Management of Coking Coal Resources

By Dilip Kumar and Deepak Kumar

Management of Coking Coal Resources provides a one-stop reference that focuses on sustainable mining practices using a four-point approach that includes the economical, governmental, societal, and environmental aspects of coal exploration, coking coal mining, and steelmaking applications.

This type of approach galvanizes the excavation, processing methods, and end uses of coal as an energy and steelmaking source, thus ensuring that the supply of coking coal meets the future demands of the rapidly expanding economies in India and other developing countries.

The book provides information on the strategic planning and revitalization of India's Jharia coalfield, addressing actionable plans for methods of extraction, master plans for mine fires, subsidence management, land use planning, and sustainable mining.

Users will find a multidisciplinary reference that presents the broad range of applications, techniques, and methodologies used in maintaining coking coal quality from exploration through extraction.

• Provides a one-stop reference that focuses on sustainable mining practices using a four-point approach
• Includes the economical, governmental, societal, and environmental aspects of coal exploration, coking coal mining, and steelmaking applications
• Presents information on the strategic planning and revitalization of India's Jharia coalfield
• Includes a broad range of the applications, techniques, and methodologies used in maintaining coking coal quality from exploration through extraction

• Language: English
• Publisher: Elsevier Science
• Release date: Dec 17, 2015
• ISBN: 9780128031872

Dilip Kumar

Dilip Kumar has worked in many countries including Germany, Algeria, India, and Canada as Chief Engineer at Central Mine Planning and Design Institute (CMPDI), Ranchi, India. He worked in coal and mineral mining industry for 25 years. Dr. Kumar’s research interests include both coal and phosphate rock mining and processing, steel metallurgy, mineral processing, mine economics, and mine management with special reference to integration of supply chain.

Book preview

Management of Coking Coal Resources

Dilip Kumar

Deepak Kumar

Table of Contents

Cover

Title page

Copyright

Dedication

Preface

Acknowledgments

Chapter 1: Introduction

Abstract

1.1. Problems

1.2. The Objective of This Book

1.3. Supply Chain Management

1.4. Resurgence of the Indian Coal Industry

Chapter 2: Latest Developments in the Iron and Steel Industry

Abstract

2.1. Global Perspective

2.2. Indian Steel Industry

Chapter 3: Evaluation of Coking Coal Resources and Reserves

Abstract

3.1. Definition of Resources and Reserves

3.2. International Classification of Coals

3.3. Measurement of Coking Propensity

3.4. Indian Classification of Coking Coal

3.5. Description of Coalfields

3.6. Estimation of Minable Reserves

3.7. Growth Rate Analysis

3.8. Geological Exploration

Chapter 4: Rational Implementation of Mining Technology

Abstract

4.1. The Journey Through the Digital Age

4.2. The ERP System

4.3. Total Quality Management (TQM)

4.4. Productivity Management

4.5. Mining Strategies and Related Issues

4.6. Innovation, Globalization, and Local Flexibility

4.7. The History of Indian Coal Mining

4.8. Extractability

4.9. Selective Mining

4.10. Special Mining Methods

4.11. Highwall Mining

4.12. Integrated Coal Preparation Through Deshaling

4.13. Implementation of IT in India

4.14. Quality Control at Coal Mines

4.15. Revitalization of the Jharia Coalfield

4.16. Concluding Remarks

Appendix: Underground Coal Mining – New Dimensions

Chapter 5: Solutions to Transportation Problems

Abstract

5.1. Preamble

5.2. Storage and Handling

5.3. Rail Transportation

5.4. Pipeline Transport

5.5. Potentiality of Pipeline Transport in India

5.6. Process Design Considerations for Pipeline Transport

5.7. The Suitability of Pipeline Transportation for Coking Coal

5.8. Transport of (−6 mm) Coal by Pipeline

5.9. The Logistics of Transportation

5.10. Discussion

5.11. Pipeline Transportation of Different Minerals

5.12. Final Comments on Transportation Bottlenecks

Chapter 6: Societal Responsibility and Economic Viability

Abstract

6.1. The Background to Sustainable Mining

6.2. Economic Viability

Appendix: Guidelines for the Preparation of a Final Mine Closure Plan

Chapter 7: Conclusions

Abstract

7.1. Characterization of the Coking Coal Sector

7.2. Solutions to Special Problems

7.3. Captive Coal Mining – Hindsight

7.4. Further Development – Issues and Ideas

7.5. Framework

Appendix: Nomenclature

Index

Copyright

Elsevier

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Notices

Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.

