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Rio Tinto and Jindal Steel and Power Agree to Advance HIsmelt

08/08/2011 - Rio Tinto has signed an MoU with Jindal Steel and Power Ltd. (JSPL) that involves the relocation of the existing Kwinana HIsmelt plant from Australia to India at JSPL's existing facility in Angul, Orissa. JSPL and Rio Tinto will work together to further develop and market the technology.

Rio Tinto has signed a Memorandum of Understanding (MoU) with Jindal Steel and Power Ltd. (JSPL) to take the next step in global commercialization of the HIsmelt technology to be used in a fully integrated steelmaking facility.
  
The MoU will also involve the relocation of the existing Kwinana HIsmelt plant from Australia to India at JSPL's existing facility in Angul, Orissa. The relocated plant will be fully owned by JSPL, and JSPL and Rio Tinto will work together to further develop and market the technology.
  
Rio Tinto Iron Ore and Australia Chief Executive Sam Walsh described the deal with JSPL as a natural progression for the HIsmelt technology. "This opportunity with JSPL is exciting, as we integrate the HIsmelt flow sheet into their existing steel works in Orissa, an acceleration of proving of the technology to full design capacity.
 
"We believe the HIsmelt process remains the future for iron making, particularly in locations where the need to reduce the environmental footprint is increasing, thereby ensuring the ongoing sustainability of this essential industry.
 
"HIsmelt is suitable to the resources of India and offers huge environmental benefits to a steelmaker like JSPL."
 
JSPL Chairman and Managing Director Naveen Jindal said, "JSPL has had strong interest in the HIsmelt technology for several years and now looks forward to finalizing the development of this most exciting technology and to share in the future benefits."
 
Rio Tinto is continuing its Kwinana site obligations, some of which apply to December 2012, in accordance with conditions set by the state regulators and Invest Australia.
 
HIsmelt, short for high-intensity smelting, is the world's first commercial direct smelting process for making iron straight from the ore. The technology smelts iron ore fines directly using non-coking coals, and is said to offer significant economic and environmental benefits to the steel industry.
 
The HIsmelt technology is fully owned by Rio Tinto. The Kwinana HIsmelt plant is owned by a joint venture comprising Rio Tinto (60%), Nucor Corp. (25%), Mitsubishi Corp. (10%), and Shougang Corp. (5%).
 
Rio Tinto is a leading international mining group headquartered in the U.K. Its business is finding, mining, and processing mineral resources. Major products are aluminum, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt), and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe, and southern Africa.
 
Jindal Steel and Power Ltd. (JSPL) is part of the US$15 billion Indian-based Jindal Group, currently producing 3 million tonnes of steel annually and 1800 MW of power. It is one of India's major steel producers with a significant presence in sectors like Steel, Mining, Power Generation, and Infrastructure.