Friday, Jan 20, 2012
Talk about an opportunity wasted, literally.
Not long back, heaps of low-grade iron ore refuse lying unused in vast mining tracts of Goa had found a throbbing market in China. But thanks to the government’s recent hike in export duty, the ore material has once again lost its utility value, whatever little there was. The finance ministry on January 2 raised the export duty on iron ore to a flat 30% from the 20% earlier.
The result? The iron ore waste export market, which was turning into a steady cash flow for the state, the Centre and owners of the ore, died even before it was born. Out of an accumulated waste of 800 million tonne (mt), close to 80 mt was commercially saleable and had become a big source of revenues in the form of royalty and other duties.
This has come to a grinding halt, said Ambar Timblo, managing director, Fomento Resources, one of the biggest privately held mining companies in Goa. “The hike in export duty has rendered these low-quality ores commercially unviable due to the low price they fetch.” “Even if we consider an annual sale of 10 mt of this ore at an export duty of 10%, this would mean a royalty of `220 crore and an export duty value of `300 crore,” Timblo said.
To be sure, whenever a new mine goes on stream, several thousand tonnes of earth get dug up to reach to the premium ore content. This dug-out matter lies near mine pit heads as heaps of dumps.The low content of ferrous — between 45% and 52% — makes the ore highly unsuitable for use in India. In fact, none of the iron ore mined in Goa ever manages to make its way to any Indian plant. That explains why a huge chunk —as high as 99%— of the mineral is exported from Goa.
To its credit, the state government had some business sense and a few months ago, allowed export of very low-quality ore that had no takers. It’s back to square one.
(sourced DNA)
Showing posts with label low grade iron ore. Show all posts
Showing posts with label low grade iron ore. Show all posts
Friday, January 20, 2012
Beneficiation of Low grade iron ore fines
Since a decade the Institute of Minerals and Materials Technology has been engaged in Iron ore research to enhance raw material quality for Iron and Steel industry. Consequently, from our experience we discuss the characterization and beneficiation aspects of five different types of Iron ore samples—Barbil, Bailladilla, Goa, Barajamda and Hospet (Banded Hematite Quartzite, BHQ). The characterization studies in general indicate that hematite and goethite are the major Iron bearing minerals, where as kaolinite, gibbsite and quartz are present as the gangue minerals. Particle counts of the close sized fractions indicate that the degree of liberation of hematite is about 87% at 53 micron size.
The chemical analysis of the hematite ores on an average conform to 57.8 to 64.5% Fe, 1.56 to 6.5% SiO and 1.3 to 6% Al3O2. These ores subject to beneficiation yield a concentrate containing 61.5 to 66% Fe at 62 to 86% yield. In case of BHQ ore, column flotation technique has been adopted to obtain a concentrate of 66% Fe at 44.7% yield. It has been observed that beneficiation of low grade ores invariably pose specific challenge due to the presence of clayey/earthy materials rich in aluminum. For both hematite as well as BHQ ores proven flow-sheet with material balance has been developed and satisfactorily implemented through our clients. The processes that have been developed are ideal for pellet making where the future of Steel industry rests.
1. Introduction
India occupies sixth position in the world's Iron-ore reserves and is one of the major Iron-ore producer and exporter due to availability of quality ore and skilled mining personnel. India's Iron ore reserve is around 25,249 million tonnes (MT) apart from Banded Hematite-Quartzite (BHQ) and Banded Hematite Jasper (BHJ). Although India is blessed with large reserves of Iron ore containing average grade around 58% Fe, the performance of blast furnaces has been at lower levels in comparison with the developing countries.
This has been mainly due to the presence of high levels of impurities such as silica and Alumina in the raw material contradicting to the blast furnace chemistry. In order to increase the efficiency of blast furnace, some of the issues relating to Iron ores include chemical composition of Iron ore with low Fe content and high Al:Si ratio, low strength, high temperature break down, lower reducibility, low temperature softening and melting behavior of the Iron ores, etc. Normally Iron ores with Fe content above 65% are desirable to achieve better productivity either in blast furnace or direct reduction.
The other impurities level such as Na, K, S and P should be as low as possible. Alumina and Silica content should be within permissible limit for better fluidity of slag. Due to non availability of quality Iron ore, the run-off-mne (rom) needed to be beneficiated to lower the impurities to improve the strength of sinter and pellet quality. The physical, chemical and metallurgical properties of lumps, sinters and pellets are important as they have a significant impact on furnace performance.
For economics reasons, quality raw material is not only required for blast furnace operation but also for the emerging technologies such as smelting reduction and direct reduction route. Beside that, India has set itself a target of achieving production capacity of 110 MT of Steel by 2020 and the required quantity of Iron ore is projected at 190 MT. Over the next few years, demand for Indian Iron ore is expected to rise by more than 200 million tonnes per year to meet the internal demand and export. Two major shifts in Iron ore supply for the Indian Iron and Steel industry have occurred. First the export to foreign market owing to liberalization in the economy and second the adaptation of beneficiation and pelletization practices to utilize low-grade ores and fines.
In India for economic and industrial growth, a number of Steel plants have been planed in the states of Orissa, Jharkhand, Chhattisgarh, Karnataka and Maharastra. As the quality of raw materials declines, the impact of Iron making processes on pollution control and energy required will worsen in days to come. Most of the rom Iron ore contains lot of impurities that needs beneficiation prior to use. Therefore research on utilization of low grade Iron ore to produce quality raw material would play a key role in future which is a fact acknowledged by the Iron and Steel industry. Iron ore is being beneficiated all round the world to meet the quality requirement of Iron and Steel industries. However, each source of Iron ore has its own peculiar mineralogical characteristics and requires the specific beneficiation and metallurgical treatment to get the best product out of it.
The choice of the beneficiation treatment depends on the nature of the gangue present and its association with the ore structure. Several techniques such as washing, jigging, magnetic separation, advanced gravity separation and flotation are being employed to enhance the quality of the Iron ore. Washing, jigging and classification are being carried out for the beneficiation of Iron ores in India. During washing and sizing of the ore, slimes with less than 0.21 mm size are generated and discarded into the tailing pond. It is estimated that around 10 million tonnes of slimes are being generated in every year during the processing of hematite ore and lost as tailings containing around 48-62% of Fe. However beneficiation and utilization of these slimes still remains as a challenging task.
