Airan Steel & Power (P) Ltd. Manufacturing Process & Raw Material Procurement.

Introduction A 100 TPD Sponge Iron Manufacturing Unit in Bilaspur (C.G.) Sponge Iron : Used as Substitute for Scrap Iron in steel making process.

A 100 TPD Sponge Iron Manufacturing Unit in Bilaspur (C.G.)

Sponge Iron : Used as Substitute for Scrap Iron in steel making process.

Process

Raw Materials Iron Ore : 48000 MT per year. Coal : 34500 MT per year. Lime Stone : 1050 MT per year.

Iron Ore : 48000 MT per year.

Coal : 34500 MT per year.

Lime Stone : 1050 MT per year.

Iron Ore Unlike in the conventional steel melting processes, the gangue content of iron ore cannot be separated as a slag. Therefore, it becomes imperative to select an ore with a high Fe content and a low gangue content, to optimize yield during steel making. Mixture of fines & lumps used. Nearest mines : Badbil (Orissa).

Unlike in the conventional steel melting processes, the gangue content of iron ore cannot be separated as a slag. Therefore, it becomes imperative to select an ore with a high Fe content and a low gangue content, to optimize yield during steel making.

Mixture of fines & lumps used.

Nearest mines : Badbil (Orissa).

Iron Ore Problems 65+ Fe content. Two prominent Sellers in Badbil. Rungta Mining. Essel Mining (Aditya Birla Group). Only one ( Rungta Mining) sells to the company concerned. Rate : Rs 2900- 3900 per MT

65+ Fe content.

Two prominent Sellers in Badbil.

Rungta Mining.

Essel Mining (Aditya Birla Group).

Only one ( Rungta Mining) sells to the company concerned.

Rate : Rs 2900- 3900 per MT

Iron Ore Problems Advance Payment of 1 rack always deposited. 1 month prior notice to the seller of the need (includes about 15+ calls). A manager has to oversee the loading process at Badbil. Rack unloading problem in Bilaspur.

Advance Payment of 1 rack always deposited.

1 month prior notice to the seller of the need (includes about 15+ calls).

A manager has to oversee the loading process at Badbil.

Rack unloading problem in Bilaspur.

Iron Ore Problems Product : Quality Issues. Due to long operational cycle, rate fluctuations cannot be covered.

Product : Quality Issues.

Due to long operational cycle, rate fluctuations cannot be covered.

Solutions Sponge Iron Manufacturer Association to bid for Iron Ore Mines. NMDC (Govt. Mines). 2-3 Manufacturer share a rack. New Technology : China imports fines, and coverts them to lumps. Cost of this project : 30 cr. for 300 MT plant. ( in the end, cost of iron ore will Rs 2000 per MT)

Sponge Iron Manufacturer Association to bid for Iron Ore Mines.

NMDC (Govt. Mines).

2-3 Manufacturer share a rack.

New Technology : China imports fines, and coverts them to lumps.

Cost of this project : 30 cr. for 300 MT plant. ( in the end, cost of iron ore will Rs 2000 per MT)

Coal Non-Coking Coal of Higher Grade. Mines : SECL, headquartered at Bilaspur. Purchase : Brokers from the open market, ONLINE Auction by MSTC, Calcutta. http://www.metaljunction.com/ : online service.

Non-Coking Coal of Higher Grade.

Mines : SECL, headquartered at Bilaspur.

Purchase : Brokers from the open market, ONLINE Auction by MSTC, Calcutta.

http://www.metaljunction.com/ : online service.

Coal Problems Quality. Online Auctions : Advance Payment. Online Auctions : Random. To maintain relations, one has to buy regularly from Open Market also.

Quality.

Online Auctions : Advance Payment.

Online Auctions : Random.

To maintain relations, one has to buy regularly from Open Market also.

Solutions Availability : Linkage. Quality : Petroleum Coke.

Availability : Linkage.

Quality : Petroleum Coke.

Other Issues Loading & Unloading of Iron Ore Rack. Sponge Iron Transporting. NMDC Mines. Coal Linkage.

Loading & Unloading of Iron Ore Rack.

Sponge Iron Transporting.

NMDC Mines.

Coal Linkage.

Final Solution SCALE UP, to be able to dictate terms. Now, its just a VOLUME game.

SCALE UP, to be able to dictate terms.

Now, its just a VOLUME game.