MMK Illicha Steel Realizing Its Modernization Plans
22 February 2008
According to the press service of MMK Illicha (MMKI: BUY), the steel mill plans to invest USD 126 mln to modernize production in 2007. The company plans to install pulverized coal-injection (PCI) plants at its blast furnaces No. 1-5, reconstruct a basic oxygen furnace (BOF) shop and modernize rolling mill-1700. In February, MMK Illicha launched an oxygen production block from the French company Air Liquide, which will allow the mill to increase daily production of pig iron by 15-20% to 17 ths mt per day. Eugene Cherviachenko: The announced modernization program is aimed firstly at cost savings and eliminating gas in pig iron production through the implementation of PCI technology. We estimate after the PCI installation, MMK Illicha will decrease coke consumption from its current 527 kg/mt to 400-450 kg/mt. PCI requires coal and coke with low sulfur content to reach maximum efficiency. In 2006 the steel mill bought Interinvestugol coal mine, which, according to MMK Illicha, extracts high quality coal for PCI use. In early 2007 MMK Illicha prolonged its deal with Yasynivsky Coke (YASK: U/R), a core coke supplier that is able to produce first-grade coke suitable for PCI.