The ever increasing need to utilize the slimes is being reflected in the shift in Steel production from basic blast furnaces to electric arc furnace technology. In the USA, around 40% of Steel is produced in electric arc furnaces by using Iron ore pellets. Pellets are also used in traditional blast furnaces in some parts of the world. Pellets are ideal material as a feed to direct-reduction Iron plants. However the use of pellet in our Steel plant is very limited. Lot of low grade Iron ore fines are generated during preparation of lumps, calibrated ores and sinter-fines. In addition to these fines, 10-15% of ore mined is generated as slimes and are discarded as tailings.
These fines and tailings are potential sources to produce pellet grade concentrate after suitable beneficiation. Another source of pellet feed concentrate is from low and off grade ores such BHQ & BHJ. All these materials can be beneficiated to yield quality pellet feed. Keeping this in observation, detailed studies have been carried out on different source of materials to produce quality concentrates for pellet feed. The results of four different types of hematite ore fines covering from Barbil , Balladilla, Goa, Barjamada have been discussed in this paper. Increasing worldwide demand for Iron ore triggering the development of India's magnetite and BHQ ores of Karnataka for effective utilization is also highlighted.
2. MATERIALS AND METHODS
2.1 Ore samples
Five different types of representative Iron ore samples from Iron ore mines of India through Barbil, Balladilla, Goa, Barjamada and Hospet area were collected and brought to the laboratory for the detail investigation studies. The as received hematite samples which are either fines or slimes were thoroughly mixed and representative sample of each was drawn by conning and quartering method for different characterization, mineralogical and beneficiation studies. The BHQ sample was lumpy variety with little amount of fines. The sample is very hard in nature and compact. The sample colour is grayish black. Similar coning and quartering method was applied to draw a representative sample from the bulk sample for different investigations.
2.2 Experimental
2.2.1 Physical and Chemical Characterization Studies:
The size analysis of the received Iron ore sample, were carried out by wet sieving techniques to know the average particle size of the sample. The different size fractions thus obtained were subjected to chemical analysis to ascertain the different quantitative elemental composition of the sample. The complete chemical analysis of the rom ore and different size fractions were carried out by X-ray florescence technique and wet chemical analysis. The XRF analyses were carried out against the standard calibrated samples of similar values. The loss on ignition (LOI) of Iron ore samples was determined by igniting around 2.0 gm of sample at about 1000 C for four hours in a muffle furnace in silica crucible.
Closed sized classified samples were examined under stereomicroscope by preparing the corresponding grain slides for identification of different minerals. The X-ray diffraction studies of selected samples were also carried out using a Philips model diffractmeter with CuK radiation. The bulk sample was crushed to below 1 mm size and wet sieved into different size fractions. The size fractions were mounted in resin with hardner and polished following standard procedures. The polished sections were studied under reflected light microscope and the particles of different typologies were counted.
2.2.3 Grinding Studies
In order to increase the grade of Iron ore and for the subsequent liberation of Iron values from the locked particles, the samples were subjected to wet grinding to generate different size particles. A standard ball mill of 12”x12” with required weight of balls as per Bonds formula at 45% filling was used. The grinding was carried out in batch prior to different beneficiation studies. The objective is to achieve the maximum liberation of the Iron particles from the associated gangues due to reduction in size. The large-scale continuous grinding studies were also carried out using 24?x 24? ball mill to produce samples for further investigations and to establish grinding parameters. All the grinding studies were carried out at 40% solids consistency in the ball mill.
2.2.4 Beneficiation Studies
Beneficiation studies using various techniques such as hydrocyclone, spiral, magnetic separation, flotation etc. were carried out to develop a suitable process flowsheet as a step towards the up-gradation of Iron values and to reduce the gangue content. The required separation technique was selected based on particle size and the properties for effective separation. Initially, the hematite ore fines were ground to required size and then subjected to separation. The sample was ground to below 1.0 mm size for hematite ore fines and less than 100 microns for BHQ ore. However, the tailing samples from Goa ore have been treated without further grinding.
2.2.4.1 Hydrocyclone
Hydrocyclone was used as a step towards the up-gradation of Iron values as well as for de-sliming of slime particles present in the sample. Since the ground samples contained large amount of slime materials comprising of particles down to sub micron size, de-sliming was also thought of prior to flotation. The effect of some of the variables namely apex diameter, vortex finder diameter, operating pressure, solids concentration etc. were optimized. The throughput of hydro-cyclone during the experiments was 240 to 780 kg/hr solids and the solid concentrations of ~10-20 % by weight were maintained during the course of the experiments. The underflow and overflow materials were collected at a steady state for a fixed time, dried, weighed and analyzed for the desired Iron and other constituents. The overflow & underflow samples collected at optimum operating conditions were used for further studies
2.2.4.2 Spiral
The spiral concentrator of 100 mm dia. was used to enrich the Iron content of the classified sample (hydrocyclone underflow). The spiral is an energy saving gravity equipment where large quantities of sample can be fed for pre-concentrations. In the spiral study, the Iron ore sample was fed to the centrifugal pump at the required solids consistency and the slurry was kept re-circulating for a predetermined time. The entire concentrate and tailings were collected after attaining the steady state. The concentrates in some cases were cleaned to improve the grade of products. All the products thus obtained were dried, weighed, and analyzed.
2.2.4.3 Wet High Intensity Magnetic Separation
The wet high intensity magnetic separator (WHIMS) and high gradient magnetic separator (HGMS) were used at different magnetic field intensities to recover the fine Iron values from the hydrocyclone over flow or spiral tailings. Both the separators have provision for different magnetic groves of width and matrix with variable currents to provide different magnetic intensities. A desired concentration of solids was passed through the magnetic separator. In some cases the magnetic products were cleaned in second stage to enhance the quality of the product from first stage separation.
2.2.4.4 Flotation
Batch flotation studies were carried out to select either direct or reverse flotation technique to optimize reagent combination and to establish the number of stages of operations. Denver D-12 sub-aeration flotation machine was used for the batch flotation studies. Both cationic (dodecylamine) and anionic (oleic acid) reagents were used as collectors while MIBC was used as the frother. The flotation conditions were optimized to get good grade concentrate with high recoveries. The column flotation studies were carried out by using 100 mm diameter glass column designed and fabricated at our laboratory. The column was operated at nominal capacity of 20 kg of Iron ore fines per hour with the help of a peristaltic pump. Both the concentrate and tailings were collected separately after attaining the steady state and analyzed for Iron content.
