Following extensive research that began more than 35 years ago, Tecnored Desenvolvimento Tecnológico SA, a Vale company, in partnership with Brazil's development bank, BNDES, and Logos Tecnocom, have started up the first pig iron demonstration plant that does not use traditional blast furnace methods, in Pindamonhangaba, São Paulo state.
Pig iron is a fundamental element in steel production. The innovation enables higher productivity, lower emissions of CO2 and particulate matter, the flexible use of raw materials, and a reduction of up to 30% in the cost of steel production.
The technology, called Tecnored, may help to extend the lifespan of Vale's mines and reduce their environmental impact, as it enables pig iron to be produced from iron ore of different grades and quality and even ultrafine iron ore, which is currently deposited in tailings ponds.
Mr Pedro Gutemberg Vale's global director of Basic Materials Marketing said “By using iron ore fines, we can reduce the need to open up new areas for tailings ponds, which require environmental licenses to be created.”
Mr Gutemberg said that “Although the results are promising, Tecnored is still at the first stage of development. The next steps are to ensure operational stability and pursue economic feasibility. This start up has encouraged us to move ahead in our research, as the tests show that the technology is technically feasible.”
The new technology's secret lies in the use of cold pellets measuring 50mm across, made up of lumps of fine particles of iron ore and a reducing product, such as different types of coal. The reducing agent removes oxygen from the iron ore, which is transformed into pig iron when heated in the furnace. Low cost fuels such as coal or biomass can be used to supply the process with energy.
Vale owns 43.04% of Tecnored's shares; BNDESPar, BNDES' investment arm, owns 31.79%; and Logos Tecnocom, which represents the researchers who developed the technology, has 25.17%. Seven patents related to the new technology have so far been filed, covering 35 countries.
The demonstration plant, whose production capacity is 75,000 tonnes per year, was started up on September 12. Since it joined the venture in 2009, Vale has invested around BRR 130 million of the total of approximately BRR250 million spent so far to develop it. The company is committed to building an industrial plant capable of producing 300,000 tonnes per year.
