Kobe Steel, Ltd. received an investment license on March 31 from the Socialist Republic of Vietnam to construct ITmk3? ironmaking plants.
In two phases, Kobe Steel plans to build four ITmk3 plants (two in each phase) with a total capacity of 2.4 million tonnes per year in Vietnam's Nghe An Province. The total project cost is estimated to reach 100 billion yen.
Kobe Steel is considering the formation of a business in Vietnam to produce and market iron nuggets using the ITmk3 ironmaking process that it developed. The company plans to establish a locally incorporated company, Kobelco Iron Nugget Vietnam LLC, in April 2010, through which the project can be carried out. A detailed feasibility study will be conducted, aiming for first-phase construction to begin in January 2011.
Vietnam currently is largely dependent on importing scrap and semi-finished steel products to meet its iron unit requirements, according to Kobe Steel. The ITmk3 Process can produce high-grade iron units from Vietnam's iron ore and coal.
Iron ore from the Thach Khe mine in central Vietnam contains a relatively high amount of iron, but it also contains a high amount of zinc (about 0.07%), which makes it difficult to use in blast furnaces, the company notes.
