08:00 Mon 23 Jul 2018
Red Rock Resources - Commercial Ferrosilicon Production at Steelmin
("Red Rock" or the "Company")
Commercial Ferrosilicon Production at Steelmin
On 5th
The plant is now in commercial production, running at rated capacity of 24MW and Steelmin currently forecasts that it will be EBITDA positive for the month of July.
Steelmin's plant will initially consist of the refurbished Furnace V with capacity for production of 29,000t of ferrosilicon p.a. and 5,800t of microsilica, and after a planned refurbishment of a second furnace will have a combined annual capacity of 48,720 tonnes ferrosilicon (FeSi 75) and 9,700 tonnes of microsilica.
Steelmin - Background
The Steelmin plant and facility is located in central
Anti-dumping regulations have since been implemented by the
Steelmin - Assets
Steelmin controls furnaces IV and V from the original Electrobosna complex. Furnace V has a 48MVA installed power Elkem furnace, and is connected to two chimneys on the roof of the production hall. Furnace IV, the smaller of the two, has a 30 MVA Tagliaferri furnace with three chimneys, preventing the emission of gases in ambient air to comply with EU regulatory requirements. Given its larger total capacity Steelmin decided to bring furnace V on initially and then move to recommission furnace IV later in 2018.
In addition to the two furnaces, the facility in Jajce houses a filtration plant, warehouse storage for raw materials, pouring and dispatch hall as well as a plant for process water recirculation.
Refurbishment for the second furnace is expected to begin later in 2018 or in 2019.
Power remains the most significant input cost to ferrosilicon production and this is provided by abundant and economical hydro-power available across the region. Furnace feedstock such as quartz is also sourced from the region.
Steelmin Products and Markets
Steelmin intends initially to produce ferrosilicon containing 75% silicon and 25% iron, a product primarily used as a deoxidising agent and to add electrical conductivity and corrosion resistance to steel. A by-product of ferrosilicon production will be microsilica, which is a dust used in the manufacture of speciality concretes in the construction industry as well as in advanced refractories and ceramics. Furnace V is expected to produce 29,000t of ferrosilicon per annum as well as 5,800t of microsilica.
Over time Steelmin is expected to produce both ferrosilicon as well as additional silicon alloys that offer higher margins and additional upside. Currently ferrosilicon trades at around
European ferrosilicon production depends critically on access to cheap power (locally generated hydroelectric power in the case of Jajce) since this is up to half the cost of production. Prices are historically driven by steel production levels, the level of Chinese pricing and production allowed into
For further information, please contact:
Scott Kaintz 0207 747 9990 Director
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD
Jason Robertson 0207 374 2212 Broker
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Glossary
Ferrosilicon: ferrosilicon produced at Steelmin contains 75% silicon, and is primarily used as a deoxidising agent in steel production, adding electrical conductivity and corrosion-resistance properties to steel
Microsilica: a by-product of silicon and ferrosilicon production, used in the construction industry for its added strength and abrasion resistance
This information is provided by RNS, the news service of the
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