Lipatnikov A.V., Shmelyova A.E., Stepanov E.N., Shnayder D.A. Mathematical modeling and optimization of raw coal consumption in PJSC «MMK»

Abstract

The Magnitogorsk Iron and Steel Works (MMK) is one of the world's largest steel producers and a leading Russian steelmaking company. MMK is a fully integrated production complex beginning with the iron ore preparation process through the ferrous metals downstream production. It focuses on increasing competitiveness of its products and reducing production costs, which are directly attributed to the blast furnace shop operation. The blast furnace shop performance indicators significantly determine business economics in general; therefore, cutting pig iron production costs is an important current task. Coke expenses take about 30% of a total cast iron cost structure. Thus, the paper aims at undertaking a task of reducing cast iron cost by cutting coke consumption in the blast furnace shop as a result of the coal concentrate procurement optimization. The coal concentrate procurement may be optimized by selecting the suppliers’ share that provides a minimum coal concentrate price and the coke quality required by the process. The results of the research are as follows: developing an optimum coal concentrate consumption method; determining nonlinear statistical relations between coal concentrate quality indicators and resulting coke quality indicators, between coke quality indicators and specific coke consumption at 70-80%; determining a possibility to create a model for optimizing delivery and consumption of coal concentrate at PJSC MMK, using available statistical data; reducing the coal concentrate price, while keeping the same coke quality or improving the coke quality without changing the price, based on a developed model. Further development of the model lies in developing an automated system for planning delivery and consumption of coal concentrate, and for forecasting the coke quality considering actually delivered materials.

Keywords

Coke, coking coal, coal procurement, decision support systems, industrial optimization, business process automation.

Andrei V. Lipatnikov – Senior Specialist, Group of Mathematical Modeling and System and Analitical Research, R&D Center, PJSC Magnitogorsk Iron and Steel Works, Magnitogorsk, Russia. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Anna E. Shmelyova – Senior Economist, Group of Mathematical Modeling and System and Analitical Research, R&D Center, PJSC Magnitogorsk Iron and Steel Works, Magnitogorsk, Russia. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Evgeny N. Stepanov – PhD (Eng.), Senior Specialist, Group of Sintering, Coking, and Blast Furnace Processes, R&D Center, PJSC Magnitogorsk Iron and Steel Works, Magnitogorsk, Russia. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Dmitry A. Shnayder – DSc (Eng.), Professor, Automation and Control Department South Ural State University (National Research University), Chelyabinsk, Russia. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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