SteelMint Events

Category: Blog

  • Megatherm Green Induction Furnace Ensures 8% Increase in Productivity

    Megatherm Green Induction Furnace Ensures 8% Increase in Productivity

    Mr. Satadri Chanda, Executive Director of Megatherm since 2016, shared his views about the induction furnace market in Bangladesh and future prospects of the company’s new energy-efficient “green induction furnace” in the emerging steel industry of this country. Below is an edited excerpt from his recent interview to SteelMint.

    Q1. How many induction furnaces for steel melting are operational in Bangladesh? What is the share of Megatherm in the same?

    A. With respect to steel melting, there are around 90-95 induction furnaces currently operational in Bangladesh, while around 4-5 “green IFs” are on the verge of being commissioned in the next 5-6 months. In Bangladesh, most of the mills have replaced their old smaller furnaces with larger 15-20 tonne furnaces in the last five years, apart from new furnaces being set up by the existing players.

    Coming to Megatherm, it has about 50 induction furnaces operational in Bangladesh considering many old furnaces have been replaced by new ones.

    Q2. What are Megatherm’s steel capacities in the pipeline?

    A. We have over half a dozen new IFs in the pipeline for Dhaka and Chittagong mills over the next 12-18 months.

    Q3. When was Megatherm’s new Green Furnace launched in the Asian market and how is this Green Furnace better than its predecessors?

    A. Launched in late 2017, the Green Furnace has been very successfully received in the global market, including India and Pakistan, and now it is making strides in Indonesia, Iran, Saudi Arabia and other markets. It will be formally launched in the Bangladesh market this year.

    Green furnace guarantees an energy consumption of 460 kWh/t to 470 kWh/t (using mill heavy/end cutting scrap at 1600°C), which is significantly more efficient than the consumption of 515 – 545 kWh/t recorded by its predecessors and 500 – 510 kWh/t recorded by latest models of other brands.

    Apart from this, the Green Furnace also guarantees up to 8% increase in productivity compared to the previous record-holding furnaces without the need for furnace capacitor switching as well as a the sustained power factor of over 98% throughout the heat cycle. The load factor has been improved to 95% by increasing power pick-up.

    Q4. Since when have you planned to start marketing Green Furnaces in Bangladesh. How has it been received so far?

    A. While some green furnaces have been sold to Bangladesh mills for observing results and customizing to suit Bangladeshi operating conditions, the Green Furnace will be formally launched during the event. We have recently installed green induction furnaces of 20 T each in Salam Steel, Vikrampur Steel and Montana Steel which have all been commissioned, while another green IF of 20 T at Bandar Steel is about to be commissioned in the first half (H1) of 2020.

    Q5. With Megatherm currently being more dominant among Dhaka-based steel mills with up to 20T furnaces, is there any conscious plan for growing Megatherm’s share in the larger mills of Chittagong?

    A. Megatherm has always depended on product superiority and word of mouth, to ensure sales. Strong active marketing has not been Megatherm’s mode of operation. In all regions where one Green Furnace has been commissioned, we have got a majority market share. Examples include Durgapur, Raipur, Champa, Pakistan and very recently Hyderabad. We expect the same with Chittagong.

    Q6. In your view, what are the major challenges being faced by Bangladesh-based steel mills with regard to melting furnaces?

    A. Bangladesh steel mills are not run as efficiently as plants based out of India and some other regions. This further increases the need to have a more energy-efficient and productive furnace.

    The Megatherm Group is a renowned manufacturer of industrial equipment for metal heating and melting and has its presence across industries like steel, foundry, forging and power. The company is one of the leading players in the induction furnace installations space for steel manufacturers across South Asia and other regions.

    To know more on growing steel melting capacities in Bangladesh and challenges ahead, book your seat at SteelMint’s 3rd Steel and Raw Material Conference, Bangladesh and get a chance to hear views of renowned industry participants from across the globe. The conference is being organized on 23rd-24th March, 2019 in Chittagong, Bangladesh.

  • Iron Ore Auction: What We Interpret From Indian Minerals Laws Amendment Ordinance 2020?

    Iron Ore Auction: What We Interpret From Indian Minerals Laws Amendment Ordinance 2020?

    India government has notified the amended mining law which allows the seamless transfer of regulatory approvals like forest and environmental clearances to new owners of operational iron ore mines. This ordinance will come in effect from 10th Jan 2020.

