Вы находитесь на странице: 1из 53

PROJECT REPORT ON

“Impact of chemical properties on iron ore procurement”

At MSPL Limited

Report Submitted to

School of Management Studies and Research

KLE Technological University, Hubballi

Submitted by

Mr. Vijaya kumara G P (01FM17MBA053)

Under the Guidance of


Ms Jayanti Belur
Assistant Professor

School of Management Studies & Research

KLE Technological University

Hubballi-580031
CERTIFICATE

This is to certify that, the report is entitled “Impact of chemical properties on iron ore
procurement at MSPL LIMITED” with reference to “MSPL LIMITED Hosapete”
submitted to the KLE Technological University School of Management studies & Research,
Hubballi by Mr. Vijaya kumara G P is recorded of bonafide work carried out by him.
Under my guidance, Mr. Vijaya kumara G P successfully completed the project
requirements prescribed to him in accordance with regulation of the institute. In my opinion,
the report has reached the standard of fulfilling the requirement. The results embodied in this
project have not been submitted elsewhere for the ward of any degree or diploma.

Ms. Jayanti Belur Head of the Department


Assistant Professor

External Viva-Voce

Name of examiners Signature with date

1.

2.
DECLARATION

I hereby declared that this Research work embodied in this Summer Internship entitled
“Impact of chemical properties on iron ore procurement at MSPL Limited”, has been
carried out by me under the guidance of Ms. Jayanti Belur Assistance Professor School of
Management Studies & Research KLE Technological University Hubballi.

I also declared that Summer Internship report has not been submitted to any University or
Institution for the award of any degree or diploma.

Place: Hubballi. Vijaya kumara G P

Date:
ACKNOWLEDGEMENT
I take this opportunity to convey our sincere thanks and gratitude to all those who have
directly or indirectly helped and contributed towards the completion of this project.

It is a genuine pleasure to express my deep sense of thanks and gratitude to my mentor


Ms. Jayanti Belur, Assistant Professor, SMSR, KLE TU whose expert guidance and interest
which had been solely and mainly responsible for completing our work.

I owe a deep sense of gratitude to Mr. Mohit. J Ratolikar ,Vice President - Marketing,
Mr. Sandeep Chavan, Manager- Marketing, Mr. Veeresh Samantri, Deputy General
Manager-HR, MSPL Limited Hosapete for giving this opportunity to study about
organization and providing continuous suggestions with kindness which enabled me to
complete this project. Without his outright, support and prompt response, I would not have
been possible to do any justice as well as bring authenticity to the project.

I would like to express my sincere thanks to my faculties of School of Management Studies


&Research for assistance and cooperation during our project.

I would like to express my sincere gratitude to Dr. S.V.Patil, Head of Department,


Dr. Ashok Shettar, Vice Chancellor and Mr. Prakash Tewari, Principal, KLE TU,
Hubballi for giving me an opportunity to take up this project.

Lastly I would like to thank almighty god, my parents, friends, librarian, staff members &
office boys of MSPL, for their infinite love, direction, support and help during my project.
This project wouldn’t have been completed without the cooperation of all these people.

Place: Hubballi Vijaya kumra G P

Date:
Executive Summary

Mining industry is one of the fast growing industries in recent days; it is back bone of steel
industry. Iron ore is natural resource available in many places of the world, especially in
India that to in Karnataka and is key constituent in making of steel. Indian government made
steel policy called “Steel policy 2017”, which influenced on steel industry to increase their
production of steel that directly made impact on mining industry. So it is challenging for
mining industry to meet the demand. The availability of quality iron ore at economic price
becomes difficult, but yet mining companies are able managing the challenge.
The main objectives of this is study is to find the factors influence on iron ore procurement,
to investigate why beneficiation, pellet and sponge iron plants buy iron ore at higher price
and to analyze the influence of chemical properties on iron ore procurement. Methodology
used in this study as follows Research design: Exploratory and Descriptive research,
Sampling method: Convenience sampling, Sample size: 20 and Sample collection: Personal
and telephonic interview. Data is analyzed by using expert’s opinion of three different plants.
Main motive of this project is to understand how a mining company manages quality of ore
and price? Beneficiation, pellet and sponge iron plants were considered for the study.
Outcomes of the project as follows: Procurement souly based on availability of high grade
and medium grade ore at economic price. Logistic costs is major factor contribute towards
final gain/loss (depends upon availability of the vehicles in the market, diesel price
fluctuation). Road conditions as major mines located at mine head transporter costs higher
rate for transportation. Domestic prices are driven and keep on fluctuation, only limited
miners follow standard price set practice.
Silica, Phosphorus, Manganese and other contaminations will increase to beneficiation cost.
Water scarcity is going to hamper the beneficiation process. While bidding /purchase,
depends upon quality of ore Rs. 100 to 200 premiums can be given by beneficiation plants.

Pellet plants prefer iron ore fines for their operations and won’t prefer lumps as it incurs extra
crushing cost for Rs. 50/ton. Pellet plants prefer minimum of impurities in iron ore. Most of
the pellet plants who don’t have beneficiation plant, prefer chemical composed of iron ore: Fe
(62-65%), Al2O3 (2.75%), SiO2 (3.5%) and P (0.05%), Mn (0.3%) and LoI (2.9%). Quality
ore reduces grinding cost. Focused quality may bring down the iron ore, bentonite and
dolomite cost.

Sponge iron plants prefer iron ore lumps and pellets for their operations. Most of the sponge
iron plants prefer chemical composition of Fe (58-65%), Al2O3 (2.525%), SiO2 (4.62%) and P
(0.05675%). Physical properties of iron ore should contain tumbling index of 75+ and
abrasion index of less than 5% and particle size of 5mm to 20mm (5-20 & 10-20mm) prefer
in sponge iron plants. Sponge plants procure iron ore limps and iron ore pellets at higher
price for the following reasons: high content of Fe, less impurities, efficient use of fuel, better
physical and chemical properties directly influencing on high price and make companies to
buy at high price. Hence forth I suggest that if mining companies considered above stated key
factors while purchasing of iron then they can able get iron ore at economic price with
quality.
Table of content
SL. No Content Page. No Days spent
Chapter1: Company profile

Terminologies used 9
1.1 Company profile 10
1.2 Business details 11
1.3 Organization structure 12
1
1.4 Code of conduct 13
1.5 Ethical practices 13
7
1.6 Corporate social responsibilities 14
1.7 Different business processes 15
1.8 Interdependence of departments 17
1.9 Business challenges 18

Chapter2: Introduction to Project

2.1 Introduction 19
2.2 Problem statement 19
2.3 Objectives 19
2.4 Literature review 20
2 7
2.5 Research gap 21
2.6 Research methodology 21
2.7 Scope of project 21
2.8 Limitations of study 21
Chapter3: Iron ore industries

22
3.1 Iron ore
22
3 3.2 Iron industries
23
3.3 Iron ore impurities
28
28
3.4 Different plants uses iron ore as raw material
34
3.5 Plant visit to VIOM and RBSSN
35
3.6 Blast furnace and sinter furnace
36
3.7 Other factors influencing on iron ore price
39
3.8 Steel policy 2017

Chapter4 : Data analysis and interpretation


40
4.1 Beneficiation plants
4 42 10
4.2 Pellet plants
44
4.3 Sponge iron plants

Chapter5 : Findings and conclusion

5.1 Beneficiation plants 46


5.2 Pellet plants 47
5 11
5.3 Sponge iron plants 48

6 Chapter6 : Conclusion 49 1

7 Chapter7 : Bibliography & References 50 1

8 Annexure-I 51 1
Tables, Figures & Charts
Sl. No Title Page No

1 Table1 : Carbon percentage in steels 27

2 Table2 : Beneficiation plants details 28

3 Table3 : Pellet plants details 31

4 Figure1 : Pellet making process 32

5 Table4 : Sponge iron plants details 33

6 Figure2 : Blast furnace 35

7 Figure3 : Bituminous & Anthracite coal 37

8 Figure4 : Coke 37

9 Figure5 : Bentonite 38

10 Figure6 : Limestone 38

11 Figure7 : Dolomite 38

12 Figure8 : Iron ore washing in beneficiation process 39

13 Table5 : Data analysis in beneficiation plant 40

14 Chart1 : Monthly iron ore requirement at beneficiation plants 41

15 Chart2 : Monthly production of beneficiation plants 41

16 Table6 : Data analysis in pellet plants 42

17 Chart3 : Monthly iron ore requirement at pellet plants 43

18 Chart4 : Monthly production of pellets 33

19 Table7 : Data analysis in sponge iron plants 44

20 Chart5 : Monthly iron ore requirement at sponge iron plants 45

21 Chart6 : Monthly production of sponge iron at sponge iron plants 45


MSPL LIMITED
Terminologies used:

 Iron ore
 Fines
 Lumps
 Beneficiation
 Gangue Particles
 Froth flotation
 Gravity separation
 Pellets
 Additives
 Flux
 Enrich
 Smelting
 Sinter
 Sponge iron
 Pig iron
 Blast furnace
 Slime
 Bidding
 Procurement
 purchase

SMSR, KLE Technological University Hubballi. Page 9


MSPL LIMITED
Chapter1: Introduction to Company

1.1Company profile:

Ownership type: -Private


Business type: -Exporter/ Importer/Manufacturer/Supplier
Industry: -Mining, Energy.
Founded in: - 1961
Headquarters: -Mumbai, India
Key people: -Mr. Narendrakumar Baldota, Chairman & MD, Mr. Rahulkumar Baldota,
Executive Director, Mr. Shrenikkumar Baldota, Executive Director
Products: -Iron ore, Wind energy, gases, steel, chemicals and diamond & gold mining.
Mining Area of Operation: - Vyasanakeri & Ingalagi (EOU-1). & RMML
Revenue: -Rs.14945.77 Million
Number of employees: -1178
Website: -www.baldota.co.in

Vision:
Be valued as one of the world’s leading provider of Iron ore and value-added products.

Mission:
To become the leading Iron ore supplier in the country by meeting the direct and implied
needs of domestic and global customers to their satisfaction, through the employment of
state-of-the-art technology and services of committed and knowledgeable team members.

SMSR, KLE Technological University Hubballi. Page 10


MSPL LIMITED
5Cardinals:

Core values:
These are quality, customer relations, safety, care for environment, ethical business practices,
forming the basis on which the group functions and supports the framework of its operations.
Care:
For the community we work in, by taking initiative that make a real difference at the grass
root level in the areas of education, health care and overall enhancement in the living
standards of the community.

Concern:
A genuine, meaningful interest in the environment, by embracing green technologies,
afforestation programs, air water and soil management.
Commitment:
An unflinching promise of providing nothing short of the best in quality and quantity through
state-of -the-art R&D and continuously upgrading the skill quotient of managers and workers.
Creativity:
Innovatively harnessing the resources to find creative solutions that augment business
operations.

1.2Business details:

MSPL LTD is a part of Baldota group, which has several businesses across the country.
Below listed businesses are performing by MSPL LTD
 Mining
 Pellet plant
 Wind energy
 Aviation
 Shipping
 Gas plant
 Gold mining

SMSR, KLE Technological University Hubballi. Page 11


MSPL LIMITED

1.3 Organisation Structure:


Chairman Managing Director

Executive Director Executive Director

VP Executive CFO GM Minerals VP Power VP CC


Shipping Director
& Projects

GM AGM DGM AGM CC


Treasury MM Power Pellet
DGM
Technical

VP Mines VP Mines

GM Mines AGM CC

GM Mines
AGM Mines

GM VP group VP P&B VP
MKG HR Minerals
GM Legal
DGM Admin
AGM GM GM Pellet GM
Logistics HR&IR plant MKG DGM Costing &
AGM CA &
Corporate Audit
CS
AGM HR DGM
Mech
DGM IT DGM CSR

AGM Admin AGM Admin

SMSR, KLE Technological University Hubballi. Page 12


MSPL LIMITED
1.4 Code of conduct:

MSPL LTD conduct their business as follows

 AT MSPL all the employees and directors must and should follow laws, rules and
regulations.
 Company always follows ethical practices while conducting businesses.
 Firm do their business in accordance with environment friendly technologies, policies
and by setting standards they governing the function of each business.
 Company uses latest tools and techniques to perform best among the industry.

1.5 Ethical practices:

Below listed ethical practices are performed at MSPL LTD.

 Effective corporate governance leads to achieving target goals or objectives thereby


enhance the firm values.
 The effective management of business helps in achieving best performance at every
time.
 Rules and regulations stated in the firm are followed by Directors to employees,
which ensure the transparency in the business.
 Since the organisation belongs to mining hence environment protection is key
concern, firm strictly follows the rules and regulations made by the government.
 Firm update the policies, rules and regulations as per the need.

SMSR, KLE Technological University Hubballi. Page 13


MSPL LIMITED
1.6 Corporate Social Responsibilities:

MSPL LTD well known for their CSR activities, they perform CSR activities through
Baldota foundation. Through this foundation following CSR activities are facilitating:

1. Education
 Facilitating scholarship for talented students.
 Make necessary requirements for school dropouts to re-join the schools.
 Providing books to school and college students on the honour of founder
Mr. Abheraj H Baldota.

2. Environment
 MSPL planted more than 2.5 lakh trees across the mining region.
 They use environmental friendly technologies across their plants.
3. Health
 MSPL facilitating pure drinking water facility in villages which are adopted
by the company.
 Free eye check-up camp
 Jaipur artificial limb camp
 Sustainable cleanliness
4. Sanitation
 Constructed toilets across villages as well as in schools around Hosapete
region.
5. Women empowerment
 Computer training for women
 Income generation programs
 Tailoring training for women
 Promotion of Self Help Groups
6. Infrastructure
 Construction of roads and circles
 Construction of parks and bus stops

SMSR, KLE Technological University Hubballi. Page 14


MSPL LIMITED
1.7 Different business processes (Department) at MSPL:

Operation department:

The production department is the driving force for the company because without it there are
no goods to sell to customers. The production department’s main duty is to ensure the goods
being produced meet the customer’s quality expectations. Even though the quality assurance
department inspects the goods through the manufacturing process, it is the duty of the
production department to maintain some production schedule so other departments know
what is being produced and how long it takes to produce that quantity.

Finance department:

Finance department has to meet various requirements of different department, promptly.


Primary, it has to meet payment needs of employees, suppliers, taxation, etc. in time.
Important functions constitute the following
 Planning and budgeting
 Cash value added calculation
 Bill passing for suppliers and for contractors
 Cash as well as bank transaction

Purchasing department:

The purchasing department plays a very important role in an organization. Purchasing has its
effect on every vital factor concerning the manufacture quality, cost efficient and prompt delivery
of goods to customer. Its function is to procure materials, suppliers services.
To perform the functions effectively, purchasing department follows the following procedure:
 Receiving purchase requisition
 Exploring the sources of supply and choosing the suppliers
 Preparation and execution of the purchase order
 Receiving and inspecting materials
 Checking and passing of bills for payment

SMSR, KLE Technological University Hubballi. Page 15


MSPL LIMITED
Human resource department:
 Human resource department have always been key factor in the group’s success. Its
function:
 Its recruit’s personnel for the departments of the company.
 It facilitates jsob analysis and job description of different people.
 It administrates the wages and salaries for different level of employees.
 It fixes and provides reward and incentives on the basis of wages policy.
 It ensures safety of the workers of the company.
 It maintains attendance register, salary, staff loan, income tax, news and statutory
remittance.


Marketing and logistics department:

The main function of marketing department is to development of marketing goals and


strategy and conducting marketing researches and monitoring customer needs and promotion
and advertisement. The logistic department concentrate on logistic management plans,
implements, and controls the effective flow and storage of goods, services. The main function
of a sales activity is meeting the customer demand with appropriate supply. The next is to
increase the sales volume considering a particular period of time.

Legal department:

Legal department deals with the legal issues in the organization related to business, contracts,
government policies, agreements with the consultancy’s.
Corporate Communication department:

Corporate communication department perform activities such as announcement of any


information to media and newspapers. It finds inform about global business meetings across
the globe.
Administrative department:

Administrative department involved in the day-to-day office activities such as housekeeping,


transportation facility for employees, maintenance of computers, records.

SMSR, KLE Technological University Hubballi. Page 16


MSPL LIMITED
1.8 Interdependence of processes:

CSR Finance
Marketing &
Logistics

Administartion
Operation

Cost
Purchase Cutting

HR Legal

SMSR, KLE Technological University Hubballi. Page 17


MSPL LIMITED
The MSPL consists of nine departments, each one interlinked with one another. Every
department play their significant role in its operation as well as other departments too.
Because of interdependence the smooth conduct of business process takes place.

