Making by DRI. Figure 5 gives theactual production of DRI in India till financial yearMarch 2007 and estimates of growth in bothSecondary Steel Making and DRI or Sponge Iron tillthe year 2012.Figure 6DRI is popularly made using natural gas asreductant/fuel in vertical shaft kilns. This process isenvironmentally clean and energy efficient. The otherprocess of making DRI is by using non coking coalsas reductant/fuel in rotary kilns. India does not haveadequate availability of natural gas. Three gas basedDRI plants were installed about two decades backand the number has remained the same althoughthese have expanded their capacities and increasedoutput. However there has been very high growth inproduction of DRI through coal based kilns. Figuresfor production of DRI in India through two processroutes in the last decade are given in Figure 7.APRIL-2008/23

1. Availability of iron ore and non coking coal inthe domestic market2. Low CAPEX & low installation time.3. Availability of full plant and equipment in India4. Availability of man power5. Unsaturated market demand of productFigure 7Production of over 11 million tons of sponge ironthrough coal based kilns in the year 2006-07 hasmade India the largest producer of coal based spongeiron in the world. Growth in the coal based spongeiron industry in India has been due to the followingreasons.Conclusion The growth story of DRI industry in Indiahas not yet reached its maturity. For next decade orso, with expected strong growth in the GDP of India,the consumption of steel is set to grow at a fasterpace. Strong growth in the coal based sponge ironindustry in India is expected to continue in theabsence of any significant change in the ratio of steelby ISPs and Secondary Steel Makers.SILVERLINE ENGINEERING SERVICES10/6, Konarak Nagar-I, Viman Nagar, Pune – 411014Telefax: 020 26633914, Tel: 32514009, Cell: 9423581189e-mail: silverlineengineering@gmail.com; web site: www.silverlineengineering.comFor high quality professional services for Inspection/Alignment & Maintenance of: Rotary Kilns/Dryers/Coolers/Granulators Diagnostic Study/Technical Audit Alignment - Checking & rectification Mechanical Trouble Shooting Revamping (Replacement of shell/tyre/chair-pads/base-plate/girth-gear) Pre-commissioning check Supervision of Erection/Heavy-repairs Training programme in Maintenance of Kilns/Dryers for engineers: specially designed programme can be conducted at your premises also Supply of: Tyre mounting Chair-pads (bolted/welded/free-floating) (Design/Engineering/Supply/Replacement Graphite blocks, powder, seal plates Spring steel seal plates Replacement shells* During the last four years, we have inspected/attended to more than 60 kilns/dryers/coolers inSponge- Iron/Cement/Paper Industry* We have a team of experienced personnel, who are amongst the best in the industrySome of our valued clients:- Nova Iron & Steel Ltd., Bilaspur - Rengarajan Steel & Power Ltd., Erode- Goa Sponge & Power Ltd., Goa - Agni Steels Ltd., Erode- Shree Veerangana Steel & Power Ltd., Nagpur - GR Steel Ltd., Raipur- Shree Mahaveer Steel & Power Ltd., RaurkelaAPRIL-2008/24


Sponge Iron Plant a Brief JourneyMr. Damodar Mittal is working as a General Manager in Jindal Steel & Power Ltd. from 1988 and serving in thearea of Projects; He has completed his Mechanical Engineering from govt. Engineering College Kota, Rajasthanin 1988 and joined as a GET in JSPL. He had been involved various project activities Iron ore mine exploration,Coal mines & completed many projects of Sponge Iron in JSPL as well as in NSPL Raigarh and presentlyworking as a G.M. Projects for expansion of steel plant Raigarh unit existing from 3.0MTPA to 10.0MTPA &2.0MTPA Cement plant project.Major Projects Completed.A. JSPL Projects• 6 x 300 TPD Sponge Iron (Unit-I)• 4 x 500 TPD Sponge Iron (Unit-II)• Research & Development on Rotary Hearth Furnace.B. Nalwa Steel & Power Ltd.• Successful completion of 0.5 MTPA Steel Plant having captive power plant of 24MWHe has worked for establishment of Nalwa Steel and Power Ltd (NSPL) under the guidance of our Late ShriO.P. Jindal. Nalwa plant was started with a small dream in a mind to set up a sponge Iron Kilns to utilize the fineIron ore (1 – 5 mm size) which was of no use in JSPL at that time. Once the project of Nalwa started, it prospersinto an integrated steel plant with better environment & amenities.Salient Features of NSPL Project are :-• In house Design & Engineering.• Use of all Scrap Material for fabrication of Kiln.• Lowest project cost and fast payback period.APRIL-2008/26

