LARGE CORELESS STEEL MELTING

TECHNICAL BOOKLET
NOVEMBER 2013
CAE

BASIC GUIDE FOR REFRACTORY AND PROCESS RECOMMENDATIONS WHEN MELTING STEEL IN LARGE
HIGH POWERED FURNACES.
 TABLE OF CONTENTS

I. SILICA VS HIGH ALUMINA AND ADVANTAGES OF SPINEL

BONDED REFRACTORY.

II. REFRACTORY BULLETINS AND TECHNICAL SHEET.

III. 18 STEPS FOR LINING A CORELESS FURNACE.

IV. CHECK LIST OF EQUIPMENT NEED FOR EFFICIENT

INSTALLATION.

V. REFRACTORY SELECTION GUIDE.

VI. COST ANALYSIS SHEET

VII. TRIAL REPORTS AND CUSTOMER REFERENCE LIST

VIII. CALL REPORT AND TECHNICAL REPORT FOR SPONGE IRON

MELTING.
 ADVANTAGES AND DISADVANTAGES OF SILICA VS HIGH ALUMINA IN
CORELESS FURNACES FOR MELTING STEEL.

Coreless furnace steel melting has become a very common practice around the world.
With this technology come some special considerations for refractories. In most cases
the decision for refractory comes down to silica (acidic) or alumina (neutral) linings. The
difference between the two other than chemistry is cost, lining life and safety. All three
of these must be taken into consideration before making a decision on what refractory
product to use.

Below you will find a list of advantages and disadvantages for both silica and high
alumina. After we will explain our philosophy and what we have to offer for both
products.

SILICA

Advantages

1. Low Cost.
2. Easy to source in local markets.
3. Can be shaved repaired with relative ease.

Disadvantages

1. Very low melting point. Silica will begin to melt at 1650 degree C.
2. Low lining life. Normally less than 15 heats before repair.
3. Lower strength or refractoriness than the high alumina.
4. More repairs required requiring forms, slipplane, energy and down time (loss of
production)...
5. Low resistance to chemical attack caused by iron oxide, MnO or any other basic
oxide.
6. Not able to add CaO to lower phosphorous levels therefore limited for the quality
of steel that can be produced.
7. Very high loss of alloys due to alloy fade on silica.
8. Must replace lining on a daily basis causing damage to coil and/or coil grout.
More wear and tear on installation equipment.

ALUMINA MAGNESIA SPINEL

Advantages

1. Superior resistance to high temperature.

2. Excellent volume stability (less cracking).
3. Excellent to good resistance to all slags.
4. High strength (greater refractoriness)..
 5. Longer lining life. Typically 4 to 5 times longer than silica.
6. Safest lining available.
7. Easy to sleeve repair (partial or full lining).
8. Able to add small amounts of CaO to reduce sulfur and Phosphorous.
9. Less ferro alloys need since the spinel will not react with additions made.

Disadvantages

1. Higher cost.
2. Lower thermal shock resistance. Better if used continuous, however procedures
have been developed to run discontinuous operations.

Alumina Spinel bonded material are the right materials to use. This has been proven
and is an accepted practice around the world. Most steel mills however are still using
silica linings due to what they perceive as a low cost material. There are a number of
factors that need to be looked at to make sure you are making the right decision. The
wrong decision can lead to some severe consequences. Allied Mineral Products Inc.
promotes high alumina spinel bonded materials because we value safety over profit and
sales. Here are a number of questions you need to answer before making a decision.

