48,000 MT/YEAR LOW CARBON FERROCHROME
PRODUCTION PROJECT IN TURKEY
© Kazim Okutan – December 2014, Antalya
www.kazimokutan.com
CHROME ORE FACTS
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CHROME ORE END MARKETS ; 30,000,000 MT 2013 GLOBAL PRODUCTION
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CHROME ORE FACTS
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CHROME ORE END MARKETS
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Low Carbon Ferrochrome
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If Ferrochrome consists of < 0.5 % C it is considered as low carbon ferrochrome
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LC FeCr is used as an alloying agent for high quality steels and some stainless steels.
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Like high carbon ferrochrome LC FeCr contains 65-75 % Cr
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LC FeCr is sold in $cent / lb Cr content
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Actual LC FeCr Price : 198 – 205 $cent / lb Cr (100 % Cr 4365 - 4520 $/ton)
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For LC FeCr, if C content decreases LC FeCr price increases; target 0.03 % - 0.10 % C
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Fe is given free off charge : High Cr content is advantage for the alloy producer
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Alloy producer has to consume high quality, high Cr/Fe ore contented ore
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Turkish ores usually have high quality; suitable for LC FeCr production
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Major LC FeCr producers worldwide : Russia, Kazakhstan, Turkey, Germany
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Charge - High Carbon - Medium Carbon - Low Carbon Ferrochrome
Production ; Global 2013
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Medium Carbon - Low Carbon Ferrochrome
Production ; Global 2001-2013
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Low Carbon Ferrochrome Production Process
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Classical LC FeCr production process is Perrin Process;
Whereas, in a separate AC, 3 phase submerged electric arc furnace silicon ferrochrome
alloy (38-45 % Si, 36-40 % Cr) is produced using lumpy chromite, quartzite, coke
In another AC- DC furnace 3 or single phase, chromite concentrate is molten with lime
Within the huge laddles, these two smelted liquids are mixed to react Silicon-Si and
chrome oxide-Cr2O3 to produce low carbon ferrochrome.
Slag is granulated in water, metal is casted in to cast iron moulds with a special design
ADV : Well known proven process,low chromite losses to slag, flexible, easy usage of
return metals
DisADV : High refractory consumption (laddle) due to high temperatures, energy losses
high to air, dangerous – metal/slag splitting, requires highly developed skills –
operators, difficult to control temperature and violent reactions
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Low Carbon Ferrochrome P&L, CAPEX, OPEX
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Low Carbon Ferrochrome Production Project
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Project Basis 48,000 MT/year LC FeCr <0,1% C, 70% Cr ; Power Setup 70 MVA
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Designed SiFeCr furnace capacity : 2x15 MVA ; 31.000 MT/year SiFeCr 45 % Si – 38 %
Cr production. SifeCr will be used internally.
Assigned capacity for chromite-lime furnace : 2x15 MVA 48.000 MT/year LC FeCr 70 %
Cr – 0.03 – 0.10 % C production – 10-50 mm product base
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Total slag generated by both furnaces will be around 120.000 MT/year
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Stage 1: Installation of 15 MVA SiFeCr furnace and 15 MVA chromite-lime furnace.
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Stage 1 to commissioning 18-24 months.
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Stage 2: Installation of 15 MVA SiFeCr furnace and 15 MVA chromite-lime furnace
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Stage2 will start 6 months after commissioning Stage 1 and it will take 14 months to
commissioning.
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Low Carbon Ferrochrome P&L, CAPEX, OPEX
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MRP : Material Requirement Plan For 48,000 MT/year LC FeCr
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Specific Raw Material Consumptions for ton/ton LC SiFeCr - Perrin Process
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1) Chromite Concentrate
1.75 ton/ton
48 % Cr2O3 – Cr/Fe 3.3
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2) Chromite Lumpy Ore
0.85 ton/ton
46 % Cr2O3 – Cr/Fe 3.3
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3) Metallurgical Coke
0.52 ton/ton
min 84 % C
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4) Quartzite
1.05 ton/ton
min 96 % SiO2
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5) Bauxite
0.15 ton/ton
min 60 % Al2O3
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6) Lime – Unburnt
1.20 ton/ton
min 97 % CaO
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7) Söderberg Paste
0.052 ton/ton
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8) Total Energy
9500 kWh/ton
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Low Carbon Ferrochrome P&L, CAPEX, OPEX
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MRP : Material Requirement Plan – 48.000 MT/year LC FeCr
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Raw Material Requirement ton/year wet basis - Perrin Process
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1) Chromite Concentrate
84.000 ton
0-2 mm
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2) Chromite Lumpy Ore
40.800 ton
10-120 mm
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3) Metallurgical Coke
25.000 ton
10-40 mm
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4) Quartzite
50.000 ton
10-120 mm
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5) Bauxite
7.000 ton
10-120 mm
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6) Lime – Unburnt
57.600 ton
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7) Söderberg Paste
2.500 ton
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8) Total Electrical Energy
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9) Employment (total)
0-4 mm
456.000.000 kWh
255 employees
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Low Carbon Ferrochrome P&L, CAPEX, OPEX
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CAPEX : $ 80 MILLION +/- % 30 variation according to the chosen process,
equipment, tenderer
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18 - 24 months to commissioning (1st Stage)
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30 - 35 % Profit Margin – Before Tax
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$ 150 MILLION TURNOVER ANNUALLY (2 Stage)
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$ 50 MILLION NET PROFIT ANNUALLY – Before Tax (2 Stage)
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INVESTMENT RETURN RATE 2 YEARS max. (2 Stage)
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DEMAND TO CHROME – CHROME ALLOYS WILL BE INCREASING EACH YEAR
PARALLEL TO GROWTH IN CHINA
TARGET MARKETS : NORTH AMERICA – WESTERN EUROPE - JAPAN
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SWOT ANALYSIS
62 Years of LC FeCr production
experience,know-how and
qualified human resources in
Turkey (Eti Elektrometalurji AS)
Stable market and price
High quality Turkish chromite,
Mergers and associations with
global players
Globally growing Turkish economy
Access to global markets
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SWOT ANALYSIS
High energy prices
Competition from local player (Eti
Elektrometalurji)
High chromite Cr/Fe ratio necessity
for high profit
Government regulations (EU regs.)
Declining global economy
Decreasing high quality local
chromite reserves
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Turkish Chromite Mining Zones
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Turkey's Investment Incentives System and Regions Map
Region 1 most developed; region 6 least developed area
For detailed information refer to :
http://www.invest.gov.tr/en-US/investmentguide/investorsguide/Pages/Incentives.aspx
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Railways Map of Turkey
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Main Industrial Ports in Turkey
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Turkey 154 KV High Tension Lines Map
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