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What-is-IRONMAN-Ulf-Holmqvist

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					                 The clean way to make iron




2011-04-22 | 2
 Drastically reducing CO2 emissions




                          75%




                        In the entire
                 steel production process

2011-04-22 | 3
CO2 emission for additional production in IRONMAN process
 Securing supply of DRI for the European steel industry
             Mton
        1 800

        1 600

        1 400

        1 200

        1 000

          800

          600                                                                                       2013
          400
                               20 year gap
          200

             0
                 1970   1975      1980       1985     1990      1995       2000      2005   2010   2015   2020

                                             Steel production          Scrap availability




2011-04-22 | 5
A Nordic Combination...




    ...that can’t be found anywhere else in Europe
2011-04-22 | 6
 Supply deficiency is pushing price

                 Euro/tonne
           450
           400
           350
           300
           250
           200
           150
           100
             50
                 0
                     2006     2007   2008     2009     2010     2011       2012      2013

                            Price      price trend I      price trend II          price trend III




2011-04-22 | 7
 Utilizing existing technology and infrastructure




                                 Kiruna




2011-04-22 | 8
     ...just adding know how

                 ...how to produce it   …how to use it
                    environmentally     and market it




2011-04-22 | 9
 Close to the market




                  Freight cost share of the clients total product cost
                                 will be 10-20 % lower

2011-04-22 | 10
 Objectives



                  Production:   European
                   1,6 Mton      market
                                 share:
                     DRI
                                 15 %




2011-04-22 | 11
 Basic facts – the project
 Unique mix of competences creates unique product
 A joint project between Höganäs, LKAB and Statoil
 Evaluating a plant for HBI production at Statoils existing site
  at Tjeldbergodden in Norway
 Höganäs initiator of project and one buyer of produced HBI
 Höganäs and LKAB main sales channels




2011-04-22 | 12
 Basic facts – HBI
  Hot Briquetted Iron – (DRI)
  Used in Electric Arc Furnaces – eliminates need for new Blast
   Furnaces
  Used in blast furnaces/converters – replaces shortage in scrap
  Most plants in Middle East, Central/South America, and Asia
            Long transports
            Weak focus on CO2 reduction




2011-04-22 | 13
World steel production
– raw material balance




                         150 Mton/Y
 The market
  Total world production of steel and iron products 1 300 mton
            Blast Furnace process – 900 mton
            EAF process – 400 mton – mainly based on scrap
            Annual growth 4 %
  Shift towards EAF
  Majority of DRI production today is not on the open market
  EAF process creates 40 % less CO2 than BF process
  Emission rights will be re-negotiated 2012




2011-04-22 | 15
 Potential clients

Country           No. of producers   Mton/year

Spain             8                    6,7

Germany           10                  10,0

UK                2                    4,0

France            6                    5,3

BeNeLux           4                    4,5

Italy             10                   6,7

Poland            2                    3,2

Scandinavia       4                    2,7

Total approx.                         40,1




2011-04-22 | 16
Organisational structure & business model


                                                                                                Buying of iron ore
                                                              Investors

                                                                                                 Selling of
                                                                                                Buyers of fines


                                                                                    Take or pay processing contract
                   Delivery for processing           EQUITY

 Iron Ore

 Natural gas
 contract

 Lease &Service                                               Asset Owner and
 Consortium                                  NEWCO            Processing Operator

 Synergies/BOO Supplies
 Land lease
 Pier lease
 CO2 disposal
                  It doesn’t get any greener!




2011-04-22 | 18

				
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posted:4/23/2011
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