2nd quarter 1998 - midrex · pdf file2nd quarter 1998 in this issue ... an american direct...

2nd Quarter 1998

IN THIS ISSUE

Increasing Productivity and Profitability with the MIDREX® Process

An American Direct Reduction Renaissance

Catalyst — The Factors Which Affect Performance

www.midrex.com and the next millennium

Internet technology and its use are expanding at a

rapid pace today as more and more companies find

value in doing business on “the net.” Over the last

few months, Midrex has been developing a web site

that we believe will be interesting and valuable.

While a good web site is always a work in progress, we

do think that the new Midrex web site has sufficient

information available now to be of use to most people

interested in direct reduction. Over the next few weeks and months we will be adding

additional features such as Direct From Midrex on-line and our annual direct reduction

statistics. So we invite you to log on and check out the new Midrex web site and let us

know what you think about it.

Internet technology is not the only new technology that is moving along rapidly

at Midrex. The first feature article in this edition of Direct From Midrex highlights

the newest technology enhancement to the MIDREX® Direct Reduction Process, the

introduction of the new, larger SUPER MEGAMOD™ Module. This is the world’s

first single unit direct reduction module capable of producing over 2.0 Mt/y of direct

reduced iron. The larger capacity opens up new frontiers for direct reduction by

improving the economies of scale and even offering the potential to replace smaller,

less efficient blast furnaces in certain cases.

The MIDREX Process also has ushered in a renaissance in direct reduction tech-

nology with the start of production at the American Iron Reduction plant (AIR) in

the United States. The plant began production earlier this year and has progressed

through a successful performance test and quick turnover of operations to the plant

operators. AIR is now shipping DRI to steelmakers throughout the USA and helping

these customers discover the benefits associated with using DRI. Again, as in the early

1970s, MIDREX Technology is involved in changing the raw materials scenario for

North American steelmakers, electric arc furnace and basic oxygen steelmakers alike.

It is commonly accepted that the only constant in life is change, and in today’s

worldwide iron and steel industries that rings true. Some people have a mispercep-

tion that iron and steelmaking is old, outdated and static. As we all know, that is far

from the truth. Our industry is vibrant, embracing change, and boldly moving ahead

with innovations and improvements that will continue to provide the building blocks

for industrial development and economic growth well into the next millennium.

Commentary

2nd Quarter 1998

Table of ContentsCommentarywww.midrex.com and the next millennium...................2

FeaturesIncreasing Productivity and Profitability with the MIDREX Process.....................3

An American Direct Reduction Renaissance..........5

CATALYST — The Factors Which Affect Performance...........................8

Midrex News & Views.......10-11

Editorial StaffDavid F. WoodEditor

John T. KopfleDerek M. SheedyResearch/Statistics

Nancy W. GriffinCirculation

Adgroup International, Inc.Graphic Design/Production

DIRECT FROM MIDREX is published quar-terly by Midrex Direct Reduction Corpora-tion, 201 South College Street, Suite 2100,Charlotte, North Carolina 28244 U.S.A.,Phone: (704)373-1600 Fax:(704)373-1611,Web Site: http://www.midrex.com underagreement with Midrex International B.V.The publication is distributed worldwidefree-of-charge to persons interested in thedirect reduced iron (DRI) market and itsgrowing impact on the iron and steel indus-try. ©1998 by Midrex International B.V.Printed in U.S.A.

2 DIRECT FROM MIDREX 2ND QUARTER 1998

All tons referred to are metric tons (t) or million metric tons (Mt)

MIDREX is a trademark of Midrex International B.V. FASTMET is a trademark of Midrex CorporationREFORMEX is a trademark of Midrex Corporation

MISSION STATEMENT

Midrex Direct Reduction Corporation will lead in the ironmaking technology industry bysupplying superior quality services that provide good value for our clients. We will meet orexceed performance expectations, execute projects on time, enhance existing product lines,and develop or acquire new technologies. Our employees are the key to our success, andwe are committed to encouraging them to grow professionally and personally.

