JFE Material to Raise Recycled Ferroalloy Output at the JV

JFE Steel’s subsidiary, JFE Material leading recycling material using ferroalloy making joint venture will increase the output level as early as in fiscal 2008. The JV increased the output level to 70% of the planned level since the commercial production start in April 2006. The JV made money for the first commercial production year under higher market price. The JV tries to develop the market other than JFE Steel while the JV tries to source the raw materials at home and abroad to establish the rare metals recycling business in operation and profitability. The JV produced 1,400 tonnes of ferrovanadium and ferro-nickel-molybdenum each and 10,000 tonnes of calcium aluminate in fiscal 2006, which represented 70% of the original plan. The firm sells the products for JFE Steel and other steel makers while the firm purchases boiler ash and other raw materials from domestic power generators and oil refineries. The firm tries to expand the domestic raw materials source and started study for offshore procurement from USA and South Korea when the firm cannot increase the output due to limited availability of raw materials. The firm tries to increase the output as much as possible in fiscal 2007 though the firm plans the same level output as fiscal 2006. The firm also tries to develop potential buyers other than JFE Steel group, which represents 50% of the JV’s sales, preparing for higher output. JFE Material controls 52.5% of the JV with 27.5% share by Mitsubishi Corporation and 20% share by Kashima Kita Electric Power. The JV recovers valuable metals from used desulphurization catalyst of oil refining and dust and waste of thermal power plant. The JV, which entrusts the output to JFE Material, started the test running in October 2005. The JV makes intermediate material of oxidizing roasting by removing moisture and oil from the raw materials at the rotary kiln and smelts the material at electric furnace with the dry smelting method. The firm has annual 2,000 tonnes each of output capacity for ferrovanadium with 50% of purity and ferro-nickel-molybdenum with 25% nickel and 25% molybdenum and 15,000 tonnes of capacity for CaO-Al2O3 or calcium aluminate.