1. What price tag can you put on the safety of the workers? One incident of
superheating the lining can cause an explosion and result in death or serious
injury.
2. Even with one mistake in temperature on silica, how much is the cost of the coil,
labor to repair the furnace and down time.
3. The cost of the silica is not the only cost of a lining. What is the cost of the form
for relining or repairing? What is the cost of the slipplane material? What is the
cost of damage done to the coil grout every time a lining is removed? What is
the cost of energy to re-sinter the furnace? What is the cost of the labor to install
5 linings compared to one?
4. What is the cost of ferro alloys lost when using silica.
5. What is the cost of rejected metal? If silica is eroding so much that the lining
needs to be replaced every 10 to 15 heats, then some or a large part of the SiO2
is going into the product which you are casting. What is the cost of rejected
material or even worse rejected finished product by the end user?
6. High alumina offers flexibility. It is possible and safer to melt a variety of alloys
on high alumina.

Another factor to consider is what we call the burnout factor. Installing linings so often
creates stress on all the workers. This is by far the most labor intensive part of the melt
department. As more and more linings need to be installed, the quality of the
installation will go down. This will lead to low density linings, errors and even lower
lining life than normal.
We have not drafted this letter with the intent of selling the highest price material
available. The reason for this explanation is to ensure that every customer knows what
we recommend and why. As I said in the begging, Allied believe first and foremost in
safety of its customers and their equipment. We also know from experience that using
high alumina spinel bonded materials in long run is cheaper than silica linings.

In the event that a customer insist on using silica, Allied manufactures a number of silica
products which could be used. Allied manufactures and sells a 99% pure silica product
called Sil Vibe LGS. This material has provided superior performance when compared
to the local manufactures due to its tightly controlled grain distribution and careful
control over the quality of the raw material.

One advantage that Allied has over the competition is we believe it is not possible to
make one product to fit all applications. For this reason Allied produces over 30
different products for steel melting based on alloys and melting practice. Below is a
short description of the most used products and their application.

1. DRI VIBE 975A High purity alumina spinel bonded refractory designed for lining
coreless induction furnaces melting high alloy and carbon steels. DV 975A is
well designed for use in large and small furnaces and for use at tap temperatures
ranging from 1500C to 1710C.
2. DRI VIBE 931A High purity alumina, spinel bonded refractory designed for use
when melting stainless steel and lower temperature manganese alloys. It is well
suited for tap temperatures ranging from 1500C to 1620C. This material is
designed for continues operation (no thermal shock).
3. DRI VIBE 931A High purity alumina, spinel bonded refractory designed for use
when melting stainless steel and lower temperature manganese alloys. It is well
suited for tap temperatures ranging from 1500C to 1700C. This material is
designed for discontinuous operations. When thermal shock (power outages)
are common this products is preferred over DV 931A.
4. DRI VIBE 961A - High purity alumina spinel bonded refractory designed for lining
coreless induction furnaces melting high alloy and carbon steels. DV 975A is
well designed for use in large and small furnaces and for use at tap temperatures
ranging from 1500C to 1620C.
5. DRI VIBE 883 High purity spinel bonded refractory designed for use when
melting a wide variety of steel ranging from stainless steel to high alloy steels.
This product works best when the tap temperature is 1565C to 1700C.
6. DRI VIBE 967CR high purity alumina spinel with an addition of chrome oxide.
This material is designed for use when melting carbon steel and all grades of
high temperature steel. The addition of chrome oxide gives this product excellent
resistance to corrosion and extra strength for better resistance it impact of charge
and stirring action of the metal. This product is often used as a patch material on
the above listed DRI VIBE products.

These are just a few of the many products we offer. Product recommendations is based
on many factors including but not limited to:
 1. Tap temperature.
2. Alloys being melted.
3. Alloys being used.
4. Time it takes from tap to pour of one heat.
5. Furnace design and power.
6. Slag and metal chemistry.
7. Sintering procedure.
8. Installation procedure.

All of these conditions are taken into consideration as well as a complete analysis of
your present refractory used and reason for lining removal. AS you can see from the
attached reference list, where our competition recommend one product for all melting
practices, we have been able to increase lining life by recommended the best product
for that application.

Weather using silica or high alumina ensuring that he lining is installed correctly is most
important. Improper installation can lead to low density and poor hot face formation.
This will have negative effect on the performance of the lining and can cause
catastrophic failure. Allied recommends two types of vibration system.

