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Ultra-Tech Environmental Consultancy & Laboratory Laboratory approved and gazetted by MoEF An ISO 9001 : 2008 Certified Company OHAS 18001 : 2007 Certified Laboratory QCI-NABET accredited EIA Consultant Pre-Feasibility Report June 2015 Consultant : Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm 3 /hr) Project Proponent : Maithan Alloys Ltd. REGISTERED OFFICE Unit no. 224, 225, 206, Jai commercial Complex 463 Eastern Express Highway, Opp. Cadbury Factory Khopat, Thane (W) - 400601 Tel. No. : +91-22 - 25342776 / 25380198 / 25331438 Fax No. : +91-22 -25429650 E-mail : [email protected] Website : www.ultratech.in REGISTERED OFFICE Ideal Centre, 4 th Floor 9, A.J.C. Bose Road Kolkata – 700 017 Ph: +(91)- 81700 18296 / 97 Email : [email protected] PROJECT SITE & WORKS Mouza : Debipur & Maheshpur Dendua Road Dist. : Burdwan Pin – 713 369 West Bengal Ph: +(91)-(341)-646 4693 / 4694 Email : [email protected]

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Ultra-Tech Environmental Consultancy & Laboratory

Laboratory approved and gazetted by MoEF An ISO 9001 : 2008 Certified Company OHAS 18001 : 2007 Certified Laboratory QCI-NABET accredited EIA Consultant

Pre-Feasibility Report

June 2015

Consultant :

Proposed Expansion Project

1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA)

2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) &

3. Generation of Producer Gas (2,850 Nm3/hr)

Project Proponent : Maithan Alloys Ltd.

REGISTERED OFFICE Unit no. 224, 225, 206, Jai commercial Complex 463 Eastern Express Highway, Opp. Cadbury Factory Khopat, Thane (W) - 400601 Tel. No. : +91-22 - 25342776 / 25380198 / 25331438 Fax No. : +91-22 -25429650 E-mail : [email protected] Website : www.ultratech.in

REGISTERED OFFICE

Ideal Centre, 4th Floor 9, A.J.C. Bose Road Kolkata – 700 017 Ph: +(91)- 81700 18296 / 97 Email : [email protected]

PROJECT SITE & WORKS

Mouza : Debipur & Maheshpur Dendua Road Dist. : Burdwan Pin – 713 369 West Bengal Ph: +(91)-(341)-646 4693 / 4694 Email : [email protected]

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CONTENTS

Chapter Description Page

1 Project Background 2

1.1 Preface 1.2 Need for the Project & Importance 1.3 Raw Material & Product Scenario

2 3 3

2 Project Proponent 6

3 Project Description 7

3.1 Project Details 3.2 Raw Materials 3.3 Manufacturing Process 3.3.1 Refining of Ferro Alloys 3.3.2 Calcination of Manganese 3.3.3 Producer Gas Plant

7 9 10 10 11 13

4 Project Site Details 16

5 Proposed Infrastructure 19

6 Project Cost & Implementation Schedule 20

7 Financial Analysis 22

Page 1

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CHAPTER 1 Project Background

1.1 Preface Ferroalloy is one of the major raw materials used in the manufacture of steel. Ferroalloys impart

distinctive qualities to steel and cast iron. Ferroalloy is widely used as deoxidizing, desulfurizing and

reinforcing agents. This helps in the removal of sulphur, phosphorus and oxygen impurities that are

present in iron ores and this iron ores are used in the manufacture of steel.

Thus, growth in the steel industry is estimated to boost the overall ferroalloy market. Furthermore,

growth in the construction industry is likely to increase the demand for steel. This, in turn, is projected to

drive the overall growth of the ferroalloy market. However, high operational cost coupled with stringent

environmental regulations is expected to hamper growth of the ferroalloy market in the near future.

Development of lightweight, high tensile strength steel is anticipated to boost demand for steel,

especially in the automobile industry. This is further estimated to augment growth of the ferroalloy

market.

Ferromanganese is one of the ferroalloy that is produced as well as consumed on a large-scale. Stainless

steel industry is the major application segment of the ferroalloy market. Ferrochrome provides corrosion

resistance to stainless steel. Demand for ferrochrome is rising due to increasing demand for anticorrosive

steel from the automobile industry. Ferrosilicon is primarily used as a deoxidizing and alloying agent in

the steel manufacturing process.

Ferro alloy refers to various alloys of iron, which are used in the production of mild steel, carbon steel,

special alloy steel and stain less steel. India's steel production is increasing every year, thereby the

consumption of Ferro Alloys is also increasing.

The Indian Ferro Alloy industry has a capacity of 5.15 million tonnes. It accounts for nearly 10% of the

world's ferro alloy production and is among the 10 largest producers of the material in the world. In the

midst of raw material availability being a key factor for Ferro Alloy industry growth, production is

concentrated in a few pockets.

