Inquiry Into the Development of Northern Australia Submission 6
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Appendix 10 TATA STEEL CO NSULTING Provision of Technical A ssistance To East W est Line Parks Pty Ltd Bris ane! " L# ! A $stralia TSC Pro%ect Code & PIB' Pro%ect Iron Boo( eran) & Prefeasi ility *e+ort Tata Steel Consulting P.O. Box 30 Stephenson Street N ew port South W ales N P19 0RB U nite !ing o" #e$ruar% &01& CO N TEN TS 1. EXECUTIVE SUMMARY 4 2. OVERVIEW OF PROJECT IRON BOOMERANG 7 3. PURPOSE OF THIS REPORT 8 4. LIST OF ASSUMPTIONS 9 4.1 TECHNICAL & OPERATIONAL ASSUMPTIONS 9 4.1.1 Steel Complex Output 9 4.1.2 Indicative Iron Ore Chemistry 9 4.1.3 Indicative Coal Chemistry 9 4.1.4 Iron Making Production Philosophy 10 4.1.5 Indicative Iron Chemistry 11 4.1.6 Steel Making Philosophy 11 4.1.7 Indicative Steel Chemistry 12 4.1.8 Indicative product Mix 12 4.2 FINANCIAL ASSUMPTIONS 13 4.2.1 Capital Expenditure and Phasing 13 4.2.2 Capital Charges 15 4.2.3 Recurring Major Capital Expenditure 15 4.2.4 Raw Material Costs 15 4.2.5 Delivery of Slab 15 4.2.6 Inflation 16 4.2.7 Depreciation 16 4.2.8 Estimate Accuracy 16 5. TRENDS IN IRON AND STEELMAKING TECHNOLOGY 17 5.1 OPTIONS FOR IRONMAKING 17 5.1.1 Blast Furnace 17 5.1.2 Rotary Hearth Furnace 19 5.1.3 Rotary Kiln 23 5.1.4 HIsmelt 25 5.1.5 Corex/Midrex 28 5.1.6 Finex 30 5.1.7 Natural Gas Based Zero-Reforming HYL Process 31 5.1.8 Coal Based HYL Process 33 5.1.9 Electric Iron Furnace (EIF) 34 5.1.10 Submerged Arc Furnace (SAF) 36 5.1.11 HIsarna 40 5.1.12 Ausmelt 41 5.2 OPTIONS FOR STEELMAKING 41 5.2.1 Electric Arc Furnace 41 5.2.2 Basic Oxygen Steelmaking (BOS) 43 6. MATERIAL FLOW / LOGISTICS WITHIN THE STEEL COMPLEX 44 6.1 RAW MATERIAL HANDLING 44 6.1.1 Incoming rail materials 44 6.1.2 Raw Material Storage Capacity 47 6.2 SINTER PLANT OPERATIONAL PARAMETERS 49 6.3 COKE OVEN OPERATIONAL PARAMETERS 53 6.4 LIME PLANT OPERATIONAL PARAMETERS 55 6.5 AIR SEPARATION PLANT OPERATIONAL PARAMETERS 55 6.6 BLAST FURNACE OPERATIONAL PARAMETERS 56 6.7 HOT METAL TRANSFER TO THE STEEL PLANT 60 6.8 STEEL PLANT OPERATIONAL PARAMETERS 60 6.9 SLAB EXPORT TO THE PORT 68 7. HIGH LEVEL ENERGY BALANCE 70 7.1 ELECTRICAL ENERGY 70 7.2 COKE OVEN GAS 70 7.3 BLAST FURNACE GAS 71 7.4 BOS GAS 71 7.5 TOTAL ENERGY BALANCE 71 7.5 POTENTIAL SURPLUS GAS USAGE 72 7.5.1 Generate Electricity 72 7.5.2 Supply to a Blast Furnace Slag Cement Plant 72 7.5.3 Install additional Cokemaking Capacity 73 7.5.4 Other Potential Energy Saving Areas 73 8. WATER USAGE 75 9. STEEL COMPLEX WORKFORCE LABOUR REQUIREMENTS 76 10. OUTLINE DESCRIPTION OF COST MODEL 82 11. CAPEX ASSUMPTIONS 84 11.1 PLANT AND EQUIPMENT – MAJOR PROCESSES 84 11.1.1 Coke Production 86 11.1.2 Sinter Production 88 11.1.3 Blast Furnace 90 11.1.4 Steelmaking 91 11.1.5 Continuous Casting 92 11.1.6 Alternative Steel plant Design 93 11.2 SUMMARY OF OVERALL CAPEX COST FOR EACH CASE 93 11.2.1 Base case 4.4MTPA plant location at Port in Korea 93 11.2.2 Base case 4.4MTPA plant Sensitivity China 93 11.2.3 Case 1 – 4.4MTPA plant QLD Australia 94 11.2.4 Case 1A – 4.4MTPA plant QLD Australia – Chinese Manufacture 94 11.2.5 Case 2– 8.8MTPA plant QLD Australia 95 11.2.6 Case 2A– 8.8MTPA plant QLD Australia – Chinese Manufacture 95 11.2.7 Case 3– 22MTPA plant QLD Australia 95 11.2.8 Case 3A– 22MTPA plant QLD Australia – Chinese Manufacture 96 12. SUMMARY OF FINANCIAL EVALUATION 97 12.1 BASE CASE - 4.4 MTPA PLANT PORT LOCATION-KOREA. 97 12.2 BASE CASE –SENSITIVITY - 4.4 MTPA PLANT - CHINA 98 12.3 CASE 1 - 4.4 MTPA PLANT -ABBOT POINT, QLD, AUS 99 12.4 CASE 1A - 4.4 MTPA PLANT -ABBOT POINT- CHINESE MANUFACTURE 100 12.5 CASE 2 - 8.8 MTPA PLANT - ABBOT POINT, QLD, AUS 101 12.6 CASE 2A - 8.8 MTPA PLANT - ABBOT POINT – CHINESE MANUFACTURE 103 12.7 CASE 3 - 22 MTPA PLANT - ABBOT POINT, QLD, AUS 104 12.8 CASE 3A - 22 MTPA PLANT - ABBOT POINT – CHINESE MANUFACTURE 106 13. CONCLUSIONS 108 14. RECOMMENDATIONS FOR FURTHER WORK 111 ,- E.ECU TI/E SU 0 0 A *1 / / 9 t [ 9 [t t L . tL. # # # # v % & . / # Y ( ) ( • . # & **at& v [,( -./(0*1 # 2h. 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