1. Electrical Vibration System (non-impact)

2. Ideal Vibrator (impact vibrator)

Electrical Vibration System is a new development by Allied Mineral Products. This

vibrator is ideal for those operations where labor is a problem or where fluctuations in
air pressure occur. Furnaces 20mt and larger can be installed in a fraction of the time
with the EVS, compared to more traditional lining methods. The vibrator motor will
operate in two different directions. In the first cycle the weights turn together to provide
the de-airing process of the installation. With the EVS it is not necessary to use a
forking tool or add small layers in the furnace. The floor is added in one layer and
compacted with a special bottom plate. Side walls are filled using standard 25kg bags
or with super sacks of 250kg to 1500kg. When the direction of the motor is reversed the
weights will turn in opposite directions providing the compaction mode. The EVS
procure is attached.

The Ideal Rammer is an impact type vibrator. This utilizes legs the will impact the form
and cause the refractory to compact. These are available with two, three or four legs
depending on the size of the form. Once the legs have been adjusted to touch the form
the vibrator is raised slowly from bottom to top. This can be done with an in house
crane or an automatic crane can be supplied that is programmable.

EVS

Advantages
 1. No forking required.
2. Fully electric so no need to be concerned with lack of air pressure.
3. Consistent installation done each time.
4. Less man power required to line a furnace.
5. Fully programmable and automatic.
6. Very few moving parts. Low maintenance.

Disadvantages

1. On furnaces 10mt and larger may require for vibration on 3 to 4 different levels.
2. Need to construct a fixture to hold the vibrator. Need a different fixture for each
size furnace.
3. Some technical skill needed to run control panel.
4. Vibrator needs to be installed manually and tightened as required.

IDEAL VIBRATOR

Advantages

1. Can be used with little skilled labor.

2. Fast and easy to use. No handling or connecting of the vibrator.
3. Can be used with fully programmable auto lift crane.
4. Very rigid and durable vibrator.

Disadvantages

1. Need separate vibrator for different sized furnaces. Not very flexible.
2. Lots of moving parts to replace.
3. Need to fork each layer to ensure good installation.
4. Need to have crane access over furnace or purchase the auto lift.
5. Need consistent air pressure for optimal installation density.

If you should have any questions, please do not hesitate to contact us. We are always
available to assist the users with their refractory needs, questions or technical
assistance.

Best regards,

Charles A. Essman
Regional Sales Manager India and the Middle East

Cae/11-05-2013
 SOME IMPORTANT STEPS FOR SUCCESS OF
LINING IN CIF

INSTALLATION PROCEDURE

STEP 1- Check equipments (Cooling tower/Temp of cooling

water/Proper cooling water supply into the coil/GLD
System/Panel etc. clean the coil area by air properly.

STEP 2- Make sure former is in appropriate shape and

fabricated with desired thickness of MS Sheet.

STEP 3- Check GROUT (Refractory coating over coil) properly

and do repair as per requirement. Make sure grout should be
even, smooth and dried out properly. Use gas torch burner for
Proper dry out of grout. Make sure carbon from flame should
not deposited on grout. Clean it properly. Grout should not be
carbonized.

STEP 4- Use good quality of SLIP PLANE i.e. Mica sheet. Never
use asbestos sheet. Mica sheet should be stuck properly with
grout. Make sure that there should not be any space between
Mica sheet and grout. Secure the mica properly with good
quality of adhesive tape. Never use adhesive like sodium
silicate or fevicol to secure mica sheet with grout. Also make
sure that refractory (Ramming mass) should not go between
grout and mica sheet.
STEP 5- Use the appropriate GLD wire recommended by
furnace manufacturer (OEM).Keep the height of wire as per
recommended by OEM. Rod attached with GLD wire should be
full tight with the furnace before putting the refractory for
installation.

STEP 6- Clean the furnace and area around furnace properly.