India, South Africa, China and the CIS countries represent a large source for Ferro Alloys. India's Ferro

Alloy supply constitutes of Ferro chrome about 32%, Ferro Manganese and Silicon Manganese about 62%

and rest others.

Page 2

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

1.2 Need for the Project and Importance India is fifth largest in chrome ore with a 100 million tonnes estimated reserve and the sixth largest in

manganese ore with an estimated 176 million tonnes reserve. Imports of Ferro Alloys have increased as

and when the basic Customs Duty is reduced. The imports were Rs. 2,630 million when the duty was

reduced from 25% to 20% in 2003-04, and increased to Rs. 4,793 million in 2004-05 when the duty was

reduced to 15%, and again to Rs. 5,913 million in 2005-06, when the duty was further reduced to 10%,

and Rs. 7,798 million when the duty was 7.5% in 2006-07 and Rs. 10,894 million when the duty was 5% in

2007-08 and Rs. 15,300 million during 2008-09, when the duty was further reduced to 0% and Rs. 15,165

million in 2009-10 when the duty was 5%, and imported Rs.27,627 million in 2010-11 and Rs. 33,923

million in 2011-12. As a result, outgo of foreign exchange has increased to Rs. 1,02,909 million in last five

years. This could have been avoided, and the requirement could have been met from the domestic

production, by utilizing the idle capacity, which would increase the revenue from Indirect Taxes like

Excise Duty, Sales Tax, etc. It would add to better utilization of investment in idle plants, create more

employment and increase in GDP.

1.3 Raw Material & Product Scenario The Industry has enough capacity to produce Ferro Alloys required for domestic Steel Industry. However,

certain basic raw materials, i.e., ores viz., Manganese Ore, Chrome Ore, Molybdenum Ore/Moly Oxide,

Tungsten Ore, Wolframite Ore, Scheelite Ore, Nickel Oxide, Vanadium ore, etc., required for producing

Ferro Alloys are attracting an import Customs Duty of 2.5 %. Manganese is an essential non –

substitutable element in steel making. The twelfth Five-year plan has projected 128 million tonnes of

crude steel by 2016-17.Considering the projected increase in steel production and demand of Manganese

Alloys, the industry requires 6.82 million tonnes of Manganese Ore by the year 2016-17 to produce

Manganese Alloys to cater to the domestic steel industry and meet their requirements. To produce 1

tonne of Manganese alloys, the required Manganese ore with 44% Mn is 2.30 MT for Ferro Manganese

and 1.80 MT for Silico Manganese.

Projected Demand Supply Gap of Manganese Ore during 12th Five Year Plan (‘000 tonnes)

Year 2012-13 2013-14 2014-15 2015-16 2016-17

Production 3,210 3,430 3670 3,930 4,200

Demand 4,528 4,983 5,565 6,177 6,819

Demand Gap (-) 1,318 (-) 1,553 (-) 1,895 (-)2,247 (-)2,619

Page 3

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

MOIL Ltd. the major producer of Manganese Ore, is producing on an average 1 million tonnes per annum

and partly meeting domestic requirement. At present Maharashtra Electro-smelt Limited (MEL), a Unit of

SAIL is getting about 300,000 MT out of MOIL Ltd.’s production. Two large captive Ferro Alloys Units

being set up by MOIL Ltd. at Raipur and Visakhapatnam in Joint Venture with SAIL and RINL are expected

to commence their operations in a year or two, require about 500,000 MT per annum.

Thus, approximately 750,000/800,000 MT Manganese Ore out of MOIL rising is required to meet the

demand of PSUs. Thus, MOIL will be left with hardly 300,000 to 400,000 tonnes of Manganese Ore for

the Manganese Alloy Industry.

The Manganese Ore produced by other Mines in the country is low in grade and high in Iron content.

Hence, these Ores are only suitable for blending with high Mn:Fe ratio Manganese Ores being supplied by

MOIL to prepare suitable composition and to use in production of quality Manganese Alloys acceptable to

the Steel industry within the country and abroad. If high grade with high Mn:Fe ratio Manganese Ore is

not sufficiently available at a competitive rate from MOIL, the domestic consumers have no option except

to source through imports.

The Steel Industry being the backbone of economic development, the availability of required suitable

quality of Manganese ore with a competitive rate assumes significance not only for the Manganese Alloy

Industry, but also for the economic development of the country as a whole. It is pertinent to mention

here that Indian Ferro Alloys Industry has grappled with various issues, such as non-availability of power

at competitive rates, suitable quality and quantity of Manganese Ore, minimum duty protection, etc.

Besides, the Industry has to compete with the integrated producers having captive Manganese Ore Mines

situated in South Africa, Australia, Brazil, CIS, etc., to sell acceptable quality of Manganese Alloys in the

world market for earning the valuable foreign exchange for the country. The Industry produces 25 % of

Manganese Alloys in the form of HC Ferro Manganese the rest 75% is Silico Manganese.

