Under the agreement, the parties will build a hot briquetted iron (HBI) plant with an annual capacity of 2 million tons in Rudny, Kostanay region, Kazakhstan. The total investment for the project is reported to be around USD 1.2 billion.
The new plant will be one of Central Asia’s largest next-generation metallurgical facilities and Kazakhstan’s first HBI production plant. Using MIDREX® Flex technology, the plant is expected to produce HBI with a metalization rate of 93.5% and approximately 90% iron content. Operations are planned to commence in 2029.
Designed for Hydrogen Transition
The MIDREX Flex plant is designed to allow a seamless transition from natural gas to hydrogen once commercially viable. Compared to traditional blast furnace technology, the project will significantly reduce emissions by using natural gas instead of coke. The plant will process oxidized iron ore pellets produced by JSC SSGPO, a subsidiary of ERG. The hot product will be directly supplied to future steelmaking facilities.
Advanced Technology Infrastructure
The plant will feature innovative components including a 7.15-meter diameter Midrex Shaft Furnace, low-emission burners for NOx reduction, a high-efficiency system with increased top-gas pressure, a flue gas hot fan, and a hot fine waste recycling system. Level 1 and Level 2 automation systems will also be implemented as part of the project.
“A Strategic Step for Kazakhstan’s Green Industrial Future”
ERG CEO and Chairman Shukhrat Ibragimov stated: “With an annual HBI production capacity of 2 million tons and an investment exceeding USD 1.2 billion, ERG’s project will create over 1,000 new jobs. Kazakhstan’s first HBI plant will reduce the carbon footprint by introducing advanced technologies, provide employment opportunities, and contribute to the development of skilled human capital. Collaborating with world-leading technology companies like Midrex and Primetals is a strategic step toward modernizing the national economy and increasing export potential.”
KC Woody, CEO of Midrex Technologies, added: “We are proud to be selected for this strategic project. As Midrex, which produces about 90% of the world’s HBI, we continue to add value to our customers in sustainable steel production.”
Andreas Viehboeck, Global Production Vice President of Primetals Technologies, emphasized: “This project will usher Kazakhstan’s metal industry into a new era and strengthen ERG’s global market presence. The MIDREX Flex solution is the most environmentally friendly technology for ore-based iron production, reducing the carbon footprint by over 50% compared to traditional methods.”
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