(From steel world)
Investment in low grade iron ore ore mines i.e laterite mines in India. Contact us
Tag: low grade iron ore, mines for sale, investment in iron ore mines
------------------------------------------------------------------------------------------
The chemical analysis of the hematite ores on an average conform to 57.8 to 64.5% Fe, 1.56 to 6.5% SiO and 1.3 to 6% Al3O2. These ores subject to beneficiation yield a concentrate containing 61.5 to 66% Fe at 62 to 86% yield. In case of BHQ ore, column flotation technique has been adopted to obtain a concentrate of 66% Fe at 44.7% yield. It has been observed that beneficiation of low grade ores invariably pose specific challenge due to the presence of clayey/earthy materials rich in aluminum. For both hematite as well as BHQ ores proven flow-sheet with material balance has been developed and satisfactorily implemented through our clients. The processes that have been developed are ideal for pellet making where the future of Steel industry rests.
1. Introduction
India occupies sixth position in the world's Iron-ore reserves and is one of the major Iron-ore producer and exporter due to availability of quality ore and skilled mining personnel. India's Iron ore reserve is around 25,249 million tonnes (MT) apart from Banded Hematite-Quartzite (BHQ) and Banded Hematite Jasper (BHJ). Although India is blessed with large reserves of Iron ore containing average grade around 58% Fe, the performance of blast furnaces has been at lower levels in comparison with the developing countries.
This has been mainly due to the presence of high levels of impurities such as silica and Alumina in the raw material contradicting to the blast furnace chemistry. In order to increase the efficiency of blast furnace, some of the issues relating to Iron ores include chemical composition of Iron ore with low Fe content and high Al:Si ratio, low strength, high temperature break down, lower reducibility, low temperature softening and melting behavior of the Iron ores, etc. Normally Iron ores with Fe content above 65% are desirable to achieve better productivity either in blast furnace or direct reduction.
The other impurities level such as Na, K, S and P should be as low as possible. Alumina and Silica content should be within permissible limit for better fluidity of slag. Due to non availability of quality Iron ore, the run-off-mne (rom) needed to be beneficiated to lower the impurities to improve the strength of sinter and pellet quality. The physical, chemical and metallurgical properties of lumps, sinters and pellets are important as they have a significant impact on furnace performance.
For economics reasons, quality raw material is not only required for blast furnace operation but also for the emerging technologies such as smelting reduction and direct reduction route. Beside that, India has set itself a target of achieving production capacity of 110 MT of Steel by 2020 and the required quantity of Iron ore is projected at 190 MT. Over the next few years, demand for Indian Iron ore is expected to rise by more than 200 million tonnes per year to meet the internal demand and export. Two major shifts in Iron ore supply for the Indian Iron and Steel industry have occurred. First the export to foreign market owing to liberalization in the economy and second the adaptation of beneficiation and pelletization practices to utilize low-grade ores and fines.
In India for economic and industrial growth, a number of Steel plants have been planed in the states of Orissa, Jharkhand, Chhattisgarh, Karnataka and Maharastra. As the quality of raw materials declines, the impact of Iron making processes on pollution control and energy required will worsen in days to come. Most of the rom Iron ore contains lot of impurities that needs beneficiation prior to use. Therefore research on utilization of low grade Iron ore to produce quality raw material would play a key role in future which is a fact acknowledged by the Iron and Steel industry. Iron ore is being beneficiated all round the world to meet the quality requirement of Iron and Steel industries. However, each source of Iron ore has its own peculiar mineralogical characteristics and requires the specific beneficiation and metallurgical treatment to get the best product out of it.
The choice of the beneficiation treatment depends on the nature of the gangue present and its association with the ore structure. Several techniques such as washing, jigging, magnetic separation, advanced gravity separation and flotation are being employed to enhance the quality of the Iron ore. Washing, jigging and classification are being carried out for the beneficiation of Iron ores in India. During washing and sizing of the ore, slimes with less than 0.21 mm size are generated and discarded into the tailing pond. It is estimated that around 10 million tonnes of slimes are being generated in every year during the processing of hematite ore and lost as tailings containing around 48-62% of Fe. However beneficiation and utilization of these slimes still remains as a challenging task.
The ever increasing need to utilize the slimes is being reflected in the shift in Steel production from basic blast furnaces to electric arc furnace technology. In the USA, around 40% of Steel is produced in electric arc furnaces by using Iron ore pellets. Pellets are also used in traditional blast furnaces in some parts of the world. Pellets are ideal material as a feed to direct-reduction Iron plants. However the use of pellet in our Steel plant is very limited. Lot of low grade Iron ore fines are generated during preparation of lumps, calibrated ores and sinter-fines. In addition to these fines, 10-15% of ore mined is generated as slimes and are discarded as tailings.
These fines and tailings are potential sources to produce pellet grade concentrate after suitable beneficiation. Another source of pellet feed concentrate is from low and off grade ores such BHQ & BHJ. All these materials can be beneficiated to yield quality pellet feed. Keeping this in observation, detailed studies have been carried out on different source of materials to produce quality concentrates for pellet feed. The results of four different types of hematite ore fines covering from Barbil , Balladilla, Goa, Barjamada have been discussed in this paper. Increasing worldwide demand for Iron ore triggering the development of India's magnetite and BHQ ores of Karnataka for effective utilization is also highlighted.
2. MATERIALS AND METHODS
2.1 Ore samples
Five different types of representative Iron ore samples from Iron ore mines of India through Barbil, Balladilla, Goa, Barjamada and Hospet area were collected and brought to the laboratory for the detail investigation studies. The as received hematite samples which are either fines or slimes were thoroughly mixed and representative sample of each was drawn by conning and quartering method for different characterization, mineralogical and beneficiation studies. The BHQ sample was lumpy variety with little amount of fines. The sample is very hard in nature and compact. The sample colour is grayish black. Similar coning and quartering method was applied to draw a representative sample from the bulk sample for different investigations.
