Japanese steelmakers Nippon Steel Corporation (Nippon Steel) and Kobe Steel Limited have announced that they have reached an agreement to set up a joint venture for steel dust recycling and direct-reduced iron (DRI) production and utilization.
The new JV company, Nittetsu Shinko Metal Refine Co., Ltd., is to be set up in the mid-October current year, on the grounds of the Nippon Steel Hirohata Works, with 70 percent stake to be held by Nippon Steel and 30 percent to be held by Kobe Steel.
The initial capital investment of Yen 20 billion (approx. $191 million) will be made primarily for a rotary hearth furnace-type reduction furnace (RHF) and related equipment. The new RHF is also able to abstract zinc from steel dust, which will be reused in non-ferrous processes. Recycling these materials, the companies will be able to promote zero emissions while reducing usage of scrap metal, iron ore, and zinc ore.
The annual capacity of the new equipment to be used in the operation will be approximately 400,000 mt.
The operations at Nittetsu Shinko Metal Refine are planned to commence two years after the start of capital investment.