Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Investor Presentation (October 2010)
42 slides from Bluescope Steel's investor presentation, Oct 6, 2010
Slide 1: Blast Furnace Technology & Ironmaking Process
For personal use only Port Kembla 22nd January Steelworks 2003 Blast Furnace Technology & Ironmaking Process RBS Investor Lunch OSCAR GREGORY, General Manager Iron & Slab Australian and NZ Steel Manufacturing Businesses File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template October 20
Slide 2: Important notice
For personal use only Important notice THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE.
Slide 3: Overview of Steel Production Processes
Overview of Steel Production Processes For personal use only STEEL PRODUCTION SEMI’s FLAT PRODUCTS Steel Scrap ? Hot rolled strip Cold rolled Wide coil Narrow strip Cut lengths mill strip mill Slab Scrap Electric Arc Ladle Furnace Electrical coil Metal Coated Painted coil Laminated coil SCRAP ROUTE
Slide 4: Steel Production Processes – Integrated Plant and Mini-Mill
Steel Production Processes – Integrated Plant and “Mini-Mill” For personal use only Flat Products Flat Products “Mini-Mill” Integrated Plant SINTERING EAF/Thin Slab Caster Coal BLAST FURNACE Iron Ore Sintered ore COKE OVEN Coke Molten pig iron Scrap Slag & HBI CONVERTER (BOF) ELECTRIC ARC FURNACE “G
Slide 5: Overview of Steel Production Process – Pt Kembla
Overview of Steel Production Process – Pt Kembla For personal use only SINTERING Coal Iron Ore BLAST FURNACE Sintered COKE OVEN ore Coke Molten pig iron Slag CONVERTER (BOS) “Graded” Liquid Steel REFINING STAND CONTINUOUS CASTING FLAT PRODUCTS Slab REHEAT FURNACE ROLLING MILL Hot rolled strip Cold r
Slide 6: Overview of Steel Production Process
Overview of Steel Production Process For personal use only Integrated “Conventional” Slab Casting – 3 to 5 Mt/a 1-2m/minute Gas cutter RougherCoil box Finisher Run out table – 500 to 800 m cooling Cooling 1-10mm thick 200-300 mm thick Coiler Reheat furnace 500-800 m 20-40 metric ton coil Minimill Th
Slide 7: Steel Production – NZS has a Unique Process
Steel Production – NZS has a Unique Process For personal use only KILNS MELTERS KOBM/LTS CCM MHF Off-Gas Kiln Off-Gas Fluxes MHF 5 Kiln 5 Melter 2 Ironsand From Millscale Dry PC & KOBM Mine Added Electricity Processed PC Liquid Iron MHF 4 Kiln 4 LTS Continuous VRU Liquid Raw Iron & Casting Storage H
Slide 8: Markets and Supply Chain – Port Kembla
Markets and Supply Chain – Port Kembla Western Port For personal use only Building & Construction Illawarra Direct Distribution Domestic & Solutions Manufacturing Australia Export Distributors Pipe & Tube 8
Slide 9: Consumption of primary raw materials at Port Kembla Steelworks
Consumption of primary raw materials at Port Kembla Steelworks For personal use only Volume consumed in production (dry mt) Indicative use rate FY2008 FY2009 FY2010 per slab tonne Iron Ore Reflects mix shift Fines 4.0 2.9 4.0 0.97t from sinter plant Lump 1.6 1.0 1.5 0.31t upgrade (+1.1mtpa fines, Pe
Slide 10: PKSW – Production & Despatch Flow
PKSW – Production & Despatch Flow Port Kembla Steelworks For personal use only Slab Domestic Slab Production 1,678 1,098 21 0 FY 2010 FY 2009 4,724 3,517 Export 672 302 Inventory movements Interco Western Port (2) & yield losses 985 796 Hot Strip HRC Domestic Mill Port Kembla Steelworks 2,648 2,075
Slide 11: Cokemaking
For personal use only Cokemaking 11
Slide 12: Cokemaking Process Overview
Cokemaking Process Overview For personal use only GAS BTX 3.0Mtpa PROCESSING SULPHATE TAR (Benzene) BLENDED COAL 39Kt 86Kt 23ML Interworks COKE OVENS GAS energy 19,000TJ (boilers, furnaces) COKE PLANT COKE SCREEN 86% Types of coke 2.3Mtpa solids produced 1 tonne of coke solids is COKE LUMP SOLIDS 7%
Slide 13: Coke Ovens Process
Coke Ovens Process For personal use only Coal is blended and charged into an oven The coal is levelled to allow passage for the gas generated to exit STANDPIPE CHARGE HOLES For Filling Oven with coal COLLECTOR MAIN CHUCK DOOR GAS PASSAGE COAL MASS After levelling OVEN OVEN DOORS DOORS 13
Slide 14: Regenerators
For personal use only Regenerators REFRACTORY BRICK - HEATED • Air and gas are preheated by separate regenerators and the heat distributed across the refractories next to the oven OVEN OVEN wall • The oven heats the coal for approx 19-20 hrs – driving off the volatiles, leaving behind relatively pur
Slide 15: What is Metallurgical Coke?
