Domů | Těžební unie - Magnesia value...
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Magnesia value chain Raw Material Conference, Brno, 7 th Nov. 2019 Dr. Thomas Drnek
Transcript of Domů | Těžební unie - Magnesia value...
Magnesia value chain
Raw Material Conference,
Brno, 7th Nov. 2019
Dr. Thomas Drnek
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Disclaimer
The consolidated financial statements
presented here are consistent with the criteria
of international accounting standards – IFRS
issued by the International Accounting
Standards Board – IASB, based on audited
financial information. Non-financial information
contained herein, as well as other operational
information, were not audited by independent
auditors and may include forward-looking
statements and reflects the current views and
perspectives of the management on the
evolution of macro-economic environment,
conditions of the mining and refractories
industries, company performance and financial
results. Any statements, projections,
expectations, estimates and plans contained
in this document that do not describe historical
facts, and the factors or trends affecting
financial condition, liquidity or results of
operations, are forward-looking statements
and involve several risks and uncertainties.
This presentation should not be construed as
legal, tax, investment or other advice. This
presentation does not constitute an offer, or
invitation, or solicitation of an offer, to
subscribe for or purchase any securities, and
neither any part of this presentation nor any
information or statement contained herein
shall form the basis of or be relied upon in
connection with any contract or commitment
whatsoever. Under no circumstances, neither
the Company nor its subsidiaries, directors,
officers, agents or employees be liable to third
parties (including investors) for any investment
decision based on information and statements
in this presentation, or for any damages
resulting therefrom, corresponding or specific.
The information presented or contained in this
presentation is current as of the date hereof
and is subject to change without notice. RHI
Magnesita has no obligation to update it or
revise it in light of new information and / or in
face of future events, safeguard the current
regulations which we are submitted to. This
presentation and its contents are proprietary
information of the Company and may not be
reproduced or circulated, partially or
completely, without the prior written consent of
the Company.
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Refractory and RHI Magnesita overview
Magnesite and Magnesia
Worldwide production and usage
CO2 – Road Map and Recycling
Summary and Outlook
1
2
3
4
5
Table of contents
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Refractory industry overview
Refractories are critical to all high-temperature industrial processes
⬢Refractories are critical consumable or investment goods for high-temperature manufacturing processes
⬢Fireproof materials consumed whilst protecting clients’ production processes, retaining physical and chemical characteristics when exposed to extreme conditions
⬢Critical, yet represent less than 3% of COGS in steel manufacturing and less than 1% in other applications
Main end markets
€20 billion worldwide industry
60%15%
10%
8%7%
◼ Steel◼ Energy, chemicals◼ Nonferrous metals◼ Cement◼ Glass
Global refractory industry
15%
20%
15%13%
37%
◼ RHI Magnesita◼ 4-6 segment companies◼ 10-20 regional companies◼ 100-200 small local companies◼ 1000+ Chinese companies
Source: Company estimates
Source: Company estimates of market share in US$
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Refractory industry overview
Refractories are continuously consumed during finished goods production
Key industries Applications Replacement Costs
Steel Basic oxygen-,
electric arc furnace
casting ladles
20 minutes to
2 months
~3.0%
Cement/Lime Rotary Kiln Annually ~0.5%
Nonferrous metals
Copper-converter 1 – 10 years ~0.2%
Glass Glass furnace Up to 10 years ~1.0%
Energy/Environmental/Chemicals
Secondary reformer 5 – 10 years ~1.5%
Refractory
characteristics
Consumable product
Systems and solutions for
complete refractory
management
Demand correlated to
output
Investment goods
Longer replacement
cycles
Customized solutions
based on the specific
requirements of various
industrial production
processes
Complete lining concepts
including refractory
engineering
Wide areas of application
Project driven demand
cycles
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RHI Magnesita overview
Adding value through a full suite of products and services
Full Line
ServiceLinings
Technology
Solutions
Flow
ControlElectric Arc
Furnace
Steel
Refining
Facility
Continuous
CastingBasic Oxygen
Furnace
Direct Reduction
Coal
Injection
Iron Ore
Coal
Coke Oven
Limestone
Blast
Furnace
NaturalGas
Scrap
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The refractory world of RHI Magnesita
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The industry’s largest dedicated research team, pushing the boundaries of what is possible
Building a global leader in refractories
Global research team of 250+ employees, of which 98
have masters and PHDs, working out of 2 research hubs
and 3 centers
Research hubs
Centers
We drive innovation in every aspect of our business, from materials,
robotics and Big Data, to bespoke new business models and efficient
new processes, under extreme conditions.
