Product – Green High Purity Pig Iron
Green High Purity Pig Iron (“Green HPPI”) for sale to steel makers in Australia, North America, Europe, UK and Asia.
The project aims to have Burracoppin Green HPPI certified green (refer to ASX release 19/03/2021).
The project is being developed to encompass all aspects of production from mining the ore, growing and processing Biomass into Biochar, smelting mineral to metal, through to shipping the Green HPPI product. This vertical integration will simplify full certification of all greenhouse (including carbon dioxide) emissions associated with Burracoppin Green HPPI product.
Buyers of our product will be similarly focused on greenhouse emissions.
Market demand - general
The two main markets for pig iron are electric steel making (90%) and foundries (10%). Demand is expected to increase for the following reasons:
- Blast furnaces, mainly in the USA and EU, but also in SE Asia and Australia, are being replaced by electric furnaces due to the lower production costs and lower carbon emissions of electric furnaces. Electric furnaces require "pure" iron to dilute high levels of copper in the scrap steel used. The "pure" iron can be added as solid pig iron or as "direct reduced iron" (DRI). Pig iron is preferred to DRI by electric steelmakers because of its lower levels of impurities and is typically sold at a premium.
- Increased volume of scrap in China is driving increased electric steelmaking in China.
- High purity pig iron is used for high quality casting such as in the fabrication of wind turbine gearboxes. The drive for renewable energy is driving demand for wind turbines worldwide.
The markets for the Burracoppin WA Green Pig Iron are anticipated to be worldwide because the higher purity of HIsmelt pig iron is expected to command "Value in Use" premium compared to both blast furnace pig iron and DRI worldwide.
Reedy Lagoon intends selling direct to electric steel makers, foundries and casting companies spread around the world including new local manufacturers we anticipate will see opportunity in a Western Australian supply of Green HPPI. Our business will be built on high quality product delivered on time within specifications to businesses that can rely on us as much as we rely on them.