View Points of Tata Steel on Revision of Threshold Value of Iron Ore

Workshop on Threshold Value of Minerals for Eastern States Organised by Indian Bureau of Mines, Ministry of Mines, Government of India at Noamundi, Jharkhand

Presenter: Asim Chatterjee Principal Geologist (Iron Ore - OMQ)

Date : 21.08.2017

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Disclaimer

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1 Background & need for revision of Threshold value of minerals

2 Iron ore resources of India & their geographical distribution

3 Iron ore production and end use: Implications on low grade ore

beneficiation

4 Case studies on beneficiation test works conducted by NML-Tata Steel

collaboration for low grade ore

5 Discussion on Tata Steel’s perspective

6 Summary & Recommendations

Outline of Presentation

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Background & need for revision of Threshold value of minerals

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Background & Need for revision of Threshold Value of Iron Ore

Tata Steel welcomes IBM’s invitation for suggestions from all stakeholders for revision of threshold value of minerals vide notification no C-284/3/CMG/2017, dated 24/03/2017.

In view of the changing market dynamics and availability of new technologies for upgrading the low grade resources, it is essential to review the threshold value of minerals from time to time.

“Threshold value of minerals” means limit prescribed by the Indian Bureau of Mines from time to time based on the beneficiability and or marketabiity of a mineral for a given region and given time, below which a mineral obtained after mining can be discarded as waste.

Current threshold 45% Fe (Min) for hematitic iron ore & 35% Fe for Siliceous Iron Ore of Goan region (Ref. IBM Notification No. T-45031/CGBM/2007(PF) dtd. 16-Oct-2009.

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Revision of Threshold Value of Iron Ore : Important Considerations

Ores delineated based on detailed exploration and resource modelling can be included in recoverable/extractable reserves only when they satisfy all three key parameters as per the UNFC classification and fulfills Mineral Resources as per Part IVA of Mineral Evidence rules, 2015

Geological Proving under Measured category

Feasibility of the Mineral Deposit for a given application

Economic viability

Therefore, revision of threshold value for minerals should take into account the “end use” to satisfy feasibility as well as economic viability of any deposit

For end users, not only the ‘Tenor Value’, but also the deleterious constituents e.g. Alumina, Silica, Phosphorous and even Alkali (K2O, Na2O), Sulphur are equally important so as other mineralogical & metallurgical considerations

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Iron ore resources of India & their geographical distribution

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Iron Ore Resources/ Reserves: Indian Scenario

Iron Ore Resource & Reserve in India (UNFC) (Source : National Mineral Inventory as on 1.04.2010)

Type Reserve (MT) Remaining Resource

(MT) Total Resource (MT)

Magnetite 22 10622 10644

Hematite 8094 9789 17882

Ferruginous Hematite 7624 9332 16956

Siliceous Hematite 470 457 927

0.3%

99.7%

Hematite vs. Magnetite Reserve in India

Magnetite Hematite

(8094mt)

(22mt)

5%

95%

Reserve of Siliceous and Ferrugenous Hematite in India

Siliceous Hematite Ferruginous Hematite

(7624mt)

(470mt)

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Iron Ore Occurrences in India: Geographical Distribution

Iron ore Deposits- Ferruginous nature Iron ore Deposits- Siliceous nature

Iron ore

Odisha-Jharkhand Belt

Durg-Bastar Chandrapur Belt

Bellary-Chitradurga-Chikmangalur-Tumkur Belt

Maharashtra-Goa Belt

Occurrence of Hematitic Ore- Statewise

State Reserve

(MT) Wt%

Odisha 3313 41

Jharkhand 2304 29

Chhattisgarh 900 11

Karnataka 877 11

Andhra Pradesh

152 2

Goa 470 6

Total 8016 100

(Source: National Mineral Inventory as on 1.04.2010 presented in IBM Mineral Year Book, 2014)

(Modified after map published in DID, Geological Survey of India, 2011) 70% of hematitic iron ore reserve is from

Odisha-Jharkhand

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Iron ore production and end use: Implications on low grade ore beneficiation

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Iron Ore Production in India and End Users

0.002% 1.343% 0.003% 0.030%

72%

27%

0.004%

Alloy steel

Cement

Ferro-alloys

Coal washery

Iron & steel

Sponge iron

Others

Iron & Steel including Sponge Iron industries accounts for

over 99% of iron ore consumption

Source : Mineral Year Book, 2014

* Iron ore Production include Captive use, Export as well as inventory at Mine head. 2016 data only available, 4.5mt ore exported