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ISBN: 978-0-12-803160-5

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Dedication

This book is dedicated to the loving memory of late Dr Krishna Dhan Kumar and late Ms Sneha Lata Kumar.

Preface

We are inspired by the multidisciplinary approach in the magnum opus of the world-famous Saxonian scientist Georgius Agricola’s De re metallica libri XII written in 1556. He wrote 12 books of different disciplines in the field of mining and metallurgy. Even today, this achievement is referred to and recognized quite often. Although mining and metallurgy are considered separate fields, we want to address both subjects in this book. The objective is to integrate mining and metallurgy so that the big picture is revealed. Readers from different backgrounds – geologists, mining engineers, metallurgists, business managers, economists, social scientists, students, and others – will find this book a one-stop shop, covering all aspects of the coking coal supply chain. The subject matter of coking coal has been considered from a global perspective with special reference made to the Indian coal industry. Readers will have access to the different problems faced by the industry, and their possible solutions.

The Indian coal industry has been rapidly depleting its indigenous coking coal resources. A sizable portion of the resources had already been used up for steam generation and other nonmetallurgical purposes during most of the twentieth century. Moreover, there are possibilities of further losses in mining processes as a consequence of fire. Thus, the risk of future coking coal scarcity in the Indian steel industry is real. To counter this, India may need to import coal. This has led the authors to probe deeper into the crux of the issue.

Compared with sizable iron ore resources in India, coking coal resources are deficient both in quantity and quality. In fact, it has become necessary to import high-grade coking coal to supply demand from the steel industry. Yet, the reserves of noncoking coal in India are overly adequate, giving the possibility of replacing coking coal with noncoking coal in steel making via emerging techniques.

Estimation of coal resources is a continuous process with reserves being updated periodically as a result of the exploration activities of different agencies. Other factors like increases in coal price can convert uneconomic resources into economically exploitable ones.

Coking coal reserves, as per our present knowledge, are likely to last only a few decades based upon present and projected rates of consumption. There are revolutionary advances being made in different scientific fields concerning the steel and coal industries. Hopefully, advances in exploration, mining technology, beneficiation techniques, coke making, steel manufacturing, and globalization will help extend the lifespan of coking coal reserves.

The subject chosen in the text encompasses a wide range of scientific and technological disciplines. This book represents not only the culmination of many years of studying reports, published material, and unpublished material, but also of a sustained effort to scientifically relate their findings.

The following interdisciplinary problems encompassing economics, management systems, and mathematical analyses have been dealt with:

▪ The present state of the Indian steel industry and possible methods of reducing consumption of coking coal.

▪ A purposive classification of resources, status of coking coal reserves in India, and their lifespans.

▪ The present mining conditions in India and the possibilities of improvement in exploitation methods.

▪ Transportation system bottlenecks and examination of the feasibility of introducing hydraulic transportation.

▪ Economic considerations for resource assessment, mining, quality control, and supply problems.

▪ Sustainable mining and its role in the viability of the mining industry.

As there is no specific book on coking coal, the subject matter is both timely and relevant for undergraduate and graduate students, practicing engineers, supervisors, and the research community. Although the service industry may override the manufacturing industry in enhancing the GDP of a country, basic industrialization rests on the growth of steel production. Blast furnace technology is going to be around for several decades, and consequently coking coal use will not lose its dominance. Therefore, the subject matter is highly appropriate in that it details the steps required to support the growth of the steel industry in the context of coking coal.

The emphasis is on sound management practice to insure profitability with due regard to community development. Strategic plans have been drawn to optimize the planning process incorporating all governing factors. There is enough scope for improvement of productivity in mining operations, most markedly in mining technology, the use of higher capacity equipment for larger mines, autonomous control, predictive maintenance (PdM), and digital communication systems.

It is hoped that the broad coverage and in-depth study of each problem presented in this book will make a seminal contribution to the coking coal sector, the mining and steel industries of India, and the world at large.

May 2015

Dilip Kumar

Deepak Kumar

Acknowledgments

The authors take this opportunity to express their sincere thanks to Professor Günter Fettweis, former rector of Montanuniversität Leoben (Austria) for his encouragement and inspiration during preparation of the manuscript.