Frank N. GriscomVice President

Marketing and Sales

4 DIRECT FROM MIDREX 1ST QUARTER 1995

By Greg D. HughesManager –Technology

The first MIDREX®

Direct ReductionPlant, which was built in 1969, had

two shaft furnaces with internal diametersof 3.7 meters and capacity of 150,000 met-ric tons per year. During the nearly 30 yearssince that time, Midrex and plant operatorshave developed a number of improvementsthat have provided for dramatic increases inproductivity. The latest generation ofMIDREX Plants offer outstanding perfor-mance and economy, and show goodpromise for meeting the ironmaking needsof the world in the 21st century.

Super MEGAMOD™ Module Design Completed Midrex Direct Reduction Corporation hascontinued to "push the envelope" by com-pleting design engineering for a new larg-er capacity MIDREX® Direct ReductionModule capable of producing over twomillion metric tons per year of directreduced iron (DRI) or hot briquetted iron(HBI). The new Super MEGAMOD™Module has a MIDREX™ Shaft Furnacewith an internal diameter of 7.5m and iscapable of producing over 275 tons perhour of DRI and over 255 tons per hour ofHBI. These hourly production figuresequate to 2.2 Mt/y of DRI and 2.0 Mt/y ofHBI based on 8,000 and 7,800 operatinghours respectively.

In addition to the larger shaft furnace,the new Super MEGAMOD uses a largerMIDREX™ Reformer to produce theadditional reducing gas required, and anew compressor design to circulate thereducing gases throughout the plant. Forthe first time, centrifugal compressorswill be used in place of the traditionalrotary lobe units for the process gas cir-cuit and cooling zone. A centrifugalcompressor has been operating as a partof the new MIDREX Mini-Reformer atthe OPCO Plant in Puerto Ordaz,Venezuela, since 1996. Results from this

operation have been outstanding and ledto the selection of centrifugal compres-sors for use in the Super MEGAMODdesign. The larger MIDREX Reformerwill be comprised of 24 bays of thirty 250 mm diameter tubes per bay. Thelargest MIDREX Reformer to date is atCaribbean Ispat Ltd., where a 17-bayreformer is under construction as a part ofthe Stretch MEGAMOD™ project at thePoint Lisas, Trinidad, site. MIDREXReformers at American Iron Reduction(AIR), IMEXSA, and Ispat Industries con-sist of 15 bays. Midrex's higher activity

REFORMEX® Catalyst loading, whichwas used at IMEXSA and AIR, will alsobe used in the Super MEGAMOD design.Features of the new design are summa-rized in Table 1 on the following page.

Existing MIDREX MEGAMODS atOPCO, Ispat Industries, and IMEXSAeach have set new world standards formaximum production from a single reduc-tion plant. AIR's MEGAMOD, whichrecently began operations in Convent,Louisiana, is producing at a rate equivalentto IMEXSA. The Super MEGAMOD sets a new standard for single module

DIRECT FROM MIDREX 2ND QUARTER 1998 3

Increasing Productivity and Profitability with the MIDREX® Process

DIRECT FROM MIDREX 1ST QUARTER 1995 3

production that is unprecedented in theindustry.

With the introduction of the SuperMEGAMOD, Midrex is pushing the lead-ing edge of direct reduction technologyforward and is opening up new possibili-ties for use of DRI and HBI. Traditionally,DRI has been used predominantly byelectric furnace-based steelmakers. Inrecent times, blast furnace operators havebegun using HBI as a supplement to theirfeed mix to increase hot metal produc-tion. The Super MEGAMOD now pro-vides an option for steelmakers to replacea 2-3 Mt/y blast furnace/BOF complexwith a comparable sized direct reductionmodule and mini-mill at a very competi-tive capital cost. Feeding DRI produced inthe Super MEGAMOD hot to an adja-cent electric arc furnace can furtherenhance the economics.

