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Kobe Steel, Ltd. (KSL)

August 1st, 2014

Sustainable solution for steel industry

- FASTMET® Process -

1

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Contents

1. Corporate Profile of KSL and Iron Unit Division

2. KSL’s Service Capability

3. FASTMETⓇ Process

4. Contribution to Indian Steel Industry

5. Project Reference

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Contents

1. Corporate Profile of KSL and Iron Unit Division

2. KSL’s Service Capability

3. FASTMETⓇ Process

4. Contribution to Indian Steel Industry

5. Project Reference

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Name: Kobe Steel, Ltd.

Founded : September 1, 1905

Net Sales : USD 17.92 billion*

Capital: USD 2.48 billion*

Related Companies: 206 subsidiaries

64 equity-valued affiliates

Employees : 36,018* *Consolidated (KSL + subsidiaries , excluding affiliates)

*Ex-rate: JP¥ 94.05 / USD

Kobelco Construction

Machinery

Other Businesses

Kobelco Cranes

Corporate Profile

Engineering

& Machinery

13%

Iron & Steel,

Welding

49%

Others

7%

Aluminum & Copper

16%

Construction

Machinery

16%

KSL is composed of ;

4

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IPP Unit

Power Generation IPP

(1,400MW)

Aluminum & Copper

Business Unit

Aluminum forgings for

automobile suspensions

Welding Business Unit

Various welding rods

Aluminum & Copper

Business Unit

Copper alloy sheet for

lead frame

Machinery Business Unit

- Various types of compressors

- Rolling Mills

Engineering Business Unit

Iron making processes

Iron & Steel Business Unit

High Strength Steel Sheet /

Wire rod products for

automobile

Kobelco Cranes

Crawler Crane

Products of Kobe Steel

Unique Products, Technology and Service

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Processes owned by KSL

Molten Iron

Casted Pig Iron

DRI

Iron Nugget

Steaming Coal

Coal-Based DR

Plant FASTMET/ FASTMELT

ITmk3

EAF

DRI

Pellet Plant

Natural Gas

Shale Gas

Low-Grade

Iron Ore

BF Iron Ore

Scrap

Coking Coal

Beneficiation

Outline of Iron Making Processes

Gas-Based

DR Plant

Pellet

6

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Business Foundation of Iron Unit Division

Knowledge & Experience Accumulated

in Engineering and Project Execution

Countries: 29

FTK/STK Plants: 51

FOB + SV: 25

Creation of

New Iron Making Technologies

Continuous R & D for New Iron Making Technologies

in cooperation with MIDREX Technologies Inc.

MIDREX® DR Process KOBELCO Pelletizing

System

FASTMET ® Process

Plant Supply: Since 1962 - Bangladesh Fertilizer Plant

Japan Standard Engineering Quality: Thoughtfulness and Seamless Engineering

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Contents

1. Corporate Profile of KSL and Iron Unit Division

2. KSL’s Service Capability

3. FASTMETⓇ Process

4. Contribution to Indian Steel Industry

5. Project Reference

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: FTK/STK Projects : FOB + SV Projects

Engineering Business - Overall Past Record

1. Fertilizer (Bangladesh) 17. Phenol Acetone (Korea) 33. Cement (Japan) 49. Polyethylene (Nigeria) 65. Cement (Italy)

2. Bar Mill (Bangladesh) 18. Polypropylene (Singapore) 34. Fertilizer (Indonesia) 50. Pelletizing (Venezuela) 66. FASTMET (Japan)

3. Pelletizing (Japan) 19. Cement (Japan) 35. Fertilizer (Malaysia) 51. Meltblown (Netherlands) 67. Iron Ore Beneficiation (Iran)

4. Pelletizing (Japan) 20. Bar & Wire Rod Rolling (Nigeria) 36. Coal Liquefaction (Australia) 52. Spunbond (Korea) 68. Direct Reduction (Qatar)

5. Integrated Mill (Bangladesh) 21. Cement (Japan) 37. LPG Recovery (Algeria) 53. Direct Reduction (Egypt) 69. Pelletizing (Iran)

6. Fertilizer (Zambia) 22. Vinyl Acetate (Taiwan) 38. Aluminum Mill (Bahrain) 54. Caustic Soda (Indonesia) 70. FASTMET (Japan)

