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153<h2>Sponge Iron</h2>
154<p><strong>Chaman Metallics Limited has an installed capacity of producing 1,87,500 MT of Sponge Iron annually.</strong></p>
155<p><strong>A critical raw material for the steel industry.</strong></p>
156<p>Sponge iron is the key raw material required to manufacture high quality steel. Coal-based sponge iron, or direct reduced iron (DRI), is produced through a process where iron ore is reduced to iron using coal as the primary reducing agent. In this method, iron ore is mixed with coal and other additives and then heated in a rotary kiln or similar furnace. The coal provides both carbon and heat, facilitating the reduction reaction. As the mixture is heated, the iron ore reacts with carbon monoxide generated from the coal to produce sponge iron and carbon dioxide. The resulting sponge iron has a porous, spongy texture and is collected after cooling. This method is favored for its lower energy consumption compared to traditional blast furnace processes, though it relies heavily on coal. The sponge iron is then used as a raw material in electric arc furnaces for steel production.</p>
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170Product - Sponge Iron</th><th></th></tr></thead><tbody><tr><td><strong>Chemical</strong></td><td><strong>Percentage </strong></td></tr><tr><td>Fe. Total</td><td>90-92</td></tr><tr><td>Fe. Metallic</td><td>81-84</td></tr><tr><td>Metallisation</td><td>88-90</td></tr><tr><td>Sulphur</td><td>0.03 max.</td></tr><tr><td>Phosphorus</td><td>0.05 max.</td></tr><tr><td>Carbon</td><td>0.10 (approx.)</td></tr><tr><td>Gangue content</td><td>5 (approx.)</td></tr><tr><td><strong>Physical</strong></td><td><strong>Size</strong></td></tr><tr><td>Size Lump</td><td>+ 3 mm</td></tr><tr><td>Fines</td><td>0-3 mm</td></tr><tr><td>Bulk Density</td><td>1.9-2.2 MT / m3</td></tr></tbody></table>
171<p>Sponge iron, a vital raw material in the steel industry, is pivotal in manufacturing top-quality steel. Versatile for induction and electric arc furnaces, the Company produced 65,156 M.T. in FY23. Chemical composition: Fe Total 90-92%, Fe Metallic 81-84%, Metallisation 88-90%, Sulphur 0.03 max, Phosphorus 0.05 max, Carbon 0.10 (approx.), Gangue content 5 (approx.). Physical: Lump (+3 mm), Fine

171s (0-3 mm), Bulk Density 1.9-2.2 MT/m³.</p>
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188<h2>Dolochar</h2>
189<p><strong>During the production of sponge iron, a solid waste is produced as a by-product called dolochar, which is used in power generation.</strong></p>
190<p>At our sponge iron manufacturing facility, we operate two Rotary kilns with an aggregate the annual installed capacity of 72,000 MT (2 X 100 MTPD) for the production of sponge iron. The strategic location of our sponge iron manufacturing facility aids our access to high-quality iron ore, iron ore pellets, coal, and dolomite, which are the major raw materials for sponge iron manufacturing. During the production of sponge iron, solid waste is produced as a by-product called dolochar. For FY2024, Our Revenue from operations from the sale of sponge iron, dolochar, and other items (iron ore fines, dust, and waste scrap) contributed 98.08%, 0.63%, and 1.29%, respectively.</p>
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