Ann: Investment and co-operation agreement update, page-14

re: Ann: Investment and co-operation agreemen... this is from hebi mag

Currently, magnesium industry is in a crucial period of its development. Magnesium industry can not expand it speedily. However, structural adjustment and upgrade play important role in the operation of magnesium industrial economy. In 2005, some adverse factors existed in the development of magnesium industry, such as idle capacity, low price and no effective relieving the contradiction between energy sources and pressure on transport. After abolishing the export rebates of ferrosilicon, it is clear that coal and transport cost will rise. The pressure of increasing cost will rise continuously. All of those adverse factors will definitely increase the difficulty to operate magnesium industry.
Under new situation, it is imperative to optimize and upgrade China’s magnesium industry. The government should encourage and support rebuilding of head-to-foot industry chain integrating coke gas, ferrosilicon, primary magnesium, magnesium alloy, magnesium deep processing and revivification of slag cement, reconstruct magnesium plant with ferrosilicon process, greatly promote clean production, make full use of resource from the source to the whole process of production and make every enterprise realize new circular magnesium industry demands on minimum wastes, reclamation and no harm during the production process.
Magnesium plant with Pidgeon process may ally with manufacturer of magnesium nonmetallic materials, producing magnesium nonmetallic material with the wastes produced in Pidgeon process, which not only solves the environment protection problem of Pidgeon process, but also reduces production costs of metal magnesium and nonmetallic magnesium. Wastes of Pidgeon process, such as calcined dolomite (under-burnt, dead-burnt and wasted calcined dolomite powder), exhaust gas (CO2), waste water (70? cooling water in reduction tank) and 900~1,100? flue gas waste heat in reducing furnace, may produce light magnesium carbonaie, light magnesium oxide, light active magnesium oxide, nano magnesium oxide, magnesium hydroxide, light calcium magnesium carbonate and other various magnesium oxides. Therefore, to construct a large economical and environment protective magnesium alloy enterprise with advanced technology integrating magnesium metallic materials and nonmetallic materials is another breakthrough for China’s magnesium industry. Magnesium industry becomes an experimental unit to develop circular economy in nonferrous metal industry.
Adjust energy sources structure
Energy sources structure of Pidgeon process need to be adjusted. Shanxi Province has brought forward that direct coal firing is forbidden and we should adopt clean energy sources to local conditions. Among coke gas, generator gas, natural gas and water-coal-slurry (on trial), coke gas is the first choice due to its high value and low price. In Shanxi, 80 million tons of coke is produced every year, and in Shaanxi Fugu County and Shenmu County, 30-40 million tons of coke is produced. However, 60% of the byproduct coke gas has never been used. More than 10 domestic magnesium manufactures make good use of coke gas, with good effects. In the coke producing region, Pidgeon process should make full use of this economic and environment friendly fuel.
Generate electricity with after heat
Generating electricity with after heat (900~1100?) of flue gas in reduction tank is another effective method to improve the magnesium metallurgic equipment level, save energy and reduce consumption and cost. He’nan Jiaozuo Shenfu Furnace Manufacturing Co., Ltd. and Henan Polytechnic University co-develop 6-40t after heat generating furnaces, which are installed and debugged in Tongxiang Magnesium Industry and Beilushu Magnesium metal Factory. Magnesium factory with capacity of 2,500t/year, 8t coal/?t magnesium and calorific value of 6,000kcal will meet the demands of one set of 10t after heat furnace with electricity generation of 1,500KW.
Adjust technical structure of Pidgeon technics
At present, China’s primary magnesium manufacturers should take scientific outlook on development to innovate completely and improve level of Pidgeon process industry. And the domestic industry should build up new magnesium smelting model enterprises integrating science & technology, environment protection, benefit, mechanization, automatization, large scale and high level in some regions. Relying on energy-saving consumption-reducing technique, clean production and recovery system of waste magnesium, the model enterprises can not only manufacture high-quality magnesium alloy, but also improve availability of resources and decontamination rate of waste and drive and influence the healthy and orderly development of magnesium smelting industry.
Electrical internal heating and semi-continuous silicon heating process
If the conditions (electricity price < 0.28 yuan/kwh) permit, relying on advanced technology, good environment protection conditions, low energy consumption index, large unit equipment capacity, high utilization rate of resource and energy and high labor productivity, electrical internal heating and semi-continuous silicon heating process can be used, which further exerts the comparative advantage of China’s magnesium industry.
Combine local resources advantages and develop magnesium resources in saline lake
Magnesium metal and high-grade magnesite refractory materials are produced by greatly developing and making full use of magnesium resources of Qinghai Qarhan Saline Lake. In Northeast China, using integrated technics of light-burning magnesite pellets chloridization and bittern-ammonium carnallite, adopting magnesium chloride electrolysis technics dehydrated by bittern-ammonium carnallite. Byproduct chlorine can be used to produce titanic chloride and sponge titanium, which is propitious to environment protection and application of chloride, reduce magnesium and titanium cost and increase benefit.