2.2 Experimental
2.2.1 Physical and Chemical Characterization Studies:
The size analysis of the received Iron ore sample, were carried out by wet sieving techniques to know the average particle size of the sample. The different size fractions thus obtained were subjected to chemical analysis to ascertain the different quantitative elemental composition of the sample. The complete chemical analysis of the rom ore and different size fractions were carried out by X-ray florescence technique and wet chemical analysis. The XRF analyses were carried out against the standard calibrated samples of similar values. The loss on ignition (LOI) of Iron ore samples was determined by igniting around 2.0 gm of sample at about 1000 C for four hours in a muffle furnace in silica crucible.
Closed sized classified samples were examined under stereomicroscope by preparing the corresponding grain slides for identification of different minerals. The X-ray diffraction studies of selected samples were also carried out using a Philips model diffractmeter with CuK radiation. The bulk sample was crushed to below 1 mm size and wet sieved into different size fractions. The size fractions were mounted in resin with hardner and polished following standard procedures. The polished sections were studied under reflected light microscope and the particles of different typologies were counted.
2.2.3 Grinding Studies
In order to increase the grade of Iron ore and for the subsequent liberation of Iron values from the locked particles, the samples were subjected to wet grinding to generate different size particles. A standard ball mill of 12”x12” with required weight of balls as per Bonds formula at 45% filling was used. The grinding was carried out in batch prior to different beneficiation studies. The objective is to achieve the maximum liberation of the Iron particles from the associated gangues due to reduction in size. The large-scale continuous grinding studies were also carried out using 24?x 24? ball mill to produce samples for further investigations and to establish grinding parameters. All the grinding studies were carried out at 40% solids consistency in the ball mill.
2.2.4 Beneficiation Studies
Beneficiation studies using various techniques such as hydrocyclone, spiral, magnetic separation, flotation etc. were carried out to develop a suitable process flowsheet as a step towards the up-gradation of Iron values and to reduce the gangue content. The required separation technique was selected based on particle size and the properties for effective separation. Initially, the hematite ore fines were ground to required size and then subjected to separation. The sample was ground to below 1.0 mm size for hematite ore fines and less than 100 microns for BHQ ore. However, the tailing samples from Goa ore have been treated without further grinding.
2.2.4.1 Hydrocyclone
Hydrocyclone was used as a step towards the up-gradation of Iron values as well as for de-sliming of slime particles present in the sample. Since the ground samples contained large amount of slime materials comprising of particles down to sub micron size, de-sliming was also thought of prior to flotation. The effect of some of the variables namely apex diameter, vortex finder diameter, operating pressure, solids concentration etc. were optimized. The throughput of hydro-cyclone during the experiments was 240 to 780 kg/hr solids and the solid concentrations of ~10-20 % by weight were maintained during the course of the experiments. The underflow and overflow materials were collected at a steady state for a fixed time, dried, weighed and analyzed for the desired Iron and other constituents. The overflow & underflow samples collected at optimum operating conditions were used for further studies
2.2.4.2 Spiral
The spiral concentrator of 100 mm dia. was used to enrich the Iron content of the classified sample (hydrocyclone underflow). The spiral is an energy saving gravity equipment where large quantities of sample can be fed for pre-concentrations. In the spiral study, the Iron ore sample was fed to the centrifugal pump at the required solids consistency and the slurry was kept re-circulating for a predetermined time. The entire concentrate and tailings were collected after attaining the steady state. The concentrates in some cases were cleaned to improve the grade of products. All the products thus obtained were dried, weighed, and analyzed.
2.2.4.3 Wet High Intensity Magnetic Separation
The wet high intensity magnetic separator (WHIMS) and high gradient magnetic separator (HGMS) were used at different magnetic field intensities to recover the fine Iron values from the hydrocyclone over flow or spiral tailings. Both the separators have provision for different magnetic groves of width and matrix with variable currents to provide different magnetic intensities. A desired concentration of solids was passed through the magnetic separator. In some cases the magnetic products were cleaned in second stage to enhance the quality of the product from first stage separation.
2.2.4.4 Flotation
Batch flotation studies were carried out to select either direct or reverse flotation technique to optimize reagent combination and to establish the number of stages of operations. Denver D-12 sub-aeration flotation machine was used for the batch flotation studies. Both cationic (dodecylamine) and anionic (oleic acid) reagents were used as collectors while MIBC was used as the frother. The flotation conditions were optimized to get good grade concentrate with high recoveries. The column flotation studies were carried out by using 100 mm diameter glass column designed and fabricated at our laboratory. The column was operated at nominal capacity of 20 kg of Iron ore fines per hour with the help of a peristaltic pump. Both the concentrate and tailings were collected separately after attaining the steady state and analyzed for Iron content.
(From steel world)
Investment in low grade iron ore ore mines i.e laterite mines in India. Contact us
Tag: low grade iron ore, mines for sale, investment in iron ore mines
------------------------------------------------------------------------------------------
Beneficiation of Low grade iron ores
| Process | Beneficiation of Low grade iron ores |
|---|---|
| Area | Mineral Processing |
| Uses | The technology developed is for beneficiating low grade iron ores. The calibrated lumps, fines & concentrate so produced are used for iron & steel making. |
| Salient Features | The process so developed basically involves crushing, classification, processing of lumps, fines and slimes separately to produce concentrate suitable as lump and sinter fines and for pellet making. The quality is essentially defined as Fe contents, Level of SiO2 and Al2O3 contamination. The process aims at maximizing Fe recovery by subjecting the rejects/tailings generated from coarser size processing to fine size reduction and subsequent processing to recover iron values. |
| Scale of Development | Pilot Scale |
| Major Raw Materials | Low grade iron ores, Flotation reagents |
| Major Plant Equipment/Machinery | Crushing, screening, scrubbing, classification, gravity separation, magnetic separation, froth flotation, Dewatering, Conveying Systems. |
| Details of specific application | The process is applicable to low grade iron ore, however, the process is to be tailored to suit specific ore application |
| Status of Development | Pilot scale |
| Ecological/Environmental Impact (if any, specify briefly) | The process is environment friendly. No toxic/hazardous waste is discharged. Arrangement for tailings disposal is needed. |
| Patenting details | Nil |
| Commercialisation Status | The technology is sample specific being commercialized for ore from Bolani and Gua Mines of SAIL. |
| Techno-Economics | Available on demand |
| Key words | Low grade Iron ore, Gravity and Magnetic Separation, Iron ore beneficiation. |
Thursday, January 5, 2012
Essar to use low-grade iron ore fines at Hazira
Thu, Jan05, 2012
Hazira: The $15 billion Essar group will become one of the first steel mills in India to use low-grade iron ore fines to make steel at the Essar Steel Hazira plant whose capacity has now been expanded to 10 million tonnes per annum from seven million tonnes per annum.