1.9 Business challenges:

Below mentioned challenges are facing by MSPL LTD.

 Zero waste Mineral


 Controlled Green House Gases Emissions
 Retaining our people
 Ensuring safety of our people

SMSR, KLE Technological University Hubballi. Page 18


MSPL LIMITED
Chapter2: Introduction to Project

2.1 Introduction:

In the recent days iron ore procurement becomes crucial, because selection of iron ore
along with the impurity level has significant effect on price of iron ore. If the firms buy iron
ore which has high level of impurities then firm need to process the same and get required
quality of iron ore. This additional processing of iron ore incurred with cost, also loss of iron
from the ore. In case iron ore has minimum amount of impurities then availability of iron
percentage is more mean while reduces the additional cost of processing.

2.2 Problem Statement:

Most of the steel manufacturing companies and pellet plants are ready to buy iron ore at
high price in the auction, though the value of the iron ore is at low price. Percentage of iron
(Fe) content in iron ores varies from 48% to 73%, yet companies prefer to purchase low
grade iron. This study is conducted, to know the influence of chemical properties and iron
content on iron ore procurement at high price.

2.3 Objectives:

• To find the factors influence on iron ore procurement.

• To investigate why beneficiation, pellet and sponge iron plants buy iron ore at higher
price.

• To analyze the influence of chemical properties on iron ore procurement.

SMSR, KLE Technological University Hubballi. Page 19


MSPL LIMITED
2.4 Literature review:

1. T. Uma Devi et al (2010) are suggested that line stone i.e.CaO2/ SiO2 have significant
role in bonding of iron ore particles. Quality of pellets directly depends on the quality
of iron ore, lime stone and some additives and production process which they have
adopted. If basicity is low then bonding strength becomes strong.

2. Simona Jursova et al (2014) analysed that reduction of pellets in the presence of CO.
They also examine reduction of iron ore and sinter in the presence of CO. As the time
of reduction increases the mass depletion count also increases.

3. D. Burchart-Korol et al (2013-14) worked on examination of chemical composition


of iron ore which is used in sinter plant. They done work on 30 different metals which
are have significant role in the iron making. From their study we come to know that
hematite have more harmful elements then magnetite.

4. Raj Kumar Goel et.al. Suggested that most of the time the usage of sinter largely
based on suitability to blast furnace as well as commercial uses. From this paper we
come to know that sinter is widely acceptable in the blast furnace, recent days. They
researched that selection of raw materials for the sinter plant must be good in quality,
which should fulfil the requirements of blast furnace.

5. M Dudek (2014) suggested that if small amount of saving on procurement of iron ore
and other materials, which will influence on the reduction of cost of production.
Identifying right supply sources and quality of materials will have significant effect
on economic viability. Also what proportion they blend all the raw materials i.e.
effective utilisation of raw materials have effect on cost hence one must good at
blending.

SMSR, KLE Technological University Hubballi. Page 20


MSPL LIMITED
2.5 Research gap:

From the literature review, it is come to know that most of them concentrated on physical
properties, iron ore constituents, microstructure. The influence of impurities while melting in
in the blast furnace. But they do not concentrated on influence of price and other factors on
procurement. Research gap identified is to find the impact of price and factors on iron ore
procurement.

2.6 Research methodology:

 Research type: - Exploratory and Descriptive research


 Sampling frame: - Customers of MSPL
 Sampling method: - Convenience sampling
 Sample size: - 20
 Sample collection: - Personal & telephonic interview.

Primary data: Primary data is collected from MSPL LTD, also from the suppliers and
customers of the MSPL LTD.

Secondary data: Secondary data is collected from various national and international
journals, companies’ websites, associations of pellets, pig iron, sponge iron, beneficiation
plants, government agencies, project reports of various engineering colleges.

2.7 Scope of project:

Scope of this project is to understand the influence factors on iron ore procurement. What are
reasons behind to purchase iron ore at high price? The objectives are achieved with the help
of personal interview of people of steel and other plants, who are customers of MSPL
Limited.

2.8 Limitations of the study:

 This study is applicable only to MSPL Limited and its customers.


 It does not take into consideration other similar mining companies.

SMSR, KLE Technological University Hubballi. Page 21


MSPL LIMITED
Chapter3: Introduction to iron ore industries

3.1 Iron ore:

Iron ore is rock or mineral from which iron is extracted. Usually iron ore available in the
form of rocks in the earth. These rocks are converted into two forms namely fines and lumps.
Fines are powder in form, whose size is (-10mm) whereas lumps are particles whose size is
10mm and above. Lumps and fines are also called as direct saleable ore because they need
only crushing and sizing operation to get end saleable productive iron ore.

Why lump?

Iron ore is mostly preferred in lump form why because, when it fed into a blast furnace size
of the particles gives/facilitates path for the circulation of air/oxygen into the blast furnace.
This makes easy to melt the iron ore and other materials.

Why fines?

The main aim of using iron ore as fines is to make sure required iron ore concentration and to
avoid impurities moving into the blast furnace. Iron ore fines cannot be directly fed into the
blast furnace, it must undergo sinter process. In sinter process iron ore is blend with clay and
flux, and is heated upto1200°C then we get pellets.

3.2 Iron industries:

Iron is integral part of all the industries exist on this earth. For our study purposes following
industries are considered.

Beneficiation plant:

Beneficiation is a method of enhancing iron ore by eliminating gangue particles or materials


in order to get improved /enriched quality of iron ore.

Inputs: Iron ore, water stream.


Output: Enhanced iron ore, waste water.
Methods: Froth flotation, gravity separation.

SMSR, KLE Technological University Hubballi. Page 22


MSPL LIMITED
Pellet plant:

Pellet: Pellets are the small ball like structures made up of iron ore fines, additives (clay), and
flux.

In pellet plant process iron ore fines are blend with flux (limestone or dolomite) and binder
(bentonite). All these materials are mixed in a mixer, then made ball like structures called
pellets. These pellets size range from 9-16mm and are heated up to 1200°C to get final
pellets.

Inputs: Iron ore fines, flux and binder.


Output: Pellets.

Sponge iron plant:

Sponge iron also called as direct reduced iron, in the process iron ore ( lumps, fines and
pellets) is reduce to iron by means of reducing gas or carbon extracted from the natural gas or
coal. Sponge iron is produced by eliminating oxygen from the iron ore due to the removal of
oxygen creates pores in the iron that resembles like colony structure hence the name sponge
iron.

Inputs: Iron ore, coal, dolomite, air.


Output: Sponge iron.

3.3 Iron ore impurities:

Iron ores having grades greater than 64% Fe content can be mix with low grade ores so that
final iron become standardised in grade. Impurities in the iron ore are silica, phosphorus,
alumina, slag.

Silica:

Silica is the most common type of impurity; it is formed by two elements namely silicon and
oxygen. It is most important element in the production of silica glasses and ceramics. The
word silica is derived from the Latin word silex. Silica available in two form, they are
amorphous and crystalline forms. Silica can be melt at 1713°C and boiling temperature is
2950°C. Silica can be easily separate from the iron ore through beneficiation process. Why it
SMSR, KLE Technological University Hubballi. Page 23
MSPL LIMITED
is so easy? It is because of physical property say density, due to this high density silica settle
down easily. Smelting of high silica ore facilitate formation of gray iron. It is brittle in nature,
yet quite easy to get good finish. It has very good shrinkage property i.e. less shrinkage that is
why most of the castings silica is preferred. Percentage of silica present in the iron must be
less than 3.5%, for high grade ores should less than 2%. High silica ores yet prefer to mix
with high grade ores to assure for reduction of overall impurity level in the iron ore but this
iron ore must needed beneficiation process.

Applications of silica:

 Silica is used as sand blasting abrasives.


 Silica is used in preparation of concrete
 Silica is used to act as filter in water filter process.
 Silica one of the main constituent in the preparation of moulds and cores for castings.

Phosphorus:

Phosphorus also one of the impurities present in iron ore. It gives brittleness to the steel.
Phosphorus content should not exceed 0.01%. If the iron ore have more than 0.01%
phosphorus the price paid for the ores is decreased as the iron ore needed low phosphorus ore
reach a tolerable grade. Removal of phosphorus is difficult from the iron ore hence one
should prefer iron ore with low concentration of phosphorus. Phosphorus is eliminated from
the steel by make use of open hearth, electric arc furnace and basic oxygen process. In some
scenarios phosphorus is added purposefully in order to enhance the machinability, strength
and corrosion resistance.

