Kobe Steel Eyes Potential ITmk3 Plants in Resource Rich Countries

Kobe Steel is conducting studies with various companies in India, Kazakhstan, USA, Russia and Australia to build new plant with the original new iron making process, ITmk3. Many companies mainly in resource rich countries increase the interest in ITmk3, which can make high purity iron nugget with lower initial cost than blast furnace process. Kobe Steel tries to develop offshore market through tie-up with offshore company by utilizing the original technology.

Kobe Steel singed memorandum of understanding for the joint study in April each with Indian state owned largest mining company, National Mineral Development Corporation (NMDC) and Indian state owned largest steel maker, Steel Authority of India (SAIL).

NMDC plans integrated steel plant in Chhattisgarh eyeing a blast furnace with 3 million tonnes of annual output capacity or ITmk3. NMDC could start operation as early as in 2013 for the potential 500,000 tonnes of ITmk3 with around 25 billion yen of investment.

SAIL eyes 2 ITmk3 plants with 1 million tonnes of annual output capacity. The firm studies also POSCO’s FINEX process depending on the study. The firm could choice one of the processes or build both plants.

Kobe Steel has more contacts from many companies in iron ore rich countries. The firm keeps studying for potential plant with Cliffs Natural Resources since 2007. Kobe Steel, which already launched first commercial plant in USA, expects the second plant will be in Vietnam where the firm studies for iron making plant with 2.4 million tonnes of annual output capacity. The firm expects many plants follow the project in India and other resource rich countries.

Kobe Steel focuses on low cost ITmk3 based offshore steel plants while other Japanese integrated steel makers eye potential offshore plant with traditional blast furnace. Kobe Steel tries to expand the business base through tie-up with offshore companies along with the plant sales business.