Prashant Ruia, group CEO at Essar group said, “Most of our raw material will be low-grade fines which is much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, the iron ore benefication plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country.”
So far, iron ore fines have either been exported or dumped along with overburden, as Indian steelmakers have locked the technology to process this inferior grade raw material into iron.
Essar Steel has licensed the technology for iron ore benification from Sweden-based Metso and for pellets it has sourced technology from Germany-based Lurgi. The company refused to comment on the price it has paid for acquiring the technology. As per the current market prices using iron ore fines will help the company to reduce cost by 60 per cent, a senior company official said Ruia.
For its energy requirements, Essar has long-term power purchase agreements with Essar Power and will soon have access to cheaper coal based power from its captive plants too.
Essar is also producing ore pellets through benefication of iron ore. Every million tonnes of steel requires 1.4 million tonne pellet for manufacturing. Essar Steel will have 20 million tonne pellet making capacity operational once its Orissa benefication plant goes on stream in two equal phases starting from March 2012. The final six million tonnes at Orissa will be operational in a year’s time.
(sourced MyDigaltalFC)
Hazira: The $15 billion Essar group will become one of the first steel mills in India to use low-grade iron ore fines to make steel at the Essar Steel Hazira plant whose capacity has now been expanded to 10 million tonnes per annum from seven million tonnes per annum.
Prashant Ruia, group CEO at Essar group said, “Most of our raw material will be low-grade fines which is much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, the iron ore benefication plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country.”
So far, iron ore fines have either been exported or dumped along with overburden, as Indian steelmakers have locked the technology to process this inferior grade raw material into iron.
Essar Steel has licensed the technology for iron ore benification from Sweden-based Metso and for pellets it has sourced technology from Germany-based Lurgi. The company refused to comment on the price it has paid for acquiring the technology. As per the current market prices using iron ore fines will help the company to reduce cost by 60 per cent, a senior company official said Ruia.
For its energy requirements, Essar has long-term power purchase agreements with Essar Power and will soon have access to cheaper coal based power from its captive plants too.
Essar is also producing ore pellets through benefication of iron ore. Every million tonnes of steel requires 1.4 million tonne pellet for manufacturing. Essar Steel will have 20 million tonne pellet making capacity operational once its Orissa benefication plant goes on stream in two equal phases starting from March 2012. The final six million tonnes at Orissa will be operational in a year’s time.
(sourced MyDigaltalFC)
Thursday, October 6, 2011
Demand for low grade ore from China has helped Goa mines
Thursday, 06 Oct 2011
PTI reported that iron ore exporters from Goa today claimed that the demand for low grade of ore in China has helped to prolong the life of mining industry in the state.
Mr Shivanand Salgaoncar President, Goa Mineral Ore Exporters Association said "The ore which was stacked as rejection at the mining site was exported during last few years after China boom.”
He said that "The high grade ore in the earth is left untapped. This will increase the lifespan of the industry. Thanks to China boom, traditional mine owners prospered. Lot of dumps that were lying idle were exported to the neighboring country."
Responding to a question on possible life span of ore mines in the state, Mr Salgaoncar said it was not possible to say for sure as to when would ore reserves in Goa exhaust. He said that "Each mining firm will be able to tell you what the lifespan of their lease is. I have been hearing since 30 years that the lifespan is not more than 30 years. But ore still exists."
Mr Salgaoncar whose association has 34 major exporters as its members, said that there cannot be any particular cap prescribed for extraction of ore. He added that "It is for individual lease holder to decide how much he can extract and for how much permission he has received."
(Sourced from PTI)
PTI reported that iron ore exporters from Goa today claimed that the demand for low grade of ore in China has helped to prolong the life of mining industry in the state.
Mr Shivanand Salgaoncar President, Goa Mineral Ore Exporters Association said "The ore which was stacked as rejection at the mining site was exported during last few years after China boom.”
He said that "The high grade ore in the earth is left untapped. This will increase the lifespan of the industry. Thanks to China boom, traditional mine owners prospered. Lot of dumps that were lying idle were exported to the neighboring country."
Responding to a question on possible life span of ore mines in the state, Mr Salgaoncar said it was not possible to say for sure as to when would ore reserves in Goa exhaust. He said that "Each mining firm will be able to tell you what the lifespan of their lease is. I have been hearing since 30 years that the lifespan is not more than 30 years. But ore still exists."
Mr Salgaoncar whose association has 34 major exporters as its members, said that there cannot be any particular cap prescribed for extraction of ore. He added that "It is for individual lease holder to decide how much he can extract and for how much permission he has received."
(Sourced from PTI)
Wednesday, August 24, 2011
Iron Ore-Spot rises on China steel output, tight supply
Wed Aug 24, 2011
* Shanghai rebar futures rise for third day
* Low-grade Indian ore prices up on limited cargoes
By Manolo Serapio Jr
SINGAPORE, Aug 24 (Reuters) - Spot iron ore prices remained firm on Wednesday, as strong steel output in top producer China kept buying interest for the raw material intact, with tight Indian supplies lending support.
Brisk construction demand has pushed Chinese mills to produce more than 1.9 million tonnes of crude steel since late February, up from last year's daily average of around 1.7 million tonnes.
"The Chinese continue to produce steel like crazy and Indian supplies are extremely tight at the moment," said an iron ore trader in Singapore, citing factors supporting prices.
Offers for Indian grades rose by a dollar on Wednesday, with the widely traded 63.5/63 grade quoted at $187-$189 a tonne, cost and freight, said Chinese consultancy Umetal.
Monsoon rains and logistical problems have been disrupting shipments from India, the world's No. 3 iron ore supplier after Australia and Brazil.
"It's very, very difficult to get cargo from India. Goa is closed because of the monsoon season and there is also a truckers' strike in the eastern side and that is adding to logistics problems," said a Shanghai-based trader who sells Indian material to Chinese mills.
