Hlsmelt signs technology transfer agreement with Laiwu Steel

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.