Maximum iron

A unique iron reduction plant is to be built in Ukraine. All we need is independence from gas energy.

At present, domestic steel industry is provided with raw materials at 120-160%

Ukraine will have its own unique plant for reduction of iron. According to the protocol between Kobe Steel (Japan), SMART Group Ltd. (Ukraine) and Hares Group (Austria) ITmk3 technology (Ironmaking Technology Mark Three) will be initially implemented at one of the Krivyi Rig enterprises. The goal is to build the first commercial plant in CIS, being unique not only for Ukraine's industry, but also for the global steel industry as a whole. The expectations of experts in relation to technological innovations are cautious but generally positive. "Technology of direct iron reduction is certainly necessary for Ukraine, because it is newest technology with potentially high rates of profitability, producing high-quality products", - said the honorary president of the Northern and Central mining and beneficiation plant (GOKs), State Deputy of Ukraine Alexander Vilkul. However, experts argue that in the introduction of technology number of nuances will have to be taken into account.

"In many aspects technologies, which are used today in Ukraine, are behind world standards. Therefore, the development of direct reduction of iron in the country could be viewed only positively. An interesting perspective is yet another aspect of the use of raw materials - reduction of scrap metal in Ukraine by direct reduction of iron can serve as an important tool in securing raw materials supply to electric plants and promote their development. At the same time, technological production processes require large quantities of gas, the price of which has recently increased significantly, "- commented on the situation head of the department of marketing and consulting of information-analytical center of monitoring the external markets Derzhzovnishinform Alexander Sirik. A similar opinion has been expressed by another expert. "Personally, I welcome the emergence of new high-tech industries in Ukraine, because it increases the competitiveness of Ukrainian goods and domestic producers. But, unfortunately, the introduction of new innovative technologies - the procedure is very expensive. In addition, in Ukraine there is currently no effective program to support the introduction of innovative technologies", - said Mr. Vilkul. Also, experts say that in implementing new technology current state of the industry will have to be taken into account.

At present, domestic steel industry is provided with raw materials at 120-160%. In Ukraine, a surplus of iron ore, resulting in approximately 30% of mining companies supplying products for export. At the same time, some industry groups are purchasing raw materials abroad. Reasons are standard: either the domestic raw material does not comply with required quality, or it is too expensive, etc. According to experts, while the only consumer of raw materials, reduced by direct method was MMK of Illich, with raw materials imported from Russia (from Lebedinsky GOK).
Cost savings in transit, with excellent quality of raw materials raises questions about the prospects of existing technologies in Ukraine

The ITmk3 technology allows obtaining product from iron ore in the form of spherical entities (ingots - nuggets) containing 96-98% of iron (and 2-4% of carbon). In other words, the resulting material is quite good. This technology can be used for mini-steel industry (eg, Mini-Metallurgical Plant Istil has long been interested in this technology), as well as the development of the scrap metal market. Because there is extensive use of new technology, a logical assumption would be that the products manufactured using ITmk3 at Ukrainian-Japanese-Austrian plants could be a serious competition for domestic products of GOKs. However, experts believe that the product of new technological enterprise is likely to be export oriented and is unlikely to affect the domestic market. " Mining companies are unlikely to suffer competition from the introduction of such technology. First, due to the fact that this product is a substitute for scrap and pig iron. Secondly, the potential volume of production would be small to seriously affect the market "- commented on the situation, Mr. Vilkul.

However, the products of ITmk3 technology have other advantages as possible competition with GOKs. Thus, nuggets are compact iron ore and iron content in them will be 30-45% higher than in iron ore pellets. This feature will reduce the transportation costs of transporting raw materials. In turn, the savings in raw material transit raises questions as to the prospects of existing technologies in Ukraine.