Rio Tinto PLC
11 May 2000
HIsmelt moves closer to commercialisation
Rio Tinto announced today that it has signed a Memorandum of Understanding
with Nucor Corporation of the USA and Lurgi Metallurgie to form a joint
venture which, subject to a definitive cost study, will install a HIsmelt
plant at a Nucor facility in the United States.
Following comprehensive testing of the process at HIsmelt's demonstration
plant in Kwinana, Western Australia, Rio Tinto is supporting further
investment to commercialise the technology. The proposed HIsmelt plant at
Nucor will be capable of producing around 600,000 tonnes per year of hot
metal and is a major scale-up from the Kwinana plant. Assuming the successful
performance of this plant, it is anticipated that the HIsmelt technology will
be further scaled up to plants capable of producing over 1.5 million tonnes
per year.
If successful, HIsmelt plants have the potential to add value to Western
Australia's Pilbara region iron ores and provide significant benefits to
Australia. The technology is capable of processing ore that is unsuitable for
current iron and steel technologies. In addition Western Australia has been
targeted for the larger scale commercial plant.
The Chief Executive of Rio Tinto Iron Ore, Mr Chris Renwick said, 'This
agreement represents another important step along the road to
commercialisation. We are committed to following a carefully measured path of
development to ensure any investment is sound and sustainable.'
Nucor, which has a reputation as an innovative producer, is the second
largest steelmaker in the USA. It operates nine steelmaking plants in the USA
with a combined annual production of about 12 million short tons per year.
The addition of a HIsmelt plant to Nucor's portfolio would strengthen its
position as a technology leader and highly efficient low cost steelmaker.
Lurgi, based in Germany and a leading engineering contractor and process
technology provider to the world iron and steel industry, is the exclusive
licensed engineer for the HIsmelt technology.
Mr Renwick said, 'The objective of the Rio Tinto/Nucor/Lurgi partnership is
to commercialise the HIsmelt technology to compete in the world market. This
will be achieved by capitalising on each partner's strengths in process
technology, steelmaking and engineering.'
The HIsmelt process converts iron ore to liquid pig iron through the
injection of non-coking coal and fine iron ore into a molten iron bath.
Because the process eliminates the need for sinter/pellet plants and coke
ovens, HIsmelt's environmental impact is more favourable than traditional
blast furnace technology.
For further information, please contact:
Media Relations Investor Relations
Lisa Cullimore Peter Jarvis
+ 44 20 7753 2305 + 44 20 7753 2401
Website: www.riotinto.com
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