Shipments from India's southern Karnataka state have yet to resume even after the country's top court ordered a ban, in place since July 2010, lifted in April.
LOW-GRADE ORE SHINES
There is also increased interest in low-grade Indian ore given limited supplies.
"I've sold a 55/54 cargo at $134 (a tonne, cost and freight), which I think is a record price," said the Shanghai-based trader.
"Typically this grade would be around $100 but now we're seeing absolutely crazy transactions happening in the market," he said.
Global miner BHP Billiton sold Newman and Yandi iron ore fines at $183 and $159 a tonne, respectively, at a tender on Tuesday, about a dollar higher than previous deals, said the Singapore trader. Newman fines are being offered on Wednesday at $185 per tonne, he said.
"Prices are not exploding, they're creeping up, but creeping up amid a very uncertain macro environment in the developed world.
"So if we do find stability in the macro environment, I'd see spot prices increasing significantly," he said.
Iron ore prices are mostly taking their cue from firmer steel prices in China. The most-active January rebar contract on the Shanghai Futures Exchange rose 0.2 percent to 4,832 yuan a tonne on Wednesday, rising for a third-straight day.
Iron ore with 62 percent iron content rose 10 cents to $177.90 a tonne on Tuesday, its highest since Aug. 8 and marking its sixth-straight session of gains, The Steel Index .IO62-CNI=SI shows.
Metal Bulletin's similar gauge .IO62-CNO=MB rose 44 cents to $177.77 a tonne and Platts index IODBZ00-PLT gained 25 cents to $179.75.
Tuesday, August 16, 2011
Palladon Ventures to produce 2 million tonne of iron ore from Iron Mountain project
Tuesday, 16 Aug 2011
Palladon Ventures owns a 19.3% stake in the largest iron mine in the Western United States. The mine, which is referred to as the Iron Mountain project, is scheduled to produce close to 2 million tonnes of iron ore in 2012 and potentially 4 million tonnes in 2013.
Up until a few weeks ago there was still some uncertainty regarding the project, but this uncertainty has almost entirely been removed.
The Iron Mountain project is based in Cedar City, Utah and is operated by CML Metals. The project has several iron ore deposits that have been historically drilled and proved by previous operators. At the moment, only one of these deposits is in NI 43-101 compliance, but CML is committed to drilling and proving these other deposits.
The key to the Iron Mountain project is a concentrate facility that is in the process of being built, and is scheduled for completion in late January of 2012. The concentrate facility will effectively take low grade ore of about 40%Fe and produce a significantly more valuable high grade ore called concentrate that will be around 67%Fe.
Up until a few weeks ago there was a small concern that CML may not be able to generate enough capital to complete the construction of the concentrate facility. The company had entered into a agreement with Credit Suisse to secure a two tranche USD 65 million dollar loan which would be used to build the facility. The first tranche of USD 20 million dollars was received this past January, and the second tranche of USD 25 million was to be given to CML only if it met certain requirements stipulated by the terms of the loan.
(sourced Seeking Alpha)
Palladon Ventures owns a 19.3% stake in the largest iron mine in the Western United States. The mine, which is referred to as the Iron Mountain project, is scheduled to produce close to 2 million tonnes of iron ore in 2012 and potentially 4 million tonnes in 2013.
Up until a few weeks ago there was still some uncertainty regarding the project, but this uncertainty has almost entirely been removed.
The Iron Mountain project is based in Cedar City, Utah and is operated by CML Metals. The project has several iron ore deposits that have been historically drilled and proved by previous operators. At the moment, only one of these deposits is in NI 43-101 compliance, but CML is committed to drilling and proving these other deposits.
The key to the Iron Mountain project is a concentrate facility that is in the process of being built, and is scheduled for completion in late January of 2012. The concentrate facility will effectively take low grade ore of about 40%Fe and produce a significantly more valuable high grade ore called concentrate that will be around 67%Fe.
Up until a few weeks ago there was a small concern that CML may not be able to generate enough capital to complete the construction of the concentrate facility. The company had entered into a agreement with Credit Suisse to secure a two tranche USD 65 million dollar loan which would be used to build the facility. The first tranche of USD 20 million dollars was received this past January, and the second tranche of USD 25 million was to be given to CML only if it met certain requirements stipulated by the terms of the loan.
(sourced Seeking Alpha)
Wednesday, August 10, 2011
China still craves African iron ore
August09, 2011
By Martin Li
By Martin Li
African Minerals has secured a major slug of Chinese financing for a key project and other African miners look well placed to benefit from similar deals, which underpin the value and viability of projects and should make the sector an increasingly attractive investment prospect.
African Minerals has concluded its agreement with Shandong Iron & Steel that will see the Chinese group invest $1.5bn (£0.92bn) in African Minerals' Tonkolili iron ore project in Sierra Leone. In return, Shandong will secure a 25 per cent shareholding and a guaranteed supply of iron ore at discounted prices. Completion remains conditional upon receipt of Chinese regulatory approvals, which it is hoped will be received no later than 31 December 2011.
Chinese demand for steelmaking materials has remained keen in recent years despite worries over its attempt to cool its economic growth and wider macroeconomic issues - particularly those affecting developed economies. This has spurred a raft of new projects in Africa that could swell iron ore output by over 500 million tonnes per annum (mtpa) by the end of the decade, according to research by RBC Capital Markets.
Not all these projects will make it into production and investment can be risky (read John Meyer's cautionary broker's view), although there are clear indicators highlighting the projects most likely to succeed. African politics and tax/royalty stability aside, the most important factors are the grade (concentration of metal in ore) and purity of the iron ore and how much infrastructure exists to transport it to market.
What they're looking for
Most iron ore is mined from haematite or magnetite deposits. Haematite, such as from Rio Tinto's and BHP Billiton's massive operations in Australia's Pilbara, is preferred because of its high grade (over 60 per cent) and low impurities. Magnetite deposits are generally lower grade (closer to 30 per cent) and have higher impurities. In order for magnetite to be used in most furnaces, it needs to be upgraded to increase the grade and reduce the level of impurities.
Upgrading costs are high, which can harm project economics. On the other hand, the occasional existence of weathered caps on top of deposits can give miners directly shippable products – 'direct shipping ore' or DSO - that can be sold without processing. This can provide quick cash flow that can substantially improve project economics.