    Download Ordinance Copy

     

    Our Interpretation of the Mineral Law Amendment 2020

    1. Ordinances are laws that are promulgated by the President of India on the recommendation of the Union Cabinet, which will have the same effect as an Act of Parliament. They can only be issued when Parliament is not in session. They enable the Indian government to take immediate legislative action

    2. State government can auction mining leases before expiry of lease period

    3.Successful bidder of the expiring mining leases through auction are deemed to have acquired all rights, clearances, approvals vested with previous bidder for a period of 2 years

    4. The transfer is subject to condition that successful bidder will apply and acquire new licenses, clearances and approvals within 2 years from the date of grant of new lease

    5. This means successful bidder has to operate at EC limits granted to previous lessee for a period of 2 years (state government has emphasized to produce at-least 80% of previous year’s production)

    6. Successful bidder can start operations on the land in which mining operations were carried out by previous lessee for a period of 2 years.

    Market expects the amendment to mining law will ease transition of iron ore mines to winning bidder post auction of the blocks whose leases are set to expire in March. This will limit the scope of disruption in iron ore supply subject to things goes as per schedule.

    To learn how the mines auction 2020 unfolds, be a part of SteelMint Events’ 4th Indian Iron ore, Pellet and DRI Summit which is scheduled on 2-3 March 2020, in Hotel LaLiT, New Delhi.

  • Bangladesh: Payra Port Authority Invites Bids for Developing Coal Terminal

    Bangladesh: Payra Port Authority Invites Bids for Developing Coal Terminal

    Government of Bangladesh has intended to develop a coal terminal at Payra port to facilitate coal movement for its upcoming power station, by appointing private participants to carry out the expansion work.

    Payra, the third sea port of Bangladesh situated on the bank of Rabnabad channel under Kalapara, is located in the sub-district of Patuakali. The port was inaugurated 19 Nov’13 to assist in transportation of various commodities including food grain, cement, fertilizer and other bulk containers to Dhaka and other destinations through internal waterways.

    However, in order to cater the anticipated rise in coal demand of the power station proposed by Bangladesh-China Power Company, the government has planned expansion of the port by envisaging a dedicated coal terminal.

    The selection of the private partners for developing the terminal would be carried on the basis of International Competitive Bidding (ICB), for which interested bidders have been asked to give their consent.

    The Payra port authority has stated that the bidders are supposed to design, build, finance, operate and maintain the coal/bulk terminal. In addition, it was specified that the pertaining job should be transferred back to the owner based on the terms and conditions set out in the contract.

    The port authority has highlighted that that bids are to be submitted on or before 1200 hours BST, 17 Feb’2020, and should be accompanied by a bid security amount of BDT 240 Million.

    Recent Development:

    Payra port had received its coal consignment on 19 Sep’19, where a vessel laden with 20,000 MT coal reached the jetty of the Payra port.

    The coal was bought from Indonesia by the Payra power plant which has been build under the flagship of Bangladesh-China Power Company (BCPCL). Incidentally, it was the first ever shipment for coal-based power plant in the history of Bangladesh.

    Officials from the Payra power plant have reported that the first unit of the 1320 MW power station would be commissioned on 27 Jan’2020. The plant is likely to import 40 Lakh Tonnes of coal annually through the Payra port.

    Bangladesh is more dependent on gas for its power generation but are energy equations changing? To know, participate in the Bangladesh Coal Conference 2020.

  • JSW: Stocking up “Little” Iron Ore in Dolvi as Odisha Auctions Mines

    JSW: Stocking up “Little” Iron Ore in Dolvi as Odisha Auctions Mines

    Dr. Vinod Nowal, deputy managing director and non-independent executive director of JSW Steel Ltd is ready to set his foot into a new terrain, one that will colour his boots a rusty red. With JSW’s technical bids for six mines in Keonjhar in Orissa where some of the biggest and the best supply of iron ore is feverishly mined and red dust fills the air, Dr Nowal speaks about the company’s plans to make investments whether it wins or loses the bids.

    Following are edited excerpts from a telephonic interview with Ruchira Singh:

    Q. Are you expecting any delay in the mine auction process in Odisha?

    A. I don’t think there will be any further delay in the auctions. In the last few months we have been meeting the government regularly and they have assured us that they will take measures so that there is continuity of supply.