What is Metallurgical Coke? For personal use only Solid residue after pyrolysis of a coking coal • the coal is heated to >1000ºC in the absence of air • largely carbon plus some hydrogen, nitrogen, sulphur and inorganic minerals Desirable physical properties • strong and large lumps • withstand the
Slide 16: Coking and Non-Coking Coals
Coking and Non-Coking Coals For personal use only Only a limited range of coals are suitable for making metallurgical coke • bituminous coals • need to exhibit plasticity and swelling • depending on the quality of the coke produced can be classified as hard, semi-hard, semi-soft or soft coking coals
Slide 17: Push Side - Battery
Push Side - 6 Battery For personal use only OVENS RAM REGENERATORS 17
Slide 18: Charger - Battery
Charger - 7 Battery For personal use only CHARGE HOLES RAM CHARGER COKE WHARF 18
Slide 19: Coke Side - Battery Coke Wharf
Coke Side - 7 Battery Coke Wharf For personal use only QUENCHER COKE 19
Slide 20: Ironmaking Department
For personal use only Ironmaking Department 5 BF 6BF Sinter & RMH PCI 20
Slide 21: What we look for in Iron Ores
What we look for in IRON ORES • High % Fe – yield of hot metal For personal use only • Low combined gangue (SiO2, Al2O3) = less slag volume (costs) • Low Phosphorus (P) = quality of steel • Low Loss on Ignition (LOI) – combined water = freight cost & fuel • Low Specific Trace elements – Ti, V, Cr an
Slide 22: What we look for in Iron Ores
What we look for in IRON ORES For personal use only FINES Typically (58-63% Fe) - South American exception @ 66%Fe • Generally the cheapest, due to lower %Fe and higher gangue • Not suitable for direct charge to Blast Furnace (too fine, gets blown out as dust) • Requires agglomeration into larger so
Slide 23: Raw Materials Handling Area - Ore storage yards
Raw Materials Handling Area - Ore storage yards Secondary Ore Blending yard facility For personal use only 2 Beds (Each 300kt nominal capacity) Bed consumed over 18 -20 days One variable speed Barrel Reclaimer 23
Slide 24: What we look for in Iron Ores
What we look for in IRON ORES For personal use only FINES Typically (58-63%Fe) - South American exception @ 66%Fe • Generally the cheapest, due to lower %Fe and higher gangue • Not suitable for direct charge to Blast Furnace (too fine, gets blown out as dust) • Requires agglomeration into larger sol
Slide 25: Sintering Process
Sintering Process • Coke is ignited by Nat Gas Burner; and Air is sucked through the For personal use only material bed • The Air and the Coke react to partially soften and reduce the ferrous materials with the slag forming materials bonding everything together into a sintered (Cooked) lump of Solid
Slide 26: For personal use only
COKE/ ANTHRACITE HEMATITE/ | MAGNETIT. Sot DOLOMITE/ SERPENTINE J ear, ( GANGUE -CLAY, GIBBSITE QUARTZ BONDING —~ MATRIX 26
Slide 27: Sinter
For personal use only SINTER 27
Slide 28: Ore Preparation – Sinter & Raw Materials Handling
Ore Preparation – Sinter & Raw Materials Handling For personal use only No.3 Sinter Machine Built 1975 Revamped 2009 Grate Area 480 m2 Production 6.6 Mtpa Productivity 38-40 t/m2/d BF Burden ~60 - 70% 28
Slide 29: Recent Upgrades made to the No.3 Machine
Recent Upgrades made to the No.3 Machine For personal use only New Strand Feeder and New Ignition Furnace Higher Strand Pallets Strand Extended and New Cooler Feed Chute Zone 1 added to the Electro-Static Precipitators Waste Gas Main & Spillage Conveyors extended Sinter Cooler – wider and more fan p