Alumina:

Alumina is a formed by the addition of aluminium and oxygen. Basically alumina white
solid appearance, it is odourless. Alumina is very much essential in furnace refractory lining.
Its melting temperature is 2072°C and boiling temperature is 2977°C. Is there any impurity
which is present in most of the minerals? This is alumina. Alumina is difficult to reduce as
compared to silica and is not so easily alloyed into the smelted product. More over its
presence increase the viscosity of slag formed while smelting process. This high viscous slag
is difficult to remove and decreases the overall efficiency of smelting process. In the furnace
this higher viscosity can be maintained by adding limestone. Alumina affects the reduction
degradation index (RDI).

SMSR, KLE Technological University Hubballi. Page 24


MSPL LIMITED
Applications:

 Alumina is used in steel making process


 Alumina also be used in refractory lines in blast furnaces and in steel plants

Sulphur:

Sulphur also one among the impurities present in the iron ore. Sulphur content should not
exceed 0.04%. More sulphur content influence on the brittleness property of steel and tends
to creates cracks in the products. Sulphur fumes (SO2) from smelting process react with
atmospheric air to form sulphuric acid (H2SO4).

Influence of sulphur in steel:

 Because of sulphur presence creates sulphides, which weakens the granular structure
and induces cracks while solidification of molten metal.
 Sulphur has significant effect on melting point.
 Presence of sulphur increases the brittleness of steel, also one of the reasons for stress
raiser in steel products.

Applications:

 Sulphur is used in steel where machining process is must and should because it helps
in formation of chips while machining.
 Sulphur helps in reducing the tool wear while machining.

Slag:

Slag is combination of oxides and minute percentage of sulphides and phosphides. These
oxides are usually acidic or basic in nature. Slag is produced while refining of hot molten
metal in that Si, Mn, Fe, and P are oxidizes to SiO2, MnO, FeO, and P2O5 respectively. Slag
is the waste material produced during smelting process. Slag consists of two oxides namely
Silica (SiO2) and Alumina (Al2O3). These oxides are reason for the increase of viscosity. By
using calcium oxide (CaO2) we can reduce the viscosity of the slag.

SMSR, KLE Technological University Hubballi. Page 25


MSPL LIMITED
Sources of slag:

Following are the sources for formation of slag.

 Refractories and additions of flux


Examples: - Limestone (Flux), MgO (Refractories)
 Non-metallic
Examples: - Mn, S.
 In molten metal, oxidation of metals
Example: - Cr, V, S, Mn, Al, Ti etc.

Slag role in steel making process:

 Slag acts as collector for collection of impurities while steel producing.

 Slag helps in maintaining Iron content while processing to control oxidization

reduction of Fe.

 Slag acts as take up of sulphur.

 Slag facilitates as protector for re-oxidization of molten metal

 Slag helps to maintain temperature of molten metal

 Slag acts as barrier between molten metal and the atmospheric air containing nitrogen

and hydrogen

Manganese:

Manganese also impurity present in the iron ore, range from 0.2% to 1.5%. Excess
manganese is eliminated by acid slag. This Mn minimises the sulphur level by the formation
of manganese sulphide (MnS). It helps in the improvement of tensile strength. Manganese is
usually available in three forms. They are

1. Manganese ore
2. Ferro-manganese
3. Silico-manganese

In iron (Fe) production manganese ore is used where as in case of steel production Ferro-
manganese and Silico-manganese are used.

SMSR, KLE Technological University Hubballi. Page 26


MSPL LIMITED
Manganese content effects on steel:

When Mn used in the steel production following properties are going to enrich.

 Hot workability
 Chip formation
 Anisotropic microstructure
 Improvement in response to quenching temperature
 Weld-ability
 Wear resistance
 Strength

Applications of manganese:

 Manganese is used as substitute for nickel in austenitic stainless steel


 Carburizing steel
 Flat and rolled carbon steel
 HSLA steel (High Strength Low Alloy steel)
 Tool and Die steels

Carbon:

Carbon is impurity added to the iron to produce various kinds of steel. More amount of
carbon presence in the steel lead to increase the hardness of steel. Certain level of carbon
percentage improves the strength of the steel. Mainly carbon is used convert iron oxide in
iron. Remaining carbon will helps in the improvement of mechanical properties. Carbon
percentage present in various types of steels as follows

Carbon steel Carbon percentage


Low carbon steel 0.04-0.3%
Medium carbon steel 0.31-0.6%, Mn 0.06-1.65%
High carbon steel 0.61-1.5%
Table1: Carbon percentage in steels

SMSR, KLE Technological University Hubballi. Page 27


MSPL LIMITED
3.4 Different plants uses iron ore as raw material:
Following industries uses iron ore as its one of the crucial input for the process.

Beneficiation plants:

In beneficiation plants we considered five plants around the Hosapete region. The five
companies as follows:

SL.NO Plant name Location Products


Hematite lumps, sinter
1 RBSSN Kariganur, Hosapete fines, lumps, tailing fines,
iron ore concentrate.
2 Thakur industries Hirebhaganal, Koppal, Iron ore fines and lumps
Hospet
Jayalakshmi mining V. V. Puram, Bangalore Beneficated ore (fines &
3 industries lumps)

4 Star minerals Jambunatha road, MVS Beneficated ore (fines &


area, Hosapete lumps), Red oxide ore
Table2: Beneficiation plants details.

Operations carried out in beneficiation plants:

Following processes are carried out in beneficiation process at above mentioned companies.

Dry processing:

Iron ores containing iron percentage of 65% and above are subjected dry processing to get the
required size. In this operation iron ore undergo multistage crushing and screening to get
calibrated lumps i.e. -40mm to 10 mm used in blast furnace, ore size of -18mm to 6mm used
in sponge iron making and fines size of (-10 to 6mm) and products. Usually most of the non-
captive mines adopt this method.

Dry cum wet processing:

Dry cum wet process is used for further reduction of iron ore size. Usually some of the
captive iron ore mines use this to reduce the ore size to -10mm to 0.15mm i.e. used as
feedstock for the sinter plant.
SMSR, KLE Technological University Hubballi. Page 28
MSPL LIMITED
Wet processing:

Basically this kind of process is used for low or medium grade iron ore (60-62% Fe). For
hematite ore wet processing method adopted. Here iron ore undergo multistage crushing and
washing. Wet processing is used or from this process we can remove partial amount of
alumina and silica, which can be used in blast furnace.

Washing and wet scrubbing:

This kind of process is used to eliminate soft and friable masses, sand and clay particles
attached to iron ore lumps. Washing and scrubbing are used when iron ore contains coarse
and fines of hematite ore with sand and clay particles. Scrubbing process is useful when iron
ore lumps having cavity and porus, which, supposed to undergo series of removal steps to get
required iron ore.

Gravity concentration:

Gravity concentration method is employed for most important and heavy ores, which free
from gangue materials. Specific gravity of different iron ores as follows:

 Hematite – 5.1
 Magnetite -5.2
 Goethite – 4.2
 Siderite – 3.85

Specific gravity of gangue materials

 Chert and quartz – 2.65


 Limestone – (2.70 - 2.75)
 Clay – 2.65
 Gibbsite – 2.67

Effectiveness of this process mainly depends on crushing, screening grinding. Gravity


concentration method involves following methods:

SMSR, KLE Technological University Hubballi. Page 29


MSPL LIMITED
 Heavy media separation: This method is employed for coarse iron ore, whose size
range from -50mm to 3mm.
 Heavy media cyclone: This method is employed for fine iron ore, whose size range
from -6mm to 3mm.
 Jigging: This is method is employed for separating huge materials into light, medium
density, and heavy density fractions.
 Spirals: Spirals have wide applications in iron ore beneficiation. It can be employed
in roughing cleaning and scavenging. Size of iron ore varies between 1mm to
0.03mm. This equipment can handle 3tph.
 Multi gravity concentrator: This equipment is employed for the treatment of fines
and ultra-fines.
 Floatex density separator: This equipment is exclusively employed for iron ore
particles whose size is below 1mm.
 Water only cyclone: This equipment uses water as medium to bifurcate iron ore
depends upon specific gravity.

Magnetic concentration:

This method is employed to separate non-magnetic gangue materials from iron ore. This
method consists of three separators namely: Low intensity, medium intensity and high
intensity separators.

Low intensity separator: This method is basically used to separate low intensity coarse ore
size less than 6mm. Here they use rotatory drum separators along with permanent magnet or
electro magnets. This method designs for magnetic intensity 1000-2000 gauss.