Refractories
⬢ Development and optimization of refractory products and manufacturing processes
⬢ Market driven project portfolio
⬢ Plant technical support and quality control
Mineral
⬢ Increase ore recovery, maximize mine useful life and minimize environmental impacts
⬢ Development of high quality, low cost raw material sources
Basic research
⬢ Basic research ensuring technology leadership
⬢ Strong focus on innovation
Recycling as an opportunity
⬢ Green technology applied to reprocessing, sorting and reutilization of recycled raw material
Investing €33m p.a. into technology-based solutions
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Raw material sites of RHI Magnesita
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Refractory and RHI Magnesita overview
Magnesite and Magnesia
Worldwide production and usage
CO2 – Road Map and Recycling
Summary and Outlook
1
2
3
4
5
Table of contents
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Definition Magnesite / Magnesia
Magnesite
⬢ MgCO3: Magnesium-Carbonate (Industrial-Mineral). It forms deposits
Magnesia
⬢ MgO Magnesium-Oxide. It does not ocure in nature (only as Spinel – combination with Al2O3). It produces out of Magnesite (90%) and Sea-Water / Brines (10%) → three main modifications:
Three main types of Magnesia (all are MgO)
⬢ Caustic Calcined Magnesia (CCM) – 100 applications
⬢ Dead Burned Magnesia (DBM) – mainly (only) application: refractories
⬢ Fused Magnesia (FM): main application refractories and heating-elements
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From Magnesite and Sea-Water to Magnesia
Natural: MgCO3→ MgO + CO2
Magnesite → Caustic Calcined Magensia (CCM) → Dead Burned
Magnesias (DBM) → Fused Magnesia (FM)
Synthetic: Limestoe (Dolomite) → Lime or Dolime
Wet System (Sea-Water or Brines)
MgCl2 + Ca(OH)2 → Mg(OH)2 + CaCl2
Calcining-Process
Mg(OH)2 → MgO (CCM) + H2O
Sinter- or Fusion Process
MgO (CCM) → MgO (DBM or FM)
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Natural Magnesia-Types
Wilson, I.: Magnesite. MagMin 2012, Salzburg
63%
29%
8%
Magnesia-Types
Dead BurnedMagnesia (DBM)
Caustic CalcinedMagnesia (CCM)
Fused Magnesia(FM)
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Refractory and RHI Magnesita overview
Magnesite and Magnesia
Worldwide production and usage
CO2 – Road Map and Recycling
Summary and Outlook
1
2
3
4
5
Table of contents
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World-Wide Production
0
5
10
15
20
25
30
1981 1986 1991 1996 2001 2006 2011 2016
Pro
duction
[Mio
. t / Y
ear]
Year
Global Magnesite-Production 1981 – 2017 (WMD)
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World-Wide Production
0
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
30 000 000
1981 1986 1991 1996 2001 2006 2011 2016
Raw Magnesite Production in t (WMD)
Albania Australia Austria Bosnia-Herzegovina BrazilCanada China CIS - Asia CIS - Europe CIS - totalColumia Czech Republik DPR Korea Finland GreeceGuatemala India Iran Kenia KosovoMexico Nepal Pakistan Philippines PolenRussia Saudi Arabia Serbia Rep. Serbia, Montenegro SlovakiaSouth Africa, Rep. of Spain Thailand Turkey USSRUSA Yugoslavia Zimbabwe
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Production by Country
China
Turkey
Brazil
Russia
Slovakia
Spain
AustriaGreeceAustralia
Others
Magnesite 2017
Market Concentration
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0
1 000
2 000
3 000
4 000
5 000
6 000
1981 1986 1991 1996 2001 2006 2011 2016
HHI - Magnesite
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Share of Europe (WMD)
0
5
10
15
20
25
30
1981 1986 1991 1996 2001 2006 2011 2016
global Magnesite Production Share of Europe
Magne
site M
io.t
Magnesite Production – Share of Europe
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Resources of Magnesite
5%7%
26%
23%
21%
10%
8%
Global Resources of Magnesite (Total = 13 Bio. t)
Australia
Brazil
China
North Korea
Russia
Slovakia
Others
Global Resources of Magnesite
Country Mio. t rel. %
Australia 628 5%
Brazil 862 7%
China 3.439 26%
North Korea 3.000 23%
Russia 2.745 21%
Slovakia 1.240 10%
Others 1.086 8%
Total 13.000 100%
Ian Wilson, MagMin, 2012, Salzburg
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Magnesia Markets
Agricultural CCM
Others CCM
Refractories FM
Industrial CCM
Refractories DBM
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
10
00
t M
gO
Magnesia-Consumption per Region and Sector
Agricultural CCM
Others CCM
Refractories FM
Industrial CCM
Refractories DBM
Roskill, 2013, p. 327.
