PAKISTAN’S FIRST INTEGRATED IRON ORE MINING, PROCESSING...

FUNDAMENTALS OF BUSINESS CASE

PAKISTAN’S FIRST INTEGRATED IRON

ORE MINING, PROCESSING AND STEEL

MILLS COMPLEX AT CHINIOT, PUNJAB,

PAKISTAN

Fundamentals of Business Case

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Resource

Processing

Mining

Steel Mill

Demand

Proposed Products

Infrastructure


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Resource Mineral Map of the Punjab

Punjab mineral corridor with mature cities


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Regional Tectonic Structure

Source: General-Detailed Survey Report of Iron Mineralization in Chiniot-Rajoa, Punjab, Pakistan, By Wuhan Surveying-Geotechnical Research Institute CO., LTD. of MCC June, 2016

Peak Ground Acceleration (PGA) Values of Seismic Zones of Pakistan

Zone PGA (g)

1 0.05 to 0.08

2A 0.08 to 0.16

2B 0.16 to 0.24

3 0.24 to 0.32

4 > 0.32

Source: Building Code of Pakistan Seismic Provisions, 2007


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Regional Geological Map of the Area

Source: General-Detailed Survey Report of Iron Mineralisation in Chiniot-Rajoa, Punjab, Pakistan, By Wuhan Surveying-Geotechnical Re-search Institute CO., LTD. of MCC June, 2016

Seismic Zoning Map of Pakistan showing Chiniot


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Location of Chiniot

(Source Punjab Cities Improvement Investment Program P & D DEPARTMRNT, PUNJAB publication 112 Chiniot area)

Location of the Chiniot-Rajoa Licence Area

Canal


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Exploration Program (Phase I)

Mineral Resource with Phase I and proposed drilling

3D geological model of Chiniot iron resource with Phase I (vertical bore holes with colored marker) and proposed drilling (inclined bore holes)


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Hydrogeological Cross Sections of Chiniot-Rajoa Iron Mining Area

Source: General-Detailed Survey Report of Iron Mineralisation in Chiniot-Rajoa, Punjab, Pakistan, (Figure 5), By Wuhan Surveying-Geotechnical Research Institute CO., LTD. of WSGRI June, 2016

Weather Statistics for Chiniot project Area


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Demand Steel Demand Finished Products (Source: World Steel Association)

China HRC Price in USD per tonne (Source: Steel Index)


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US HRC Price in USD per tonne (Source: Steel Index)

European HRC Price in USD /tonne (source: Steel Index)


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Turkey and India HRC Price in USD /tonne (source: Steel Index)

Market price HRC trend 2016-2019 (Source: Merrill Lynch)


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Manufacturing sectors and production July-March 2016 and 2015 (source: Pakistan Automotive Manufacturer Association)

Category Installed Capacity

2014-15 (July-Mar)

2015-16 (July-Mar) % Change

Cars 240,000 105,267 137,067 30.2

LCVs 43,900 17,521 29,529 68.5

Jeeps 5,000 868 621 -28.4

Buses 5,000 410 746 82

Trucks 28,500 2,781 3,940 41.6

Farm Tractors 65,000 35,753 21,942 -38.6

Two/Three Wheelers 2,500,000 811,459 982,423 21

Planned automotive production for Punjab by 2021

Category Number

Cars/Vans/Jeeps: 350,000

Light 79,000

Trucks: 12,000

Buses: 2,200

Tractors: 88,000

Motorcycles: 2.5 million

Proposed Products Steel grade proposed mix production

Steel Grade TPA %

GROUP 1 & 2 271.000 27

GROUP 3 618.000 62

GROUP 4 55.000 6

GROUP 5 56.000 6


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Steel grade and final uses

Mild non-alloy steels for direct cold-forming These steel grades are character-ised by outstanding formability. They may be used for deep-drawing and forming by bend-ing. Automotive is an example

Unalloyed structural, high-strength steel, characterised by a guaranteed values such as tensile strength, fracture elongation and notch impact energy. Used for build ships, bridges etc.

