Ukraine will increase steel production to 50 million tons

By 2012 Metallurgical enterprises of Ukraine, as expected, will increase steel smelting to more than 50 million tons a year. Said the first Deputy Minister of Industrial Policy of Ukraine Dmitry Kolesnikov during the International Conference on the New Technologies of direct reduction of iron in Kiev on Wednesday.

But he noted that by 2012 Ukraine will have difficulty with metal plants provision with scrap: scrap deficit could be 1,2-1,5 million tons.

"therefore it is necessary to replace scrap " - Deputy Minister is confident.

Dmitry Kolesnikov believes direct reduction of iron technology is promising.

According to the forecasts of the Vice-Chairman of the parliamentary committee on industrial policy and entrepreneurship, the Honorary President of the Northern and Central mining and dressing plants Alexandr Vilkul, Ukraine in 2011 will reach a level of production of pellets in the amount of 35.1 million tons, while in 2006 this figure was 20.9 million tons with an average annual rate of growth of 10.9%

In doing so, he said, the production of rolled steel will rise to 46 million tons per year (in 2006 - 36.2 million tons, the average annual growth rate - 4.9%), pipes - 3.6 million tons (2.6 million tons, 6.5%), scrap - 11.6 million tons (7.7 million tons, 8.6%), coke - 18.8 million tons (18 million tons, 0.8%).

A. Vilkul also noted the perspectivenes of direct reduction of iron technology in Ukraine, adding that at present, Ukraine has an interest in five or six such projects, which are currently being assessed by companies.

Metinvest is currently conducting an investment analysis of the feasibility of the direct reduction of iron project, "- said A. Vilkul.

But he noted that in addition to mining companies, working on the possibility of direct reduction of iron projects, such as Poltava Mining, Ingulets GOK, as well as SevGOK and CGOK, few other enterprises are interested in similar projects.

As reported, Kobe Steel (Japan) Ltd., Smart Groups (Zaporozhye) and Hares Group (Austria) signed a protocol on implementation of direct reduction of iron of ITmk3 technology at one of Krivyi Rig enterprises in the middle of July 2006.

ITmk3 technology (Ironmaking Technology Mark Three) is the most modern technology of direct reduction of iron using carbon to produce the material at the lowest cost, with a high content of iron (more than 96%), minimum slag impurities, a low content of metals (Cu, Ni, Cr, Mo, Sn), etc.