Slide 30: For personal use only
For personal use only 30
Slide 31: Ignition Furnace / Sinter Bed
For personal use only IGNITION FURNACE SINTER BED 31
Slide 32: Discharge Strand / Sinter
DISCHARGE For personal use only STRAND + SINTER IGNITION FURNACE 32
Slide 33: Sinter Rotary Cooler
For personal use only SINTER ROTARY COOLER 33
Slide 34: What we look for in Iron Ores – Pellets
What we look for in IRON ORES For personal use only PELLETS (65 - 67% Fe) • Similar to Sintering process where fine ore is agglomerated into solid, lump material - pellets • Generally the ores for pelletising are already very fine and soft and easier for grinding and balling • i.e. Magnetites – gene
Slide 35: Blast Furnace Burden Materials
For personal use only Whyalla Fines Carajas Fines FINE ORES Yandi Fines Mt Newman Fines Blended and Fluxed in Sinter Machine to Produce Sinter PELLETS LUMP ORES Savage River Pellets PREPARED BURDENS Sinter Mt Newman Lump Prefer: ≥ 80% Prepared Burden ≤ 20% Lump Ore BLAST FURNACE 35
Slide 36: Ironmaking – Blast Furnaces
Ironmaking – Blast Furnaces No.5 Blast Furnace No.6 Blast Furnace For personal use only No.5BF No.6BF Built 1972 1996 Relined 1978, 1991, 2009 - Inner Vol – m3 3427 3208 Work Vol – m3 3000 (88%) 2749 (86%) Campaign Life 18 - 20 yrs 20+ yrs Output 2.7 Mtpa 2.7 Mtpa 36
Slide 37: Blast Furnace
Blast Furnace • Function of a Blast Furnace is to For personal use only Key Zones • Remove Oxygen from Iron Oxide • Remove gangue from the Iron Ore to Indirect Reduction 850~950°C form Slag Upper Shaft • This is achieved through the used of Carbon Monoxide gas from the combustion of Carbon from Coke
Slide 38: Chemical Process
Chemical Process For personal use only 2C + O2 2CO Carbon Oxygen (Carbon Monoxide) (Coke & PCI) (Air) 3 Fe2O3 + CO 2 Fe3O4 + CO2 Haematite Magnetite Carbon Dioxide (Iron Ore, Sinter, Pellets) Fe3O4 + CO 3 FeO + CO2 Wustite FeO + CO Fe + CO2 Molten Iron (All reactions occur at various stages & temper
Slide 39: Blast Furnace Process
Blast Furnace Process Raw materials , Lump Ore, Sinter , Pellets, Coke & fluxes Charged Through top of For personal use only furnace Excess Hot gases flow from top of Furnace to Gas Cleaning Plant and reused for heating 100 oC Layers of Coke & Ferrous Materials descend over 8 hrs to bottom of furnac
Slide 40: Differences in Blast Furnaces
Differences in Blast Furnaces For personal use only • Size – BF are defined by Inner & Working Volumes Working Volume (M3) = Inner Volume (M3) = Volume from Tuyere Centreline Volume from Taphole Centreline to Furnace Top to Furnace Top = SHAFT+BELLY+BOSH SHAFT = HEARTH + BOSH + BELLY +SHAFT Europe u
Slide 41: Differences in Blast Furnaces
Differences in Blast Furnaces For personal use only • Size – BF are defined by Inner & Working Volumes • The size determines the output capability, expressed as Tonnes/day/m3 IV (or WV) • Results > 2.1-2.2 t/d/m3IV is considered good and • Campaign results of >10,000 – 12,000 t/m3IV are considered e
Slide 42: Issues that impact Cost curve – different globally
Issues that impact Cost curve – different globally For personal use only Raw Materials - Coal, Iron Ores, Alloys & Scrap are single biggest contributor to Costs Depending on proximity (freight) and quality, as well as ownership (JV partnerships) Labour Costs – developing countries have lower cost of
BlueScope Steel — Investor Presentation (October 2010) on 6ix