We are very much indebted to the reviewers of the book: Dr Larry Thomas of Dargo Associates Ltd. (United Kingdom); Dr Thomas Drnek of RHI AG (Austria); Professor Indranath Sinha of the Indian Institute of Engineering Science and Technology, Shibpur (India); and Dr Sekhar Bhattacharyya of Norwest Corporation (USA).

We would like to express our sincere gratitude to the editorial staff at Elsevier, particularly Mr John Fedor, Ms Amy Shapiro, and Ms Marisa LaFleur. We also thank the production staff at Elsevier who have worked on the book.

The help rendered at a personal level by Mr Pradip Chandra Kumar, Ms Brenda Kennedy, and Dr Jayashree Kumar for their patience and constant encouragement is duly acknowledged with thanks.

Last but not the least, we express our great debt of gratitude to Ms Poppy Skears and Mr Hira Sharma for their secretarial work.

Chapter 1

Introduction

Abstract

The coking coal sector of the Indian coal-mining industry is riddled with a multiplicity of problems. This book examines the problem of the scarcity of coking coal resources and offers solutions through innovation in different areas. The book takes a holistic approach leading to technically feasible, and economically viable, solutions. Various mathematical models have been formulated to evaluate important process variables using a multidisciplinary approach. The book examines the management of the supply of coking coal within a framework that integrates production factors, quality factors, coke making, steel making, end products, recycling, transportation, and storage. The resurgence of the coal industry, its impact on the steel industry, and the changing landscape for policymakers has created opportunities for innovation within public–private partnerships, joint ventures, and foreign investments. The potentially dynamic growth of the Indian coal industry has been further probed through a triangular model linking attraction of investment, government policy, and focused investment.

Keywords

coking coal

steel making

supply chain

deregulation

public–private partnerships

joint ventures

foreign investments

vertical integration

outsourcing

Contents

1.1 Problems 1

1.2 The objective of This book 2

1.3 Supply chain management 4

1.4 Resurgence of the Indian coal industry 6

1.1. Problems

The iron and steel industry is perhaps the most important element of a nation’s industrial economic infrastructure, and the consumption of steel per capita of population is an indicative index of industrialization and progress. Major European industrial powers of the nineteenth century, and the first half of the twentieth century, owed their position to domination of reserves of iron ore and coal. In fact, the industrial revolution in Europe started with coal mining in the United Kingdom, and the iron and steel industry prospered paralleling the growth of the coal industry; coking coal being an essential input to steel metallurgy. The superpowers of today, the USA, China, and Russia, have immense reserves of both iron ore and coal. Over 70% of global steel produced today from iron ore is largely dependent on coal.

In India the volume of good-quality iron ore is satisfactory, but metallurgical coal reserves are comparatively meager, necessitating the import of prime coking coal. The choicest Indian coking coals, which only occur in the Jharia coal belt of the state of Jharkhand, were wantonly wasted in steam production in both stationary boilers and steam engine boilers in the decades both before and after independence. A critical condition, therefore, prevails in India. Despite all the efforts to exploit coal reserves, with due regard being paid to conservation by India’s nationalized coal industry, it has not been possible to supply enough metallurgical coke, of the required grade, to meet the needs of India’s growing steel industry.

The government of India has raised concerns about the rapid depletion of the country’s coking coal reserves, and wide-ranging conservation programs have been undertaken as part of the exploration, exploitation, beneficiation, and end use of coking coal. These programs include detailed exploration for new and deeper deposits and other deposits hitherto considered lost; planning for maximizing extraction using advanced technology; blending lower grade coals with superior coals; improving coal beneficiation techniques; examining the possibility of replacing coking coal with noncoking coals; and improvement, or modification of, conventional steel metallurgy.

The inherent constraints faced by the Indian coal-mining industry include the close proximity of deposits; coal seam thicknesses that vary from 0.5 m to 30 m and are not always suitable for mechanized extraction; high inherent ash content within the coal and prevalence of bands of dirt in the seams; proneness to spontaneous heating of the coal; and prevalence of bord and pillar mining which results in subsidence, fire, and large reserves remaining inaccessible within the pillars.

