Essar Steel in Rs960-cr pact with Harsco of US for slag recovery
04 Jul 2013
In a bid to emerge a ''zero-waste'' firm, the Ruias-promoted Essar Steel has signed a Rs960-crore ($160 million) pact with Harsco India, the local arm of US-based slag processing major, for recovering iron from slag generated in the process of steel making.
''The agreement is for a period of 15 years and is valued at $160 million over the duration of the contract. Under the agreement, Harsco will recover iron from slag, which can then be reused in steel-making,'' Essar Steel today said in a statement.
Essar Steel, with a 10 MTPA plant in Hazira, has been using slag for making various construction materials, and the decision to rope in Harsco, a leading firm in slag processing and metal recovery, is aimed at elimination of iron content waste in the slag.
After the metal is recovered, the sized slag finds varied applications in construction industry like in making paver blocks, road back fill, road laying, brick making and cement mix construction, among other usages.
According to Rajiv Bhatnagar, director at the Hazira facility of Essar Steel India, the agreement was in line with the objective of Essar Steel to become a 'zero-waste' company. He said the company remained committed to the cause of sustainable development.
Essar Steel generates around 1 MT of slag each year, which it uses to make paver blocks that are not only cheaper but also stronger and heavier as compared to cement paver blocks. The company also plans to set up ancillary units using the slag to make aggregates.
According to Bhatnagar, the agreement with Harsco India formed part of Essar Steel's sustainability efforts, adding that the company had taken various steps towards the goal for emerging as a ''zero waste'' firm.
Apart from the India, the company also has a presence in Canada, the US and Indonesia, with a total of 14 MTPA of steel-making capacity.
Meanwhile, the agreement comes as Harsco's third major contract announcement in India over the past six months, after new contracts with JSW Steel, India's leading private sector steel producer and Jindal Stainless Limited, India's largest stainless steel producer. Along with other ongoing works, the company's portfolio of business in the Indian steel sector total over $500 million in projected future revenues over the next 10 to 15 years.
Under the latest contract, Harsco would provide slag management and metal recovery services at Essar's Hazira facility, the world's fourth largest single-location steel plant with a steelmaking capacity of more than 10 MTPA. Harsco's work is expected to start in the third quarter of 2014.