One of the strongest indicators of success is securing major foreign investment, most commonly from China, to underpin capital investment that can often run into billions of dollars. Commenting on recent African Mineral's recent deal, Michael Starke, a mining analyst at Edison Investment Research, said: "I think we are only just beginning to see the full extent of China's role in the development of Africa's untapped mineral wealth. The Chinese typically first get involved (with relatively limited or "option" style investment) at the scoping or feasibility stage in order to make the most of the vendor's project knowledge and experience. However, we are increasingly seeing Chinese companies taking direct and significant stakes at the project or company level once they have progressed through some form of initial feasibility."
African iron ore deals
African Minerals has concluded its agreement with Shandong Iron & Steel that will see the Chinese group invest $1.5bn (£0.92bn) in African Minerals' Tonkolili iron ore project in Sierra Leone. In return, Shandong will secure a 25 per cent shareholding and a guaranteed supply of iron ore at discounted prices. Completion remains conditional upon receipt of Chinese regulatory approvals, which it is hoped will be received no later than 31 December 2011.
Chinese demand for steelmaking materials has remained keen in recent years despite worries over its attempt to cool its economic growth and wider macroeconomic issues - particularly those affecting developed economies. This has spurred a raft of new projects in Africa that could swell iron ore output by over 500 million tonnes per annum (mtpa) by the end of the decade, according to research by RBC Capital Markets.
Not all these projects will make it into production and investment can be risky (read John Meyer's cautionary broker's view), although there are clear indicators highlighting the projects most likely to succeed. African politics and tax/royalty stability aside, the most important factors are the grade (concentration of metal in ore) and purity of the iron ore and how much infrastructure exists to transport it to market.
What they're looking for
Most iron ore is mined from haematite or magnetite deposits. Haematite, such as from Rio Tinto's and BHP Billiton's massive operations in Australia's Pilbara, is preferred because of its high grade (over 60 per cent) and low impurities. Magnetite deposits are generally lower grade (closer to 30 per cent) and have higher impurities. In order for magnetite to be used in most furnaces, it needs to be upgraded to increase the grade and reduce the level of impurities.
Upgrading costs are high, which can harm project economics. On the other hand, the occasional existence of weathered caps on top of deposits can give miners directly shippable products – 'direct shipping ore' or DSO - that can be sold without processing. This can provide quick cash flow that can substantially improve project economics.
One of the strongest indicators of success is securing major foreign investment, most commonly from China, to underpin capital investment that can often run into billions of dollars. Commenting on recent African Mineral's recent deal, Michael Starke, a mining analyst at Edison Investment Research, said: "I think we are only just beginning to see the full extent of China's role in the development of Africa's untapped mineral wealth. The Chinese typically first get involved (with relatively limited or "option" style investment) at the scoping or feasibility stage in order to make the most of the vendor's project knowledge and experience. However, we are increasingly seeing Chinese companies taking direct and significant stakes at the project or company level once they have progressed through some form of initial feasibility."
African iron ore deals
| Date | Owner | Key asset | Location | Acquirer | Interest | Consideration |
|---|---|---|---|---|---|---|
| May 2008 | Mano River (now Afferro) | Putu | Liberia | Severstal | 61.5% | $37.5m |
| Nov 2009 | Zanaga | Zanaga | Rep of Congo | Xstrata | 50% | $50m |
| Jan 2010 | African Minerals | Tonkolili | Sierra Leone | China Railway Materials | 12.5% | $167m |
| Mar 2010 | Rio Tinto | Simandou | Guinea | Chinalco | 47% | $1,350m |
| Aug 2010 | Bellzone Mining | Kalia | Guinea | China International Fund | Production rights | $1,200m |
| Jul 2011 | African Minerals | Tonkolili | Sierra Leone | Shandong Iron & Steel | 25% | $1,500m |
It's a deal
The Shandong deal is a perfect example of increasing Chinese investment in African iron ore projects. This follows closely behind Australia-listed Sundance Resources receiving a takeover offer from its largest (18.6 per cent) shareholder, Hanlong Mining Investment, a subsidiary of Sichuan Hanlong Group.
The offer values the iron ore explorer at A$1.44bn (£0.92bn) and hasn't yet been recommended by the Sundance. The board is continuing to talk to other potential partners about possible joint ventures, financing and sales agreements to develop its Mbalam iron ore project that spans the border between Cameroon and Congo. This project is expected to produce 35 mtpa of high-grade haematite, with first production targeted for the end of 2014.
Sealing the Shandong deal took African Minerals many months longer than expected as a result of protracted due diligence, although Shandong's investment not only confirms the financial viability of Tonkolili but (along with the offer for Sundance) de-risks other African mining projects, most notably Bellzone Mining's Kalia iron ore project. Bellzone and its partner China International Fund (CIF) are together developing Kalia, which though smaller than Tonkolili's massive 13bn-tonne resource is substantial at around 6bn tonnes. Initial production is targeted of some 20 mtpa starting in 2014 and is expected to increase to 50 mtpa in 2018.
CIF has agreed in principle to finance most of the required infrastructure for Kalia. This will involve $2.7bn to develop rail, port and associated infrastructure, in addition to which, CIF will present a commercial financing package to Bellzone for its share of the estimated $1.2bn of mine development costs. In return, CIF is granted first refusal over all of Kalia's output at market prices.
Additionally, Bellzone has secured a 50 per cent interest in the Forecariah iron ore joint venture, also in partnership with CIF in Guinea. This has the potential for DSO and should be in production in early 2012. Cash flow from Forecariah and CIF's capital contribution are expected to be sufficient for Bellzone to take Kalia through to production.
Another company to have its prospects underpinned by the recent deals is Zanaga Iron Ore, which is developing a project in Congo that has a current resource of 4bn tonnes with significant scope for increase along the length of mineralisation and at depth.
Thursday, July 21, 2011
Indian steel industry plans mega investment on iron ore pelletization
Wednesday, 13 Jul 2011 |BS
BS reported that to address the several restrictions on iron ore exports, many mining and steel companies have decided to invest in the processing of low grade iron ore into pellets, the processed raw material used for making steel.
With the restrictions, steel and mining majors such as JSW Steel, Essar Steel, Ispat Industries and NMDC have decided to invest in making pellets to feel steel plants. Their combined plans total INR 8,000 crore in the next four years, to establish pelletisation capacity of 40 million tonnes a year.
