POSCO to Increase Ferronickel Output to 150,000T for 2010

SNNC Co. Ltd, ferronickel maker, co-invested by POSCO and SMSP SA, nickel mining company in New Caledonia, plans the full capacity operation for 2010. The firm produces 150,000 tonnes of ferronickel, which is equivalent to 30,000 tonnes of nickel. The operation is already full capacity since October and increases to 30,000 tonnes from 21,000 tonnes, the estimated yearly output in 2009. The firm aims to supply the half of the requirements in Gwangyang steel works of POSCO, South Korea, which produces 2 million tonnes of stainless steel per year.

SNNC, which is located in Gwangyang steel works, imports nickel ore with purity 2.2-2.3% from 4 mines in New Caledonia. The moisture of ore is dewatered to around 20% from around 30% through dehydrator and cut into less than 30 millimeter in size. Then, the ore is smelted through rotary kiln and sealed electric arc furnace to ferronickel containing 18% nickel.

The largest electric furnace of the world with 22 meters diameter, which includes three 40 megawatt translators, is larger than No.4 blast furnace, the largest furnace in works. The output of the electric furnace is 120 megavolt-ampere and the peak power is 40 megawatt. It takes around 8 hours to produce ferronickel from pretreatment and takes about 3 hours to smelt.

POSCO makes a 49% invest on SNNC. SNNC started the operation in November 2008. The firm imports nickel ore from NMC SAS, the joint venture, which POSCO has 49% interests.