Low alloyed high-strength steel, mainly used in riveted, bolted, or welded construction of bridges and buildings

High tensile steel, mainly used to for manufac-turing boilers, pressure vessels and pipes transporting fluids


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Infrastructure Strategic location of Chiniot in the CPEC (National Trade Corridor)

(source: Punjab Cities Improvement Investment Program P & D DEPARTMENT, PUNJAB publication 112 Chiniot area)

Source: Punjab Cities Improvement Investment Program (PCIIP), Chiniot City Profile, P & D Department, PUNJAB

Diagrammatic section, rail structure

Mine Mouth and Pro-cessing Area

Ballast width = 4 m

Ballast Depth = 450 mm

Rail Height = 235 mm


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Power Plant Location

Chiniot


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Example of main principles of a National grid system

Water infrastructure

(source: Punjab Cities Improvement Investment Program P & D DEPARTMRNT, PUNJAB publication 112 Chiniot area)


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Mining Mining method selection criteria

Mining method overview


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Generalised section of stope mining sequence between main levels

1 2 3 4 1

1 2 3 4 1

(3D view – angles not to scale)

Primary stope Secondary stope Tertiary stope Quaternary stope

Mining direction

Stope size:

30 m x 30 m in magnetite

20 m x 20 m in hematite

Stope access

Section view

Stope access

Level -410

Level -350

Level -350

Level -410


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Generalised plan view of stope mining section on a main level

Level -170

Stope Stope access

Ramp to level -200 and level -140

Shaft

Orebody

1 2

3 4

30 m

Shaft


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Section view, main entrances to the mine

Portal 1 Portal 2 Shaft

SW NE

(3D view – inclines not to scale)

Surface

Orebody

Crown pillar


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Plan view, main entrances to the mine


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Schematic view of typical development drill patters: fan cut (left), V-cut (right) (adapted from WILD, 1984 and BUJA, 2013)

Schematic view of drill pattern example for hanging wall drift development a) driving at full width (left); b) subsequent widening after development of ini-tial drift at standard size (right) (adapted from WILD, 1984)


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Mining sequence used in Chiniot mine: sublevel stoping with backfilling

Schematic radial cable bolting pattern for roof and sidewall support, and de-velopment principle of stopes in magnetite ore (left) and hematite ore (right)


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Schematic drill and blast pattern


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Mining Equipment


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Backfill procedure planned for Chiniot Mine; here partial backfill of stope ex-ceeding the maximum allowed length

Ore losses and dilution as a consequence of drill and blast pattern (left) & definition of internal and external dilution (right) (adapted from Clark, 1992)


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Types of accepted external dilution for stoping sequence as applied to hem-atite mining (not to scale); secondary stopes are mined after extraction and backfilling of all primary stopes, the same applies to tertiary stopes


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Mining stages year 1 (preproduction development) to year 5


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Mining stages year 10 to year 31 (final stage)


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Typical heat sources in deep underground mines (adapted from Hartmann, 1982)

Typical elements of a main ventilation system (adapted from McPherson, 1993)


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Simulation of the natural state of Chiniot Mine (mining stage +5): virgin rock temperature (top), and natural ventilation and resulting effective tempera-tures (bottom)


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Ventilation system of Chiniot Mine

Airflow direction


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Locations of subsurface refrigeration systems


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Processing Optimal feed for COREX/FINEX® process

Item Unit Sample

Type Hematite

typical limit

Portion to be used % 20 - 70

Chemical Prop-erties

Total Fe % 61.41 <61.2

SiO2 % 3.46 <3.5

Al2O3 % 2.13 <2.2

CaO % 0.02

(source: POSCO FINEX innovative iron making Process April 2008)

Screening Ball Mill Discharge


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Tower Mill for Regrinding


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Flotation Cells


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Drum Filter


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Flow Sheet


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Steel Mill Annual production capacity

Comparison BF vs COREX®

Emission Comparison Blast Furnace Route vs. COREX® (source: POSCO and Primetals Technologies)

tpa Product 1,020,400 of liquid steel, produced by a COREX®

1,020,400 of liquid steel, treated by new LFs

1,000,000 of HRC, produced by a new Continuous endless rolling equipment


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COREX® Plant Baosteel, Shanghai Baosteel Pudong Iron & Steel Shanghai, China (Source: Primetals Technologies 2015)

COREX® Plants in operation or under construction (Source: Primetals Tech-nologies 2015)


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New Complex mill schematic configuration

Complex steel mill process diagram


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Example wagon tippers

Typical example of a pelletizing plant (source: MME)


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COREX® tech. flow chart

COREX Raw material in/out (source Primetals tech. 2015)


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Typical slag pot cars

COREX® export gas


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Figure 1: COREX® export gas application

Example torpedo vessel


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Example torpedo vessel refractory lining

Example torpedo vessel refractories


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Example of material flow in a converter (source: Kawasaki steel)

Charging hot metal in converter (source: ThyssenKrupp)


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Ladle Furnace (source: MME Tech. Dept.)


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Thin slab caster and rolling (source Primetals)

Pictorial view of CSP (SMS Group Siemag)

PAKISTAN’S FIRST INTEGRATED IRON ORE MINING, PROCESSING...

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