Make sure that there is nothing in the pocket of peoples going
for lining. Make possible arrangement of sharp knife to open
Refractory bags.

STEP 7- Bottom installation; Putt refractory only up to 3

height in one time. Use forking tools (Dearing) for time as
recommended by Allied service engineer. Over use of forking
tools cause the segregation of fines over top and weak that
area. After Dearing use flat compactness tools for compaction
of lining for time as recommended by Allied service engineer.
Compact the refractory up to above 15mm from the GLD Wire.
Take out 10mm refractory from installed bottom by gradually
scratching and leveled the bottom above 5mm from GLD wire.
Thus you will find proper compacted bottom. 5mm refractory
over GLD wire will make easy to place the former properly and
centrally. Be sure that bottom is leveled properly otherwise you
will not be able to place the former centrally. Check out slip
plane again and make sure that their placement is OK.
STEP 8- Former placement; Place former centrally and
secure it properly. Never center the former by putting
refractory in the bottom from side of the former after placing
the former.

STEP 9- SIDE WALL INSTALLATION; Scratch the

installed bottom refractory (Ramming mass) from side of
former properly before putting the new refractory. Use the
forking tools and compaction tools for time as guided during
bottom installation by allied service engineer.

Points to be remembered
A- Never use both tools i.e. Forking tools & Compactness flat
tools together.
B- Never over use forking tools for Dearing which cause
segregation of fines on top.
C- Never forgot to scratch the compacted refractory before
putting new layer of refractory.

STEP 10- Make top cap as recommended by allied service

engineer.

SINTERING PROCEDURE

STEP 11- Make arrangement of K-Type thermocouple (6mm-

10mm diameter) which can measure the temperature between
1000c-1200c.
STEP12- Place the thermocouple at different position from
top to bottom of former depending upon the size of furnace.
One thermocouple should be placed at least in the middle of
former. Please follow the recommendation for positioning of
thermocouple given by allied service engineer.
Place the thermocouple in such a way so that you can remove it
easily for further use after 1000c-1200c.

STEP13- Fill the furnace with clean solid scrapes till the top.
Make sure big size charge first i.e.in the bottom and then small
size charge. Be sure that charging should be compacted as
much as possible. If possible use starter block.

STEP14- Follow the sintering procedure given by allied service

engineer.

Points to be remembered;
A-Always do the sintering with the use of K-Type thermocouple
for proper sintering so that to achieve desired sintered lining.
B-End Point of k-type thermocouple should touch the former to
get proper temperature reading.
C-Do not steps out the holding period given in sintering
procedure.
D- If possible use ceramic blanket to cover the furnace on top
and keep it, until melting start. This will help to get proper
sintered lining from bottom to top of the furnace. In bigger
furnace use burner.
 CARE DURING OPERATION

STEP15-Take at least 4-5 heats after sintering heat. This

matured the lining.

STEP16- Do fast cooling of the furnace when ever down the

furnace with the help of fan as per guidelines of allied service
engineer. This will help to minimize the cooling cracks and
whatever cracks will be that will not be deep and can be easily
sealed during cooling start procedure.

STEP17-Follow strictly cooling start procedure given by allied

service engineer whenever you start cooled furnace. This step
is very very important as in most of cases, metal fining takes
place through cooling cracks and become cause the failure of
lining because of not following recommended cooling start
procedure. Cooling cracks sealed with the follow up of cooling
start procedure.

STEP18- Do repair of lining time to time whenever required.

Especially take care of top cap.

