spong iron production cost

Well, what is your cost of coal or natural gas as a reactant?

What is your cost of the kiln and coolers water for coolers, separators, screening stations and balance of plant?

WHat is your best achieved % up time on similar processes? This will be a maintenance challenge.

What is your cost of capital and IRR? Time to recover investment, knowing scrap steel price varies widely????

Your ore analysis is less than ideal, at only 62% iron; at 0.1% sulfur and phos is high too.

you dont give basicity index(CaO + MgO)

your SIO2 and AL2O3 is way high at 8% (expect 3%MAx)

I think 3-3.5 % is highest i have seen.

Not the best feed stock to start with.

Tell us about the coal?

milo

Dear milo

Thank you for your reply to my questions/ tahnk you very much.I will find the right answer to your questions and reply to you /my dear friend. HAVE GOOD TIME

BEST REGARDS KOUROSHSTEELMAKER

Kourosh Steelmaker

I am a few weeks behind on my reading, so only got to read your post today. Here is my few cents worth.

I am involved with a few steel plants and at least one of them in India is doing exactly that. They are now charging 30% scrap and 70% sponge iron in their furnaces. Knowing the MD, he would not have gone that route if he was not 100% convinced that it is cheaper. In addition he have built a DR Kiln to produce his own sponge iron.

As I look at your specification only 2 things jumps out. The biggest (or should I say smallest) issue is the size fraction. Your Magnetite is very fine, so to make sponge iron you will have to pelletized and reduce. So you must add the pelletizing cost of approximately US$15-20 per ton. The other big thing you have to consider is the capital requirement to build a plant capable of producing your intended product. I am not sure where you are, but it will be a significant purchase. It might be better to buy sponge iron from a supplier close by and sell him the magnetite?

So if you purely look at Op-ex, it is definitely a good route to take, however the CAPEX might kill the idea if the directors are not too far sighted.

Good luck with your endeavours, I will look forward to some feedback.

Regards,

TC