7. Acrylic Fiber (Korea) 23. Cement (Indonesia) 39. Wire Annealing (Nigeria) 55. Direct Reduction (Venezuela) 71. Pelletizing (Bahrain)

8. Pelletizing (Japan) 24. Cement (Jordan) 40. Cement (Malaysia) 56. Iron Ore Beneficiation (Iran) 72. Direct Reduction (Oman)

9. Pelletizing (Japan) 25. Sulfuric Acid (Zambia) 41. Polypropylene (Thailand) 57. Cement (Vietnam) 73. FASTMET (Japan)

10. Pelletizing (Japan) 26. Bar & Section Mill (Libya) 42. Cement (Jordan) 58. Spunbond (USA) 74. FASTMET (Japan)

11. Pelletizing (Japan) 27. Sulfuric Acid (Iraq) 43. Direct Reduction (Iran) 59. Spunbond (Indonesia) 75. Iron Nugget (USA)

12. Polypropylene (Brazil) 28. Cement (Japan) 44. Direct Reduction (Egypt) 60. Pelletizing (Venezuela) 76. Direct Reduction (Bahrain)

13. Continuous Bar Mill (Qatar) 29. Cement (Japan) 45. Steel Casting (Australia) 61. Direct Reduction (Egypt)

14. Direct Reduction (Qatar) 30. Cement (Japan) 46. Refinery (Ecuador) 62. FASTMET (Japan)

15. Pelletizing (Chile) 31. Cement (Jordan) 47. Cement (Egypt) 63. FASTMET (Japan)

16. Oil Gathering (Kuwait) 32. Pelletizing (Bahrain) 48. Direct Reduction (Venezuela) 64. Direct Reduction (Korea)

9

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1. Acindar

2. ArcelorMittal Montreal 1

ArcelorMittal Montreal 2

3. ArcelorMittal Hamburg

4. ArcelorMittal Lazaro Cardenas

5. ArcelorMittal Pt. Lisas 1-3

6. ArcelorMittal South Africa

7. Antara Steel Mills

8. Arfa Steel

9. Comsigua

10.DRIC 1-2

11. ESISCO

12. Essar Steel 1-6

13. EZDK 1-3

14. Ferrominera Orinoco

15. Global Steel Holdings

16. Hadeed A - E

17. HOSCO 1-2

18. IGISCO

19. IMPADCO

20. JSW Ispat Steel

21. JSW Steel

22. Jindal Steel & Power

23. Khorasan Steel

24. Khouzestan Steel 1-5

25. LGOK 2, 3

26. Lion DRI

27. LISCO 1-3

28. Mobarakeh Steel A - F

29. Nu-Iron

30. OEMK 1-4

31. Qatar Steel Co. 1-2

32. Jindal Shadeed

33. SULB

34. Tenaris Siderca

35. Sidor 1

Sidor 2 A - C

36. Tuwairqi Steel Mills

37. Venprecar

38. voestalpine

Midrex - Midrex DR Plants all over the world Since 1969, Midrex has built more than 70 Shaft Furnace Modules in 21 countries worldwide.

Note: Projects written in blue were implemented by KSL (main contractor) with Midrex

38

10

Midrex DR Plants Overall Past Record

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Comprehensive Project

Development Capabilities

Project

Management

ISO9001

Training

Service

Spare Parts

Supply

Plant

Diagnosis Marketing,

Consultation &

Finance Arrangement

Plant Design

&

Engineering

Shipment

Haulage

Commissioning

&

Operation

Procurement

&

Inspection Service

Construction

&

Site Management

Technical

Assistance

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KSL fulfills Customer’s requirement from multiple aspects;

Project Design & Development Stage

Project Study (Scoping / Conceptual / Preliminary Design)

(Conceptual Layout, Preliminary Financial Analysis, Sample Test etc.)

Feasibility Study & Finance Arrangement

Project Execution Stage

Plant Construction (Engineering, Procurement & Construction)

Project Management & Supervision

O & M, Training Services

Provision of Aftermarket Service: Technical Assistance, O&M, Training Service and

Spare Parts Supply for the smooth and timely operation of the plant.