Reductants viz. Anthracite Coal, Coke, Charcoal, Non-Coking Coal and Lignite, are vital Inputs for the Ferro

Alloy Industry as well as Pig Iron Industry. The consumption of these Reductants for producing one tone

of Ferro Alloys varies between 600 to 2,000 Kgs, depending on the Ferro Alloys produced. The availability

of these items in good quality is declining in the country and the Ferro Alloy Industry may have to totally

depend on import of these Reductants on regular basis.

Page 4

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Ferro Alloy Industry in the country was demanding a hike in the import duty of Ferro Alloys from last two

years. But, this was not taken into consideration by the Government till now. Though the Ferro alloys

producers have expanded their installed capacity from 4.65 million tonnes in 2010-11 to 5.15 2011-12, to

meet the expected rising demand from steel industry , but cheap imports from China and other countries

is steadily grabbing the domestic market share.

According to the IFAPA, the advantage of the demand is muted. This is because of escalating imports

from other countries and thereby, an imminent reduction in the capacity utilization. According to the

recent data, the capacity utilization dropped from 62% in 2010-11 to 58% in 2011-12. Ferro Alloy’s

production in India stood at 3 million tonnes in 2011-12, showed a marginal increase of 0.13 million

tonnes compared to the previous year. Besides, the imports of Ferro Alloys increased by 25% to 271,896

tonnes while, in value terms, it increased by 23% to Rs. 24,95.57 million in 2011-12 compared to 2010-11.

Therefore, it is necessary to increase the import duty from 5% to 7.5% to protect the domestic industry

from cheap imports. On the other hand, the raw materials such as Manganese Ore, Chrome Ore,

Molybdenum Ore and Vanadium Oxides which are currently attracting an import duty of 2.5%, are very

essential in manufacturing Ferro Alloys and thereby to cater to the Steel and Stainless Steel Industry in

the country. The reduction in Customs Duty of Ferro Alloys, without reduction in the Duty of Ores, is not

beneficial to the industry.

Page 5

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CHAPTER 2 Project Proponent

Maithan Alloys Ltd. is engaged in the manufacture of manganese alloys. It manufactures ferro

manganese, silico manganese and ferro silicon. The Company's plants are located in Kalyaneshwari and

Meghalaya. The Company also has wind mills at Jaisalmer (Rajasthan) and Sangli (Maharastra). The

Company's customers primarily consist of steel manufacturers, such as Steel Authority of India Limited

and Jindal group. Maithan Alloys Limited was incorporated in the year 1985. The Company commenced

commercial production in 1997 with 10 MVA; it grew its installed capacity by 7.5 MVA in 2000 and 8.25

MVA in 2004 when the market for manganese alloys was weak, indicating its commitment to the

business. Further 24MVA was added in 2007. This was followed by setting a new unit with 15 MVA

furnace capacity along with 15 MW power plant in Meghalaya in April 2009. The result is a capital cost

per MVA that is attractively lower than the prevailing greenfield benchmark. As of March 31, 2013, it had

a manufacturing capacity of 64 MVA and an installed capacity of 1,15,600 million tons of ferro alloys

alongwith 3.75 megawatts of wind turbine generator. During the fiscal year ended March 31, 2013, it

generated 19,265,647 kilowatt hour of power. During fiscal 2014, its Kalyaneshwari unit produced 78,099

metric tons, and the Meghalaya unit produced 31,617 metric tons of ferro alloys.

Page 6

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CHAPTER 3 Project Description

3.1 Project Details Considering the potential ferro alloys demand in India and for better utilization of raw materials, Maithan

Alloys Ltd. decided to expand the existing plant at Mouza : Debipur & Maheshpur, Dendua Road, District :

Burdwan, West Bengal. Maithan Alloys Ltd. proposes to expand the existing plant by installing the

following units and considering 360 days working per year:

1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA)

2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) &

3. Generation of Producer Gas (2,850 Nm3/hr)

This feasibility report covers the techno economic aspects of the proposed expansion. Maithan Alloys Ltd.

has decided to expand the existing plant at Mouza : Debipur & Maheshpur, Dendua Road, District :

Burdwan, West Bengal.

Sl. No. Unit

Product Existing Capacity

Product Expansion Capacity

Remarks

1. Ferro Alloys Production

92,600 TPA - -

Submerged Arc Furnace 2 X 5 MVA 1 X 6.5 MVA 1 X 8.25 MVA 2 X 12 MVA

2. Mn Ore Sinter Production 70,000

TPA - EC from MoEF & NOC from WBPCB

received. Installation is in Progress.

Mn Ore Sinter Plant 1 X 200 TPD

3. Refining of Alloys - 54,000

TPA

Out of 54,000 TPA Ferro Alloys refining, 30,600 TPA will be from existing Ferro Alloys Production of 92,600 TPA.

So capacity expansion of Ferro Alloys will be 54,000 – 30,600 = 23,400 TPA in Electric Arc Furnace.

Environmental Clearance

is required from MoEF.