Source : Ministry of Mines

(derived figures)

0

50

100

150

200

2013-14 2014-15 2015-16

152 129

156 130 141 142

82 89 90

In m

illio

n t

on

ne

s

Production of Iron Ore and Crude Steel

Iron ore Production Iron Ore used in Steel Plants Crude Steel production

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Growth projection for Indian Steel (National Steel Policy 2017-Draft)

68.3

122 147

236

300

0

50

100

150

200

250

300

350

FY '10 FY '16 FY'16 toFY'21

FY'21 toFY'26

FY'26 toFY'31

Cru

de

Ste

el P

rod

uct

ion

(In

MT)

Financial Year

Projection of Crude Steel Production (In MT)

+25

+89

+64

72

128 154

248

315

+26

+93

+67

0

50

100

150

200

250

300

350

FY '10 FY '16 FY'16 toFY'21

FY'21 toFY'26

FY'26 toFY'31

Ho

t M

eta

l Pro

du

ctio

n (

In M

T)

Financial Year

Projection of Hot Metal Production (In MT)

Actual production

90 mt

Further exploration and scientific investigations including beneficiation and metallurgical tests are required to ascertain suitability of ore for steel making, accordingly reserve-resource statistics of the country may be updated

207 159

244

392

498

0

100

200

300

400

500

600

FY'10 FY '16 FY '21 FY '26 FY '31

Iro

n O

re R

eq

uir

em

en

t (I

n M

T)

Financial Year

Projection of Iron ore Requirement (In MT) @1.58 tonnes iron ore / thm with a grade of 63% Fe (t), 2.6% SiO2 & 2.5% Al2O3

(derived from IBM Mineral Year Book 2012 & 2014)

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Quality of Iron Ore used in different Steel Plants of India

(2012-13 to 2013-14)

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Steel Plant Lump Fines Average Quality

Fe% SiO2% Al2O3% Fe% SiO2% Al2O3% Lump:Fines Fe% SiO2% Al2O3%

Bokaro Steel Plant 63.4 2.25 2.39 62.2 3.4 3.5 1.27 62.9 2.74 2.86

Durgapur Steel Plant 62.5 NA 2.42 62.8 2.3 NA 0.54 62.7 2.42 2.28

IISCO, Burnpur 62.9 2.56 2.56 - - - 1.00 62.9 2.56 2.56

Rourkela Steel Plant 63.5 1.78 2.48 62.2 3.0 3.0 0.42 62.6 2.61 2.85

Visvesarya Iron ore 63.0 2.85 2.43 - - - 1.00 63.0 2.85 2.43

Vishakhapatnam Steel Plant 65.5 2.25 1.60 64.5 3.0 3.0 1.58 65.1 2.54 2.14

Tata Steel Ltd* 65.2 1.90 2.00 63.9 2.9 2.4 0.24 64.2 2.70 2.30

Indian Steel Plants typically uses - Lumps in much higher proportion

- Lump Ore with 64.0% Fe, 2.20% SiO2, 2.20% Al2O3 and

- Fines Ore with 63.5% Fe, 2.70% SiO2, 2.90% Al2O3

- Overall Metallics with 63.0% Fe, 2.6% SiO2, 2.5% Al2O3

Source: IBM Mineral Year Book 2012 & 2014 * Fy17 data

Processing of High Grade ore

Beneficiation of Low Grade Ore

Corresponding ROM quality for these products not available in public domain to compare

Tata Steel uses 24:76 Lumps: Fines aided by its

Pelletisation and Sintering facilities

General characteristic of hematitic iron ore of different region :

what makes them really different …

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General Characteristics of ferruginous iron ore

Odisha – Jharkhand Belt

High Fe, High Alumina, Moderate to low silica, occasionally high P content & high Alkali

Very fine liberation size, low beneficiability (lesser yield (<40%) for ~50% Fe(t) in feed

Limited response in magnetic separation

Durg-Bastar -Chandrapur-Dalli Rajhara Belt

High Fe, Medium Alumina, Moderate to High silica, Occasionally high P content

Moderate beneficiabilty (medium yield (~60%) for ~50% Fe(t) in feed

Bellary - Chitradurga - Chikmagalur- Tumkur Belt

Moderate to High Fe, Low Alumina, High Silica

Amenable to beneficiation, reports >60% yield with <50% Fe in feed

General Characteristics of Siliceous Iron Ore

Goan Ore Low to medium Fe, Low Alumina, High Silica Amenable to beneficiation, almost naturally liberated; reports >70% yield with <50% Fe in feed Responds to magnetic separation to a great extent