Most recently, the technique of surface mining is showing growth. High-capacity mechanized mines are planned, which will extract coal from depths of about 480 m. These will replace the smaller scale, shallow-deposit quarries, which are labor intensive. Additionally, longwall mining has been successfully introduced, and is expected to greatly contribute to underground production in the future.

The Jharia coalfield, the main storehouse of prime coking coal in India, was haphazardly exploited for centuries by both selective and wasteful mining methods. A large amount of coal in this field remains inaccessible in pillars; almost 85 million tons of coal were lost due to fire, both surface and underground, during the last 70 years. A comprehensive scheme to combat and restrict fire is in place, and a master plan has been formulated for reconstruction of the entire coalfield including specific scientific exploitation programs designed to restructure the coalfield into large underground and surface mine blocks; remodeling the infrastructure; improvement in communication; reclamation of wasteland; and the redevelopment of commercial/residential areas.

The increasingly high ash content of Indian coals currently being mined, or planned for future mining, poses serious problems linked to beneficiation by conventional methods. In the steel sector a concomitant effort is being made to explore the possibilities of using newer technologies to develop the conservation of metallurgical grade coals.

1.2. The Objective of This Book

There is sufficient scope for an investigation into ways India might resolve the coking coal shortage in view of increasing demand from the growing steel industry. This book adopts a broad approach to examining the problems faced by the steel industry and its connection to India’s coal-mining industry. The various processes in vogue in Indian steel mills vis-à-vis the methods practiced abroad, and their merits and potential for use in India, are examined in detail. Statistical support is given in the book suggesting modifications required for steel making in India.

A critical appraisal of coking coal demand, in respect of the projected growth of the steel sector in India, has been attempted. This appraisal called for a detailed study of the supply/demand structure within the Indian steel industry, in relation to the coal industry both in the past and in the future, to identify caveats to such estimation techniques.

The analysis of coking coal resources is continuously updated by exploration agencies like the Geological Survey of India (GSI), the Mineral Exploration Corporation Ltd. (MECL), the Directorate of Geology and Mining (DGM), and the Central Mine Planning & Design Institute (CMPDI) of Coal India Ltd. (CIL), whose analysis is more detailed and goes to depths previously not attempted. Quantity and quality analysis is a continuous process. A review of the inventory for coking coal deposits in India, and the impact of technology on this in the future has been examined. The scarcity of resources has led to rising prices, which in turn has led to increased innovation. The model indicated in Figure 1.1 provides a framework for looking at the various possibilities for appreciation of resources through innovation.

Figure 1.1   Appreciation of resources.

Innovation focuses on improvement, including taking inspiration from techniques and ideas unrelated to mining and metallurgy. It is important to be open to new ideas. Thinking outside the box is one of the key factors driving improvement and innovation. New information technology tools, and investment in research and development (R&D), may bring about technological breakthroughs in all areas of the coking coal sector, from mining processes and steel making to reengineering. A culture of innovation needs to be instilled throughout all the associated organizations, and this means developing new technical ideas and skills. The process of translation of a technology from inception to implementation is looked at in this book. As mining has become a global industry, India has to play its part by incorporating the latest developments and technologies into its mining industries. Global positioning system (GPS), airborne geophysics, and low-impact seismic methods are some examples of exploration innovation. Telemining and fleets of automated load-haul-dump (LHD) machines ensure the health and safety and workplace quality of underground mining. In addition, this technique leads to higher coal recovery and lower operating and maintenance costs, thereby improving profitability. The automated operator independent truck despatch system (OITDS) has already achieved many benefits in Indian surface mines. Online business-to-business (B2B) activity and e-procurement can reduce procurement costs substantially. Operations and maintenance can be integrated with automated preventive maintenance schedules to reduce maintenance costs. Innovative recycling technology requires fewer commodities and leaves a smaller environmental footprint. The bottom line is that more multidisciplinary knowledge and generic skills are needed to manage the rapid pace of change.

The coal-mining industry’s working methods, lacunae, and pitfalls are studied in this book, and corrective actions are suggested to establish the appropriate mining technology required for particular geologic-mining conditions. An in-depth study attempts to evaluate the problem of the logistics of transportation of coking coal from production points to the consumer (steel plants).

Finally, the book undertakes an economic and econometric study of the development of coal mining with a view to evaluating the best way, both technologically and economically, of exploiting India’s depleted natural resources. Various mathematical models have been formulated to quantify different variables, analyzing and correlating them to arrive at a technically feasible, and economically viable, solution to India’s complex problems. The important process variables have been summarized in Figure 1.2.

