PHASE II CALDERON PROCESS TO PRODUCE DIRECT REDUCED IRON RESEARCH AND DEVELOPMENT PROJECT

This project was initially targeted to the making of coke for blast furnaces by using proprietary technology of Calderon in a phased approach, and Phase I was successfully completed. The project was then re-directed to the making of iron units. U.S. Steel teamed up with Calderon for a joint effort which will last 30 months to produce directly reduced iron with the potential of converting it into molten iron or steel consistent with the Roadmap recommendations of 1998 prepared by the Steel Industry in cooperation with the Department of Energy. The work performed to-date is encouraging by virtue that product was produced with the lowest cost raw material (ore concentrate), and the energy source being exclusively coal. The product was melted and cast. The equipment has been debugged and preparations are taking place towards the integration of the process to produce directly molten iron and/or molten steel. Also it is planned to conclude the 72 hours test at reasonably continuous steady state during next quarter