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Iron ore and coal from the mines of Orissa are now being combined to make sponge iron using direct reduction technology from Allis-Chalmers Corporation, Milwaukee, Wisconsin, USA. The first installation in India of this coal-based iron ore reduction process, known as ACCAR, was installed by Orissa Sponge Iron Ltd at its plant in Palasponga, State of Orissa last year. The plant is capable of producing 500t/day of 90% metallised iron for electric furnace consumption.
A steel plant employing ACCAR direct reduction technology is said to be economical at capacities as low as 250,OOOt/year. New installations of traditional steel plants are not economical below 2Mt/year. The direct reduction, electric furnace method of steelmaking affords India the means of establishing economical plants to serve...