Figure 1.2   Multidisciplinary approaches to optimal results.

1.3. Supply Chain Management

The key elements of supply chain management are purchasing, operations, distribution, and integration (Wisner et al., 2005). The supply chain of coking coal primarily consists of exploration, extraction, processing, carbonization, and steel making, while storage and transportation form the connecting links. In recent years, supply chain management has grown in popularity and usage. The Internet forms tighter links between key business processes, from initial extraction of raw coal to end customers to different stages of process techniques. Successful units are those with a good supplier–customer relationship. Each unit should make good use of recycling and reuse wherever possible. Transportation and logistics play an important role within the supply chain by reducing the overall costs of the whole operation. Enterprise resource planning (ERP) has enhanced the integration process and helped to make organizations globally competitive. At the same time, communications technology has advanced significantly as a result of computer networking. The important technical parameters in the business of coking coal are presented in Figure 1.3. Each process identified should be able to work under optimum conditions, commonly by vertically integrating processing with mining – something called forward integration. In contrast to vertical integration, outsourcing may provide many advantages for mining enterprises like CIL. Outsourcing of coal preparation plants can provide better quality and cost savings. Acquiring a mining lease outside the country is called offshoring, and this adds a new dimension to the supply chain strategy of globalization. Offshoring is the practice of locating mining interests in other countries; a practice that is closer to vertical integration than outsourcing. Offshoring firms are motivated to secure the supply of coal; however, this carries opportunities, challenges, and threats (Ritzman et al., 2007). There is a new focus on global mining management. In some cases, steel makers own all the units of the coking coal chain.

Figure 1.3   Supply chain management of coking coal.

1.4. Resurgence of the Indian Coal Industry

The fall of the Berlin Wall on November 9, 1989 sent a ripple throughout the world including India, China, Brazil, and the former Soviet Union. This event made it possible to think globally: a single market, a single ecosystem, and a single community (Friedman, 2005). The Indian economy used to follow the model of the erstwhile Soviet Union, in which the whole economy was controlled by the government and India forgot about the private sector. There was no appreciable growth in the Indian economy between 1947 and 1991. India ran out of hard currency and opened its economy in 1991; this brought about much faster growth allowing India to become one of the top emerging global economies. However, in order to meet its economic expansion program, India needs capital investment. Coal mining is a prime candidate for such investment as a result of it being one of the core industries and infrastructures of the country.

In the twenty-first century – the era of globalization and liberalization – a number of international mining companies are interested in India. CIL holds a monopoly over coal mining in the country. The partial liberalization of the coal industry has allowed captive mining, and coal blocks have been allotted to private sector end users. Joint ventures with CIL should be encouraged, and private sector investors should be permitted to do business independently, so that sufficient funds become available from different sources to turn the Indian economy around.

Indian coking coal mines were nationalized in 1971 and noncoking mines in 1973. It was necessary to reorganize the industry as it had inherent problems, which included methods of mining that were not scientific, social issues being compromised, and a lack of funding for rapid expansion of coal production. The goal of nationalization was eventually fulfilled with working and living conditions improved, wages raised, and levels of coal production increased to meet national requirements. In addition, there was a realization that private sector participation could help further growth of the industry. The milestones representing the different stages of liberalization or deregulation are indicated in Figure 1.4. In 1976, captive mining was allowed by the iron and steel industry. Subsequently, the same was allowed for the power and cement industries in 1993 and 1996, respectively. Private investment in preparation plants started in 1993, and the pricing of noncoking coal was completely deregulated in 2000. However, the price of washed coking coal has always been negotiable. In 2007, mining blocks were allotted for coal gasification and liquefaction for captive consumption. Coalbed methane gas can be fruitfully utilized in the iron and steel industry as well. In this process, approved end users have access to the supply from captive mines. Since 1993 a policy of liberalization has been initiated and the government has invested in the coal sector. However, India’s massive production program needs extra capital from private entrepreneurial sources, both domestic and international. In fact, in order to meet the rising demand of different sectors, many mining blocks are being allotted to private stakeholders. In addition, foreign direct investment (FDI) of up to 100% has been allowed for mining and captive consumption within all eligible industries. Consequently, the economy is opening up due to the government phasing in withdrawal of regulatory controls. The import tariff on coal has been gradually reduced since 1993 in accordance with policy changes in the coal industry. During the same time the import quantity restriction of coking coal has been removed. The import duty on coking coal was reduced from 35% to 5% in 1993, and reduced further to 3% in 1997 (Bose, 2003).