Ratings of Existing Designs IncreasedMidrex has also set new ratings for currentplant designs based on technologyenhancements and improvements in operating practices at existing plants. Thenew ratings are summarized in Table II.Technology improvements contributingto the new ratings include oxide coating,double bustle design, and oxygen injec-tion. More aggressive operating practicesemployed by many MIDREX Plantsinclude higher bustle gas utilization andincreased natural gas addition to the shaft

furnace to promote in situ reforming.

Oxide CoatingWith the productivity of higher tempera-ture operation in the shaft furnace, oxidecoating equipment is included as a stan-dard feature of every new MIDREXPlant. The small capital investment ismore than offset by increased produc-tion. Oxide coating locally at the plantcan be omitted if the plant can obtainpre-coated materials either from its ironore suppliers or an adjacent pellet plant.MIDREX Plants have traditionally beenlimited to 850 C bustle temperature dueto pellet sticking. By coating the oxidepellet with lime, MIDREX Plants canachieve bustle temperatures of up to 920 C without oxygen injection bymanipulating the enrichment and cool-ing zone natural gas addition and turningoff the reformed gas cooler.

Oxygen InjectionIn the past, Midrex has used 850 C asthe design bustle gas temperature. Withiron oxide coating now standard prac-tice, Midrex will now use 900 C as thebustle gas temperature for plant designand rating purposes. The higher temper-

ature maximizes gas utilization and plantproduction.

Higher bustle gas temperatures can beachieved by minimizing enrichment oradding oxygen injection. Midrex hascompleted a design and HAZOP on anoxygen injection system that should be inoperation at IMEXSA by the end of thisyear. Many other MIDREX Plants arealready using oxygen injection or areinvestigating systems for their plants.

Midrex has found that for every 10 Cincrease in bustle temperature, plant pro-duction can be increased by 1.5-2.0 per-cent. The oxygen required to accomplishthis can be obtained at a low cost relativeto the value of the incremental produc-tion realized.

Higher Bustle Gas UtilizationAll the new operating practices designedto increase burden temperatures withinthe shaft furnace, such as in situ naturalgas, cooling zone bleed, oxygen injection,and oxide coated materials, haveincreased the kinetics of the reductionreactions and thus increased plant pro-duction. This has resulted in a new rela-tionship between bustle temperature andbustle gas utilization, thus increasing fur-


Table 1 Features of the new MIDREXSUPER MEGAMOD™

MIDREX™ Shaft Furnace:

• 7.5 meter nominal diameter• 11.75 meters reduction zone height• 275 t/h cold discharge rate*• 255 t/h hot discharge rate*

MIDREX™ Reformer

• 24 reformer bays• Thirty 250mm diameter tubes per bay• 720 total reformer tubes• High activity REFORMEX® Catalyst

loading

* Production rates are based on:Use of 100 percent pellet chargeDouble bustle design900 C or higher preheatExperienced plant operatorsSufficient briquetting capacity for HBI production

MIDREX®

Direct Reduction Plant Production Rates

The following plant production figures, based on actual operations data, are typical forMIDREX Plants operating at steady-state conditions. Actual production rates will vary depend-ing on local conditions: however, use of these values will provide good estimates of yearlyproduction.

Nominal Yearly Production (t)Module Furnace ID (m) DRI HBI

MINIMOD™ 4.25 — —

5.0 m MIDREX™ Shaft Furnace 5.0 800,000 700,000

5.5 m MIDREX™ Shaft Furnace 5.5 1,000,000 900,000

MEGAMOD™ 6.5 1,600,000 1,450,000

SUPER MEGAMOD™ 7.5 2,200,000 2,000,000

Assumptions:• use of 100 percent coated CVRD-grade pellets or equivalent• double bustle design• thin wall refractory for all modules except SUPER MEGAMOD• 900 C or higher operating temperature• experienced plant operators• sufficient briquetting capacity for HBI production