A common Threshold limit in terms of Fe(t), Alumina or Silica may not be applicable for

ores of all region …

Hematite Ore

Ferruginous Ore (Iron Ore other than Goan Origin)

Siliceous Ore (Iron Ore Goan Origin)

Odisha - Jharkhand Belt

Maharashtra - Goa Belt Durg-Bastar - Chandrapur Belt

Bellary - Chitradurga - Chikmagalur- Tumkur Belt

Nature of Iron Ore:

First impressions can sometimes mislead why Eastern India ores are more difficult…

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Western region ores Eastern region ores

Ore type

Grade, % Fe

Friable, Soft

52-58

Hard, Friable, Blue dust, Soft

58-65

Mineral make up

major…

minor…

Hematite, Goethite

Gibbsite, Kaolinite, Quartz

Hematite, Goethite

Gibbsite, Kaolinite, Quartz

Textural Association Gangue as void filling Gangue as very fine inclusions

Alumina Deportment

Alumina mainly contributed by

Gibbsite and Kaolinite (~75%)

Alumina contributed by Goethite is

low (~25%)

Al substitution for Fe in Goethite

lattice is 8% max

Alumina mainly contributed by

Goethite(~65%) - Goethite is

ocherous

Alumina contributed by Gibbsite

and Kaolinite (~35%)

Al substitution for Fe in Goethite

lattice is ~ 18%

Case studies on beneficiation test works conducted by NML-TSL collaboration for low grade ore

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Results of Beneficiation studies conducted in National Metallurgical

Laboratory (NML), Jamshedpur on Iron ore from Noamundi-Katamti

Mines of Tata Steel

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Case Study - II Beneficiation Studies on Low grade Iron ore from Katamati Mines of Tata Steel

Case Study - I Process Mineralogical and energy characteristics of low grade iron ore from Tata Steel

Samples were derived from available ore types in the deposit ratio within 50-55% Fe classes (and corresponding 7-10% Al2O3)

Case Study 1: Results of characterization of Low Grade Ore from

Tata Steel Mines

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Gross mineralogy of low grade ore; Goethite clay interlocking at <10micron

Liberation characteristics based on optical microscopy

Liberation of hematite in various sizes crushed to 710micron

Low grade (50.5% Fe) ore from Tata Steel (Noamundi Mines) exhibits liberation size <63 micron

QEMSCAN results suggest beneficiable high grade materials in the sample are hardly 18% and beneficiable minerals are 50% for 2.8% product alumina

Theoretical assessment indicate <25% recovery for ~62.5% Fe & 2.8-3.0% Alumina in product

Case Study 1 contd…

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Feed Sample (Low grade Iron Ore) Feed Grade

(Fe 50.6%, Al2O3 9.5%, SiO2 5.2%)

-3.3 mm Yield = 26.3 %

Grade ( Fe 46.67%, Al2O3 9.49%, SiO2 6.85%)

Liberation possible at - 63 micron size (revealed from Optical observation method) Product can be up graded to ~ 63.5 6% Fe , 2.5 % Al2O3 @ ~20% recovery Large storage volume is required to handle slimes/reject/tailings - Environmental impact

-25+13 mm Yield = 36.4 %

Grade ( Fe 51.13%, Al2O3 10.32%, SiO2 5.38%)

-13+3.3 mm Yield = 37.3 %

Grade ( Fe 52.89%, Al2O3 8.51%, SiO2 3.72%)

Sized to -710 micron, subjected to chemical analysis and liberation

study

Final Product Yield = 52.6%

Grade ( Fe 58%, Al2O3 6.70%, )

Reject/Tailings Yield = 47.4%

Grade ( Fe <40%, Al2O3 >15.%, )

@ 52.6% Product Yield

Final Product Yield = 11.5%

Grade ( Fe 66%, Al2O3 1.8%, )

Reject/Tailings Yield = 88.5%

Grade ( Fe <45%, Al2O3 >10.%, )

@ 11.5% Product Yield

Case Study-II: Beneficiation response of low grade ore (51% Fe) from

Katamati Mines, Tata Steel tested by NML, Jsr (Pilot Plant Scale)

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Fe%(T) Al2O3% SiO2% P% LOI% CaO% MgO% TiO2 % S%

51.4 7.8 8.7 0.09 8.62 0.01 0.09 0.47 0.012

Head Sample

Modal analysis using optical microscopy

Size Wt% Mineral modal %

Hematite Goethite Clay Quartz

-1.68+0.5

mm 33.8 27.0 43.0 28.7 1.3

-0.5 mm+45

µm 35.5 25.3 33.1 39.5 2.1

-45 µm 30.7 Not determined

Sample contains overall 45% iron bearing minerals.

