SPONGE IRON REDUCTION PLANT
[CODE NO.1911]
Sponge iron or direct reduced iron is a high quality porous solid-state metallic product that is produced from iron ore (in the form of lumps, pellets or fines) using a reducing gas such as natural gas or coal. It has a slightly higher iron content that makes it better suited for use in an electric arc furnace route of steel making. The gases that are produced during the production of sponge iron can be used in various applications that help offset the cost of iron production.
Sponge iron is the product created when iron ore is reduced to metallic iron, usually with some kind of carbon (charcoal, etc), at temperatures below the melting point of iron. This results in a spongy mass, sometimes called bloom, consisting of a mix of incandescent wrought iron and slag. Sponge Iron is a recognized alternative to steel scrap as a raw material for the manufacture of various steel products. The twin issues of rapid depletion of Coking Coal reserves and the scarcity of indigenous scrap, made the Government of India support production of sponge iron in the country.“Sponge iron is a metallic product produced through direct reduction of iron and iron ore pellets in the solid state. It is a substitute for scrap and is mainly used in making steel through the secondary route. The process of sponge iron making aims to remove oxygen from iron ore. When that occurs, the departing oxygen causes micro pores in the ore body making it porous. The final product, when observed under a microscope, resembles a honeycomb structure looking spongy in texture, hence the name sponge iron.
The reasons for the tremendous growth of the sponge iron industry world over could be attributed to the advantages of using sponge iron in electric arc furnaces, partly substituting scrap, the conventional charge to the furnaces. Further, the use of sponge iron in other steel manufacturing processes has also been well proven. The advantages Of sponge iron use in EAFs are summarized below:-
COST ESTIMATION (US DOLLAR)
Plant Capacity 350.00 MT/day
Land & Building (80000 Sq.Mtr) US$ 1.04 Cr
Plant & Machinery US$. 21.83 Lacs
W.C. for 2 Months US$ 41.17 Lacs
Total Capital Investment US$ 1.70 Cr
Rate of Return 27%
Break Even Point 44%
INTRODUCTION
PROPERTIES OF SPONGE IRON
USES AND APPLICATION
B.I.S. SPECIFICATION
MARKET SURVEY
INDUSTRIAL METALS SPONGE IRON
PRESENT MANUFACTURERS/SUPPLIERS OF SPONGE IRON
MANUFACTURING PROCESS
REACTION MECHANISM
PROCESS FLOW CHART
TYPICAL RAW MATERIAL CHARACTERISTICS
PLANT LAYOUT
PRINCIPLES OF PLANT LAYOUT
PLANT LOCATION FACTORS
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
SUPPLIERS OF PLANT AND MACHINERIES
SUPPLIERS OF RAW MATERIALS
APPENDIX – A :
1. COST OF PLANT ECONOMICS
2. LAND & BUILDING
3. PLANT AND MACHINERY
4. FIXED CAPITAL INVESTMENT
5. RAW MATERIAL
6. SALARY AND WAGES
7. UTILITIES AND OVERHEADS
8. TOTAL WORKING CAPITAL
9. COST OF PRODUCTION
10. PROFITABILITY ANALYSIS
11. BREAK EVEN POINT
12. RESOURCES OF FINANCE
13. INTEREST CHART
14. DEPRECIATION CHART
15. CASH FLOW STATEMENT
16. PROJECTED BALANCE SHEET