Table 2 MIDREX® Direct Reduction Plant ratings


When the American Iron Reduction(AIR) plant produced its first direct

reduced iron (DRI) on January 14, 1998, itmarked the first time in over 27 years thata new direct reduced iron plant beganoperations in the United States. ForMidrex, it was a momentous occasion thatwas meaningful because the AIR plant isa 50/50 joint venture of GS Industries,parent company of Georgetown SteelCorporation, and Birmingham Steel Cor-poration. Georgetown Steel was amongthe early pioneers of the MIDREX®

Direct Reduction Process, and still oper-ates its original plant, producing 502,978metric tons in 1997; that is 126 percentof rated capacity.

The new AIR plant is running as wellas the original Georgetown Steel plant.Within one month of the first productbeing produced, the plant passed its per-formance test by producing an average of163 metric tons per hour of DRI over thetest period. DRI produced during theperformance test had an average metal-lization of 94.5 percent and carbon con-tent of 1.8 percent. Two weeks aftercompletion of the performance test, theMidrex start-up crew completely turnedthe plant operation over to the newoperators and returned to Charlotte.Since that time, the plant has been run-ning above capacity in the 180 t/h rangeand producing product with metalliza-tion as high as 96 percent.

Many of the design features of the AIRplant are similar to the IMEXSA modulethat began operations in September 1997in Lazaro Cardenas, Mexico. Both modulesare rated at 150 t/h of DRI production,have a 6.65m MIDREX™ Shaft Furnacewith the thin wall refractory design, and a15-bay MIDREX™ Reformer. However,as with all new Midrex designs, AIR hasseveral new design features. The mostnotable of those is the vertical furnacefeed conveyor.

Early MIDREX™ Plants, such as theGeorgetown Steel plant, used a skip carsystem to raise oxide feed to the top of the shaft furnace tower. In 1973 at theSidbec-Dosco I plant, Midrex introduced


Construction of the AIR plant in Convent, Louisiana

AN AMERICANDIRECT REDUCTIONRENAISSANCE


a pocket furnace feed conveyor set at a45-degree angle to vertical to carry ironoxide up to the charge hopper. AIR is the first MIDREX Plant to use a verticalfurnace feed conveyor design. This designallows the plant to be set on a smaller siteand reduces the amount of structural steelrequired. Both of these result in capitalcost savings. To date, the vertical furnacefeed conveyor has run extremely well, andit has become a standard feature on newMIDREX Plant designs.

AIR has pioneered other new conceptsin its plant. The most notable of those isthe partnership arrangement with IllinoisCentral Corporation (IC) for all of theplant’s bulk material handling operations.IC constructed a state-of-the-art bulkmaterials handling terminal adjacent tothe AIR plant site. The terminal includesfacilities to handle inbound and outboundshipments by oceangoing vessels, riverbarges, trains, and trucks. Raw materialsare stockpiled at the IC terminal until theyare needed by AIR, at which time they aremoved by conveyor to AIR’s day bins.Once DRI is produced and aged in AIR’sstorage silos, it is moved by conveyor to theIC terminal for outbound shipment.

Other new concepts included in theplant are designating selected vendors

with turnkey responsibilities for variousin-plant services. Midrex’s affiliated com-pany, Professional Services International(PSI), was selected to provide all of AIR’sprocurement services and to manage the

inventories of certain spare parts and con-sumable items. Other vendors were select-ed to provide plant security, water treat-ment, and vibration analysis services.Currently, there are several vendors pro-viding maintenance services for all of thechutes within the plant. In the nearfuture, AIR will evaluate the performanceof the systems in use and select a singlevendor to provide all of these services.

