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[June 2000]
HIsmelt® moves closer to commercialisation
Rio Tinto has signed a Memorandum of Understanding with Nucor Corporation of the USA and Lurgi Metallurgie to form a joint venture which, subject to a definitive cost study, will install a HIsmelt plant at a Nucor facility in the United States.
Following comprehensive testing of the process at HIsmelt's demonstration plant in Kwinana, Western Australia, Rio Tinto is supporting further investment to commercialise the technology. The proposed HIsmelt plant at Nucor will be capable of producing around 600,000 tonnes per year of hot metal and is a major scale-up from the Kwinana plant. Assuming the successful performance of this plant, it is anticipated that the HIsmelt technology will be further scaled up to plants capable of producing over 1.5 million tonnes per year.
If successful, HIsmelt plants have the potential to add value to Western Australia's Pilbara region iron ores and provide significant benefits to Australia. The technology is capable of processing ore that is unsuitable for current iron and steel technologies. In addition Western Australia has been targeted for the larger scale commercial plant.
The Chief Executive of Rio Tinto Iron Ore, Mr Chris Renwick said:
"This agreement represents another important step along the road to commercialisation. We are committed to following a carefully measured path of development to ensure any investment is sound and sustainable."
Nucor, which has a reputation as an innovative producer, is the second largest steelmaker in the USA. It operates nine steelmaking plants in the USA with a combined annual production of about 12 million short tons per year. The addition of a HIsmelt plant to Nucor's portfolio would strengthen its position as a technology leader and highly efficient low cost steelmaker.
Lurgi, based in Germany and a leading engineering contractor and process technology provider to the world iron and steel industry, is the exclusive licensed engineer for the HIsmelt technology.
Mr Renwick said, "The objective of the Rio Tinto/Nucor/Lurgi partnership is to commercialise the HIsmelt technology to compete in the world market. This will be achieved by capitalising on each partner's strengths in process technology, steelmaking and engineering."
The HIsmelt process converts iron ore to liquid pig iron through the injection of non-coking coal and fine iron ore into a molten iron bath. Because the process eliminates the need forsinter/pellet plants and coke ovens, HIsmelt's environmental impact is more favourable than traditional blast furnace technology.
ENDS