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Magnesia in the steel-industry
0
1
2
3
4
5
6
7
8
9
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
1994 1998 2002 2006 2010 2014 2018
Mg
O-C
on
s. kg
/t S
tee
l &
M
gO
-De
ma
nd
Mio
. t
Ste
el P
rod
uctio
n M
io. t
MgO-Refractory Demand Steel
Steel Prod. kg MgO Ref / t Steel MgO-Ref. Mio. t
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Refractory and RHI Magnesita overview
Magnesite and Magnesia
Worldwide production and usage
CO2 – Road Map and Recycling
Summary and Outlook
1
2
3
4
5
Table of contents
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CO2 Road Map
0,0
0,5
1,0
1,5
2,0
Breitenau Breitenau MAS MAS
2002 2018 2002 2018
CO2-Balance 2002 - 2018 (Breitenau and MAS)
Carbonate-related Fuel-related
t C
O2
/ t D
BM
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Periode 3 – CO2-Situation
0
50 000
100 000
150 000
200 000
250 000
300 000
2013 2014 2015 2016 2017 2018 2019 2020
t C
O2
/ Y
ea
r
CO2-Allocation and Emissions (Plant Breitenau)
Allocation
Emissons
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CO2 Road Map
Building a global leader in refractories
We as a producer of Magnesite / Magnesia and part of the
Euromines Magensia Producers Assembly – we are working on a
CO2 Road Map. Detailed CO2-analysis (foot-print) is ongoing.
Fuel efficency
⬢ The last graph shows what was achieved from 2002 - 2018
⬢ We are not fully at the end of the road
⬢ Further initiatives are ongoing
Process Emissions
⬢ From the decomposition of Magnsite we get 1 t CO2 per 1 t Magnesia – it can’t be avoided
⬢ Technical solution (break through technologies) must be developed – we are working on it (difficult, costly, still a long way to go)
Recycling as an opportunity
⬢ 1 t of recycled magnesia can save 1,5 t CO2
⬢ See next slides
CCU (Carbon Capture Utilisation)
⬢ Discussion and R&D ongoing. One way to convert the CO2 into Methane and feed it into the existing pipeline –the kilns will be fired with “green” electricity (brake through technologies and funding needed)
Carbon neutrality
⬢ Green electricity can be used – that is not reflected enough in the discussion (indirect emissions) – this process has not really started.
⬢ Recycling of slag is also a good opportunity
Research and Development
⬢ R&D will be key!
⬢ Break through technologies must be – and will be developed!
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Recycling of Magnesia
The value chain
⬢ Most of the refractory ends as slag (steel) or in the product (cement)
⬢ The remaining part can be recycled as refractory material (see the picture)
⬢ Also the slag can be used, but it is often dumped –similar to the usable refractory product
⬢ Why?
⬢ Because it is sometimes more easily – and the legislation is very complicated – because we are dealing with waste!
The slag
⬢ The slag can be used as a construction material (road-construction) – but in some countries (Austria) – it is extremely difficult to get the right permits →
⬢ So it is not a technical problem it is a problem of legislation!
⬢ It is better to recycle the slag, than to mine new construction materials in quarries – and to dump the slag in waste dumps!
⬢ → That is environmental protection!
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Recycling of used refractories
Building a global leader in refractories
Recycling of Refractories in general
⬢ From a refractory lining roughly 2/3 end in the slag. The remaining part is on the hot face infiltrated with slag or metal, that must be separated and the remaining part can be recycled as refractory.
⬢ It is easy to see, that “only” 10 – 20% of the refractory material can be recycled as refractory
⬢ But refractory is not refractory the quality plays an important role, that the material can be used!
