the PDF

2ND WORLD DRI & PELLET
CONGRESS 2014
28 – 30 April, Abu Dhabi
Stig Nordlund, Vice President Marketing, LKAB
Luossavaara-Kiirunavaara Aktie Bolag
Jumeirah Lake Towers Branch
Platinum Tower !
More than hundred twenty years of
experience….
……. SERVING THE STEEL INDUSTRY
LKAB GROUP
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100% Swedish state-owned company
90% of the EU’s iron ore production
Deliveries 2013; 25,5 Mt where of pellets 21,1 Mt
Among the top five pellets producers in the world (by capacity)
Approx. 40% of EU’s annual pellet consumption
More than 120 years of operation and more than 50 years of pelletizing
About 4 200 employees
IRON ORE OPERATIONS
Harbour
Narvik
169 km
Mine and
Procssing
Kiruna
Svappavaara
Malmberget
204 km
ARCTIC CIRCLE
Mine and
Mine and
Procssing
Mine and
Procssing
Luleå
Harbour
&
Headoffice
NORWAY
SWEDEN
RUSSIA
FINLAND
PERFORMANCE IN IRONMAKING
MAJOR INVESTMENTS THE LAST DECADE
Total: more than 4 billion Euro
• New concentrating and pelletizing plants
• Logistics: locomotives, ore cars and loading/discharging terminals
• New storage facilities in Narvik
• New main haulage levels: Kiruna KUJ 1365, Malmberget M1250
• New open-pit mines: Gruvberget, Mertainen, and Leveäniemi
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Mertainen
Start planned in 2015
Gruvberget
Leveäniemi
Start planned in 2015
THE SVAPPAVAARA FIELD
- EUROPE’S BIGGEST IRON ORE PROJECT
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NARVIK HARBOUR
STATE OF THE ART OPERATIONS
High technology mining
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Clean technology for
pelletizing plants
Effective and
environmentally friendly
logistics
World-leading
R&D in pelletizing and
ironmaking
MAIN PRODUCTS
• Blast Furnace Pellets
• Direct Reduction Pellets
• High grade Sinter Fines
Blast furnace pellets (BF) for manufacturing with coal
Direct reduction pellets (DR) for manufacturing with natural gas
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SALES BY PRODUCT CATEGORY
Special 2%
Fines 14%
Pellets BF
63%
Pellets DR
21%
Blast furnace pellets (BF) for manufacturing with coal
Direct reduction pellets (DR) for manufacturing with natural gas
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TRENDS – IRON ORE MARKET
Trend
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Generally falling
ore qualities
Stricter environmental
requirements increase
demand for high-quality
Description
• Increased supply of iron ore with lower-,
and greater variations in quality require
increased blending of different orequalities.
• Increased environmental footprint
and lower capacity in a sinter plant.
• Increased demand for high-grade
iron ore products, as it creates
flexibility in the steel plants raw
material mix.
• To cut emissions, an energy efficient
steel production is required, consequently
the use of iron ore pellet and lump is
increasing.
• Higher pellet- and lump premiums.
There is a shortage of high quality iron ore
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Consequence
TRENDS IRON ORE MARKET - CONSEQUENCES
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Decreasing Fe-grades force iron ore/steel producers to beneficiate the ore
more to reach higher Fe-grades. This will lead to finer material, such as
concentrate/ pellet feed.
Stricter environmental issues, mainly in China, pushes for increased
demand of high quality iron ore and direct charge material (lump and pellet)
Environmentally friendly processes gets advantages.
The pellet- and lump-premiums are expected to stay strong.
The price difference between high- and low quality iron ore will increase.
DIRECT REDUCTION
GAS BASED
Region
MENA
U.S.
• Increased steel consumption driven by
• Increased demand for DRstrong GDP-growth and infrastructure
pellet
projects.
• Gas-based steel production.
• Environmentally friendly –Low emissions
• Increased demand for DR-pellet
• Shortage of high-grade scrap
• HBI production from BF-pellet can
• Shale gas – low/falling gas-prices
be used as a feed for a BF.
• Environmentally friendly –Low emissions
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SHALE GAS TOP RESERVE HOLDERS 2012
(TRILLION CUBIC METERS)
Canada 11
24,4
Poland 5,3
U.S.
36,1
Algeria 6,5
Mexico
China
8,2 Libya
19,3
Brazil 6,4
13,7 South Africa
11,2 Australia
21,9
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Source: EIA
Argentina
THE CORE OF LKAB – WHAT MAKES US UNIQUE
- Long term customer relations
- World class magnetite reserves
- Knowledge based on experience
…more than 120 years experience of mining
…more than 50 years of experience of pelletizing
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