ERG plans direct reduction plant in Kazakhstan

The planned direct reduction plant, using Midrex Flex technology, is set to produce 2 million tonnes of hot-briquetted iron (HBI) annually. The project is set to create more than 1,000 jobs in Kazakhstan.

Eurasian Resources Group (ERG), a global metals and mining company, has signed a consortium agreement with Primetals and Midrex, USA. The agreement covers detailed engineering, the supply of key plant components and various services for the construction of a hot-briquetted iron (HBI) production plant in Rudny, Kazakhstan.
According to Primetals, the Midrex Flex plant will be one of the largest state-of-the-art metallurgical plants in Central Asia. The production of HBI with a metallisation rate of at least 93.5 per cent and an iron content of around 90 per cent will enable Kazakhstan to enter the global HBI market with a new, competitive product. The direct reduction plant has been designed to allow for a smooth transition to the use of hydrogen as soon as this becomes economically viable.
“Our priority is to manufacture high-quality products that are competitive in both the domestic and international markets. We are building an environmentally friendly, high-tech production facility that introduces innovative technologies, reduces the carbon footprint, creates jobs and promotes the development of skilled workers,” says Shukhrat Ibragimov, CEO and Chairman of the Board of ERG. With a targeted production capacity of 2 million tonnes of HBI per year and a total investment of over 1.2 billion US dollars, the project is expected to create over 1,000 new jobs. The signing of the contract with the consortium comprising Midrex and Primetals underlines ERG’s leading role in the development of Kazakhstan’s metal industry, the modernisation of the national economy and the expansion of export capacities.

Significant reduction in emissions

The project for the direct reduction of iron based on the Midrex process. Unlike conventional blast furnace production, the process uses natural gas instead of coke, which significantly reduces emissions. The plant processes iron ore pellets from JSC SSGPO, part of ERG, and will supply hot pig iron directly to a future steelworks.According to Primetals, Midrex-Flex is a highly environmentally friendly technology for ore-based iron production and, by using natural gas, already reduces the carbon footprint by more than 50 per cent compared with traditional blast furnace production.
The HBI plant is being built by the group’s subsidiary, QazIron ERG LLP. With an annual production capacity of 2 million tonnes of HBI, the investment amounts to the equivalent of more than 1.2 billion dollars. Commissioning is scheduled for 2029.
The new plant comprises a Midrex shaft furnace with a diameter of 7.15 m and an in-house developed Midrex reformer with low-NOx burners to reduce NOx emissions. Increased blast furnace gas pressure boosts furnace productivity and reduces electricity consumption. A hot gas blower for flue gases further reduces electricity consumption. The plant also features a system for recycling hot fine dust. Basic and process automation systems are also included in the scope of the project.
Source: Primetals Technologies