Detailed Project Report (DPR) on sponge iron reduction plant (steel billets from iron ore)

SPONGE IRON REDUCTION PLANT
(STEEL BILLETS FROM IRON ORE)
[CODE NO. 1917]


(A) Sponge iron

    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$)

Plant Capacity                                    300.00 MT/day
Land & Building (80000 Sq.Mtr)      US$. 1.08 Cr  
Plant & Machinery                               US$. 33.40 Lacs     
W.C. for 2 Months                                US$. 77.91  Lacs
Total Capital Investment                    US$. 2.24 Cr          
Rate of Return                                      17%  
Break Even Point                                  55%

INTRODUCTION    
PROPERTIES OF SPONGE IRON    
USES AND APPLICATION    
USES OF BILLETS    
B.I.S. SPECIFICATION    
MARKET SURVEY    
INDUSTRIAL METALS SPONGE IRON    
INDIAN STEEL INDUSTRY    
PRESENT MANUFACTURERS/SUPPLIERS OF SPONGE IRON    
PRESENT MANUFACTURERS/SUPPLIER OF STEEL BILLETS    
MANUFACTURING PROCESS    
PROCESS FLOW CHART OF SPONGE IRON    
PROCESS FLOW CHART OF STEEL BILLET    
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