All DRI produced by AIR will beshipped from the Convent, Louisiana,site. The majority of the DRI will be con-sumed in the meltshops of the joint ven-ture partners GS Industries and Birming-ham Steel. GSI operates meltshops atGeorgetown, South Carolina, and KansasCity, Missouri. Birmingham has a newshop at Memphis, Tennessee, for supply-ing high-quality billets to the rolling millsof its subsidiary American Steel & Wirenear Cleveland, Ohio, and Chicago, Illi-nois. Other Birmingham steelmakingoperations are located in Birmingham,Alabama; Cartersville, Georgia; Kanka-kee, Illinois; Jackson, Mississippi; andSeattle, Washington. DRI not needed bythese shops is available for sale, and AIRis currently shipping DRI to several otherNorth American steel companies.

Despite the close ties to its joint venture


Iron oxide is stockpiled in the IC terminal adjacent to the AIR plant

The dock at the IC terminal along the banks of the Mississippi River

4 DIRECT FROM MIDREX 1ST QUARTER 1995 DIRECT FROM MIDREX 2ND QUARTER 1998 7

parent companies, AIR operates as an inde-pendent company. Consequently, the 67employees are responsible for all facets ofthe plant’s operation including account-ing, human resources, operations, mainte-nance, transportation, and raw materialspurchasing. In fact, according to AIR’spresident, David Durnovich, the firstemployees hired were in the accountingand human resources areas in order toestablish the company so the plant couldbe constructed.

Bechtel Corporation was the construc-tion contractor responsible for the job,which required 19 months from ground-breaking to the first product shipment.One of the new construction techniquesemployed by Bechtel on the AIR projectwas erection of the shaft furnace tower ona level-by-level basis. Each level of theshaft furnace was completed prior to con-structing the subsequent level. By usingthis method, Bechtel reduced the amountof time typically required to construct aMIDREX Shaft Furnace, and once thestructure was “topped out” it was nearlyready to go. This method also provided asafer method for construction because allof the decking, stairways, handrails andother safety items were in place as thestructure was erected. Evidence of the

benefit is the fact that over the entirecourse of the construction project therewere no OSHA recordable lost time cases.This is a commendable accomplishment,in consideration of the fact that at thepeak of construction activities there were900 workers on the job site. Bechtel alsoprovided detail engineering and cold pre-operation services for the project.

Southern Louisiana has unique soilconditions because of its extremely lowheight above sea level. There are evenareas where ground level is actually belowsea level. At the AIR site, which is on thebanks of the Mississippi River, the watertable is four feet below ground level.Unique construction techniques wererequired to construct foundations andother facilities under these circumstances.One of the greatest challenges was theclarifier in the plant water system, whichgoes down 60 feet below ground level.

Within the first week of operation,American Iron Reduction shipped thefirst DRI produced to Birmingham Steel’snew steel shop in Memphis, Tennessee.Coupling AIR’s strong operating perfor-mance with the high quality levels in theDRI produced indicates a strong future forthe new company. In the near future, AIRhopes to erect a second, identical plant tosupply additional DRI to the NorthAmerican market. The site has been per-mitted and designed to accommodate themodule and infrastructure to support themodule is already in place.

AIR has ushered in a renaissance indirect reduction in the United States,built on a strong history of DRI produc-tion at Georgetown Steel. It remains to be seen how far the renaissance will go, but one thing is certain — AIR will be a major factor in this newage of ironmaking.

A view of the AIR plant from the adjacent IC terminal

The American Iron Reduction plant in Convent, LA

The top of the vertical furnace feed conveyor


By Bruce G. KelleyVice President – Technology and Engineering

Carbon Formation in ReformersMost difficulties in reformer operationrelate to carbon formation. Carbon canform in reformers from either carbonmonoxide or hydrocarbons as shown inTable XVIII.

