Project Development

A direct reduction project takes years to be transformed from idea to reality.  Midrex has the experience, know-how and partners to develop and complete projects on-time and on-budget. We are actively engaged every step of the way.

A DRI project typically involves four phases to move from concept to completion:

  1. Study:  Midrex works with potential clients to identify the basic concept of the project and perform a pre-feasibility study. Based on the outcome of this study, the clients can choose to proceed to the next stage of development.
  2. Planning:  Midrex performs a feasibility study that focuses in much more detail on the client’s needs and the project scope. The best choices for each individual client are examined, including selecting the most effective technology configuration, executing the basic design, evaluating project economics and risks and determining the preliminary financial structure of the project. Midrex assigns a project manager for each client to organize the project team, select a financial advisor (if required), and prepare the project schedule. At the end of this stage, a final decision to proceed is made.
  3. Contracting: The pace picks up. Midrex performs preliminary engineering, writes equipment specifications and sends out bid packages. Based on the bids received, the best quality and priced contractors are selected. Schedules for utilities and raw materials consumption are developed and contracts for them are negotiated. Meanwhile, the client investigates the market and prepares a preliminary marketing plan. This is especially important in the case of a merchant HBI or CDRI plant. Midrex assists the client in preparing the documentation required for project financing and in obtaining loan commitments from lenders. At this point, Midrex, the selected construction partner and the client sign the project contracts and agreements.
  4. Implementation:  Midrex and the construction partner perform the basic and detailed engineering and procure the key plant equipment. In parallel, the marketing plan is refined, additional off-take commitments are signed (in the case of a merchant plant), product delivery schedules are established and 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.