Mr Haresh Melwani CEO of H L Nathurmal & Co a Goa based iron ore miner and exporter said that “The industry requires INR 20,000 crore to process the entire amount of exportable fines, which looks impossible at this point in time unless steel mills take an aggressive initiative.”
Mr RK Sharma secretary general of FIMI said that “The government is inviting a big risk by forcing iron ore miners to set up pelletisation plants to convert iron ore fines into pellets. Despite incurring a cost on conversion, miners are unlikely to get adequate remuneration, as pellets need to compete with high grade iron ore. Steel mills may prefer to use lumps instead of pellets at a premium.”
The Indian government has already levied 10% ad velorem royalty on iron ore mining and this is likely to be doubled. Also, the proposed changes in mining rules call for an amount equal to the royalty to be paid for the welfare of project affected people. The government has also levied a 20% export duty.
BS reported that to address the several restrictions on iron ore exports, many mining and steel companies have decided to invest in the processing of low grade iron ore into pellets, the processed raw material used for making steel.
With the restrictions, steel and mining majors such as JSW Steel, Essar Steel, Ispat Industries and NMDC have decided to invest in making pellets to feel steel plants. Their combined plans total INR 8,000 crore in the next four years, to establish pelletisation capacity of 40 million tonnes a year.
Mr Haresh Melwani CEO of H L Nathurmal & Co a Goa based iron ore miner and exporter said that “The industry requires INR 20,000 crore to process the entire amount of exportable fines, which looks impossible at this point in time unless steel mills take an aggressive initiative.”
Mr RK Sharma secretary general of FIMI said that “The government is inviting a big risk by forcing iron ore miners to set up pelletisation plants to convert iron ore fines into pellets. Despite incurring a cost on conversion, miners are unlikely to get adequate remuneration, as pellets need to compete with high grade iron ore. Steel mills may prefer to use lumps instead of pellets at a premium.”
The Indian government has already levied 10% ad velorem royalty on iron ore mining and this is likely to be doubled. Also, the proposed changes in mining rules call for an amount equal to the royalty to be paid for the welfare of project affected people. The government has also levied a 20% export duty.
Friday, February 25, 2011
India for more iron ore export curbs, duty rise seen
25 Feb, 2011, 06.34PM IST,REUTERS
NEW DELHI/MUMBAI: India's steel minister called for curbs on exports of iron ore on Friday, as the federal government heads into a budget that could raise export duty on the steel-making ingredient marginally.
"Yes, I am in favour of it. There should be more control on (iron ore) exports," Steel Minister Beni Prasad Verma said on Friday.
India's government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel-making resource, as demand in the world's second-fastest growing major economy rises.
In April last year, India raised the export duty on iron ore lumps to 15 per cent from 10 per cent previously. Duty on iron ore fines stood at 5 per cent.
The ministry of railways hiked the transportation cost 50 per cent to 1,500 rupees per tonne on Jan. 27, but kept it unchanged in Friday's Railway Budget. The government presents its budget for 2011/12 on Monday.
"There could be a marginal hike in export duty (of iron ore)," said Vasant Poddar , vice-president at the Federation of Indian Mineral Industries ( FIMI )), a trade body. "These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and U.S. consumes our low grade iron ore, other than China," he added.
Supplies of the steel-making ingredient from India have been limited by a ban of shipments from the southern state of Karnataka, which is currently being appealed by exporters in the Supreme Court.
Exports fell for the sixth straight month in December 2010 as the Karnataka state ban continued to bite. Exports were down 24.8 per cent year on year and fell 17.02 per cent in the April to December period.
Iron ore prices have risen around 13 per cent this year, adding to gains of more than 40 per cent in 2010. (sourced:Reuters, ET)
Tags : ban of iron ore shipment from Karnataka, raw material, steel mills
"Yes, I am in favour of it. There should be more control on (iron ore) exports," Steel Minister Beni Prasad Verma said on Friday.
India's government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel-making resource, as demand in the world's second-fastest growing major economy rises.
In April last year, India raised the export duty on iron ore lumps to 15 per cent from 10 per cent previously. Duty on iron ore fines stood at 5 per cent.
The ministry of railways hiked the transportation cost 50 per cent to 1,500 rupees per tonne on Jan. 27, but kept it unchanged in Friday's Railway Budget. The government presents its budget for 2011/12 on Monday.
"There could be a marginal hike in export duty (of iron ore)," said Vasant Poddar , vice-president at the Federation of Indian Mineral Industries ( FIMI )), a trade body. "These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and U.S. consumes our low grade iron ore, other than China," he added.
Supplies of the steel-making ingredient from India have been limited by a ban of shipments from the southern state of Karnataka, which is currently being appealed by exporters in the Supreme Court.
Exports fell for the sixth straight month in December 2010 as the Karnataka state ban continued to bite. Exports were down 24.8 per cent year on year and fell 17.02 per cent in the April to December period.
Iron ore prices have risen around 13 per cent this year, adding to gains of more than 40 per cent in 2010. (sourced:Reuters, ET)
Tags : ban of iron ore shipment from Karnataka, raw material, steel mills
Saturday, January 29, 2011
Kobe Steel to set up its own port in Vietnam-Nikkei
Saturday, Jan 29, 2011
TOKYO Jan 29, 2011 - Kobe Steel , Japan's fourth-biggest steelmaker, will invest up to $365 million to set up a port facility in Vietnam to be used exclusively by the company, the business daily Nikkei reported on Saturday.
Kobe Steel will invest about 20-30 billion yen ($244-$365 million) until 2013 to build cranes and other infrastructure at the port in the country, the paper said.
The steelmaker decided to set up its own port as it thought it would be more cost efficient than using an existing port and sharing with others as it had originally planned, the Nikkei said.
The Japanese steelmaker has said it plans to build a $1 billion iron-making plant in Vietnam, capable of producing 2.4 million tonnes per year of iron nugget from low-grade iron.
The plant will be built in the northern province of Nghe An this year and begin production in early 2013.
The material from the plant will be sold in Vietnam, as well as to be exported to Japan and other Asian countries, the newspaper said. ($1=82.10 Yen) (Reporting by Chikafumi Hodo; reuters)
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