Circular Pelletizing Technology General Presentation

1 Protection notice / Copyright notice Protection notice / Copyright notice Delhi, 10th of September 2012 We didn t invent We just made it better. Circular Pelletizing Technology General Presentation IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 2 Circular Pelletizing Technology (CPT) Introduction 1 Trends in Iron Ore Mining 2 Circular Pelletizing Technology A Smart Combination 3 Circular Pelletizing Technology Layout, Plant Options 4 CPT in Figures 5 Advantages of Siemens VAI Circular Pelletizing Plant 6 Cooperation Agreement IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 3 Trends in Iron Ore Mining IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 4 Why Pelletizing ?

2 Global Decrease of Lump and Sinter Feed Ores This tendency makes the utilitsation of fine and ultra fine ores more and more important in next decades, for which Pelletizing is the only industrial scale proven process. Good Bed Permeability and Reducilbility Due to the spherical shapes and the high porosity of the pellets a high bed permeability and a high reducibility of pellets is achieved, which is leading to less energy consumption in the downstream processes. Uniform chemical analysis By beneficiating of ultrafines a very constant quality is achieved leading to constant operation conditions. Easy handling and transportation By induration an excellent strength of pellets for further handling and processing is achieved.

3 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 5 Fines From Ore to Iron Process Routes in Ironmaking Ore with high iron content Ore with low iron content Beneficiation Concentrate Screening Lump ore Pelletizing Sintering IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 6 Circular Pelletizing Technology A Smart Combination IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 7 The Challenge of making iron ore pellets Typical Flow Sheet of a Pelletizing Plant IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 8 Straight Grate Pelletizing Technology Induration Process IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 9 Siemens VAI Sintering Technology Mechanical design of a Circular dip rail cooler IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 10 Circular Pelletizing Technology A SMART combination + Circular Pelletizing Technology Straight grate induration process = Mechanical system of SVAI Circular dip rail cooler Siemens VAI combines the well- proven travelling grate process with the simple and robust mechanical design of a Circular dip rail cooler.

4 The result is the revolutionary Circular Pelletizing Technology . IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 11 CPT combines proven process with reliable mechanical system Design Criteria Circular Grate Technology is based on proven design of straight grate Simple and robust design of equipment and gas flow Circular design and small footprint of induration furnace with efficient and optimized equipment utilization Location of Circular Pelletizing Plant not necessarily at mine site, but also at steel works or direct reduction plants Induration furnaces for capacities between and mt/a considered Production of high quality Blast Furnace and Direct Reduction grade pellets as well as Manganese pellets Circular Pelletizing Technology Characteristics and Design Criteria IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 12 Circular Pelletizing Technology The Induration Process in Circular Arrangement IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 13 By careful design of the pallet cars and the drive system combined with a detailed stress analysis of the

5 Complete system a reliable and easy maintainable indurating machine could be realized. Development of Indurating Machine Circular Pelletizing Technology Technical Challenges during Engineering IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 14 By simulating the process gas flows inside the indurating hood the optimum arrangement and specific power of the burners could be defined. Circular Pelletizing Technology Technical Challenges during Engineering Development of Process Gas Flow IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 15 Mar 12 Circular Pelletizing Technology Page 15 Circular Pelletizing Technology Layout, Plant Options IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 16 Circular Pelletizing Technology Page 16 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout.

6 1- Dosing & Green Balling 1 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 17 Circular Pelletizing Technology Page 17 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout: 1- Dosing & Green Balling 2- Additive Storage & Grinding 1 2 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 18 Circular Pelletizing Technology Page 18 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout: 1- Dosing & Green Balling 2- Additive Storage & Grinding 3- Mixing Station 1 3 2 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 19 Circular Pelletizing Technology Page 19 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout: 1- Dosing & Green Balling 2- Additive Storage & Grinding 3- Mixing Station 4- Induration Furnace 1 3 2 4 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 20 Circular Pelletizing Technology Page 20 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout.

7 1- Dosing & Green Balling 2- Additive Storage & Grinding 3- Mixing Station 4- Induration Furnace 5- Product Classification 1 3 2 4 5 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 21 Circular Pelletizing Technology Page 21 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout: 1- Dosing & Green Balling 2- Additive Storage & Grinding 3- Mixing Station 4- Induration Furnace 5- Product Classification 6- Product Pile 1 3 2 4 5 6 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 22 Circular Pelletizing Technology Page 22 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout.

8 1- Dosing & Green Balling 2- Additive Storage & Grinding 3- Mixing Station 4- Induration Furnace 5- Product Classification 6- Product Pile 7- Process Air Cleaning 1 3 2 4 5 6 7 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 23 Circular Pelletizing Technology Page 23 Circular Pelletizing Technology Standard Plant Layout CPT CPT Standard Plant Layout: 1- Dosing & Green Balling 2- Additive Storage & Grinding 3- Mixing Station 4- Induration Furnace 5- Product Classification 6- Product Pile 7- Process Air Cleaning 8- Coal Gasification Plant 8 1 3 2 4 5 6 7 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 24 Circular Pelletizing Technology Dual Fuel Burner Principle Scheme Indigenous Coal Air Ash Flare HFO Primary Air Fuels can be mixed in every ratio.

9 Coal Gasif. IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 25 Circular Pelletizing Technology Coal Gas Operational Data Minimum Properties of Coal Coal composition C 30-35% H 4,64% N 1,85% S 0,95% Lower heat-value at 10% wet 3,300 kcal/kg Coal-grain size: 25 - 50 mm Ash content of coal 40% +/-2% Lowest Ash melting point 1,080 C Data of Coal Gas per Gasifier (typical) Coal input 1,76 t/h Coal gas output 1250 Nm /h HV of coal gas 1250 kcal/Nm Coal gas temp. 350 C Coal gas C0 25% H2 9% CxHy 2,5% CO2 6,5% N2 57% Dust content 300 mg/Nm Tar content 25-30 g/Nm Ash amount 0,69 t/h IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 26 *The comparison has been prepared for India based on Indian unit rates.

10 The OPEX comparison considers 50% utilization of Coal Gas Circular Pelletizing Technology Coal Gas OPEX Benefit HFO Coal Pellet production in tons per hour 153 t/h 153 t/h Consumption in tons per hour 3,5 t/h 14,1 t/h Cost for 1 ton of fuel* 608 54 Cost for fuel per hour 2129 758 Cost per ton of pellets 14 5 Cost per year (7920 hours) for 100% of one fuel ~16,86 M ~6,1 M Cost per year for fuel considering an availability of 50% of the Coal gasification plant ~8,43 M ~3,00 M OPEX savings per year when substituting 50% of fuel requirement with coal gas ~5,43 M IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 27 Circular Pelletizing Technology Top View of a CPT in a Steelworks CPT Plant Layout: 1- Iron Ore Grinding 1 IS MT IR TY AG Protection notice / Copyright notice Sept 12 Circular Pelletizing Technology Page 28 Circular Pelletizing Technology Top View of a CPT in a Steelworks CPT Plant Layout.