16/07/2025
Maegma Minerals partners with Primetals for “MIDREX” flex plant
Maegma Minerals signed a Memorandum of Understanding (MoU) with Primetals Technologies to establish a “MIDREX” flex plant with a capacity of 2.0 million tons of HBI per year in Lumut, Perak, Malaysia.
The agreement for the new “MIDREX” HBI plant was signed by Friedemann Plaul, Senior Vice President Iron- and Steelmaking, Andreas Viehboeck, Executive Vice President and Head of Global Business Unit Upstream, both with Primetals Technologies, and YM Tunku Dato Yacoob Khyra, Executive Group Chairman, and Uwe Ahrens, CTO, both with Khyra-Melewar Group. © Primetals
The new plant, provided in collaboration with Midrex Technologies, Inc. (Midrex), will enable Maegma to meet growing demand for high-quality merchant HBI in Southeast Asia. Operations are scheduled to begin in 2029.
The “MIDREX” flex technology is designed to operate at different ratios of natural gas and hydrogen, up to 100% hydrogen. Initially, the plant will operate with a mix of natural gas and hydrogen, allowing for a carbon footprint reduction of more than 50 percent compared to traditional blast furnace-based iron making. It will feature hydrogen-ready equipment and piping, such as three stages of process gas compressors. Key components include a “MIDREX” shaft furnace with a 7.15m diameter and a 19-bay “MIDREX” Reformer with 280mm reformer tubes.
“The industry is increasingly transitioning to hydrogen, but energy prices remain a challenge. Under these conditions, the flexibility of the “MIDREX” Flex plant is a major advantage for Maegma Minerals,” said Andreas Viehboeck, Executive Vice President and Head of Global Business Unit Upstream at Primetals Technologies. “This technology allows Maegma to scale up hydrogen usage based on market conditions while significantly reducing carbon emissions compared to conventional methods. We are thrilled to embark on this partnership and support Maegma in achieving its goals.”
This advanced technology solution offers both flexibility and performance, integrating state-of-the-art systems for efficient and sustainable production. Notable innovations include a conveyor system that reuses fine-ore residues from the briquetting process. Primetals Technologies will also supply a complete basic automation system (Level 1), an advanced process optimisation system (Level 2) featuring the “DRIpax” expert system to ensure consistent high-quality HBI production, as well as additional digitalisation solutions.
The plant will be powered by locally-sourced natural gas provided by a reputable gas supplier through the public grid, and by green hydrogen produced from off-grid renewable energy and a planned solar park. Additionally, the pellet feed will be sourced from a leading global mining company with operations near the Maegma site, significantly reducing transportation costs.
Maegma Minerals is a member of the Kuala Lumpur-based Melewar Group, a prominent Malaysian industrial conglomerate and industry leader in cold-rolled flat steel (CRC). The group also manufactures steel pipes, hollow profile and other products widely used in construction, furniture, automotive, bicycle, and engineering industries.