Medium intensity separator: This method is employed for magnetic intensity of 2000-7000
gauss. This is usually employed for hematite.

High intensity separator: This method is employed for magnetic intensity of 7000-20000
gauss. Usually this method employed hematite and limonite ores.

SMSR, KLE Technological University Hubballi. Page 30


MSPL LIMITED
Pellet plants:

In order to understand the pellet plant process, we need to go through different pellet plants
across Hosapete region. Below listed companies produce pellets.

Plant
SL.NO Company name capacity Location Inputs (Raw Output(Final
(MTPA) materials) product)
Iron ore fines,
1 MSPL LTD 1.2 Halavarthi binder, flux, Pellets
water
Minera Steels & Yerabanahalli, Iron ore fines,
2 Power Pvt. Ltd 0.6 Ballari binder, flux, Pellets
water
Kunikere & Iron ore fines,
3 X-india Steels Ltd 0.8 Hirebaganal binder, flux, Pellets
Koppal water
Iron ore fines,
4 NMDC Pellet Plant 4.0 Donimalai binder, flux, Pellets
Ballari. water

5 Iron ore fines,


Janaki Corporation 0.6 Ballari binder, flux, Pellets/Sponge
Ltd water iron
Table3: Pellet plants details.

Pellet plant operation:

Below mentioned pellet making method adopted by the above listed companies. The pellets
can be produced in two ways. They are Travelling Grate process and Grate kiln process. The
process of pellet making involved four stages namely:

 Mixing
 Balling
 Induration
 Product handling

SMSR, KLE Technological University Hubballi. Page 31


MSPL LIMITED
Pellet plant operation:

Figure (1): Pellet making process

Mixing: In this process iron ore fines are blend with flux (limestone or dolomite) and
binder (bentonite) in a mixer and are mixed appropriately so that we can able to get uniform
mixing as well as bonding of fines. Also they add calculated amount of water for the bonding
as well as to maintain moisture content in mix.

Balling: Once the mix ready it is then fed to the pellet mill or pellet press to produce pellet
balls of size varies from 9 mm to 16 mm. The produced fresh pellets are called as green
pellets because they contain moisture content in it.

Induration: Once the pellets are produced they must dry because contain moisture, due to
this there is chance of sticking of pellets each other. Hence they dry the fresh pellets by using
preheated air. These dried pellets are fired or heated up to 1200°C, so we get pellets. Now
heated pellets are cooled by discharging cooled air.

Product handling: Here pellets of different size are separated and are used as per the
applications by steel making companies.

SMSR, KLE Technological University Hubballi. Page 32


MSPL LIMITED
Sponge iron plants:

In our study we consider eight sponge iron making plants, and their details as below.

Sl. Plant name Location Inputs (Raw Outputs (Final


No materials) products)

1 Dhruvdesh metasteel Koppal, Iron ore, coal, Sponge iron


Pvt. Ltd. Hosapete dolomite
Sri kalahasti Iron ore, coal,
2 Pushpit steel Pvt. Ltd. Andrapradesh dolomite Sponge iron

3 ILC industries Koppal, Iron ore, coal, Sponge iron


Hosapete dolomite

4 Trivista Steel & Power Hireboganhal Iron ore, coal, Sponge iron
Ltd. Koppal dolomite
Iron ore, coal,
5 Sunvik Steels Pvt. Ltd Tumkur dolomite Sponge iron

6 MS Metals & Steel Pvt. Koppal Iron ore, coal, Sponge iron
Ltd dolomite

7 HariKrishna Metallics Hireboganhal Iron ore, coal, Sponge iron


Koppal dolomite

8 Agni Steels Ingur Iron ore, coal, Sponge iron


Tamil Nadu dolomite
Table4: Sponge iron plants details.

SMSR, KLE Technological University Hubballi. Page 33


MSPL LIMITED
Sponge iron making process:

In the process of sponge iron making, initially we need to select quality materials. Raw
materials required for sponge iron making as follows: iron ore (Iron, SiO2, CaO, Al2O3, MgO,
Sulphur and Phosphorus), coal (Fixed carbon, volatile matter, ash, and moisture), and
dolomite (MgO, CaO and SiO2). All the raw materials are feed to the rotary kiln; here raw
materials are converted into sponge iron. Once the sponge iron is come out from the rotary
kiln, it is cooled at 100°C by external water cooling. In the next operation we need check the
quality of sponge iron; if it is matches as per the quality norms then we can go for screening
of sponge iron. If is not there as per the quality norms then it is collected in an intermediate
bin and send to rotary kiln once again for the process so that quality of product will matches
the quality standards. There is a house called product screening house, where with the help
of magnetic separator we can separate Lumps and fines. These are collected in bunkers and
are dispatched as and when requirement of sponge iron needed.

3.5 Plant visit to VIOM and RBSSN:


In the process of learning we can learn the things in two ways namely theoretically and
practically. As a part of project work, Mr. Sandeep Chavan my external guide or mentor
taken me to see the how iron ore are extracted from the mountains i.e. mining area. I visited
Vysanakere Iron Ore Mines which is mining area of MSPL LTD and beneficiation plant &
mining area of RBSSN.

Vysanakere Iron Ore Mines:

It is the one of high grade iron ore available mine in the Hosapete mining belt, which is 15km
from the Hosapete. During my visit seen different iron ore types, what is the importance of
those iron ores? Also I visited laboratory of MSPL where they test the iron ore quality,
amount of iron and other elements present and what percentage they exist. I understood how
exactly iron ore is tested. In MSPL before they selling the iron ore in E-auction they test the
iron ore and find required compositions, grade etc., and same information is update in the E-
auction website so that buyer of iron ore comes to know that which type of iron ore and their
detailed information. That will help to buyer for buying iron ore. This plant visit helped me to
understand the iron ore chemistry, types, availability, E-auction, how to test the quality of
iron ore and in preparing questionnaires.

SMSR, KLE Technological University Hubballi. Page 34


MSPL LIMITED
RBSSSN:

On the same day I visited RBSSN mine and beneficiation plant, which located near
Sanklapur, Kariganur, Hosapete. In this mine also I come to know that different grades of
iron, how it is mine? What are the equipments required for mining and how they work?
While mining iron ore may come in forms such powder, bodrus, big element bodrus. In the
beneficiation plant basically iron ore is washed to eliminate silica i.e. sand particles. In the
process iron ore is washed with huge amount water so that sand particles are eliminated.
Beneficiation process is one of the cheapest processes to eliminate silica, but the problem is
availability of water viz. process consumes plenty of water. I understood that beneficiated ore
is mostly prepared in steels making units.

3.6 Blast furnace and sinter furnace:

In this project we need understand the how exactly furnaces work viz. what type of iron ore
also influence on the blast furnace performance.

Blast furnace:

Figure2: Blast furnace

SMSR, KLE Technological University Hubballi. Page 35


MSPL LIMITED
Now we can know the working of blast furnace. Basically iron ore; limestone and coal are
used as input materials for blast furnace. Initially blast furnace is preheated and iron ore,
limestone and coal in the form of coke feed into to the blast furnace from top of the furnace.
From the bottom of furnace hot air is blown into the furnace. This hot air is reacting with
coke to form carbon monoxide which will react with iron oxide to get iron and carbon di-
oxide. Limestone is added to provide excess carbon monoxide for ease of reduction of iron
oxide and this limestone helps in formation slag which floats on top of the furnace.

Advantages:

 Produces steel at very low cost


 Automation of blast furnace is easy
 Along with steel making power can also be generated

Sintering furnace:

Working of sintering furnace as follows input materials are made as powder and are feed into
the furnace. Powder size would be very fine. The base mix from the beneficiation plant are
collected from the conveyor and mixed with the required moisture and flux as per the
requirement of the blast furnace. Its transferred into trolley cars, which move with help of
rollers, it moves into the furnace (burners). Here the top layer of the base mix is heated at
1200C. With the help of Waste gas blower fans, the air is sucked from the bottom of the car
to ensure thorough combustion takes place. The waste gasses are blown out with the help of
ID impeller fan to the surrounding. It is dumped in form of cakes at the sinter cooler where
the cooling array rotates at a speed of close to 1 revolution per hour. The heat lost is
recovered by the Waste Heat Recovery System (WHRS) to produce steam which is used in
other plants and energy production.