Figure 1.4   Policy changes in Indian coal sector.

The scope for investment in all major areas of the coal sector is shown in Figure 1.5. The three things required to attract investment, deregulation of the coal industry, and investment in all major areas are placed at the corners of the triangle in Figure 1.5. It is considered a management triangle, where variation of one factor affects the others. As such, deregulation plays the pivotal role in supporting dynamic growth of the coal industry. This, in turn, results in emerging business opportunities.

Figure 1.5   Investment opportunities in Indian coal industry.

References

Bose, S., 2003. Coal business in India – a major challenge in 21st century. Proceedings of Emerging Challenges in Mining Industry, MGMI, Kolkata, India, 26–27 September, pp. 217–226.

Friedman TL. The World is Flat. New York: Farrar, Straus and Giroux; 2005.

Ritzman LP, Krajewski LJ, Malhotra MK, Klassen RD, et al. Foundations of Operations Management. Toronto: Pearson, Prentice Hall; 2007.

Wisner JD, Leong GK, Tan KC, et al. Principles of Supply Chain Management: A Balanced Approach. Mason, OH: Thomson South-Western; 2005.

Chapter 2

Latest Developments in the Iron and Steel Industry

Abstract

Although India is the fourth largest producer of steel in the world, the per capita consumption of steel in India is low. Much is required to increase production. India is the largest producer of direct- reduced iron (DRI). There are two routes of steel making: the blast furnace (BF)/basic oxygen furnace (BOF), which uses iron ore and coke as the basic mix as well as recycled steel. The other route is the electric arc furnace, where the input blend is iron ore, melting scrap, or a combination of both. Major steel producers are integrated steel plants; they follow the BF/BOF process. Hot metal produced from a BF is used as a principal raw material for the production of steel. Thus, BF technology has become the bastion of iron making for further improvement both on quantity and quality. Various techniques to reduce the consumption of coking coal have been elaborated.

Keywords

intensity of use

BF

BOF

EAF

DRI

ISP

SWOT

sintering

agglomeration

market dynamics

Contents

2.1 Global Perspective 9

2.1.1 Steel Consumption and Economic Growth 9

2.1.2 Technology of Steel Making 13

2.1.3 Reuse and Recycling 16

2.1.4 Technical Efficiency of Iron and Steel Firms 23

2.2 Indian steel industry 24

2.2.1 Preamble 24

2.2.2 Milestones 25

2.2.3 Industry Structure and Trends 26

2.2.4 Optimum Level of Coal Ash Feed 26

2.2.5 SWOT Analysis 26

2.2.6 Calculation of Safety Stock: A Hypothetical Example 26

2.2.7 Reduction in the Consumption of Coking Coal 31

2.2.8 An Update on BF Iron Making 52

2.2.9 Supply of Raw Materials 55

2.2.10 Market Mechanism 57

2.1. Global Perspective

2.1.1. Steel Consumption and Economic Growth

Modern steel making involves primary and secondary steps. The primary step is feeding iron ore, coke, and limestone together into a blast furnace (BF) in which air is blasted through the bottom. The carbon-rich molten pig iron thus produced is passed into a basic oxygen furnace (BOF) where steel scrap and limestone are added to produce low-carbon steel. To produce 1 tonne of steel, about 2.8 tonnes of raw materials are required (Dhawan, 2008). Secondary steel making usually involves an electric arc furnace; the raw materials are scrap, direct-reduced iron (DRI), or pig iron for chemical balance. Some furnaces can melt almost 100% DRI; the product is also known as sponge iron. A little more than 1 tonne of scrap is needed to produce 1 tonne of recycled steel. India has been the largest producer of sponge iron in the world since 2002. Today, crude steel is produced mostly in BOFs using the modified LD process, which was first successfully implemented in the Austrian towns of Linz and Donawitz. About 72% of crude steel is produced globally through the BOF process.

Steel consumption is considered to be a key factor for economic growth during the industrialization of a nation. The level of per capita consumption of steel is an important index of the socioeconomic status and standard of