1. 11th INDIA COAL MARKET CONFERENCE 2017
The future of Coal preparation and alternative sources of Met Coal for Indian Steel Mills Sudip Kumar Basak Executive Director SAIL-Collieries Division September 11th 2017 Hyatt Regency, Kolkata,INDIA

3. The apparent steel use/capita annum in 2016 is very low at 63 kg only in comparison of kg in USA,265.7kg in Russia, 207.9kg in the world and kg in Asia. The first three net exporters of steel are China, Russia with the support of 94.5,34.5 and 26.9 million tones respectively whereas the net importers are USA, Vietnam and Thailand with and 16.1 million tones respectively

12. Steel’s growth to raise coking coal demand
Note: Forecasts for coking coal based on requirement of 780 kg of CC per 1,000 kg of steel in blast furnace route

13. Coking coal demand

14. Domestic Clean Coking Coal Scenario

15. EBIDTA Margin of Indian Steel Companies- Under Pressure

21. TOPICS, IRON MAKERS SHOULD CONSIDER.
FUTURE CHALLENGES
RESOURCE DEPLETION
RISING ENERGY DEMAND
ENVIRONMENTAL CARE
TOPICS, IRON MAKERS SHOULD CONSIDER.

22. FUTURE RISKS RESOURCE DEPLETION RISING ENERGY DEMAND
ENVIRONMENTAL CARE
INCREASING RAW MATERIAL COST
INCREASING ENERGY COST
ENFORCED ENVIRONMENTAL LAWS

23. EMERGING SCENARIO IN IRONMAKING
More than 90% of world iron production is through Blast furnace technology route.
Driving forces: Alternative Iron making technologies:
Costly and scarce coking coal: Need to look beyond coking coal.
Possibility to use iron ore fines directly.
Environmental considerations.
Eliminate pollution-intensive sintering and coke- making processes.
High capital cost

24. Possible Solutions Direct Reduced Iron (DRI)
Reduction of ferrous oxide in solid state.
SL/RN, MIDREX, ITmk3 etc.
Smelting Reduction of Iron
COREX, FINEX, Hismelt etc.
using non-coking coal.
Obviating the need for coke oven batteries and sinter plants.

25. INDIAN Raw Material Flexibility
Iron ore –
Dry fines (-6mm) and slimes (ultra-fines) – used directly
High phosphorus content possible
No blending or agglomeration necessary
Can be pre-heated / pre-reduced to increase process efficiency
Steel plant wastes –
Dry fine wastes and metallic fines – used directly
E.g. mill-scale, steel-making slag, reverts, coke breeze
Coal –
Non-coking coals – ground to -3 mm and dried
From coke breeze (low volatile)
high volatile thermal coal (40%)
No blending, briquetting or coking required

26. CONVENTIONAL BLAST FURNACE PROCESS

27. Available Smelting Reduction (SR) Processes
SR technologies currently commercially exploited or ready for commercial exploitation.
COREX (Two stage): Operating commercially
FINEX (Two stage): Operating commercially
HISMELT (Single stage):Not being Operating commercially at present.
• Single stage: Reduction & melting in the same vessel
• Two stage : Reduction in one vessel; melting in the 2nd vessel.

28. COREX: Process Features
Developed by Siemens VAI.
Commercially most successful among SR technologies.
Work is carried out in 2 reactors.
Reduction shaft
Melter-gasifier.
Commercial units in operation
Korea : POSCO (COREX C-2000 – Capacity: 0.8 Mtpa)
India : JSW Steel (2 Units) (COREX C-2000)
: Essar Steel ltd (2 units) (COREX C-2000)
South Africa: Mittal-SALDANHA, (COREX C-2000)
China : Baosteel, (COREX C-3000) – Capacity 1.5 mtpa

29. Blast Furnace vs COREX

30. FINEX PROCESS Siemens VAI and POSCO jointly developed the process.
FINEX R&D since 1992.
FINEX demo of 600 Kt/y since June 2003.
FINEX of 1.5 Mt/y in May 2007 (1st commercial plant).
Based on the direct use of non-coking coal and fine ore.
Most exciting iron making technology on the market today.

31. Blast Furnace vs FINEX

32. FINEX - Advantages
production
pollutants
Blast Furnace
FINEX

33. Higher Quality Iron: Compared to blast furnaces Typical Analysis
Carbon
4.5%
4.4 ± 0.15%
Silicon
0.5 ± 0.3%
<0.01%
Manganese
0.4 ± 0.2%
<0.02%
Phosphorus
0.09 ± 0.02% *
0.02 ± 0.01% **
Sulphur
0.04 ± 0.02%
0.1 ± 0.05% #
Temperature °C
1420°C #
Dependant on sulphur input (mainly from the coal). With hot metal de-sulphurisation treatment
(known technology) sulphur levels are easily able to be reduced to <0.05%.
Low Phosphorus Ore
High Phosphorus Ore * **

34. Lower Operating Cost ~10-20% lower operating costs Relative Index
1.4
~10-20% lower
operating costs
1.2
1.0
0.8
Relative Index
0.6
0.4
0.2
0.0
Blast Furnace
HIsmelt
Ore Coal Other

35. Hismelt’s Advantages for India
ƒ Flexibility in Raw Materials
ƒ Lower Capital & Operating Costs
ƒ Lower Environmental
Impact
ƒ High
Quality
Iron Product

36. Final conclusion
Developing markets mainly led by china and India pulling the global steel demand.
Restricting growth factors are:
Scarcity of high grade raw materials.
Global environment problems and concerns.
Development of innovative alternative iron-making process technologies.
Low grade, low cost resources and to reduce the level of air pollution.

39. Coking and Non-Coking Coal Reserves , Billion Tonnes
Resources of India
Types of Coal
Reserves , Billion Tonnes
Prime Coking
5.3
Medium Coking
25.3
Semi-coking
1.7
Sub-total Coking
32.3
Non-coking
268.7
Total (Coking and Non-Coking)
301.0

40. Problems with Indian Coals
Non-Coking Coal
Coking Coal
High Ash – %
Drift Origin
Poor Washability
More Near Gravity Materials
Environmental Concerns
Poor yield of clean coal
Loss of fine coal in slurry
Poor pe4rformance of Washeries
Generation of more middling
Dewatering of fine coal

41. Opportunities Non-Coking Coal Coking Coal Improving the yield of clean
Simple Washing techniques to yield coal < 34.0%
Blending of Indian Coal with imported coal
Dry beneficiation techniques
High quality clean coal for direct reduction
Three product Washeries:
BF injection
Sponge Iron
Power generaion
Improving the yield of clean
coal by -
Additional clean coal from middlings by crushing to finer sizes.
Improving the performance of fine coal circuit
Improving the dewatering techniques

42. What are the Clean Coal Solutions
Beneficiation
Physical
Chemical
Biological
Others (Nanotech., Sound, Electromagnetic etc

43. Coal Preparation Past: Simple Mining of Non-Coking Coal
Beneficiation of Coking Coal
Present:
Beneficiation of Non- Coking Coal at coarse size
Beneficiation of coking coal including fines
Future:
Deep Beneficiation of Non- Coking Coal to achive 10% ash coal for metallurgical purpose by physical, chemical & biological process.
Deep beneficiation to recover more carbon values from middlings and fines

50. Key Drivers for Coal Washing Business

53. THANK YOU