• Project completion within time frame.• Successful establishment of Rolling mill using old & used Mill.• Captive power plant of 24MW capacity.• Captive coal washery of 100TPHAs we all know Jindal Steel and Power (JSPL), Part of the US$ 6 billion Jindal Organization, is in the businessof steel production, power generation mining iron ores, coal and diamond exploration/mining. The currentturnover of the company is over Rs. 2900 crores and the company is on the path of catalyzing economicdevelopment of the country through its contribution to the infrastructure sector. Now this group is step into anew field of product line i.e. Cement; which is the basic element of building material. The capacity of Cementplant is 2.0 MTPA and which will be headed by Mr. Mittal and the commissioning date of which will be 30.11.09.Brief of Sponge Iron Project.Use of direct reduced iron (DRI) as a source of virgin iron for steelmaking is a widely accepted practice, andDRI has found a home where cheap natural gas or coal is available as a reductant or fuel. The cost ofproduction is also comparatively low as compare to the BF route. So we have come up with these projectwhere have the major equipments are Kiln, Cooler, ABC, DSC, Daybin, Screen House & Product hopper.The project is started by the management keeping the things in mind like the feasibility of the project i.e. theavailability of raw materials & no. of production lines. Minimum two production lines should be their for economicfeasibility. The optimum time required for the completion of the project for at least 4 x 500 TPD SI units is 18-20 months whereas the critical items like Kiln Tyre & Girth Gear to be ordered at the beginning.As per today’s scenario the cost of 4 x 500 TPD project will be approx. 400 Cr. The most advantageousaspect of this project is low investment cost and high rate of Returns. The waste gases of the kiln can also beused for generating power and we can save fuel. For example we can produce approx. 60MW power in theunit of 4x500 TPD Sponge Iron Plant.Major highlights of the Jindal Sponge Iron Project are:-• The Design & Engineering of Kiln, Cooler, ABC, DSC & Wet scraper is of JSPL.• First kiln of the project was completed in record time of 15 months.• Major critical equipments of the projected was imported to maintain the quality and to save the timelike Girth Gear , Tyre , Support Rollers , DSR Bearing, Drag chain of wet scraper & Belt of high angleconveyor.• The plant was installed with best pollution control & monitoring equipment to maintain clean environment.• Approx. 2 months time has been saved during the commissioning of 1 st kiln in doing the castableAPRIL-2008/27

without the girth gear. First time in the history of sponge iron project we have used Hydraulic cylindersto rotate the kiln for application of castable.• Most of the indigenous equipments are made in house like Support rolls, Ash conditioners, DP Valveat the outlet of the cooler etc. to save time & money.• The complete fabrication of Kiln, Cooler & ABC was done at site and nothing was purchased from outsite.• The project was executed under the minimum man power.• The project of 4 x 500 TPD was developed with the concept of Central control room & maximumautomation with CC TV system.• In DRI unit one we have used old cement plant equipments like Kiln shells, support roll, Tyres & Girthgears and converted to Sponge Iron plant and they are still running successfully.• Kiln no. 6 of DRI unit#1 was commissioned successfully in the record time of 9 months.• Lowest project cost and fast payback period.Threats faced during the Project time:-• Sudden hike in the price of steel has collapsed the planed budget.• Late delivery of critical equipments like Tyre, Girth gear & support roller diverted us to import thesame.• Heavy rail fall in the year of 2003 hampered the civil construction.• Non availability of land near the screen house area lead to late commissioning of screen house.• Heavy water seepage near the area of Product hopper building due the power plant pond lead todelay in civil work.Set Up with Indigenously Developed ‘O.P Jindal Technology’ Jindal Steel & Power Limited-India (A FlagshipCompany of O.P Jindal Organization) is The Wonderful Example Of How To Convert Adversity Into Opportunity.At Jindal Steel & Power Ltd, India, An Attempt Was Made To Utilize High Ash Coal And Poor Quality Iron-OreTo Make Sponge Iron Of Prime Quality By Modifying Operating Parameters, Some Changes In Facility AndDesign Of The System, This Attempt Of Us Met With Considerable Success And As A Result We Have BeenAble To Produce Quality Sponge Iron At Lowest Level Of C/Fe Ratio Lowest Net Specific Energy ConsumptionAnd Lowest Cost Of Production As Well. This Paper Highlights The Secrets Of Success Behind TheAchievements And The Initiatives Taken To Modify Operations To Get More Than 99% Kiln Availability, 97%Quality Product.Now JSPL, Raigarh is successfully operating 10 no of rotary kilns with indigenous developed Jindal technologyhaving capacity of 1.32 million tones of sponge & 6 nos of Kilns in NSPL.APRIL-2008/28

