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Source: http://www.miningweekly.co.za/article.php?a_id=126153

IDC invests R100m in iron-ore beneficiation technology

By: Jade Davenport
Published: 5 Feb 08 - 17:10
State-owned financier the Industrial Development Corporation (IDC) announced that it would invest R100-million in a ground-breaking new technology that would convert superfine iron-ore into high quality iron units.

This world-first technology, dubbed Finesmelt, was the brainchild of Iron Mineral Beneficiation Services (IMBS).

Addressing the media on Tuesday, IMBS CEO John Beachy Head explained that the distinctive quality of the Finesmelt process, which took four years to develop, was that it produced high-quality iron units using low grade super-fine iron-ore and non-coking coal without any form of agglomeration in an environmentally-friendly manner.

Head added that through the Finesmelt process IMBS could produce hot briquetted iron (HBI) units at 33% below average costs.

HBI units could be used in the manufacturing of steel.

The R100-million funding that would be supplied by the IDC would be applied to the Nigel launch project in Nigel which aimed to produce 48 000 t of HBI and 24 000 t of ferrochrome a year, explained IDC Head of Mining and Beneficiation Strategic Business Unit Abel Malinga.

This plant was expected to start production in early 2009 and would create more than 2 000 jobs in the Nigel area.

Following the completion of this plant, a larger scale production plant with initial capacity to produce a minimum of 500 000 t of iron units a year would be commissioned in conjunction with a large iron ore producer.

This initiative would require further implementation funding from the IDC in terms of an equity sharing agreement, said Malinga.

Head continued that IBMS' long-term objective was to construct 10 plants, which would produce five-million tons of metallic products, by 2012.

In terms of procuring super-fine iron ore powder, Head explained that IBMS was currently in negotiations with Kumba to procure the iron-ore powder that it could not process.

Head elaborated that there were billions of tons of super-fine iron-ore above ground that could not be processed and that would be ideal for the Finesmelt process.

To this extent, Head referred to the Palabora mine, in Mpumulanga, which had a stockpile of 240-million tons of super-fine iron-ore, which was the equivalent to a 40-year supply for IBMS, continued Head.

In terms of the rationale behind this initiative, Head explained that with the growth of electric arc furnaces and the current high prices of scrap, supply of alternative iron units was critical if South Africa was to grow a competitive local steel industry.

This capital investment was consistent with the IDC's strategy to address high prices and shortages of steel in the local market, said Malinga.

To this extent, Malinga stated that the IDC was also investigating the option of establishing a new carbon steel plant in South Africa.
The feasibility study examining the viability of such a project was due to be completed by March this year.

Malinga stated that this three-million t/y steel mill would cost approximately R2,8-billion but would only be operational by 2016.

END