1.2.2 Direct Reduction & Smelting Processes
A summary of the new technologies that will help meet the expected demand for steel is given in attached table.  The two main processing routes will be direct reduction of the iron ore to produce a feedstock for EAF and direct smelting processes that compete with the existing integrated steelworks, that uses coke ovens, sinter/pelletising plants and blast furnaces.
Direct Reduction
Increased use of EAF for steel production will increase demand for scrap. This will lead to a shortage which will be accompanied by decreased scrap quality. Direct Reduced Iron (DRI) can be used as a high quality replacement for scrap.  DRI is iron-ore lumps, pellets and fines that have had oxygen removed from them by a reductant.
HBI is a briquette made by a densification process whereby the direct reduced iron (DRI) feed material is at a temperature greater than 650°C at time of molding (Hot Briquetting) and has a density greater than 5.0 g/cm3.  The producers, benefits of HBI  and potential markets are detailed by the HBI Association.
Direct Smelting
A number of Direct Smelting processes for the production of hot metal from iron ore or DRI are being developed around the world.  This is being driven by the desire for:
    • the ability to utilise cheaper and more abundant raw materials such as non- coking coals and non- agglomerated ores,
    • smaller economic plant sizes and,
    • reduced capital costs and environmental problems through the elimination of coke ovens and sinter/pellet plants.
The benefits are:
    • competitive hot metal,
    • flexibility of operation, and
    • the product can be fed to an EAF for steelmaking.
The metal produced from such processes is a premium grade product which has a high value to an EAF steelmaker compared to alternative DRI materials.
At this stage the only direct smelting process that is in commercial operation is the COREX® process. However, a number of others are at pilot plant/development plant stage.