The reactions to form carbon from car-bon monoxide are catalyzed by a nickel catalyst and are favored by lower tem-peratures. Low sulfur in the feed gas results inhigher catalyst activity, which favors carbonformation from carbon monoxide. Fortu-nately, the sulfur normally present in thefeed gas from the natural gas and the oxidefeed is sufficient to prevent Boudouard car-bon in a MIDREX

TMReformer so long as the

reformer is operated at the normal tempera-tures and feed gas stoichiometric ratio.Boudouard carbon formation is extremelyrare in a MIDREX Reformer.

In the case of hydrocarbons, there are

two possible reactions that can occur: thedesired reforming reactions and the unde-sired cracking reactions. The reactions toform carbon from cracking hydrocarbons arefavored by high temperatures and low cat-alytic activity. If the reformer feed gas wereheated to reforming temperature over aninert rock, a lot of cracking would undoubt-edly occur. However, if the reformer feed gasis heated in the presence of a catalyst, thereforming reactions will predominate.

Table XIX compares the factors thatfavor carbon from carbon monoxide andhydrocarbons.

Table XX compares the symptoms ofcarbon formation from these two sources.

By analyzing those symptoms, it is nor-mally possible to determine the source ofany carbon formed.

Preventing Hydrocarbon Crackingin a ReformerThis section will examine ways to preventcracking of heavy hydrocarbons in eithera MIDREX Reformer or steam reformer.

Minimize Heavy Hydrocarbon Content in Natural Gas The surest way to prevent heavy hydro-carbon cracking is to minimize the heavyhydrocarbon content of the feed gas. Ifany natural gas liquids are present in thenatural gas, they should be removed witha mist eliminator upstream of thereformer. If the heavy hydrocarbon con-tent of the natural gas exceeds the limitsspecified by the catalyst and/or reformersupplier, several ways exist to remove theheavies from the natural gas.

The most commonly used method toreduce the heavies is to cool the natural gasby expansion. If the natural gas pressure ishigh enough, the natural gas may be cooledby expansion though a Joule-Thomsonvalve. At lower natural gas pressures, cool-ing is achieved by expansion through aturbo expander. Cooling by refrigeration isalso possible.

There are a number of other possibilitiesfor heavy hydrocarbon removal: conversionof the heavies to methane in an adiabaticprereformer or removal of heavies by molec-ular sieves (with regeneration by either pres-sure swing or temperature swing), solvents,or permeable membranes. An engineeringevaluation is required to determine the opti-mum choice to reduce the heavy hydrocar-bon content based on the natural gas analy-sis, natural gas pressure, allowable pressuredrop, allowable heavy hydrocarbon content,and local site conditions.

Operating Conditions The reformer should be operated at thetemperatures and feed gas stoichiometricratio recommended by the catalystand/or reformer supplier. After removal

Carbon SourceFactor Carbon Monoxide Hydrocarbons

Catalyst Activity High LowTemperature Low HighFeed Gas Sulfur Low HighHeavy Hydrocarbon Content No Affect High

2CO = CO2 + C Boudouard Reaction

CO + H2 = C + H2O Beggs Reaction

CnH2n+2 = nC + (n+1)H2 Hydrocarbon Cracking Reaction

Table XVIII Carbon formation in reformers

CATALYSTThe Factors Which Affect Performance

— PART 6 —


Table XIX Factors favoring carbon formation


of excessive heavy hydrocarbons, this isthe most effective way to prevent orminimize carbon formation.

Catalyst Loading Profile The catalyst loading profile can bedesigned to minimize carbon formationeither by carrier selection or catalystactivity selection. Carrier selection is themost prevalent way to minimize heavyhydrocarbon cracking. Acid sites areknown to promote carbon formation.Alumina carriers, which are used in mostreforming catalysts, are acidic, whichmakes them more susceptible to carbonformation. A magnesia carrier has beendeveloped which is free of acid sites and isless susceptible to carbon formation. Themagnesia catalyst should be loaded in theentry portion of the tube that is susceptible

to carbon formation. As the gases passthrough the tube and reforming takesplace, the hydrocarbon concentrationdecreases and the reductant concentra-tion increases until hydrocarbon crackingeventually becomes impossible from anequilibrium standpoint.