Electric Arc Furnace 1 X 5 T

4. Calcination of Manganese Ore - 86,400

TPA Shaft Kiln 3 X 80 TPD

5. Generation of Producer Gas - 2,850

Nm3/hr Producer Gas Plant

Maithan Alloys Ltd. has also obtained Consent to Establish for Mn Slag Crusher (2,500 T / month) with

Briquetting of Mn Ore Fines (2000 T / month) from WBPCB on 24.04.2013

Page 7

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Land : The complete project will be set up within the existing plant premises of 23.87 acres. No

extra land will be required for the proposed project.

Common Facilities : The common facilities such as Administrative Building, Fire Water Reservoir and Fire

Water Pump house, Workshop Building, Water Storage Reservoir, Raw Water Pump House have already

been provided in the existing plant.

Power : Existing requirement is 38500 kVA. Power requirement for refining furnace will be about 6000 kVA and for calcination process about 200 kVA, i.e., total 6200 kVA. Power shall be drawn from existing 132 kV sub-station. Source : Damodar Valley Corporation (DVC). D. G. Set : 2 X 125 kVA & 1 X 250 kVA (existing).

Source & Availability of Water : The total water requirement 386 KLD (existing : 310 KLD; additional : 76

KLD for the proposed expansion) will be sourced from existing pipeline drawing water from Barakar river.

Sl. No. Purpose KLD 1. Process (cooling water in refining furnace) 60 2. Process (Ash quenching in producer gas plant) 4 3. Process (Steam for producer gas plant) 7 4. Drinking water 3 5. Water sprinkling 2

Total 76

Pollution Control Measures :

• Particulate emission consists mainly of small quantity of inherent fines in manganese ore,

limestone and coal dust, emanating mainly from the transfer points of conveying and handling

equipment. The exhaust gases alongwith the fine particles it carries with it are passed through

the heat exchanger and then through the dust separator [for refining of Ferro Alloys in 3 X 5 T

Electric Arc Furnaces - one common Bag Filter for and for calcination of Manganese Ore in 3 X 80

TPD Shaft Kilns - Cyclone for each Shaft Kiln i.e. three cyclones]. The gases coming out of the dust

separator and having emission less than 50 mg/Nm3 will be vented out through the stack via an

ID fan.

• Closed circuit cooling system will be adopted in EAF. Hence there will not be any wastewater

generation from process and cooling. Sanitary wastewater will be treated in septic tank followed

by soak pit in line with the existing plant.

• All the dust collected in the pollution control system i.e. Bag Filter (2,160 TPA) for EAF and

Cyclones (18 TPA) for Shaft Kiln will be used in the Sinter Plant. Manganese slag (62,640 TPA)

generated during the refining process of ferro alloys is non-hazardous in nature and will be used

for land / area / road development. Tar (360 TPA) generated in the producer gas plant would be

handled properly and will be sold to authorized vendors. Ash (2,160 TPA) generated from producer gas plant will be used for land / area / road development.

Page 8

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Quality Control Laboratory : Suitable Testing Facilities are required at each step of manufacturing. A full-

fledged testing laboratory is already in place for each production unit to check the quality of the raw

materials and the finished product.

Maintenance Workshops : A workshop complete with machine tools such as lathes, shaper, drilling

machine, pedestal grinder, hacksaw machine and handling tools and tackles is already in place.

Fire Fighting Facilities : Adequate fire fighting equipment shall be provided for each production unit. Fire

fighting equipment shall consist of the following :

• Water hydrants network. • Carbon dioxide type portable fire extinguishers for electrical equipment rooms. • Foam type extinguishers near lubrication, hydraulic and fuel oil installations.

Technical Supports for Pollution Control

• System design & selection of proper air pollution control equipment for the project. • Check and control the design parameters and layout drawings of air pollution control systems of

Original Equipment Manufacturers on behalf of the plant management. • Checking for proper operation & maintenance of plants to achieve best possible stable

performance.

General Mitigative measures

• Stack height of all the APCS will be minimum of 30m as per CPCB norms. • Green belt along the boundary and inside the premises is being developed to arrest the dust from

fugitive emissions. • For dust suppression, water sprinkling will be done in raw material handling area alongwith

places where there is vehicle movement, loading and unloading. • Enclosures will be provided for noise generating equipment.

3.2 Raw Materials The requirement of raw materials by various processes is given below :

Final Product Raw Materials kg / T TPD TPA Source

Low Carbon Ferro Manganese

Molten Silico manganese

566.67 85.0 30,600 Adjacent SAF within plant

Silico Manganese Lump

283.33 42.5 15,300 Domestic

Manganese Ore 1,000.00 150.0 54,000 Africa / Australia

Lime 350.00 52.5 18,900 Domestic

Calcined Manganese ore and/or lime

Coal 100.00 24.0 8,640 Domestic

Manganese ore / Limestone

1,250.00 300.0 1,08,000 Existing raw materials

Page 9

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

3.3 Manufacturing Process 3.3.1 Refining of Ferro Alloys (Low Carbon Ferro Manganese) In the envisaged process, molten silico manganese metal produced in the existing SAF will be taken in a

holding ladle. In-house manganese slag will be added to the ladle, which will minimize the temperature

drop of the molten metal from the top surface of the ladle. This ladle will have arrangement for

rotation/gyration using electrical motors to churn the molten metal (if required) & prevent local chilling &

solidification of molten metal on the inner wall of the ladle.