3.7 Other factors influencing on iron ore price:

Coal:
Coal is one of the fossil fuel available in earth crust, which is in coal beds and coal seams.
Coal is exists in following forms: Peat, Lignite, Bituminous coal, Anthracite and Graphite.
Among all the forms of coal, anthracite coal is much harder due to exposure in high
temperature and pressure. Constituents present in coal are carbon, oxygen, hydrogen nitrogen
and sulphur. Coal has plenty of applications namely refining of metals, production of heat
SMSR, KLE Technological University Hubballi. Page 36
MSPL LIMITED
and electricity. India produces 678 MT of coal every year. Calorific value of coal is 15000-
27000 KJ/Kg.

Figure3: Bituminous & Anthracite coal

On an average, by burning of one ton coal produces 22.14 GJ.

Coke:

Figure4: Coke

Coke is the hydrocarbon fuel formed by heating coal in the absence of air. Coke basically
grey in colour, hard and porous in nature. Coke can formed in two ways, namely naturally &
synthetically. Coke can be used as fuel as well as reducing agent in the process of smelting
iron ore using blast furnace. Specific gravity of coke is to be 0.77. Calorific value of coke is
28000-31000 KJ/Kg. Some water is added to for easy of transportation, it is normally 3%-6%
of its mass.

SMSR, KLE Technological University Hubballi. Page 37


MSPL LIMITED
Bentonite:

Bentonite is clay, used as binder, purification, absorbent, ground water barrier, medical usage
and drilling mud. Types of bentonites are sodium bentonite, calcium bentonite, potassium
bentonite and aluminium bentonite. Mainly there are two types of bentonites namely sodium
and sodium bentonite. It is used as binder in case of pellets and sponge making.

Figure5: Bentonite

Limestone:

Figure6: Limestone Figure7: Dolomite

Limestone is sedimentary rock consist of calcium carbonate in the form of calcite. Limestone
consists of calcium carbonate, feldspar, siderite, pyrite, clay minerals. It can be used as flux
in metal refining methods, smelting process. This limestone mix with unwanted materials,
(impurities) and forms slag, which can be removed easily.

Dolomite:

Dolomite is an anhydrous carbonate mineral made up of calcium magnesium carbonate.


Alternate name for dolomite is dolostone. Dolomite is used as sintering agent and flux in case
of metal processing.

SMSR, KLE Technological University Hubballi. Page 38


MSPL LIMITED
Water:
Water is one of the important requirements in the beneficiation plant. 11300gallons of water
is needed to beneficiate one ton of iron ore. If availability of water is more, than beneficiation
of iron ore is economical.(1 gallon = 3.78541 litres)

Figure8: Iron ore washing in beneficiation process

3.8 Steel policy 2017:

Steel policy 2017 is one of the major influencer of booming iron industries, this policy plays
crucial role in pricing of iron ore and steel. Some of the key points of steel policy 2017 listed
below.

 Currently India is third largest steel maker of the world. The steel section gives 2% of India
GDP and facilitates jobs for 5 Lakh people

 In the year 2016-17 India has achieved 100MT production of steel. The new steel policy
wants to achieve 300MT steel producing capacity by 2030. The policy seeks to increase
consumption of steep and major segments of infrastructure, automobiles and housing

 At present, for head steel utilisation in India is 60kg. The policy look for to increase it to
160Kg by 2030

 The government will strive to take all policy measures to ensure availability of raw material
Iron Ore at competitive rates

SMSR, KLE Technological University Hubballi. Page 39


MSPL LIMITED
Chapter4: Data analysis and interpretation
The data is collected with the help of telephonic interview by using set of questionnaire and
opinions of the employees for particular industries. Obtained data is analysed with the help of
industry experts, BIS, Associations of beneficiation, pellet and sponge iron plants. With the
help of tables, pie charts and bar charts outcomes are expressed. Results are shown below.

4.1 Beneficiation plants:

Sl.No Question Response Remarks


 RBSSN
 Thakur industries
1 Name of companies  Star minerals Beneficiation plants

 Kej minerals
2 Manufacturer/supplier Beneficiated ore End product beneficiated ore
3 Monthly iron ore 80000(RBSSN), 50000(Ti), Average monthly requirement
requirement(MT) 60000(Sm) & 80000(Kj) of iron ore could be 67500.

4 Type of ore procurement Iron ore fines, lumps, ROM All type of iron ore prefered

5 Ratio of blending iron ore (61-62 lumps, 58-60 fines), At (60-62)% Fe best for blend
(60-62 lumps& fines)

6 Grade of iron ore (Fe %) (56-60, 50-55), 56-60 Fe %age of 56-60 is best for
beneficiation plant

7 Impurity range allow in 5-8, 9-12, 5-8, 5-8, 5-8 Upto 6% impurity allowed in
purchase (%) BP

8 Standard purchase practice No, Yes, Yes, Yes, Yes Companies prefer to purchase
iron ore by standard practice

9 Monthly production (MT) 150000(RBSSN), Average monthly production of


50000(Ti), 80000(Sm) & beneficiated ore could be
80000(Kj) 100000

10 Premium for balanced iron 30-60, 100 & above For good chemical & physical
ore(Rs) properties companies ready to
pay premium of Rs.100
&above

11 Chemical composition of Fe(0-55/55-58, 0-58), Minimal amount of impurities


iron ore(%) SiO2(4, 3.5), Mn(0.03- will reduces extra cost to
0.04), P(0.06, 0.06), purification, especial SiO2, P.
LoI(2.8, 2.6),

SMSR, KLE Technological University Hubballi. Page 40


MSPL LIMITED
Moisture(2,2max)

12 Homogeneous ore procured Easy to beneficiate ore Less %age of silica reduces the
benefit to process water usage and power

13 Expected price hike(Rs/ton) (500-600), (400-450) Expected price hike of iron ore
Rs.400-600.

14 Measures to compensate Sample tested based on test Sample test and logistics
price variations results and logistics viability helps to maintain price
viability, variations

15 Reasons for purchasing at Uniformity & homogenity As iron ore is good which
high price of ore with less reduces the additional
contamination, processes so that cost as well as
moisture,Physical & impurities will reduce.
chemical properties

Table5 : Data analysis in beneficiation plant.

Monthly Iron ore requirement at


Beneficiated plants (MT)

RBSSN
80000 80000 Star minerals
Thakur industries
60000
Kej minerals
50000

Chart1: Monthly iron ore requirement at beneficiation plants

We come to know that, average monthly requirement of iron ore could be 67500 MT.

Monthly production of beneficiated ore (MT)

80000 RBSSN
150000
Thakur industries
80000
50000 Star minerals
Kej minerals

Chart2: Monthly production of beneficiation plants

According our study, average monthly production of beneficiated ore is 100000 MT

SMSR, KLE Technological University Hubballi. Page 41


MSPL LIMITED
4.2 Pellet plants:

Sl.No Questions Response Remark


1 Name of companies MSPL LTD, NMDC LTD, Pellet plants
X-India, Janaki
corporation, Minera Steels,
2 Manufacturer/supplier End product is pellets
Pellets
3 Monthly iron ore 108000(MSPL),
Average monthly
requirement(MT) 60000(Ms),
requirement of iron ore is
100000(NMDC),
83500.
100000(Xi), 50000(Jc)
4 Type of ore procurement Iron ore fines, Iron ore
Only iron ore fines
fines
5 Ratio of blending iron ore At (60-62)% Fe best for
63-65, 62&>
blend
6 Grade of iron ore (Fe %) Fe %age of 61-65 is best
61-65, 61-65 Fe
for Pellet plant
7 Impurity range allow in
purchase (%) Upto 6% impurity allowed
5-8, 5-8, 5-8, 5-8, 5-7
in PP

8 Standard purchase practice Companies prefer to


Yes, Yes purchase iron ore by
standard practice
9 Monthly production (MT) 108000(MSPL), Average monthly
60000(Ms), 100000(Xi), production of pellets could
50000(Jc), 100000(NMDC) be 65750
10 Premium for balanced iron For good chemical &
ore(Rs) physical properties
100 & above
companies ready to pay
premium of Rs.100 &above
11 Chemical composition of iron As minimum amount
ore(%) Fe(63-65, 62&above), Gangue will directly reduces
P(0.05, 0.05), Mn(0.25, the additonal cost of
0.35), LoI(2.8, 3), purification. Also improves
Al2O3(3,2.5), SiO2(4,3) product quality
12 Components which affect the High percentage of SiO2 & It reduces comnsumption
quality of product P, LoI water, power, fuel and
minimises the wastage
13 Homogeneous ore procured Quality of pellets improves To remove Impurities
benefit to process & reduces wastage, additional process must be
Reduces power and fuel done which will cause extra
consumption cost.
14 Expected price hike(Rs/ton) 300, 400, 700, 600 Expected price hike of iron
ore Rs. 300-700.
15 Measures to compensate price Based on sample test
Sample test and logistics
variations results, Logistics viability,
viability helps to maintain
medium grade ore
price variations
16 Reasons for purchasing at high Good yield, improve the Once company procure
price furnace life, to lower the quality of iron ore which
fuel consumption like coke, gives better end products
SMSR, KLE Technological University Hubballi. Page 42
MSPL LIMITED
coal & furnace oil. and improves the life
furnace and lowers the fuel
consumption.
Table6 : Data analysis in pellet plants

Monthly Iron ore requirement at pellet


plants (MT)
MSPL LTD
100000 108000
Minera steels
X-India steels
50000
Janaki corporation
60000
100000 NMDC LTD

Chart3: Monthly iron ore requirement at beneficiation plants

We come to know that, average monthly requirement of iron ore could be 83500 MT.

