Blast Furnace Value-in-Use Model and Its Application for Iron Ore Processing

The selection of iron ore for a blast furnace is traditionally influenced by a number of factors that determine the economics and practicalities of a successful operation. Such factors include ore grade, location of the plant relative to the ore body, availability, contaminants and process suitability. Additionally, Green House Gas emissions and energy efficiency are becoming more prevalent topics and will become a factor in the selection and beneficiation of raw materials in general and iron ore in particular. Hatch has developed a sophisticated VIU (Value - In- Use) Model enabling iron ore producers to investigate the impact of replacing existing burden with a new ore on blast furnace operation and the corresponding cost implications to steel product. This knowledge allows efficient negotiations of ore prices between suppliers and steelmakers. Modelling is achieved through a mass and energy balance combined with modules to describe the effect the ores physical properties have on blast furnace productivity. The model uses standard ISO properties to calculate the impacts which are translated to the benefit (or loss) to the steelmaker in terms of cost. The paper presents a case study, showing the impacts of various ore grades for a typical integrated steel works and analyses the impact on production cost if a price on carbon is introduced. Estimated results show that if a carbon price is introduced it will make a significant difference to the Value-in Use of various ore types.