kobe steel

Worlds first commercial ITmk3 plant successfully begins production
Next-generation ironmaking process produces high-purity iron nuggets
TOKYO, January 14, 2010 Kobe Steel, Ltd. announces that the worlds first commercial plant
using the ITmk3 Process successfully began production of iron nuggets in the United States
on January 12 at 6:00 pm CST. The next-generation ITmk3 Process was developed by Kobe
Steel.
Kobe Steel and Steel Dynamics, Inc. (or SDI) constructed the plant at Hoyt Lakes, Minnesota.
Production of iron nuggets, which are used in steelmaking, will gradually increase in
accordance with operating conditions and is anticipated to reach the facilitys annual design
capacity of 500,000 metric tons in mid-2010.
ITmk3 is an innovative next-generation ironmaking process totally different in concept from the
traditional blast furnace method. Since the discovery of the phenomenon in 1994, the process
has undergone many stages of development resulting in the start of production of a commercial
plant. The ITmk3 Process is noted for the following characteristics:
1. High-grade iron nuggets can be produced in an extremely short time of about 10 minutes.
2. The ITmk3 Process can use lower-cost iron ore fines and steaming coal, which are difficult
to use in blast furnace ironmaking.
3. In comparison to pig iron produced in a blast furnace, the production of iron nuggets using
the ITmk3 Process emits about 20% less carbon dioxide due to its good energy efficiency.
With the start up of the commercial ITmk3 plant, Kobe Steel is moving quickly to popularize the
ITmk3 Process in world markets. As a pioneer of this technology, Kobe Steel is working on
iron nugget projects in North America, Vietnam, India, Russia, Australia and other countries, a
cumulative production capacity of several million tons of iron nuggets.
Over the medium- to long-term future, steel demand is anticipated to continue increasing.
Accordingly, electric-arc furnace steelmakers are faced with a growing need for cold iron units,
namely clean iron units such as blast-furnace pig iron and direct reduced iron. Kobe Steel
believes the ITmk3 Process is one of the most effective ways to meet this new demand.
The ITmk3 Process, with its lower carbon-dioxide emissions and capital investment, is highly
suitable for growing environmentally friendly steel industries in developing countries.
Moreover, the ITmk3 Process can use cheaper low-grade iron ore and coal, which are difficult
to use in blast furnace ironmaking, to keep raw material costs down for steel and mining
companies. Along with these advantages, the real value of the ITmk3 Process is that it
produces high-grade iron nuggets with better meltability than blast-furnace pig iron when used
in the steelmaking stage.
For mining companies, the ITmk3 Process enables them to produce iron nuggets to add value
to their natural resources. As a result, mining companies can expand their markets to include
electric-arc furnace steelmakers, in addition to their traditional customers, blast furnace
steelmakers.
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Grappling with environmental issues, the world steel industry faces a tight raw material market
and higher costs due to the sharp increase in steel production. Under these conditions, the
ITmk3 Process is an attractive alternative. Kobe Steel, with subsidiary Midrex Technologies,
Inc., is the worlds leader in direct reduction processes. Its MIDREX Direct Reduction Process
is used to produce nearly 60% of the world's direct reduced iron. As a member of the world
steel industry, Kobe Steel has now commercialized ITmk3, a revolutionary ironmaking process
that, in step with the present age, contributes to society.
Background to the Project
Following the completion of trials in July 2004 conducted at a demonstration plant in Minnesota,
Kobe Steel and SDI formed a joint venture, Mesabi Nugget Delaware, LLC, to operate the
commercial-scale plant. Full-scale construction of the facility began in November 2007.
Mesabi Nugget Delaware will operate the ITmk3 Plant and sell the iron nuggets. Kobe Steel
provided the ITmk3 process license, engineering services, primary production equipment, and
technical support. The Mesabi Nugget plant will provide further data on plant and process
operation.
SDI plans to use the nuggets produced by the Minnesota ITmk3 Plant in its steel mills.
The ITmk3 Process
1. Pulverized iron ore and pulverized coal are agglomerated into ball-shaped pellets.
2. The pellets are fed into a rotary hearth furnace. Reduction, melting and slag separation
occur in about 10 minutes.
3. The resulting product is high-grade iron nuggets.
Advantages of the ITmk3 Process
1. In comparison to pig iron produced in a blast furnace, the production of iron nuggets using
the ITmk3 Process emits about 20% less carbon dioxide due to its good energy efficiency.
2. Raw material pretreatment facilities (coke ovens, sintering plants and pellet plants) are
unnecessary.
3. ITmk3 is highly suitable for mining sites and can be profitable for even small mines.
4. Operation is easy and production adjustments are also easy.
Features of the Iron Nuggets
1. Iron nuggets are slag-free, high-purity iron units of the same quality as pig iron. They have a
metallic iron content of 96% to 97%.
2. Iron nuggets improve the productivity and energy efficiency of electric arc furnaces (EAFs).
With better meltability than blast-furnace pig iron, iron nuggets can be continuously fed into
EAFs.
3. Iron nuggets are easy to transport and handle. High in density, they do not reoxidize or
generate fines.
Note to Editor: Photos are available upon request
Media Contact:
Gary Tsuchida
Kobe Steel, Ltd.
Tokyo, Japan
Tel +81-(0)3 5739-6010