Direct Reduction & Smelting Processes
A summary of the new technologies that will help meet the expected demand for steel is given in attached table.  The two main processing routes will be direct reduction of the iron ore to produce a feedstock for EAF and direct smelting processes that compete with the existing integrated steelworks, that uses coke ovens, sinter/pelletising plants and blast furnaces.
Direct Reduction
Increased use of EAF for steel production will increase demand for scrap. This will lead to a shortage which will be accompanied by decreased scrap quality. Direct Reduced Iron (DRI) can be used as a high quality replacement for scrap.  DRI is iron-ore lumps, pellets and fines that have had oxygen removed from them by a reductant.
HBI is a briquette made by a densification process whereby the direct reduced iron (DRI) feed material is at a temperature greater than 650°C at time of molding (Hot Briquetting) and has a density greater than 5.0 g/cm3.  
Direct Smelting
A number of Direct Smelting processes for the production of hot metal from iron ore or DRI are being developed around the world.  This is being driven by the desire for:
    • the ability to utilise cheaper and more abundant raw materials such as non- coking coals and non- agglomerated ores,
    • smaller economic plant sizes and,
    • reduced capital costs and environmental problems through the elimination of coke ovens and sinter/pellet plants.

The benefits are:
    • competitive hot metal,
    • flexibility of operation, and
    • the product can be fed to an EAF for steelmaking.

The metal produced from such processes is a premium grade product which has a high value to an EAF steelmaker compared to alternative DRI materials.
At this stage the only direct smelting process that is in commercial operation is the COREX ® process. However, a number of others are at pilot plant/development plant stage.
COREX
The predicted increase in steel demand in Asia will provide opportunities for the establishment of newer steel making technologies in preference to the traditional technology of the integrated blast furnace. The two new processing routes will be direct reduction of the iron ore (DRI) to produce a feedstock, as an alternative to scrap, for the Electric Arc Furnace (EAF), and direct smelting processes. The smelting reduction processes do not require the use of coking coal or scrap iron, rather they are able to use iron ore or DRI and thermal coals directly.
A number of Direct Smelting processes for the direct production of hot metal from iron ore or DRI are being developed around the world. This is being driven by the desire for:
  • the ability to utilise cheaper and more abundant raw materials such as non-coking coals and non-agglomerated ores,
  • smaller economic plant sizes and,
  • reduced capital costs and environmental problems through the elimination of coke ovens and sinter/pellet plants.
The benefits are:
  • competitive hot metal,
  • flexibility of operation, and
  • the product can be fed to an EAF for steelmaking.
The metal produced from such processes is a premium grade product which has a high value in use to an EAF steelmaker compared to alternative DRI materials.
At this stage the only direct smelting process that is in commercial operation is the COREX process with plants operating in South Africa, Korea, India and the USA. The COREXprocess is a two-stage process. In the first step the iron ore is reduced in a shaft furnace. In second step the reduced iron ore is melted in the melter gasifier using the energy generated from the gasification (and partial combustion) of coal. The reducing gas produced in this second stage is used in the shaft furnace.
The coal used in the COREXprocess must supply heat for the devolatilisation of the coal, the gasification of the char and the melting of the reduced iron from the reduction shaft. It must also provide sufficient gas to the reduction shaft to reduce the iron ore feed. Coals most suited for use with the COREXprocess have an air dried fixed carbon content from 55 to 70%. Many coals from the Bowen Basin within Queensland are suited to the COREXprocess and several mines currently supply POSCO’s plants in Korea.
This is to ensure good gas flow within the melter gasifier and to reduce the carry over of coal and/or char. The amount of fine coal (minus 5 mm material) that is fed to the COREXprocess must be minimised. Therefore all coals must be sized or agglomerated before use.
There are many alternatives to achieve minimum fines content depending on the facilities at the loading port, discharge port and COREX® plant. The flexibility of Queensland coal export terminals allows the sizing and blending of coals at the loading port to meet the needs of COREX® operators.
HI-Smelt
The HIsmelt Process has its origins in the early1980's when Rio Tinto Limited identified the potential to adapt the high scrap rate steelmaking and iron bath coal gasification processes developed by Klockner Werke to the direct smelting of iron ore.  Development of the HIsmelt Process commenced with a 60 tonne K-OBM converter.  After successfully proving the concept, a small scale pilot plant was constructed and operated at Maxhutte Works in Germany. The plant design was based on an enclosed horizontal vessel to overcome process containment issues experienced in the 60 tonne converter trials.
Whilst the process scale-up was successfully demonstrated, the complexity of the engineering, poor plant availability and difficult operational requirements brought into question the commercial viability of the plant design. After three years of operation the plant was substantially reconfigured to address these issues. The horizontal Smelt Reduction Vessel (SRV) was replaced with a vertical vessel. This allowed extensive use of water cooled elements in the process top space to address availability issues. Injection of solids was through water cooled top injection lances as opposed to submerged tuyeres thereby simplifying the engineering and overcoming operational issues encountered with the submerged bottom tuyere used in the horizontal vessel. Installation of the vertical vessel proved successful.
The plant achieved very high plant availability whilst still maintaining high process performance despite the increased vessel heat losses due to the added water cooling.  
 
Fastmet
The Fastmet process is a solid reductant based direct reduced iron process using fine ore mixed with a carbon reductant such as pulverised coal. Developed by Midrex, as an alternative to gas based processes, plant sizes are suitable for minimill operations and offer the European steelmaker a viable source of virgin metal. Kobe Steel commissioned a demonstration plant in 1995.
In this process, a combination of pulverized coal and iron ore fines are made into pellets.
The pellets are fed into a doughnut-shaped rotary hearth furnace and heated. At 1,350 degrees Celsius, the pellets are reduced in 8-10 minutes. Under high heat, the pulverized coal serves as the reductant and burns off the oxygen in the iron ore. DRI can be charged hot to an adjacent melting furnace or converted to briquettes for merchant shipment. Kobe Steel, Ltd. and Midrex Direct Reduction Corporation recently announced that they have discovered a refinement of this process under higher temperatures so that iron ore is reduced in a short 6 to 10 minutes Kobe Steel and Midrex plan to conduct research on the new molten iron making process in three stages. In Phase 1, running from July 1996 to March 1997, roughly 200 million yen will be invested to study the reaction mechanism and the basic technology of the process. In Phase 2, October 1996 to June 1998, the two companies plan to conduct bench-scale testing, investing some 500 million yen. Should the results of the first two phases be promising, the project will move into Phase 3, where potential process users will be invited to invest in the construction and operation of a pilot plant.
The products produced by the rotary hearth processes FASTMET, INMETCO, and IDI contain large quantities of gangue and sulfur which are associated with the coal reductant. The methods presently used for de-ashing and desulfurizing coal prior to making the composite pellet for reduction are inadequate because they are either too costly or they degrade the coal's properties. Improved methods for separation of the hot reduced iron from the sulfur and gangue are also needed.