Monthly production of pellets (MT)

100000 108000
MSPL LTD
Minera steels
50000
60000 X-India steels
Janaki corporation
100000 NMDC LTD

Chart4: Monthly production pellet plants

According our study, average monthly production of pellets is 65750 MT

SMSR, KLE Technological University Hubballi. Page 43


MSPL LIMITED
4.3 Sponge iron plants:
Sl.No Question Response Remarks
1 A-one iron & steel pvt ltd,
Harekrishna metallics,
Vanya steels, ILC iron &
steels, VRKP steels
Name of the company &alloys pvt ltd, Agni Iron End product is sponge iron
& steels pvt ltd, Dhruvdesh
meta steels, Baba akila sai
jyothi industries, Jeevaka
industries pvt ltd.
2 Average monthly requirement
Manufacturer/supplier Sponge iron of iron ore is 12700.45
3 10080(Aispl), 13632(Hm),
13392(Vs), 5000(Agni),
Monthly iron ore 13632(ILCis), Mostly prefered lumps and
requirement(MT) 15336(VRKPsapl), pellets
13392(BASJI), 16740(JIpl),
13100(DDms)
4 Type of ore procurement Pellets, Iron ore lumps At (60)% Fe best for blend
5 Fe %age of 56-65 is best for
Ratio of blending iron ore 56-60, 61-65,
sponge iron plant
6 Impurities %age depends on
Grade of iron ore(Fe%) 56-60, 61-65,
Fe %age
7 Impurity range allow in Companies prefer to purchase
5-8, 9-12, 13-16
purchase(%) iron ore by standard practice
8 Average monthly production
Standard purchase practice Yes
of sponge iron could be 8669
9 3600(Agni), 9600(Hm),
10800(Aispl), For good chemical & physical
10224(BASJI), 9000(JIpl), properties of iron ore
Monthly production (MT)
7200(Vs), companies ready to pay
10800(VRKPsapl), premium of Rs.100 &above
9600(ILCis), 7200(DDms)
10 High %age of Fe and less
Premium for balanced iron
100 & above %age Al2O3, SiO2, P will
ore(Rs)
yield good product
11 Fe(61-65, 58-60, 58-62, 63)
Chemical composition of Al2O3(2.5, 2.6, 2.4 2.6) Impurities directly affect the
iron ore(%) SiO2(4.5, 4.1, 5, 6, 3.5 ) cost of production.
P(0.054, 0.058, 0.055, 0.06)
12 Easy to reduction, less cost
production, low fuel
consumption, improves
Homogeneous ore procured furnace life, helps in
End product is sponge iron
benefit to process producing quality products,
yields higher amount of
iron, no problems od silica
and alumina.
13 Size(8mm-20mm), TI(83+, High TI and less(<5%) AI
Physical properties prefer in 80+, 84+, 81+, 73+), will give better physical
iron ore AI(<5, 1.2, 0.9, 1.6, 1.1, ), properties and size of 8-
20mm best prefer in all the

SMSR, KLE Technological University Hubballi. Page 44


MSPL LIMITED
industries.
14 Expected price hike of iron
Expected price hike(Rs/ton) 450, 400, 600, 500, 550
ore Rs. 400-600.
15 Based on sample test, Sample test and logistics
Measures to compensate
availability of iron ore, viability helps to maintain
price variations
logistics viability. price variations
16 High grade iron, reducing
cost of removal of High content of Fe, less
impurities, less impurities, optimum use of
Reasons for purchasing at consumption of fuel, fuel, Good physical and
high price required physical and chemical properties directly
chemical properties, low influencing on high price and
impurities, high TI, need make companies to buy at
for high grade iron ore and high price.
easy to reduction.
Table7 : Data analysis in sponge iron plants

Monthly Iron ore requirement at sponge iron


plants (MT)
16740 13632 ILC iron & steel
10080 A-one iron & steels pvt ltd
13392
13632 Harekrishna metallics
13100 Vanya steels
5000 13932 VRKP Steels & alloys pvt ltd
15336

Chart5: Monthly iron ore requirement at sponge iron plants

We come to know that, average monthly requirement of iron ore could be 12700.45 MT.

Monthly production of sponge iron (MT)


ILC iron & steel
9000 9600 A-one iron & steels pvt ltd
10224 10800
Harekrishna metallics
7200
9600 Vanya steels
10800 7200 VRKP Steels & alloys pvt ltd

3600 Agni iron & steels pvt ltd


DhruvDesh meta steels

Chart6: Monthly production of sponge iron at sponge plants

According our study, average monthly production of sponge iron is 8669 MT

SMSR, KLE Technological University Hubballi. Page 45


MSPL LIMITED
Chapter5: findings and conclusion

Based on my survey and discussion I found the following key points with respect to
particular industries.

5.1 Beneficiation plants:

Findings:

 Procurement souly based on availability of high grade and medium grade ore
at economic price.
 Logistic costs is major factor contribute towards final gain/loss(depends upon
availability of the vehicles in the market, diesel price fluctuation )
 Road conditions as major mines located at mine head transporter costs higher
rate for transportation.
 Domestic prices are driven and keep on fluctuation, only limited miners follow
standard price set practice.
 Slime is a by-product of beneficiated ore which need to be handled carefully
to prevent environmental damage (slime can be offered to brick industry and
cement plants to produce more space for future operation).

Conclusion:

 Silica, Phosphorus, Manganese and other contaminations will increase to


beneficiation cost.
 Water scarcity is going to hamper the beneficiation process hence planning water
supply and sources need to be fixed before installing beneficiation plant.
 Beneficiation plants need to focus newer technologies to bring more efficiency in the
process.
 While bidding /purchase, depends upon quality of ore Rs. 100 to 200 premium can be
given by beneficiation plants.

SMSR, KLE Technological University Hubballi. Page 46


MSPL LIMITED
5.2 Pellet plant:

Findings:

 Pellet plants prefer iron ore fines for their operations


 Pellet plants wont prefer lumps as it incurs extra crushing cost for Rs. 50/ton
 Pellet plants prefer minimum of impurities in iron ore
 Plants always follow standard procedure as per their quality department inputs during
the time procurement.
 For good chemical & physical properties of iron ore, Pellet plants are ready to pay
premium of Rs.100 & above/ton iron ore.
 Most of the pellet plants who don’t have beneficiation plant, prefer chemical
composed of iron ore: Fe (62-65%), Al2O3 (2.75%), SiO2 (3.5%) and P (0.05%), Mn
(0.3%) and LoI (2.9%).
 Quality ore reduces grinding cost.
 Focused quality may bring down the iron ore, bentonite, dolomite cost.
 High percentage of Fe content and less percentage of gangue materials will yield good
amount of iron intern consumes less amount of fuel and power.
 At present according to the Pellet plants Rs.150-300/ton would be the price hike of
iron ore in future.
Conclusion:

From the insights of survey, companies and industry expert we come to know that iron
content of 58%-65% and minimum impurities will yield quality of product. For better
physical and chemical properties of iron ore most of the companies are ready to pay premium
of Rs.100 & above. Also companies expect price hike of iron ore would be Rs. 300-700/ton
in future. Quality of iron ore directly influence on end product, life of rotary kiln, blast
furnace, fuel and power consumption and hence cost of production. Steel policy 2017 has
significant effect on iron intern iron ore.