Manganese ore and lime (both in lumpy form) will be added to the refining furnace (electric arc furnace).

When the raw materials added gain temperature, the molten metal in the holding ladle will be

transferred to the refining furnace. Energy required primarily to increase the temperature of the mix to

the desired level and for the chemical reaction is provided by electrical power through the graphitized

electrodes. Lime is added for fluxing action and to protect the basic refractory lining of furnace from

damage. After completion of the reaction, molten metal and slag are poured out.

The reactions that take place are called silico-thermic reactions, where metallic silicon present in silico

manganese molten metal acts as a reductant. The reactions are as follows :

2Mn2O3 + 3Si 4MnO + SiO2

2Fe2O3 + 3Si 4FeO + SiO2

2MnO + Si 2Mn + SiO2

2FeO + Si 2Fe + SiO2

Mass Balance for Refining of Si-Mn Alloys

Input TPD TPA Output TPD TPA

Molten Silico Manganese 85.0 30,600 Metal (L.C. Ferro Manganese) 150 54,000

Silico Manganese Lump 42.5 15,300 Slag 174 62,640

Manganese ore 150.0 54,000 Dust from Bag Filter 6 2,160

Lime 52.5 18,900 - - -

Total 330.0 1,18,800 Total 330 1,18,800 The metal thus produced is low carbon ferro manganese (C: <2.0%) against standard ferro manganese

produced in SAF (C: 6-8%)

Page 10

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

3.3.2 Calcination of Manganese Ore Calcination is a thermal treatment process in absence of air or oxygen applied to ores and other solid

materials to bring about a thermal decomposition, phase transition, or removal of a volatile fraction. The

calcination process normally takes place at temperatures below the melting point of the product

materials. Calcination is not the same process as roasting. In roasting, more complex gas–solid reactions

take place between the furnace atmosphere and the solids. The process of calcination derives its name

from the Latin calcinare (to burn lime) due to its most common application, the decomposition of calcium

carbonate (limestone) to calcium oxide (lime) and carbon dioxide, in order to produce cement. The

product of calcination is usually referred to in general as "calcine," regardless of the actual minerals

undergoing thermal treatment. Calcination is carried out in furnaces or reactors (sometimes referred to

as kilns or calciners) of various designs including shaft furnaces, rotary kilns, multiple hearth furnaces,

and fluidized bed reactors. Examples of calcination processes include the following:

• decomposition of carbonate minerals, as in the calcination of limestone to drive off CO2 • Calcination reactions usually take place at or above the thermal decomposition temperature (for

decomposition and volatilization reactions) or the transition temperature (for phase transitions). This temperature is usually defined as the temperature at which the standard Gibbs free energy for a particular calcination reaction is equal to zero. For example, in limestone calcination, a decomposition process, the chemical reaction is CaCO3 → CaO + CO2(g)

• The standard Gibbs free energy of reaction is approximated as ΔG°r = 177,100 − 158 T (J/mol).[3] The standard free energy of reaction is zero in this case when the temperature, T, is equal to 1121 K, or 848 °C

• Examples of chemical decomposition reactions common in calcination processes, and their respective thermal decomposition temperatures include CaCO3 → CaO + CO2; 848 °C

In the manufacturing process of Manganese based ferro alloys, manganese ore and reductants (coke and

coal) are fed into a SEAF (submerged electric arc furnace) alongwith with suitable fluxes (quartz/quartzite

and limestone/dolomite) where the following reactions take place:

Decomposition :

4 MnO2 => 2 Mn2 O3 + O2 (at 430oC) 6 Mn2O3 => 4Mn3O4 + O2 (at 950oC)

6 Fe2O3 => 4Fe3O4 + O2 CaCO3 => CaO + CO2 (at 900oC) MgCO3 => MgO + CO2 (at 900oC)

Reduction : Mn3O4 + C => 3MnO + CO MnO + C => Mn + CO (at 1430oC) Fe3O4 + C => 3FeO + CO FeO + C => Fe + CO SiO2 + C => Si + CO2 (at > 1500oC)

Page 11

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

The CO spontaneous gets oxidized to CO2 on coming into contact with atmospheric air immediately after

exiting the raw material charge in the furnace. The Mn and Si thus formed join the alloy. The excess SiO2,

AI2O3, oxides of calcium and Magnesium and silicates (MnO.SiO2 and 2MnO.SiO2) get generated during

the process and join the slag. The flux (lime) may be added to the mixture to reduce Manganese losses to

slag as per following reactions:

MnO.SiO2 + CaO = CaO.SiO2 + MnO

2 MnO.SiO2 + 2CaO = 2 CaO.SiO2 + 2MnO

Decomposition of manganese ores and iron ore can take place on their own, provided the temperature is

high enough. However due to the presence of Carbon inside the furnace (coke and coal), the oxygen thus

released actually reacts with carbon resulting in unnecessary waste of carbon and contributing to

additional green-house gas emission. It is envisaged to calcine manganese ore, dolomite and limestone

before it is fed to the furnace to minimize the extent of the decomposition reaction in the furnace.

