ArcelorMittal’s Saldanha Works are still investigating various initiatives to secure the long-term sustainability of the plant, which is currently under threat. One of them is affordable electricity.
According to Richard Holcroft, general manager, the future of the ArcelorMittal Saldanha Works (beyond 2019), is dependent on access to affordable electricity and they are actively involved in the proposed Industry Solution IPP project, which involves generating affordable electricity via a gas-fired power plant.
“It is imperative that affordable electricity be secured early in 2019 for the Saldanha Works to be able to justify the large capital investment required to complete a full refractory re-line again in 2020.”
The total cost of the current campaign extension shutdown was an investment of R130 million.
“Historically, the Saldanha Works plans for a complete re-line of the Corex and Midrex units every eight years, which involves the replacement of the refractory linings of both units as well as the maintenance of process-related equipment.
“As a result of the prevailing export market conditions, a decision was taken to rather conduct a mini-reline known as a ‘campaign extension shutdown’ that will allow both units to safely operate for at least a further four years.”
The four-year window is important as it allows the Saldanha Works to investigate initiatives to secure the long-term sustainability of the plant.
During the latest shut down the Corex coarse particle separators were included that will help improve the performance and availability of the dust recycling system (the expensive Corex Aerial Gas Technology, will only be implemented in 2020).
At a high level, the scope of the shutdown included the replacement of the refractory linings of both the Corex and Midrex units, the installation of coarse particle separators at the Corex, and the replacement of problematic tube bundles at the Midrex plant.
A lot of work also went into general maintenance of the various raw-material handling, Corex and Midrex equipment.
The shutdown is expected to be completed within 80 days after which a more accurate figure regarding the number of additional workers employed can be provided.
“The South African steel industry faces a myriad of challenges that includes a challenging global market in which steel supply exceeds demand. The Saldanha Works is primarily an export focused plant and is facing extreme competition from Chinese steel makers in its African markets.”
Holcroft named very low steel prices combined with increases in the price of electricity, as well as high raw-material logistical costs, as the main challenges facing Saldanha Works.
“The Saldanha Works remains under review until such time that a sustainable business case is secured which hinges on a reduction in energy costs (electricity, gas and raw materials).”
Holcroft said that the future of the Saldanha Works remains under threat, but various alternatives are currently under investigation with the aim of securing a sustainable business case.