In some situations, adjusting the load-ing profile so a more active catalyst isinstalled at the tube inlet can be effec-tive in reducing hydrocarbon cracking.As shown in Table XIX, heavy hydrocar-bon cracking is favored by low catalystactivity. If excessive heavy hydrocarbonsare present in the natural gas, a highactivity catalyst can be installed at theinlet of the reformer tubes to encouragereforming and discourage heavy hydro-carbon cracking. Where this approach isused, the feed gas sulfur level should be

kept low to ensure that the catalystactivity remains high.

REFORMEX® CatalystsMidrex has worked with UCI to developthe REFORMEX family of catalysts to meetthe requirements of the MIDREX Reformer.Table XXI compares the chemical and phys-ical properties of these catalysts. Additionalinformation about these catalysts and rec-ommended loading profiles for specific oper-ating conditions can be obtained by con-tacting MIDREX, PSI, or UCI.

ConclusionEarlier, catalyst was defined as a materialwhich increases the speed of reactionwithout being affected by the reaction. Inthis concluding part of the series on nat-ural gas and catalyst, we have examinedhow to measure catalyst performance andhow to improve that performance. Wehave seen that this definition is indeedoptimistic, as noted in the Catalyst Hand-book, since many factors can affect thecatalyst performance. However, by usingthis knowledge to adjust these factors inthe right direction, the performance ofthe catalyst, the reformer, and the directreduction plant can be optimized.

This is the final installment of the series.


Carbon SourceSymptom Carbon Monoxide Hydrocarbons

Rate of Pressure Drop Increase Rapid (hours) Slow (days)Pressure Drop Decreased by Burnout No YesVisible Carbon when Tube Emptied No YesCatalyst Degradation Yes NoCarbon Location in Tube Cross Section Center WallHot Bands Present Unlikely Likely

Table XXI Typical Reformex® catalyst properties

Property Reformex® 7 Reformex® 7GG Reformex® 8 Reformex® 14 Reformex® 15 Reformex® 13

Activity High Highest Low Medium High Inert

Shape Raschig Ring Gatling Gun Extruded Rib Ring Rib Ring Rib RingCylinder (9 Ribs) (9 Ribs) (9 Ribs)

Chemical Analysis (wt.% )% Ni 7.5 – 9 7.5 – 9 1.5 – 3 5 – 7 11 – 13 N/A% SiO2 <0.1 <0.1 <0.1 <2 <0.1 <0.1Al2O3 Balance Balance Balance 2 – 5 Balance BalanceMgO Trace Trace Trace Balance <0.5 <0.5Fe2O3 <0.25 <0.25 <0.25 <2 <0.25 <0.25

Physical PropertiesBulk Density (kg/l) 1.13 – 1.30 0.99 – 1.16 1.12 – 1.28 0.95 – 1.15 0.9 – 1.15 1.3 – 1.5Crush Strength (kg)* >80 >110 >500 >120 >120 >250

Particle Size (mm)Outside Diameter 24.5 32.5 30 30 30 33Length 18 18.3 25 – 75 28 27 23Inside Diameter 10.5 6.5 (6 holes) N/A 11 12 13

*Dead weight load measured across the diameter.

Table XX Symptoms of carbon formation

Midrex News & Views

Midrex Around The World

Caribbean Ispat DR3 shown above and below


Progress Continues on MIDREX® PlantsCaribbean Ispat Ltd.’s 1.36 Mt/y DR3 project in Point Lisas, Trinidad &Tobago, moves closer to completion as the shaft furnace has been set inplace. The third module, dubbed DR3, will be the largest single directreduction module in the world, edging out AIR and IMEXSA which arerated at 1.2 Mt/y. Start-up is scheduled for late 1998.