The verticle shaft kiln will be about 15 - 25 m high with an inside cross sectional area of about 2 – 4 m2.

The material (Manganese ore) will be fed at the ground level into a skip bucket 2 - 4 times an hour. The

skip will travel on a rail to the top of the kiln. As soon as the skip bucket reaches there, the top hood of

the furnace opens, the ore is toppled into the kiln, the hood closes and the skip bucket comes back. As

the roasted material is discharged through openings near the kiln bottom, the balance material in the

column moves down under gravity. 8 - 18 burners are positioned close to the centre of the shaft kiln

length. The ID Fan and cyclone are placed on the ground level, connected to the kiln top through a duct.

The ID Fan sucks in atmospheric air through opening(s) from the bottom of the kiln. This air travels up the

kiln, cooling the material (already roasted in the burning zone), getting heated in the process. This warm

air comes in contact with the mix of air and producer gas fuel, injected by the burners in that zone and

ensures complete combustion of the carbon in the fuel to carbon dioxide. The hot air travels further up,

coming in contact with cooler material, heats it up and it gets cooled in the process. The warm

combustion gases and air exits the kiln from the top, travels into the cyclone, ID Fan and finally out

through the stack.

Calcining is an environmental friendly process for manganese based ferro alloys as it helps in :

• Reducing emission of metallurgical furnaces and lower load on bag house due to feed of pre-

reduced manganese ore and fluxes into the furnace

• Lowering greenhouse emission due to significant lower coal consumption in submerged EAF

• Better energy utilization inside the furnace

The temperature for proper calcination is achieved by firing of combustible gases with atmospheric air in

burners. Such combustible gases would be provided by the producer gas plant attached to the calcination

facilities.

Page 12

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

3.3.3 Producer Gas Plant 1. Crushed coal of the specified quality and size is carried to the top of the bunker by means of Skip /

Bucket Elevator and is put to the bunker. The screen between the bunker and the Bucket Elevator

separates out fines from the feed stock of Coal which is taken down through a chute. 2. Coal from the bunker is fed to the Extended Shaft of the gasifier through a Sector Gate and two Bell

Cones operated by pneumatic power cylinder which open out the sector Gate and Bell Cones. 3. Fed coal travels downwards and gets dried first and then gradually preheated up to a distillation

temperature of about 450 0C by the product gas moving upwards which itself gets gradually cooled

down and picks up the volatile matter of coal and gets auto-carbureted to a much higher calorific

value before it comes out to the off take pipes. The coal, on the other hand, gets carbonized to nearly

coke stage and its reactivity increases for faster gasification. 4. When the coal enters through the generator bottom shaft, reaction between coal and (air + steam)

occurs and following reactions take place from oxidation zone to top reduction zones.

a. Oxidation zones:

Reaction is: C + O2 CO2 + 42643 K. Cal

b. Primary Reduction Zones:

Reactions are: C + H2O CO + H2O – 19000 k.Cal.

C + 2H2O CO2 + 2H2 – 19370 K.Cal

C + CO2 2CO – 18689 K.Cal.

(Within 300 mm from Oxidation Zone)

c. Secondary Reduction Zone:

Reactions are: CO + H2O CO2 + H2 – 326 K.Cal

C + CO2 2CO.

Besides above reaction zones, there is an ash zone under the oxidation zones through which

calculated quantity of air saturated with steam enters and receives heat from the ash, gate

preheated and proceeds upwards to the oxidation zone. The ash on the other hand gets cooled

down before it comes out to the ash pan.

d. The distillation zone starts from the top of Secondary Reduction Zone and extends upward to

about 2500 mm or so in which considerable quantity of volatile matter (about more than 75%)

gets stripped and picked up by gas.

e. At the top, there is preheating zone and above all there is drying zone.

Page 13

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Better the grade of coal, better will be the reactivity, and gas make. Calorific value of the gas and thermal

efficiency of gasification will improve or in other words, generation of thermal per unit weight of coal will

increase. On the other hand, deterioration of coal grade beyond ‘B‘ will have a spiralling effect on the

gasification kinetics and less active reagents in these coals together with diminished reactivity will affect

the gas generation and the quality of gas in the decelerated fashion. However, we are considering grade,

which is in between, ‘B’, and ‘E’ grade. The approximate chemical composition might be (%w/w):

Moisture : 6 to 7 Volatile matter : 25 to 28 Fixed Carbon : 38 to 40 Ash : 28 to 32 Calorific Value : 4500 Kcal/Kg (GCV)

The essential physical characteristics should be :

Type : Hard Bituminous Non-caking Swelling Index : Less than 1.0 (BS) Caking Index : Maximum 5.0 (ROGA) Ash Fusion Temp : More than 1400 ºC Size : + 20mm to – 50 mm.

