Corus working on cost-saving technology

Kolkata: Corus is developing an alternative technology for steel-making, which will result in significant cost reduction. The technology would be ready for commercial use in the next couple of years and may be used in Tata Steel’s greenfield projects.

B Muthuraman, managing director of Tata Steel, said, Corus has been working on the technology for the last 5-6 years and was currently at the laboratory stage. He was speaking on the sidelines of the AIMA-AAMO 34th National Management Convention.

On whether the technology would be used by Tata Steel in its greenfield projects, he said, “May be.” Tata Steel has lined up greenfield projects in Orissa, Chhattisgarh and Jharkhand.

Muthuraman explained, the technology would use iron ore fines and coal. An analyst said that there was very little use of fines in the domestic market. In India, around 60 per cent of the total iron ore produced are fines and another 5 per cent or more is generated in the process of handling and transportation. Fines account for only 41 per cent of the total consumption.

The use of coal instead of coking coal would also reduce cost. Large scale iron making through the blast furnace route requires coking coal and India does not have good quality coking coal reserves.

Hence, Indian steel companies have had to resort to import of low ash coking coal from Australia. Muthuraman said, Tata Steel would play a key role in the development of the new technology.

“The iron ore fines are here and coal is here,” he said. With this move, Tata Steel-Corus would join a growing number of international steel companies looking to use iron ore fines.

A couple of months back, Posco completed the world’s first commercial facility using the Finex technology based on iron ore fines and coal. Japan’s fourth largest steelmaker, Kobe Steel, has patented a new technology called ITmk3, based on iron nugget produced from iron ore fines, and pulverized coal, which can be used as a raw material in electric arc furnace.