Recovery of iron bearing minerals from extreme fine size fraction is difficult through physical route.

01020304050607080

Mo

dal

%

Size Fractions

Free IronMinerals

InterlockedGrains

Liberation of Fe-minerals starts at <1mm. But fine crystallites liberate at ~75 microns

Size in mm Wt%

-100+75 1.7

-75+50 3.4

-50+30 13.4

-30+20 14.5

-20+10 13.9

-10+8 4.8

-8+6 11.2

-6+1.68 16.6

-1.68+1.0 4.1

-1.0+0.5 6.9

-0.5+0.250 3.8

-0.25+0.150 1.5

-0.150+0.075 1.2

-0.075+0.045 1.4

-0.045 1.6

Total 100.0

Size Analysis

Results obtained from Bench Scale Beneficiation studies

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Flow sheet developed from Pilot Scale testworks

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Summary

Description Wt% Fe% (T) Al203% SiO2%

HEAD GRADE 100 51.4 7.8 8.7

PR

OD

UC

T Sinter Fines 14.4 63.1 3.1 2.2

Pellet Conc 17.4 61.5 3.4 2.8

Total Conc 31.8 62.2 3.3 2.5

REJ

ECT

Intermediate (Spiral Reject)

28.4 51.9 8.5 6.6

Reject/Tailing 39.8 40.2 12.8 17.2

Final Reject 68.2 45.1 11.0 12.8

Ex-mine cost of product 160% higher than usual ~70% material is Reject- space for disposal/mode??

Discussion on Tata Steel’s perspective

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Revision of Threshold Value of Iron : Tata Steel’s Perspective

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• Sub grade material generated during the course of mining is stacked separately considering poor beneficiability of such ore and limitation in end use due to low Fe, higher Alumina & Silica

• Recent test works suggest 50-58% Fe material still have a scope for beneficiation in future, although with poor recovery (~30%), and has usage in steel making provided economics works, 45-50% Fe material is still worse.

• Interestingly, corresponding alumina content of the ROM ore that can still be used after beneficiation is upto ~10% (for iron ore of Odisha-Singhbhum region)

• Presently, pitshell is designed with 45% Fe threshold and then a cut off grade on Fe 58% decides the plant feed. Sub-grade material which incidentally gets generated during the course of mining needs to be excavated and stacked separately which has an impact on the mining operation (efficiency, cost) and stacking.

• Further, if such ore can not be economically used due to limitation of gangue content (especially alumina for ore of Singhbhum-Odisha region), it is always better to redefine the pit shell upto maximum usable gangue content (~10% Al2O3) and leave this material in-situ, and thereby bring a positive impact on operations as well as on environment.

Summary & Recommendations

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Summary & Recommendations

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Available beneficiation testswork results indicate that only 50-58% Fe ore (upto a corresponding alumina of 10%) can be upgraded through various beneficiation process in order to make it suitable for use in steel industry.

It is not only Fe(t), Alumina & Silica in iron ore plays important role in Blast Furnace operations and sintering Processes.

Even if concentrate quality is compromised, poor yield on beneficiation of 50-55% Fe ore stress upon economics; disposal of tailings (~70%) is a concern (handling, space, environment). All these would adversely impact production cost by many fold.

The current 45% Fe threshold limit is far lower than practicable, particularly w.r.t. Odisha-Jharkhand ore. However, an upper limit of alumina content may still help the industry.

If it is further lowered, Steel makers might be pushed to evaluate other option like import of ore at lower cost as raw material quality impacts techno-commercial performance of a steel plant to a great extent.

Inferior iron ore quality may even lead to increase import of coking coal, low alkali dolomite, limestone etc.

Therefore, if an upward revision of Threshold value from existing 45% is not possible, we suggest an alumina cap of 10% in ROM ore while revising Threshold value of Iron Ore.

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