The Hindu Business Line : NMDC, 3 others in talks with Rio Tinto arm

Mr Weber said HIsmelt technology, which has reached the stage of commercialisation after 20 years, afforded “unparalled flexibility” to steel manufacturers, especially to produce high value iron at lower costs.

M.R. Subramani

Perth, May 21 Public sector National Mineral Development Corporation (NMDC) and three other Indian firms are in talks with Australia’s HIsmelt Corporation, a member of the Rio Tinto Group, to buy a new technology to smelt low grade iron ores and even wastes.

“NMDC is one of the Indian companies holding talks with us,” Mr Stephan Weber, Managing Director of HIsmelt Corporation, told a group of Indian journalists on a Department of Australian Foreign Affairs and Trade sponsored-trip at the HIsmelt in Kwinana here.

The advantage of buying this technology is that low grade iron ores and coal can be used, ultimately helping in cutting operational and input costs in the steel manufacturing process.

A plant using HIsmelt technology can help produce eight lakh tonnes of steel a year and NMDC is likely to construct this plant in Chhattisgarh in joint venture with SAIL and RINL.

In fact, a couple of Indian firms have shown interest in replacing their current blast furnace technology in producing pig irons.

Currently, Indian firms are using the blast furnace technology, where only coking coal can be used, while in some cases only iron ore lumps can be used. Also, the problem with Indian iron ore is that it has high phosphorous content.

“HIsmelt can use iron ore fines, which are sold at a lower price to the lump ones, while coals with higher ash content can also be used,” Mr Brian McDonald, Manager, Technical and Sales, said. However, in the case of higher ash content in coal, as in India, the plant’s output could be a little lower.

Coking coal

Currently, coking coal, used for smelting, costs $300 a tonne f.o.b.

In contrast, PSI coal used in this plant costs $250 delivered at the plant gates. Again, iron ore lumps are sold at a premium to the fines. Besides, the plant is capable of using even scrap to make pig iron. The other advantage of this process is that it will help produce power that will be adequate to run the whole production unit.

“Over here, this process helps us produce 2.4 MW of power and we don’t get a single volt of electricity from the provincial government,” said Mr John Wilks, Production Manager - Operations at HIsmelt.

Mr Weber said HIsmelt could be used in integrated steel plants in India.

Two Chinese firms have already signed an agreement to acquire licences to set up the plant.

However, if any Indian firm decides to go in for the new technology, they may have to wait a bit longer.

“See, our licensed engineers can do only one plant at a time. Right now, the queue is for a year and therefore, it could take time for any Indian company to get it,” Mr McDonald said.

The plant can be installed at around Rs 1,000 crore against a thumb rule of Rs 2,500 crore being the expenditure in India to set up a 10-lakh-tonne steel plant.

HIsmelt will begin marketing this technology more intensely from next year as it is expected to produce to its nameplate capacity of eight lakh tonnes only by the year-end.

Currently, the pig iron produced in this plant is being exported to South-East Asia, while talks are on with cement companies to buy the slag produced from this process.

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