On order from Algerian Qatari Steel, the natural gas based DRI plant is being designed to produce 2.5 million tons annually. It will be capable of switching between hot DRI and cold DRI production without stopping, the companies said.  

The plant will be part of a US$2 billion mini-mill designed to make 2 million tons of rebar and wire rod annually. A second phase of construction eventually will lift the mill’s capacity to 4 million tons.

Midrex and Paul Wurth said the DRI plant will charge hot iron into the mill’s electric arc furnace via an Aumund hot conveyor. Using hot DRI will shorten melting cycles and reduce the furnace’s energy and electrode consumption, the companies said.

The plant also will decrease the mill’s need for scrap and increase its production flexibility, they said.

Algerian Qatari Steel is a joint venture between Qatar and Algeria. Algeria, through Sider Co. and a national investment fund, will hold a 51- percent stake in the business. Located in Bellara, Algeria, the mill is intended to help the country meet its domestic steel demand.

Imports accounted for approximately 4.4 million metric tons -- or 86 percent -- of the Algeria’s long products market in 2014, according to the metals and mining consultancy CRU.