12

Summary of KSL’s Service

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Contents

1. Corporate Profile of KSL and Iron Unit Division

2. KSL’s Service Capability

3. FASTMETⓇ Process

4. Contribution to Indian Steel Industry

5. Project Reference

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Issues of Indian Steel Industry

Indian Steelworks

Lump Iron Ore

Iron Ore Fine

Steel Products

Coal

Steel Mill Dust

Landfill

1) Difficulty of the security of Iron Ore due to the strict ban for iron ore mining.

2) High dependent on the import of coking coal.

For Indian steel industry, the security of iron and carbon sources are the most

important theme.

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Ideas of solution for Indian Steel Industry

1) FASTMET is a solution for security of iron and carbon sources &

re-utilization of steel mill dust.

2) KOBELCO Pelletizing System can contribute to utilization of iron ore fine.

Indian Steelworks

Lump Iron Ore

Iron Ore Fine

Steel Products

Coal

Steel Mill Dust Landfill

Recycling

Dust FASTMET

KOBELCO

Pelletizing System

Iron Ore Fine

Treatment

Iron Ore Fine

Treatment

FASTMELT

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History of RHF Process

Midland Ross

6 commercial plants in operation

KSL Kakogawa Demo Plant

Development of FASTMET Technology was started.

1990

1980

1970

KSL/Midrex

Midrex

Pilot Plant of Heat-Fast

Taken over

by Midrex

Acquired by KSL

2000

1) FASTMET® process was developed by KSL and Midrex as an alternative to Gas-based

Direct Reduction technology.

2) FASTMET® process is proven, and presently 6 plants are in good commercial operation.

Installed Facility

Licensor

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1. Higher Process Reliability

(1) Rich Experience as a Plant Contractor

(2) Rich Experience as a Plant Operator

・ As a plant owner, Kobe Steel obtains rich know-how and

experiences for operation & maintenance

Advantage of FASTMET Process (1/2)

17

・ Proven process – History for around 20 years

・ 6 plants were supplied to 3 major Japanese steel mills

(3 plants: Supplied to Nippon Steel & Sumitomo Metal)

Stable Operation

Lower frequency of mechanical troubles than other RHF process

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Higher Performance

than Other RHF Process

FASTMET - HBI

Capacity (Dust Feed) 200,000 ton/year

Plant Availability 90%

Metallization 85%

DRI Fine Generation 10%

De-Zn Ratio > 90%

(Source: KSL in-house study)

18

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4. Flexible Operation

・ BF & BOF Dust/Sludge

・ EAF Dust

・ Oily or High CaO contained dust

3. Raw Material / Fuel Flexibility

(1) Raw Material

(2) Fuel

・ Coke Oven Gas (COG)/BOF Gas

・ Producer Gas/Natural Gas

Easy plant start-up and shut-down due to the short process time

(Approx. 10 Minutes)

Advantage of FASTMET Process (2/2)

19

2. Lower Impact on Environment

・Recycling of steel mill dust

・Hot Briquette Iron (HBI) ⇒ Lower Fine Generation

・Lower NOx/SOx Emission

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Burner Fuel

- NG

- COG

- BOF gas

(subject to detailed study)

Rotary Hearth

Furnace (RHF)

Agglomeration

Material Bin

(Steel mill dust, Coal)

Briquetter Pelletizer

Off-Gas Handling System

Bag Filter Air Pre-Heater

Off-Gas Cooler

Stack

HBI

HDRI

CDRI

Crude Zinc Oxide is recovered at

the off-gas handling system.

Process Features

• DRI or HBI is produced with no sinter & no coking coal.

• High metalized DRI / HBI due to specially designed RHF (Metallization > 85%)

• High De-Zinc ratio > 90%.

Steel mill dust

Raw material

Products

Cold Briquette (CBQ)

Dryer

20

Typical Process Flow of FASTMET

DRI

* Boiler system can be adopted to Off-Gas Handling System

in accordance with the customer’s requirement.

Thermal energy in the

off gas from the RHF

is captured and re-

used at the RHF.