    Q. What could these measures be?

    A. There could be a provision for temporary mining under the old rules while simultaneously applying for the environment clearances.

    Q. A recent gazette notification suggests that the new mine owners will have to apply for new environment and forest clearances. Doesn’t this suggest there might be a delay in resumption of production when leases expire on March 31?

    A. The gazette notification is not clear, but they are likely to formalize something. Legal, environment and mining ministries are working together on this. This is the impression we got.

    Q. In the run up to the auctions, are you expecting any disruptions in supply from Odisha? How are you preparing for it?

    A. We are regularly buying and using it (iron ore) because as usual demand and supply is there. But it is true that there is not a good network of rail and road.

    Q. What is the solution to make mining better in this region?

    A. They should go for a new system of conveyer belts and slurry pipelines. That is the only solution. The government has to work and industry has to work — together.

    Q. JSW is investing in a slurry pipeline in Keonjhar. Can you please give some details about it?

    A. We are making a slurry pipeline. It can be for captive use and for others also. It will take two to three years. It does take that much of time as approvals are needed, construction is needed, technology partner is needed. Once we get the mine, we will start it.

    Q. And if you don’t get any mine, will you not build it?

    A. We will build the slurry pipeline in case we are getting the mine and hope we get the mine too.

    Q. From where to where will the pipeline be built?

    A. It will connect the mine area (in Koenjhar) and Paradip. This will link both the Paradip port as well as our upcoming plant (in Jagatsinghpur).

    Q. Several iron ore consuming companies have applied for storage area for iron ore in Keonjhar. Are you one of them?

    A. No because we are not in Odisha state as a consumer. We are bringing the ore to Maharashtra.

    Odisha iron ore being loaded to railway rake

    Q. So are you storing up iron ore for potential supply disruption at your plant in Dolvi?

    A. We are storing up a little.

    Q. Do you expect international iron ore prices to go up? There is Indian disruption coming up and there are bush fires in Australia…

    A. People say that to try to inflate prices. These are fires. It is not flooding or storm.

    Q. Are you happy with the current prices of iron ore?

    A. It is okay. We can buy from the international market. Iron ore is available.

    Q. How is the situation of the steel market? We are seeing bigger than usual inventories…

    A. Steel inventories have been exhausted. This is the last quarter and it is seeing good demand. We have hit the bottom and things will pick up from here.

    Q. How is the foreign market doing? Some companies are seeing better revenues from their overseas businesses. Are you too seeing such a thing?

    A. Foreign market is picking up. It has improved.

    Q. What is the outlook for steel prices?

    A. It has gone up lately by $25-$30/tonne.

    Q. What kind of improvements will you make in Odisha?

    A. In the area which has given thousands of crores of revenue from minerals, should people be living in such a poor condition?  This is also the place where the mineral fund is one of the highest. We will definitely change it.

    To learn how the mines auction 2020 unfolds, be a part of SteelMint Events’ 4th Indian Iron ore, Pellet and DRI Summit which is scheduled on 2-3 March 2020, in Hotel LaLiT, New Delhi.

    Credits – Ms Ruchira Singh

  • 86 Companies in Race for Odisha Iron Ore Mine Auctions

    86 Companies in Race for Odisha Iron Ore Mine Auctions

    The Odisha government has started afresh the process of mineral block auctions 2020. The deadline for bid submission was on 03 Jan’2020. Out of 20 iron ore and manganese ore mines put up for auction, 18 mines were containing iron ore deposits. According to market sources report to SteelMint Events, nearly 86 companies have aggressively participated in the auctions.

    17 iron ore mines have witnessed participation so far as Badampahar mine is undergoing some hearing in Apex Court, shared sources.

    Vedanta has bid for the largest number of mine i.e 17 mines followed by Arcelor Mittal bidding for 10 mines. Other major bidders were JSPL, Adani & Yazdani.

    The state government annulled previous phase of auction and had floated fresh tender and has also inserted some additional conditions in the tenders for the expiring merchant mine leases. A successful bidder, after obtaining all statutory clearances, needs to produce in the first two years at least 80% of what the mine actually produced in the preceding two years.

    Who will be the major bidders in mine auctions?

    To learn how the mines auction 2020 unfolds, be a part of SteelMint Events’ 4th Indian Iron ore, Pellet and DRI Summit which is scheduled on 2-3 March 2020, in Hotel LaLiT, New Delhi.