Logistics
⬢ The logistic is very challenging, we have a hugheamount of place where we find used refractories (each steel- and cement plant),
⬢ The the amount per plant/site is very small!
⬢ So you have a high transport burden!
⬢ Sometimes the transportation costs are higher than the cost for a virgin material
Legislation
⬢ The legislation – or the category of what is waste (hazardous and non hazardous) or product or byproduct differs from country to country or from province to province
⬢ We have to cross several borders …
⬢ You can imagine the nightmare of declarations and forms! (With notification, Annex VII declaration, etc.) and establishing the “waste balance”
The Potential
⬢ From a global perspective of around 10 Mio. t of magnesia goes into refractory-products – around 1 –2 Mio. t can be recycled (at a maximum)
⬢ That will save up to 3 Mio. t CO2
The next steps
⬢ Recycling of refractories will get more and more important
⬢ The legislation will maybe not change in the future
⬢ But it is a clear way to the circular economy – and under normal circumstances it should be clear to move towards this direction
⬢ So that means that nearly 100% of the refractory material can be recycled either as slag and construction material or as refractory material again!
⬢ → and then we have fully closed the loop!
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Refractory and RHI Magnesita overview
Magnesite and Magnesia
Worldwide production and usage
CO2 – Road Map and Recycling
Summary and Outlook
1
2
3
4
5
Table of contents
30
Summary and Outlook
Building a global leader in refractories
Magnesia Value Chain
Magnesite and Magnesia
⬢ Roughly 25 Mio. t of Magnesite are mined annually, the main share has China (63%),
⬢ Europe produces around 3 Mio. t (Slovakia, Spain, Austria, Greece)
⬢ Magnesite (MgCO3) is converted by burning to Magnesia (MgO), with the types: CCM, DBM and FM.
⬢ Also roughly 1 Mio. t Magnesia is produced synthetical (out of seawater or brines)!
Markets
⬢ Main consumer for magnesia is the refractory-industry, with a demand of around 70 %!
⬢ For refractories are mainly the types: DBM and FM used.
⬢ The Caustic Calcined Magnesia (CCM) has a wide range of applications: construction, agriculture, environment, health, industrial and chemical!
⬢ The demand will grow further!
Carbon-Dioxide
⬢ The Magnesia Production emits roughly 1,5 t CO2 / t DBM. 1 t come from the chemical decomposition of the Magnesite, the balance comes out of the fuel
⬢ In recent years increases the efficiency significant, due to process optimization; like installing of pre-heating units, etc.
⬢ Break – through technologies are needed and will be developed (difficult and costly!)
Recyclilng
⬢ The main amount of the Magnesia-refractories ends in the slag – the slag can and is recycled as construction material and saves natural sand and gravel.
⬢ The magnesia-refractories can be partly recycled as refractories. This step is technical and logistical difficult, because of the high number of places, each place with a low figure of recycling-material.
⬢ A full-recycling quote will save up to 3 Mio. t CO2
The next steps
⬢ Go for break-through technologies (funding is welcome)
⬢ Recycling is key!
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Glückauf!
Important notice:
These materials do not constitute or form part, or all, of any offer of invitation to sell or issue,or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdictionin which such solicitation, offer or sale would be unlawful, nor shall part, or all, of thesematerials form the basis of, or be relied on in connection with, any contract or investmentdecision in relation to any securities.
These materials contain forward-looking statements based on the currently held beliefs andassumptions of the management of RHI Magnesita N.V. or its affiliated companies, which areexpressed in good faith and, in their opinion, reasonable. Theses statements may beidentified by words such as “expectation” or “target” and similar expressions, or by theircontext. Forward-looking statements involve known and unknown risks, uncertainties andother factors, which may cause the actual results, financial condition, performance, orachievements of RHI Magnesita N.V. or its affiliated companies to differ materially from theresults, financial condition, performance or achievements express or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of thisdocument are cautioned not to place undue reliance on these forward-looking statements.RHI Magnesita N.V. or its affiliated companies disclaims any obligation to update theseforward-looking statements to reflect future events or developments.
Get in touch
RHI Magnesita
Kranichberggasse 6
1120 Vienna Austria
Phone: +43 50213 6200
E-mail: [email protected]
rhimagnesita.com
