Hlsmelt signs technology transfer agreement with Laiwu Steel
Hlsmelt Corporation's (
Australia) affiliate Technological Resources Pty Ltd, that is a wholly owned by subsidiary of
Rio Tinto, has signed a Hlsmelt Process License with Chinese
Laiwu Steel Group Ltd to supply the company with Hlsmelt technology to develop ironmaking facility.
Nucor Corporation, which has 25% share in the joint venture with
Rio Tinto, Mitsubishi Corporation and Shougang Corporation for the
construction of Hlsmelt plant in Kwinana,
Australia has declared that, it is pleased with the first Hlsmelt technology sale to
China.
Through the agreement,
Laiwu Steel expects to increase its output to 800'000 tons per year and Hlsmelt Plant, which is currently under
construction in Kwinana (Western
Australia) will have a new plant in
Laiwu City. The
construction in Kwinana was commenced in January and is expected to be completed by the end of 2004.
Hlsmelt technology is briefly a high intensity direct smelting process in which
iron ore fines and other iron containing materials and non-coking coals are injected directly into a molten iron bath to produce a high quality iron. It is a kind of replacement of traditonal blast furnace method of ironmaking and a new source of low cost high quality iron units for the electrical arc
steelmaking industry.
It is stated that, the technology presented by Hlsmelt to
China is a significant development for iron and steel sector and the agreement will strengthen the economic relationship between
Australia and
China.