With Regards

Pradeep Singh
Engineer (Sales & Service), India
Allied mineral products Inc.USA
Cell: +91-9781678755
Email: pxs@alliedmin.com
 LARGE CORELESS INFORMATION SHEET

1. TYPE OF MELTING FACILITY

1. FOUNDRY

2. FERRO ALLOY

3. STAINLESS STEEL

4. CARBON STEEL SCRAP MELTING

5. CARBON STEEL SPONGE IRON MELTING/DRI

2. WHAT TYPE OF OPERATION

1. CONTINUOUS

2. INTERMITTENT

3. ANY USE OF SECONDARY REFINING EQUIPMENT

1. AOD

2. LRF

3. BOF

4. OTHER?

5. WHAT IS THE MINIMUM, MAXIMUM AND AVERAGE MELTING TEMPERATURE?

____________________________________________________________________

6. WHAT IS THE TIME IT TAKES TO CHARGE THE FURNACE UNTIL THEY TAP THE
FURNACE?_______________________________________________________________________

7. DESCRIBE THE SIZE, TYPE AND CHEMISTRY OFF THE SCRAP?

____________________________________________________________________________

8. ONCE FURNACE HAS MELTED AND IS FULL, WHAT % OF THE FURNACES CAPACITY IS SLAG AND
WHAT % IS MOLTEN META _______________________________________________________
9. What is the process for removing the slag?______________________________________________

10. Do they add any slag conditioners? Coal Dust?

11. Do they add any mill scale in the furnace? If yes, when?____________________________________

12. What percent iron is the sponge iron?___________________________________________________

13. Is the SI supplied by their own process or purchased on the market___________________________

14. Make Model and type of Coreless?_____________________________________________________

 CALL REPORT

NALWA STEEL

RAIGARH C.G.

INDIA

BY: CAE

EQUIPMENT: 4 15MT CRUCIBLES TWO POWER PACKS INDUCTOTHERM 4MW

4 15MT CRUCIBLES TWO POWER PACKS MEGATHERM 4MW

NEW EQUIPMENT DUE END OF YEAR: 4 30MT CRUCIBLE 2 POWER PACK ABP 18MW

CONTACTS: MR. RANA GM (ONLY PERSON YOU CAN SEE THAT WILL MAKE A DECISION)

MR. PRAVIN TAKHALATE SR. GM PROJECTS

MR. Y.N. SINGH TECHNICAL HEAD

MR. RAM KISHAN SHARMA HEAD OF OPERATIONS

Deepak and I met with the above people to discuss our pending quotation for refractories. They had
placed an order but there was a mistake in freight that was not being resolved. We explained the
situation to Mr. Ranan. He immediately called the Purchasing Head and instructed him to make the
change right away. It was obvious that Mr. Rana is the only person that can make a decision. He had
not even been aware of this problem until our visit, even though we have sent numerous emails
addressing the problem. If Mr. Rana is not involved in the meeting, visiting this plant will be a waste of
time.

I found these people to be very open with details of their operations. I was extremely impressed with
what Mr. Rana knew. We started the conversation by addressing their sponge iron plant.

SPONGE IRON PRODUCTION

It was explained to us that not all sponge iron is made the same. It depends on the quality of the iron
ore, the quality of the coal and the process itself. They operate a coal fired horizontal rotary furnace for
the production of sponge. Nalwas process will result in 60% loss of gasses during the process. These
gasses are recovered and they are able to turn this gas into about 12% electricity. So all the energy they
put into the furnace they can recover 12% energy in the form of electricity. That electricity is used to
power the coreless furnaces for making steel. Now as I said in the beginning, all sponge is not equal, it is
dependent on coal quality, quality of iron ore and the process. Nalwa has perfected the process, but did
not disclose how. They claim that the key to good sponge is to have between 78% and 80% iron
content. Anything below that will have too much slag when melted and anything above that would be
difficult to melt, I am assuming due to the very low carbon content. He said that other sponge plants
are around 72% to 74% iron, some even lower.

Please note the below article.

