Feasibility Study for Servicing a DRI Processing Plant

Client

Han-Padron Associates (now CH2M HILL) Eleven Penn Plaza New York, New York 10001

for

International Marine Terminals Rt. 1, Box 649 Port Sulphur, Louisiana 70083

Completion Date
April, 1994

Project Description
International Marine Terminals' (IMT) Plaquemines Parish Terminal is a coal and dry bulk transshipment terminal located on the lower Mississippi River at mile 57 AHP, about 40 miles south of New Orleans. IMT transships domestic and foreign consignments via river barges, Gulf barges, and ocean going vessels (up to 150,000 dwt size). The terminal stockpiles, blends, samples, and weighs shipments. IMT provides 24-hour service, 365 days per year.

A consortium of three companies investigated plans to build and operate a direct reduced iron (DRI) processing plant, consisting of up to four individual DRI units. This plant was to process iron ore concentrate into metallic iron briquettes for the steel industry. The proprietary process was developed by Midrex Corporation, the industry leader of this technology. The consortium selected IMT as one candidate site for the DRI processing plant to minimize the capital cost for the first DRI unit. The DRI plant would receive iron ore concentrate and coal and ship briquettes, using IMT's facilities and operations. The plant would consist of up to four units which are sequentially constructed.

This assignment investigated the feasibility of IMT servicing the new DRI processing plant. The addition of a DRI plant would impact the facilities and operations of IMT. These impacts were assessed and candidate alternatives were developed. Three basic schemes were examined. Each scheme unloads coal via the existing system. Schemes A and B load briquettes via a new river barge loader while Scheme C loads briquettes via a new river and Gulf barge loader. The loading systems would assist the DRI plant in shipping a "premium" product by minimizing briquette breakage. Scheme A used the existing conveyors to handle the iron ore concentrate. Scheme B loaded all concentrate into river barges which are shuttled to a new DRI barge dock. Scheme B used a separate new conveyor system to avoid operational and clean-up impacts with IMT's existing systems. Scheme C was intended to be developed in increments. The initial increment utilized the existing conveyor system for receiving iron ore concentrate. Scheme C featured the ultimate development of a new dock, which receives concentrate and loads briquettes, completely independent of IMT's existing system.

Capital cost estimates were prepared for Scheme A, Scheme B, and the three increments of Scheme C. The estimates included the cost of soil cement under the stockpile areas for coal, iron ore concentrate, and briquettes. The capital cost estimates were developed on a dimensional basis using prices from similar projects and industry standards.

The relative operating cost impacts of each scheme were evaluated. To assess this impact, differential operating costs were estimated. Common elements such a coal handling, unloading the Panamax vessel, etc. were not included in the differential cost estimates. Hourly rates were applied for the cranes, tug, barge, and clean-up operations.