It is noteworthy that consistency in size is more important than actual size of coal. More ever, presence

of more coal fines (beyond 1%) in coal bed will affect the drought and gasification. Lower grade of coal

will give rise to clinker formation and will require more steam addition to maintain proper flow ability of

coal and ash bed. It may even require import stem over and above the self-generated quantity

Coal through-put and co-generated products and wastes for one Gasification Plant

i. Coal throughput : 24 TPD ii. Coal Procurement : 28 TPD iii. Generation of fines: 4 TPD (Less than – 20mm) iv. Generation of ash : 6 TPD (Granular and Non-toxic) v. Tar : 1 TPD

This tar is very flow-able and has got similar viscosity as furnace oil. After dewatering and filtration, it will be sold.

Utilities

i. Electricity : 40 KW; Specs: 450 +10% Volt, ii. Process Water : 0.4KL/hr.; Filtered, clear and colorless.

TDS : 600 to 700 ppm Pressure : 1.5 to 3.0 Kg/cm2 (g) at Battery Limit Temperature : Ambient

iii. Soft Water : 0.30KL/hr; Quality : Zeolite softened Conductivity : Less than 8000µs/cm Appearance : Clear and colorless.

Page 14

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

iv. L.P. Steam : 224 Kg/hr. approx. Quality: Standard Pressure: 0.6 to 0.8 kg/cm2 (g)

v. Instrument air : 5 kg/cm2 pressure vi. Air blast required for

Optimum gasification : 1500 Nm3/hr Pressure: 200 mm WS Temperature: 30˚C to 40˚C

vii. Air for poke hole : 300 Nm3/hr. at 600we pressure.

Services

i. Manpower Requirement : 12 Person ii. Repair and Maintenance : 2% of Manufacturing facilities

iii. Space required : 15 m X 20 m iv. Coal Storage : Extra

Product Gas

i. Gas Production : 2850 Nm3 /hr. ii. Composition : CO2 : 5% to 7%

O2 : 0.2 to 0.4 CO : 23 to 26 H2 : 11 to 12 CnHm : 2 to 2.5 N2 : Balance

iii. Calorific Value (Net) of final wet gas : 1250 to 1375 KCal/Nm3

iv. Pressure of gas at battery limit : 80 to 90 mm WS

v. Temperature of Gas at Battery limit : 70˚C to 75˚C

vi. Specific Gravity (Air ≡ 1.0) : 0.88 to 0.90 vii. Viscosity : 0.0198 to 0.02 Cp.

Mass Balance for Calcination of Manganese Ore & Producer Gas

Input TPD TPA Output TPD TPA

Coal 24 8,640 Calcined Manganese Ore and / or Lime 240.00 86,400

Manganese Ore / Lime 300 1,08,000 Gas 76.95 27,702

Dust from Cyclones 0.05 18

Ash 6.00 2,160

Tar 1.00 360

Total 324 1,16,640 Total 324.00 1,16,640

Page 15

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CHAPTER 4 Project Site Details

Project Site

Latitude : 23°46'43.44"N & Longitude : 86°50'32.11"E

Page 16

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Connectivity :

Project Site Mouza : Debipur & Maheshpur, Dendua Road

District : Burdwan, West Bengal

Height above msl 140.0 m

Nearest Town Kulti (4.7 km)

Nearest National Highway Calcutta – Delhi National Highway, NH-2 (3 km)

Nearest River Barakar (1.8 km)

Nearest Railway Station Salanpur / Kulti ( 5 km), Asansol (17 km)

Nearest Airport Netaji Subhash Chandra Bose International Airport, Kolkata (220 km)

There is no National Park, Wildlife Sanctuary, Reserve Forest within 10 km of Project Site

Land Use : The expansion project will require 3.0 acres of land and will be located within the existing plant premise (Area : 23.87 acres) only which is an industrial land.

Topography of the Land : The project site lies in Asansol division of Burdwan District. The land has a mild slope towards the north with contour levels varying from 149 m to 138 m.

Existing Land Use Pattern : The land is Industrial Land.

Existing Infrastructure : All infrastructure required for the proposed project already exists at the site.

Soil Classification : The Asansol-Durgapur region is composed of undulating laterite soil. While most of Bengal is flat alluvial plain, Asansol subdivision lies on exposed Gondwana rocks and consists mostly of undulating laterite soil. It forms the lower Chota Nagpur plateau, which occupies most of Jharkhand.

Climate : The temperature in summer season varies from 30oC to 45oC while the same in winter season comes down to 10oC - 28oC. The region receives a rainfall of 150 cm from June to September (monsoon season).