Development of coal based sponge iron processes with particular reference to India:

A coal based sponge iron plant was first built in 1980 at a place called Paloncha in Andhra Pradesh
which had a capacity of just 0.03 million tons per annum. In a span of 20 years the industry has grown
rapidly and the present estimated capacity is nearly 4.5 million tones. The industry has become well
developed and is presently operating in eight different States of India. For a direct reduction in the
inclined rotary kiln, ore and coal will normally pass through the inclined kiln in a counter current
direction to the oxidizing flue gases in the freeboard. After material heating, ore reduction and carbon
gasification take place in close association with each other. The volatile constituents of the coal and
carbon monoxide from the bed material are burnt, over the entire length of the kiln with a controlled
amount of air, thereby providing the necessary heat required for the metallization process. The rotary
kiln discharge is cooled in a rotary cooler connected to the kiln, screened and subjected to magnetic
separation in order to remove the non-magnetics from the sponge iron.

Numerous key developments that have taken place which has made this technology more
successful. Some of the key innovations are discussed below:

Capital requirement: In the initial years nearly 80% of the equipment required was being imported.
Presently, large scale indigenization has taken place and for a 1,20,000 tpa module 100% indigenized
equipment is available and for a 1,50,000 tpa module only the kiln tyres and support rollers have to be
imported. This has reduced the capital expenditure related costs considerably as can be seen by the
estimates given below:

The sponge iron plants can also be set up quite rapidly and it now takes just 18 months to go on
stream for a major plant. It also has a very low gestation period.

Raw materials : The main raw materials required are suitable iron ore, suitable coal, dolomite and
power :

Iron ore : The iron ore used is hematite with an Fe content of 62-66% having low decerepitation
characteristics. In the initial days the iron ore size was kept at 5-20 mm and was washed in a scrubber,
but presently it has become a standard norm to use 5-18 mm ore as feed for a large kiln without
scrubbing and/or washing. This has resulted in reducing the cost of iron ore fed to the kiln. The
consumption of iron ore has also decreased from about 1600 KG per tonne of sponge iron to 1500 KG
levels mainly due to a better understanding of the process, improvements of the equipment and
increased levels of automation.
Coal : Non-coking coal is being used having certain important parameters considered necessary for the
direct reduction of iron ore viz. reactivity, ash softening temperature, caking and swelling indices and
sulphur content, etc. In India the availability of these coals is very low due to Government monopoly
even though abundant resources of non-coking coal are available. Initially, only B grade coals were
being consumed whose availability has now become scarce. The industry has successfully adopted
measures to utilize C and D grade coals through better process control, installing raw material heating
systems, shale picking belts and coal washing plants. With these measures the *coal cost has been
reduced by nearly 20-30% when compared with the usage of B grade coal.

Dolomite : Dolomite is mainly used as a desulphurising agent to prevent the pick up of sulphur by the
sponge iron from the sulphur released by the burning of coal inside the furnace. The initial specifications
for dolomite were 1-4 mm, later it was found that 4-8 mm dolomite was far more suitable by which the
consumption can be reduced by 50%. This was mainly due to the fact that lot of dolomite fines were
being lost to waste gases and with 4-8 mm fraction this loss was minimized.

Power : The initial plants were high power consuming units due mainly to the wet waste gas cleaning,
relay operated drives with low levels of automation. The power consumption levels used to be 110-130
units per tonne of sponge iron, with the advent of a dry gas cleaning system (electro-static precipitator),
programmable logic operated drives and computers replacing the giant panels, the power consumption
has been curtailed to 80-90 units per tonne of sponge iron.

Yield : The yield levels have increased considerably. Thanks mainly to the secondary steel sector and
induction furnaces for using sponge iron fines. This fraction mainly 1mm initially used to be
contaminated with fine non-magnetics dust particles and was presumed not fit for use, but with
development of powerful magnetic separators even this fraction has become useable. In fact, in
induction furnaces, sponge iron fines are occasionally preferred over lumps due to their higher
metallisation. Simpler layouts have also helped in minimizing material handling losses.

