Eurasian Resources Group will build a 2 mln tonnes HBI plant with Midrex and Primetals to support green energy transition; project financing in the ERG production facility in Kazakhstan to amount to $US1.2 bn
Eurasian Resources Group (ERG), a global metals and mining company headquartered in Luxembourg, has signed a strategic contract with a consortium of Primetals Technologies and Midrex Technologies, Inc. (Midrex, USA) for the construction of a hot briquetted iron (HBI) plant in Kazakhstan to serve global market needs. The agreement covers detailed engineering, supply of key process equipment, and a range of services for the plant located in Rudny, Kostanay region.
The MIDREX® Flex plant will be one of the largest next-generation metallurgy facilities in Central Asia and the first HBI plant in Kazakhstan. The plant will produce HBI with a metallization degree of at least 93.5% and an iron content of approximately 90%. The commissioning is scheduled for 2029. The MIDREX Flex plant is also designed for a seamless transition to hydrogen utilization when it becomes commercially viable.
The project is based on advanced direct reduction iron (DRI) technologies using the MIDREX Process. Unlike traditional blast furnace production, it uses natural gas instead of coke, resulting in significantly lower emissions. The plant will process oxidized iron ore pellets produced by JSC SSGPO, part of ERG, with the capability to deliver hot product directly to a future steelmaking shop.
The new plant will include a 7.15m diameter Midrex Shaft Furnace and a proprietary Midrex Reformer with low NOx burners for NOx reduction. Increased top gas pressure to ensure higher furnace productivity and reduced power consumption. A flue gas hot fan is aimed to additionally reduce electric power consumption. The plant will also feature a hot fines recycling system. Level 1 and Level 2 automation systems are part of the project as well. The contract follows successful completion of pre-engineering and basic engineering phases.
Shukhrat Ibragimov, CEO and Chairman of the Board of Directors of ERG, said: “With a target production capacity of 2 million tonnes of HBI per annum and a total investment exceeding US$1.2 billion, ERG’s project should create over 1,000 new jobs. This HBI facility, the first one in Kazakhstan, will bring in advanced technologies, reduce the carbon footprint, create employment opportunities, and contribute to the development of skilled human capital. Signing the contract with the consortium of Midrex Technologies and Primetals Technologies — global leaders in their respective fields — is a strategic step aiming to further modernize the country’s economy and expand its export potential.”
“We are proud that Midrex and our partner have been selected for this strategic project, a strong reflection of our proven expertise and the trust our clients place in our solutions,” Midrex President and CEO K.C. Woody said. “As the global leader in HBI, supplying about 90% of the world’s production, Midrex continues to drive the evolution of sustainable steelmaking for our customers.”
“We are honored to play a pivotal role in this major project that propels Kazakhstan’s metal industry into a new era, enabling ERG to expand into global markets. The MIDREX Flex solution represents the most environmentally friendly technology for ore-based ironmaking, reducing the carbon footprint by more than 50% compared to traditional blast furnace production,” said Andreas Viehboeck, Executive Vice President and Head of Global Business Unit Upstream at Primetals Technologies.