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2ndaryCombustion

CO gas

Zn

Retention Time 8 - 16 分

Burner

Heat

Discharger

Feeder

DRI

1200 - 1400 1000 -1200

Heat

700 - 1200

Cooling

Heat

Hearth

Crude ZincOxide

2CO + O2 = 2CO

2

Zn + CO2 = ZnO + CO

CH4 + 2O

2 = CO

2 + 2H

2O

CombustionAir

CH4 etc

FeO + CO = Fe + CO2

Fe2O

3 + 3CO = 2Fe + 3CO

2

ZnO + CO = Zn + CO2

CO2 + C = 2CO

Fuel

min

Reduction Mechanism

21

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Direct Reduced Iron (DRI)

Hot Briquetted Iron (HBI)

22

Advantage of Hot Briquette Iron (HBI)

1) Versatile Usage: Due to the small surface specific area, HBI is much less

likely to be re-oxidized and overheating than DRI and can

be flexibly fed into BF and BOF according to the conditions

from actual operation of iron and steel works:

- Substitute for Scrap fed into BOF

- Reduction of Iron ore / Cokes in BF

2) Easy Transportation/Storage: HBI can be stored and shipped without special precautions.

3) Fines Losses: HBI has less fines losses during handling and shipping.

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Fuel GJ 3.3

Electricity kWh 120

Labor man/shift 5~6

Others $ 30 DRI t 0.71

(Unit: per ton of dust)

Assumptions (DRI Product) :

Plant Capacity: 190,000t

Feed (Dust) : T.Fe 51%, Fe2O3 48%, Gangue 9%, ZnO 2%, C 15%, S 0.2%

Final Product : DRI (Electricity Consumption is 140kW/t of dust in case of HBI.)

Typical Unit Consumption

23

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Lower Impact on Environment

24

Items Figures

Dust <0.03g/Nm3

NOx (O2 15%) <60 ppm

SOx (O2 15%) <10 ppm

<Typical Emission Figures>

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Rich Experience of FASTMET

25

Client Name Feed Rate

(ton/year) Raw Material

Start

Operation

Nippon Steel & Sumitomo Metal No.1

(NSSMC No.1) 190,000 BOF Dust April, 2000

Kobe Steel 14,000

BF Dust

BOF Dust

EAF Dust

April, 2001

Nippon Steel & Sumitomo Metal No.2

(NSSMC No.2) 190,000 BOF Dust January, 2005

Nippon Steel & Sumitomo Metal No.3

(NSSMC No.3) 190,000 BOF Dust December, 2008

JFE 190,000 BF Dust

BOF Dust April, 2009

Kobe Steel J/V with NSSMC

(Nittetsu Shinko Metal Refine) 220,000

BF Dust

BOF Dust

EAF Dust

October, 2011

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Contents

1. Corporate Profile of KSL and Iron Unit Division

2. KSL’s Service Capability

3. FASTMETⓇ Process

4. Contribution to Indian Steel Industry

5. Project Reference

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Issues of Indian Steel Industry

Contribution to Indian Steel Industry

27

Security of iron and carbon sources are the most important theme.

Difficulty of the security

of Iron Ore

(Ban for iron ore mining)

High dependent on the

import of coking coal

FASTMET HBI/DRI: Substitute for Iron source & Coking Coal

- Iron ore & coking coal consumption can be reduced (for BF).

- Cost for raw material can be saved.

- Stable raw material supply can be secured.

Solution for Indian Steel Industry by FASTMET

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Contents

1. Corporate Profile of KSL and Iron Unit Division

2. KSL’s Service Capability

3. FASTMETⓇ Process

4. Contribution to Indian Steel Industry

5. Project Reference

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FASTMET Plants in Operation

JFE

KSL

29

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Nippon Steel & Sumitomo Metal

(NSSMC )

No.1

NSSMC

No.2

FASTMET Plants in Operation

30

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Nittetsu Shinko Metal Refine

Co., Ltd.

(JV between NSSMC & KSL)

FASTMET Plants in Operation – HBI Plant

31

NSSMC

No.3

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Direct Reduced Iron (DRI)

Dryer Raw Material Bin

Briquetter Pelletizer

Bag Filter Off Gas Cooler Heat Exchanger

Stack

Hot Metal

Mixer

Iron Ore Reductant

Binder

BOF/EAF Pig caster

Typical Process Flow of FASTMELT®

Agglomeration

Off-Gas Handling System

Raw material

Rotary Hearth

Furnace (RHF)

DRI-Melter

Process Concept: FASTMET® + DRI-Melter

• Hot Metal can be produced from iron ore fines without coking coal.

• FASTMELT® is a combination of proven FASTMET® and DRI-Melter

• It is easier to treat iron ore compared to steel mill dust.

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Thank you very much for your kind attention!