Salient Features of O.P. Jindal Technology For Sponge Iron Making.• The technology is very simple from engineering & design point of view.• This technology can handle wide varieties of oxides like limonite, goethite, pellets, and hematite.Magnetite where as the other coal based technologies uses only hematite ore of requiredspecifications.• This technology can also handle wide varieties of non-coking coal even up to 20% moisture and33-34% V.M, 30% ash and 39% fixed carbon.• The C/Fe ratio is lowest (0.42-0.45) in this technology; this is unique feature of this technology incoal based technologies.• The placement of air injection tubes is completely different from other coal based technologies.In A Short Span of 10-12 Years, Jindal Steel & Power Ltd, World’s Largest Coal Based Sponge IronPlant Has Emerged As one of The Most Profitable Integrated Steel House Based on Its Size OfOperation.PICTURE OF 4 x 500 TPD KILNS PROJECTAPRIL-2008/29


SIMA Congratulats M/s Shri Bajrang Power & Ispat Ltd. forsuccessful modification in Transfer Chute System improvingSubstancially Operational parameters and sharing informationwith the members as follows.Modification in Transfer Chute OperationOperation of transfer Chute is one of the most critical area in the Coal based Sponge Iron manufacturingprocess through Rotary Kiln and we all are regularly facing various problems of jamming of transfer Chute.To the credit of our mechanical team who have evolved modified system for the transfer chute operation andhave fixed a hydraulic cylinder and 2 inspections doors on the side of transfer Chute. In case of jamming oftransfer Chute, Hydraulic Cylinder is operated and simultaneously pocking is done from inspection doors toclear the Chute without holding the Kiln.Modification has the following advantages:1) Reduction in pollution: at the time of opening transfer Chute hot flames, smoke and dust areevolved, new system is free from all such hassles.2) Saving of finished material: when we open the transfer Chute 8-10 MTs of finished material comesout alongwith accretion and boulders, modified operation saves on this account.3) Less down time of the Kiln: In modified operation we need not to hold the Kiln and save on A/c ofloss of Production and Power Generation.4) No negative effect inside the Kiln: Due to opening of transfer Chute negative pressure developinside the Kiln due to outside air and at time product gets deoxidized and disturb the temperature & airprofile inside the Kiln. This modification avoids all these.5) Saving of Castable & Hydraulic Seals: In modified operation, we save on account of castable ofdoor fronts and seal kit of Hydraulic cylinders.6) Less manpower: The modified system needs lesser manpower than usual.7) Safe working: Operation of transfer Chute is accident prone activity and modified system is comparativelysafe.8) Success: In he modified operation system, out of 167 incidents of transfer Chute jam, we could clearjam 150 times without opening the transfer Chute and without holding the Kiln and only 17 times dueto big blocking transfer Chute was opened.APRIL-2008/31

SARDA ENERGY & MINERALS LIMITED(Formerly RAIPUR ALLOYS & STEEL LTD)Industrial Growth Center, Siltara, Raipur, (CG.) – 493111Tel: 07721-264204-09,403925-7, Fax: 07721-264213,214,403924Website: www.raslindia.com"Synergising Steel with Power"SPONGE IRON, STEEL, SILICO MANGANESE,FERRO MANGANESE, FLY ASH BRICKS,POWER & MININGAPRIL-2008/32








SIMA – HBIA ENTER INTO LONG TERM UNDERSTANIDNGAND COOPERATIONHot Briquetted Iron Association (HBIA) Spring Meeting held from April 8-10 2008 at Düsseldorf, Germany wasattended by SIMA Executive Director Mr. S S Bhatnagar. The conference was a technical seminar on HotBriquetted Iron (HBI) Raw Materials, Pelletisation, technical process and related updated technology. Paperswere presented by eminent experts in the fields of technology suppliers, engineering & equipmentmanufacturers from Germany, USA, UK and other countries. The conference was very informative andpurposeful and provided opportunity for close interactions with sponge iron industry connected experts.Discussions were held with Mr. Alberto Hassan President & Mr. Frank Griscom, Executive Director, HBIA in avery friendly atmosphere. It was decided that two Associations will be member of each other with no financialcommitments. In addition these Associations will exchange technical data, knowledge and experience to helpDRI/Sponge Iron internationally. Long Term cooperation and understanding will be developed between twoAssociations and Memorandum of Understanding (MoU) shall be signed in the near future.From Industry’s point of view this was a big achievement for SIMA & HBIAAPRIL-2008/40

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