Campaign days/capacity utilization: In coal based sponge iron plants, campaign days are defined as the
continuous operation of the kiln between two shutdowns of the kiln. Kiln shutdowns require a complete
removal of materials from the kiln and cooling of the kiln for maintenance and accretion breaking. After
completion of the shutdown activities, the kiln is initially lighted up with oil, after which coal feeding is
started only when desired temperatures have been reached. Then Iron ore feeding is begun. The period
from ore feed stop to the restart of ore feed is normally taken as the shutdown period.

During the initial years, when understanding of the process and characteristics of the available raw
materials was low, the operating campaign days used to be generally less than 100 days per campaign.
Over the years, this has increased more than 175 days in well established plants. As the campaign days
increase in a given financial year, it automatically increases the capacity utilization of the plant. The
capacity utilization levels which used to be at 85-90% has now consistently crossed 100% in well
established plants.

Power generation capabilities : Coal based sponge iron technology has gained higher economic viability
by its ability to generate a considerable quantity of electricity through use of hot waste gases and kiln
waste (char) materials.
 In coal based sponge iron technology, the furnace (rotary kiln) fulfils various functions. It is used as a
conveying, mixing and charring unit, as a heat exchanger and as a reactor for coal gasification and iron
ore reduction. The advantage of these applications from single equipment in the rotary kiln, is partly
offset since basically, the kiln is considered to be a poor heat exchanger. This is due to the reduced
contact of gas and solids when compared with a shaft furnace resulting in high waste gas energy losses.
In coal based sponge iron kilns, depending on the quality of reductant (coal) used, about 60% of the
total heat input is utilised in the reduction process. About 40% of the heat input is discharged with the
kiln waste gases and the kiln materials in the form of sensible or chemical heat. The hot waste gas and
char produced thus contain considerable energy saving potentials. After deducting the internal power
consumption, approximately 400-500 kwh of electric energy (depending on the reduction agent used)
can be produced per ton of Fe by utilising the heat content of the kiln waste gases. This energy can be
used for reducing the total external power requirement of about 900 kwh/t of billets for melting sponge
iron in electric arc furnaces or in induction furnaces under Indian conditions.

The cost of captive power generation through kiln waste gases in India will be similar to hydel power
generation costs. The cost difference between external energy and internal energy has a direct influence
on the price of steel produced.

By burning coal fines, coal washery rejects and the non-magnetic kiln discharge (char) in a fluidized
bed boiler, steam can be generated which can in turn be used for power generation. At present in India
such boilers are in successful operation at M/s Jindal Steel & Power Limited (Chattisgarh), M/s Prakash
Industries Limited (Chattisgarh) and M/s Bihar Sponge Iron Limited (Jharkhand) and M/s Sunflag Iron &
Steel Company (Maharashtra). Few more coal based sponge iron plants are contemplating the setting up
of similar boilers, including Tata Sponge Iron Limited (Orissa).

The power generation capacity for different modules are as shown below (through waste kiln gases
only).

At an average electricity cost of Rs.3/Kwh the savings that can be achieved and the additional
revenue generation if the net surplus power can be sold even at Rs.2.5 per Kwh would be :

The power generation capabilities are high and economical such that a company which was primarily
producing sponge iron and steel, can now also become a major producer of power and add POWER to
its name.

Steel making through the sponge iron route (min integrated steel complex) : A one million tonne per
annum sponge iron complex would consist of

7 kilns of 1,50,000 tpy modules or 8 kilns of 1,20,000 tpy modules.

The above plants would generate surplus power* as below :

* = Calculated for 330 days operation at 90% efficiency 1 = To utilise coal fines & char (power generation
will be higher if coal washery rejects are used)

Assuming 900 units are required to convert one tonne of sponge iron into steel billets, the following
quantities of steel can be generated through the surplus power available :
Module (tpa) Steel production (tpa)

1,50,000 x 7 5,19,000

1,20,000 x 8 5,10,000

As per the above, nearly 60% of sponge iron produced can be consumed in house for steel making

CORELESS MELTING OF SPONGE

When we first mentioned melting in the coreless, he stopped us and said it was more like dissolving
sponge rather than actual melting. There process is very good resulting in a yield off 88% compared to
most plants that only achieve 78% yield.

