PERTH (miningweekly.com) − Diversified giant Rio Tinto has signed a memorandum of understanding (MoU) with India’s Jindal Steel and Power to take the next step of commercialising its HIsmelt technology into a fully integrated steelmaking facility.

The MoU will also involve the relocation of the existing Kwinana HIsmelt plant from Australia to India. Jindal would own the relocated plant and the two companies would work together to further develop and market the technology.

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 noncoking coals, and offers significant economic and environmental benefits to the steel industry.

Rio CEO for iron-ore and Australia, Sam Walsh described the deal with Jindal as a natural progression for the HIsmelt technology.

“This opportunity with Jindal 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.”

Jindal’s Naveen Jindal said the company has had strong interest in the HIsmelt technology for several years.

Rio Tinto is continuing its Kwinana site obligations, some of which apply until December 2012, in accordance with conditions set by the state regulators and Invest Australia.

Jindal Steel and Power is part of the $15-billion India-based Jindal Group, currently producing three-million tons of steel a year and 1 800 MW of power.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.