River : Project site is located between the Damodar and Ajay rivers. Another river, Barakar, joins the Damodar near Dishergarh. A small rivulet, Nunia, flows past Asansol. While Dhanbad district lies on the western side, Durgapur sub division of Bardhman district lies on the eastern side. To the south, across the Damodar river is the Purulia and Bankura districts. To the north are Dumka and Birbhum districts. Dhanbad district across the Barakar river in Jharkhand is also a major mining area and has close links with Asansol. Both lie in the Damodar valley.

Amenities / Facilities : Facilities like canteen, rest room office facilities are already provided in the existing plant as basic facilities to workers. No other additional facilities are proposed.

Page 17

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Page 18

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CHAPTER 5 Proposed Infrastructure

Industrial Project :

Sl. No. Unit Purpose Working Details Capacity

1. Electric Arc Furnace 3 X 5 T

Refining of ferro alloys

3 Electric Arc Furnaces X 5T X 10 Heats X 360 Days

54,000 TPA

2. Shaft Kiln 3 X 80 TPD

Calcination of manganese ore 3 Shaft Kilns X 80 TPD X 360 Days 86,400

TPA 3. Producer Gas Plant Generation of

producer gas - 2,850 Nm3/hr

Non Processing Area : Facilities like canteen, rest room, office facilities already exist within the plant

premises.

Greenbelt Area : Out of 23.87 acres of land, 7.96 acres is already being developed as greenbelt.

Drinking Water : The workers at the plant during construction shall be provided with water for their

requirement and for the construction activities. The construction labour will be provided with sufficient

and suitable toilet facilities to allow proper standards of hygiene. Such facilities are connected to septic

tanks which are maintained properly to have least environmental impact. Drinking water required for the

workers will be met from the existing potable water sanctioned by PHE Dept. of Govt. of W.B. and being

brought to factory premises by a company tanker.

Industrial Wastewater Management : The water will be used for processing, cooling water and water

sprinkling for dust suppression. There is no waste water discharge as the entire water added gets

evaporated. All the processes envisaged are zero water discharge processes.

Waste Management : Manganese slag generated during refining process is non-hazardous in nature

and will be used for land/area/road development. Tar generated in the producer gas plant would be

handled properly and will be sold to authorized vendors. Ash will be used for land/area/road

development. All dust and fines from Bag Filter & Multi-cyclone will be used in the Sintering process.

Manpower : The category-wise break-up of manpower required for the plant is given below :

Sl. No. Category For Calcination & Producer Gas Plant

For Refining of Ferro Alloys

Total Employees

1 Supervisory 4 12 16 2 Skilled 7 30 37 3 Unskilled Contract Workers 28 63 91 4 Security 0 0 0

Total 39 105 144

Page 19

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

CHAPTER 6 Project Cost & Implementation Schedule

Project Economics

The Project Cost for the expansion project has been estimated at Rs. 17.50 Crores. The Project would be

funded fully by internal accruals of the company.

Sl. No. Particulars Rs. In Lakhs

1. Land & Site Development 0.00

2. Shed & Building 2,00.00

3. Plant & Machinery (Electric Arc Furnace, Shaft Kiln & Producer Gas Plant)

20,00.00

4. Pollution Control Equipment 1,50.00

5. Miscellaneous Fixed Assets 1,00.00

6. Contingencies 1,70.00

7. Preliminary & Preoperative Expenses 30.00

Total Project Cost 26,50.00

Project Implementation Schedule The total time of implementation for the project shall be 8 months from the zero date. The zero date for

the project has been considered as the time when land allocation & other formalities are completed and

civil work can be started. The detailed implementation schedule is as follows:

Particulars Start Completion

a. Civil Works Zero date 6 months

b. Plant and Machinery Zero date 11 months

Placement of Orders Zero date 6 months

Fabrication 1 month 9 months

Erection & Installation 4 months 11 months

c. Trial Production 11 months 12 months

d. Commercial Production 12 months -

Page 20

Project Site - Mouza : Debipur & Maheshpur, Dendua Road, District : Burdwan, West Bengal

PRE-FEASIBILITY REPORT for Proposed Expansion Project 1. Refining of Ferro Alloys in 3 X 5 T Electric Arc Furnaces (54,000 TPA) 2. Calcination of Manganese Ore in 3 X 80 TPD Shaft Kilns (86,400 TPA) & 3. Generation of Producer Gas (2,850 Nm3/hr)

Projected Implementation : It will be imperative to complete many of the project activities before the

zero date and soon afterwards. These include :

• Basic Engineering

• Preparation & Issue of tender document for major technological units.

• Placement of orders for major technological units.

• Financial tie-ups, if any.

• Finalisation of terms with overseas agencies if any.

• Clearance from statutory authorities.

It will be necessary to ensure selection of capable and reputed construction and erection agencies and

mobilization of requisite resources of men, material and construction machinery as well as construction

and erection expertise on modern and advance trends, to adhere to the proposed schedule. It will also be

necessary to ensure timely availability of the site infrastructure of the work execution at site.

Page 21