They start by adding 15% to 20% of pig iron in the bottom of the furnace. They will get this 100%
molten before adding any sponge. Once the pig is molten they have a shaker system that will slowly add
the sponge iron. At no time do they allow the sponge to cover the metal bath. It always remains open
to avoid bridging. This is why he calls it a dissolving process and not melting. From the time they start
adding pig until the furnace is full there is one guy who continuously removes the slag. Periodically this
person will put a shovel load of fine coal dust in the furnace to make the slag sticky enough to remove.
The lining is not exposed to the coal dust for long periods of a time just long enough for the operator to
still it into the slag and remove. The fine coal dust comes from the ash hoppers. Since they have such
a clean process the phos content of the metal is between 0.08% and 0.10%. Normally the phos level in
other plants are 0.10 and higher.

The old furnaces take 120 minutes from the time they charge the pig iron until the time they tap. With
the new high powered ABP furnaces they will have a charge to tap time of 90 minutes. According to Mr.
Rana ABP said this was not possible in a high powered furnace and wanted to sell small lower powered
furnaces. Nalwa insisted on these furnaces and are sure they will work.

The linings run anywhere from 70 to 90 heats with no repair. At 50% erosion they will do one shave
repair and then replace the lining. We have a good opportunity to introduce multiple shave repairs. We
spoke with Mr. Rana about the importance of Nalwa and Allied to work together on a long term basis.
Allied is the only refractory company in India that has the people, the technology and the desire to
increase lining life over a span of time. We are not looking for instant results that will impress anybody,
rather looking for an area to start so we can analyze the operation, make some test in out lab and tweak
materials for better performance. This process may take a year or two but we will keep working on their
behalf for improvements. Trying to make them understand that with research comes cost so we may
not be the low cost supplier at first, over the long run we will be more economical to use. This requires
cooperation and understanding from both Allied and Nalwa.

LRF OPERATIONS

After they get molten they tap the furnace at 1650 to 1580 and the metal is taken to a LRF. In the LRF
they add lime and mill scale to reduce the sulfur and the phos content. They take the temperature to
about 1700 in the LRF and are able to reduce the phos content from 0.08 down to as low as 0.02.
CONCLUSION

I do believe these are the right people to work with in order to enter this market. Mr. Rana has the right
philosophy on how to do business between supplier and customer. The others are not so easy to get
information from. As stated in the beginning of the report, without the input of Mr. Rana, nothing
would happen. We have sent the first container of 47MT of DV 681A and 3MT of Steel Pak 86 CR. We
are in the process of trying to get the second trial order with DV 975 and possible some DV 967CR to test
as a shave repair material. We know they used left over 967CR at Hill Metals over top of the 10V -13 6
from Dorintrup and found the performance to be 20% greater.

These guys are expanding their operations and others are slowing or considering to stop melting. Te
main problem with transforming sponge into steel using coreless furnaces is the high phos and sulfur
content of the metal. The only way to lower phos is to add lime. Many have tried this in the coreless,
including Nalwa, but the build-up is so bad the furnaces loses capacity very quick. Of course this can
only be tried on high alumina, on silica you would be lucky to get one heat out. The only way to
continue in this operation is to have an LRF. Most plants in India do not have one and most will not pay
money for one. For this reason Mr. Rana believes that many of these Micro Mills will close for this
reason. The reason is the new government regulation that says not structural steel can be sold that has
a phos content higher than 0.06. During a recent earthquake in Mumbai several large buildings
collapsed. The investigation of these collapses found the rebar in the concrete had split. They found the
same situation when some bridges failed. High phos will cause the steel to peel apart over time. I never
thought much of it, but I do remember the slabs at Rathi Supper steel have many shrinkage cracks. It is
a very serious problem and the government is going to be very active enforcing this standard.

Cae/8-09-2012