Another first for Midrex is quickly approaching with Saldanha Steel’sMIDREX Plant under construction in Saldanha Bay, South Africa. The804,000 t/y plant at Saldanha Steel will be the first direct reduction plantto use COREX® Off-Gas from another process as its reducing gas. TheMIDREX Plant will use the off-gas from two COREX® C-2000 Plantswhich will produce 1.5 Mt/y of hot metal.

Other plants currently under construction include COMSIGUA (start-up – third quarter 1998) and ANSDK III (start-up – fourth quarter 1999.)

Saldanha Steel shown above and below

2.6

2.4

2.2

2

1.8

1.6

1.4

12.0

10.0

8.0

6.0

4.0Jan Apr Jul Oct 1995 1996 1997 1998

Monthly

Note:1998 data containsestimates for plants whose data is unavailable at time of publication

1996

1997

1995


Midrex News & Views

AFK Selects MIDREX Technologyfor Western Australian ProjectThe following was excerpted from a pressrelease made by An Feng Kingstream SteelLimited on May 21, 1998.An Feng Kingstream Steel Limited(AFK) has entered into a Heads ofAgreement with Mitsui & Co. Ltd.Danieli & C.S.p.A, and Lurgi (Aus-tralia) Pty. Ltd. under which Mitsui hasbeen appointed the leader of a new con-sortium that will finance, build andcommission a US$1.08 billion, 2.6 mil-lion ton per annum steel slab plant nearGeraldton in Western Australia. Thisfollowed withdrawal by AFK of its let-ter of intent issued to MannesmannDemag AG in respect of the financingand construction of a 2.4 million ton perannum steel slab plant, which had previ-ously been announced to the AustralianStock Exchange on March 20, 1998.

Mitsui has various roles in addition tothat of being leader of the consortium,including arranging the project financing

and acting as the counter-party for asteel slab offtake agreement.

Danieli’s role is to design, supply andcommission two electric arc furnacesand associated plant and equipmentincluding casters.

Lurgi’s role is to design, supply andcommission the pelletizing plant, twoMIDREX® Direct Reduced Plants andassociated plant equipment. Lurgi’sobligations are guaranteed by its parentcompany, Lurgi AG.

The President of AFK, Mr. A.H.Chu, said “Under the new plan, whichincorporates fixed price, constructioncompletion and performance guarantees,the plant will produce 2.6 million tonsof steel slab annually compared with 2.4million tons envisaged under previousproposals.” Mr. Chu added “The termsof the project finance are to be complet-ed within the next three months andfollowing receipt of the US$50 millioncash [infusion], we expect to commenceworks immediately.”

QASCO to Build Second MIDREX™

Plant for Production of HBIOn Wednesday, May 6, 1998, a Letter ofIntent was signed between Qatar HotBriquetted Iron Co. Ltd. and a consor-tium of Lurgi and Midrex for a 2.0 Mt/yMIDREX™ Hot Briquetted Iron plant.The parties are bound to sign a contractwithin 60 days from the date of the sign-ing of the Letter of Intent. This will bethe largest Hot Briquetted Iron project in the Middle East. Work onthe project is expected to take about 30 months.

Production will start in the secondhalf of the year 2000. QASCO will takeresponsibility for management of theproject, and will consume 20% of itsproduction to meet its requirementsafter completion of the current expan-sion to the original QASCO directreduction plant. Another 20% will bepurchased by National Industries Groupof Kuwait, and Duferco will purchase theremaining 60% of the production.

Qatar Steel Company complex

MIDREX™ Plant Production Data (Mt)Cumulative (through May)

1998

published by

Midrex Direct Reduction Corporation201 South College Street, Suite 2100Charlotte, NC 28244USA

ADDRESS CORRECTION REQUESTED

U.S. POSTAGEPAID

BULK RATEPERMIT NO. 1793CHARLOTTE, N.C.

MIDREX is a trademark of Midrex International B.V. FASTMET is a trademark of Midrex CorporationREFORMEX is a trademark of Midrex Corporation

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