SMSR, KLE Technological University Hubballi. Page 47


MSPL LIMITED
5.3 Sponge iron plants:

Findings:

 Sponge iron plants prefer iron ore lumps and pellets for their operations
 Companies follow standard practice or procedure to buy the iron ore
 For good chemical & physical properties of iron ore, Sponge iron plants are ready to
pay premium of Rs.100 & above
 Most of the sponge iron plants prefer chemical composition of Fe (58-65%), Al2O3
(2.525%), SiO2 (4.62%) and P (0.05675%).
 High percentage of Fe content and less percentage of gangue materials will yield good
amount of sponge iron intern consumes less amount of fuel and power and cost of
production.
 Procurement of chemically stable or homogeneous iron ore would result into Easy to
reduction, less cost production, low fuel consumption, improves furnace life, helps in
producing quality products, yields higher amount of iron, no problems of silica and
alumina.
 Physical properties of iron ore should contain tumbling index of 75+ and abrasion
index of less than 5% and particle size of 5mm to 20mm (5-20 & 10-20mm)prefer in
sponge iron plants
 According to the Sponge iron plants Rs.400-600/ton would be the price hike in iron
ore lumps of 5-50mm & 10-20mm which they usually buy.
 Sponge plants procure iron ore limps and iron ore pellets at higher price for the
following reasons: high content of Fe, less impurities, efficient use of fuel, better
physical and chemical properties directly influencing on high price and make
companies to buy at high price.

Conclusion:

As per the Sponge iron industry chemical composition of which they prefer for iron ore
lumps Fe (58-65%), Al2O3 (2.525%), SiO2 (4.62%) and P (0.05675%) and pellets with Fe%
above 62 will best suits for the production of sponge iron. Procurement of chemically stable
or homogeneous iron ore would result into Easy to reduction, less cost production, low fuel
consumption, improves furnace life, helps in producing quality products, yields higher
amount of iron, no problems of silica and alumina. Companies procure iron are at higher
price for the following reasons: high content of Fe, less impurities, optimum use of fuel,
Good physical and chemical properties directly influencing on high price and make
companies to buy at high price. For good chemical & physical properties of iron ore, Sponge
iron plants are ready to pay premium of Rs.100 & above/ton. Price hike Rs. 400-600/ton in
future expected by sponge iron industry.

SMSR, KLE Technological University Hubballi. Page 48


MSPL LIMITED
Chapter6: Conclusion

According to my study in three different industries, as higher the Fe percentage lower be the
impurities. Companies always take cautions for chemical and physical properties of iron ore
so that yields higher productivity, reduces impurities, consumes less fuel (coke coal), power,
water, additives and binders which indirectly minimises the cost of production and increases
the quality of product. Impurities like silica, alumina, phosphorus, sulphur, manganese plays
significant role in quality of iron ore, price of iron ore and cost of production in iron ore
industries. Other materials like coke, coal, water, also influence on iron ore price. In order to
get chemically and physically stable or homogeneous iron ore, companies are ready to pay
premium of Rs.100 & above. Iron ore industries expect in future there could be price hike of
Rs.300-700/ton of iron ore.

SMSR, KLE Technological University Hubballi. Page 49


MSPL LIMITED
Chapter7: Bibliography & References

1. www.mspllimited.com
2. www.en.wikipedia.org/wiki/MSPL_Limited
3. www.wikipedia.com
4. www.sciencedirect.com
5. www.springer.com
6. T. UMADEVI, Prasanna KUMAR, Naveen F. LOBO, M. PRABHU, P.C.
MAHAPATRA and Madhu RANJAN, Influence of Pellet Basicity (CaO/SiO2) on
Iron Ore PelletProperties and Microstructure.
7. D. BURCHART-KOROL, J. KOROL, A. SMOLIŃSKI, CHEMICAL
COMPOSITION ANALYSIS OF RAW MATERIALS USED IN IRON ORE
SINTER PLANTS IN POLAND
8. Pavlína Pustějovská 1), Simona Jursová 2)* ,RESEARCH ON HIGH
TEMPERATURE PROPERTIES OF IRON ORE MATERIALS
9. Ocheri C1* and Mbah AC2, Reduction of Sulphur Content of AGBAJA Iron Ore
Using Sulphuric Acid(H2SO4)
10. Kusno Isnugroho *, David C. Birawidha, The production of pig iron from crushing
plant waste using hot blast cupola
11. Abraham J. B. Muwanguzi,1, 2 Andrey V. Karasev,1Joseph K. Byaruhanga,2 and
P¨ar G. J¨onsson1, Characterization of Chemical Composition andMicrostructure of
Natural Iron Ore fromMuko Deposits.
12. Wu Yunyun, Effect of different parameters on the direct reduction processes of
natural iron oresfrom Uganda.
13. BINAYAK MOHAPATRA(10504004) DHARANIDHAR PATRA(10504021) ,
Study of Reduction Behaviour Of Iron Ore Lumps.
14. M. DUDEK, THE MODEL FOR THE CALCULATION OF THE DISPERSED
IRONORE RESOURCE PURCHASE COST IN THE WORLD
CLASSMANUFACTURING (WCM) LOGISTICS PILLAR CONTEXT .
15. Rajnish Kumar (Roll No: 211MM1197), STUDIES ON THE PHYSICAL
PROPERTIES AND REDUCTION-SWELLING BEHAVIOR OF FIRED
HAEMATITE IRON ORE PELLETS .

16. Roy R. LOVEL,1) Keith R. VINING2) and Mark DELL ’AMICO3, The Influence of
Fuel Reactivity on Iron Ore Sintering.

17. Steel policies 2012, 2017

SMSR, KLE Technological University Hubballi. Page 50


MSPL LIMITED
Annexure-I : Questionnaires:
1 Your firm is manufacturer/supplier of?
a. Beneficiated ore b. Pellets c. Sponge iron

2 What is the monthly requirement of iron ore?

3 Type of major ore procured


a. Iron ore fines b. Iron ore lumps c. ROM d. Beneficiated ore

4 In which ratio you prefer to blend different grade iron ore to get appropriate
quality of iron ore:

5 As a firm, which one you preference


a. Price of iron ore. b. Quality of iron ore c. Both a & b d. None of these

6 As a firm, grade of iron ore would you prefer to purchase?


a. 50-55% Fe b. 56-60% Fe c. 61-65%Fe d. 66% & above Fe

7 As a firm, average range of impurities you may accept while procurement of


iron ore:
a. 5-8% b. 9-12% c. 13-16% d. 16% & above

8 Do you follow any standard practice or benchmark process during the time of
purchase?
a. Yes b. No

9 What is the monthly production of beneficiated ore/pellets/sponge iron?

Beneficiation plants

10. Chemical composition you prefer while purchasing of Iron ore from different mines

Item Standard Range/against standard


Fe%
SiO2%
Al2O3%
Mn%

SMSR, KLE Technological University Hubballi. Page 51


MSPL LIMITED
P%
S%
LoI%
Moisture
Reduciblity
Size
11. How much premium you are ready to pay for the balanced chemical & physical properties
which suits to your requirement

a. Rs. 10-30 b. Rs. 30-60 c. Rs.60-100 d. Rs. Above 100

Pellet plant

12. How the chemically stable/homogeneous ore procured benefit to your process please
elaborate?

13. Chemical composition of iron ore you prefer during the time of procurement?

Component Percentage
Fe
SiO2
Al2O3
P
Mn
S
LoI
14. Components which affect quality of pellets:

Components Rise Drop


Fe%
SiO2%
Al2O3%
P%
S%
Mn%
LoI

SMSR, KLE Technological University Hubballi. Page 52


MSPL LIMITED
Sponge iron ore

15. Chemical composition you prefer for sponge iron while purchasing of Iron ore from
different mines

Elements Range/against standard


Fe%
SiO2%
Al2O3%
MgO%
P%
S%
CaO%
Moisture
Size
16. Physical properties you prefer while purchasing of Iron ore from different mines

Item Standard Range/against standard


Fines (size 0 to ----)
Tumbling Index
Abrasion Index
LTBT Index
Decrepitation Index
17. How the chemically stable/homogeneous ore procured benefit to your process please
elaborate?

18. Specify the reason why firm purchases iron ore at higher price

19. According to you, in future what could be the expected price hike of iron ore?

20. What are the measures you take to compensate price variations of iron ore during
procurement?

SMSR, KLE Technological University Hubballi. Page 53