A DRI project typically involves four phases to move from concept to completion:
- Identify the basic concept of the project and perform a pre-feasibility study.
- Midrex performs a feasibility study to determine the most effective technology configuration and basic plant design, as well as to evaluate project economics and identify financing options.
- Midrex, the selected construction partner, and the client sign the project contracts and agreements after preliminary engineering, specifications, and materials are finalized.
- Midrex and the construction partner perform the basic and detailed engineering and procure the key plant equipment.
- Product delivery schedules are established.
- Financing is finalized.
- The construction partner installs the plant and a start-up and commissioning team of Midrex and construction partner personnel puts the plant into operation.
Midrex has been the technology partner of various international companies throughout its history that have built plants based on the MIDREX® Direct Reduction Process and participated in their successful start-up and commissioning. These companies, known as MIDREX Construction Licensees, have been selected for their expertise in project and construction management, process design and engineering, and often project financing.
Each Construction Licensee is an acknowledged leader in its field and exhibits the technical competence, adherence to completion schedule, and performance excellence that are the hallmarks of MIDREX Plant projects. This makes for a strong and mutually supportive technical team and assures the utmost customer value.
Specialized equipment plays an important role in the success of a MIDREX Plant. Close relationships with key equipment suppliers are indispensable to assuring optimum performance and smooth start-ups. Midrex is actively involved in the further development and improvement of specialized equipment and materials through interaction with leading suppliers and manufacturers.
One of the most challenging aspects of project development can be financing and risk mitigation. Customers undertaking big capital expenditure programs often borrow money to finance rather than fund entirely from their own resources. Financing allows a customer to defer payment until the project is constructed, so that earnings from the project can be used to repay the loan. There are several project financing sources available.
Midrex UK, Ltd. guides customers through the process to match them with the proper project financing solution. Located in London, England, Midrex UK Ltd. is in one of the world’s most notable financial hubs and thus provides customers with access to a valuable financing resource, the UK Export Financing (UKEF). Closely collaborating with the UK Export Financing (UKEF) to facilitate client access to the Export Credit Agency (ECA), a leading international-recognized financing model used for large-scale projects.