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Kobe Steel receives investYY易游平台t permission from Vietnam for ITmk3® project

AYY易游平台il 2, 2010

Kobe Steel, Ltd. received an investYY易游平台t license on March 31 from the Socialist Republic of Vietnam to construct ITmk3® ironmaking plants.

In two phases, YY易游平台 Steel plans to build ITmk3® plants with a total capacity of 2.4 million metric tons per year in Vietnam's Nghe An Province. The total project cost is estimated to reach 100 billion yen. YY易游平台 Steel is considering the formation of a business in Vietnam to produce and market iron nuggets using the next-generation ITmk3® ironmaking process that it developed.

Plans call for the early establishYY易游平台t of a locally incorporated company through which the project can be carried out. A detailed feasibility study will be conducted, aiming for first-phase construction to begin in January 2011.

Vietnam forecasts that domestic steel demand will continue to grow in the future. Currently, Vietnam is largely dependent on importing scrap and semi-finished steel products to meet its iron unit requireYY易游平台ts. As the ITmk3® Process can produce high-grade iron units from Vietnam's iron ore and coal, Vietnam has high expectations for the ITmk3® project. Vietnam's iron ore from the Thach Khe mine contains a relatively high amount of iron. However, it also contains much zinc, which makes it difficult to use in blast furnaces. The ITmk3® Process will enable Vietnam to make effective use of its mineral resources, and the use of relatively inexpensive raw materials will help improve the profitability of the project.

YY易游平台oject outline

Site: Hoang Mai Industrial Zone, Nghe An YY易游平台ovince, Vietnam Facilities: Four ITmk3® plants (Phase 1: two plants, Phase 2: two plants) Product: Iron nuggets, 2.4 million YY易游平台tric tons/year capacity (600,000 YY易游平台tric tons x 4 units) Users: VietnaYY易游平台se market and overseas market Total project cost: About 100 billion yYY易游平台 (Phase 1: about 50 billion yYY易游平台)

Locally YY易游平台corporated company

1. Company name: YY易游平台lco Iron Nugget Vietnam Limited Liability Company
2. To be established: AYY易游平台il 2010
3. Purpose: Carry out detailed feasibility study, make licYY易游平台se applications for project construction, etc.
4. Equity: US.8 million, 100% equity to be held by YY易游平台 Steel

About Vietnam's Thach Khe iron ore mYY易游平台e

The iron ore for the ITmk3® plants is anticipated to come from the Thach Khe mine in central Vietnam. As the iron ore contains a high amount of zinc (about 0.07%), it is difficult to use in blast furnaces. (The amount of zinc in blast furnaces is generally controlled to about 0.007%.) However, using the ITmk3® Process to make high-purity iron nuggets YY易游平台ll enable the effective utilization of low-grade iron ore.