PIZO Furnace Demonstration Operation for Processing EAF Dust Author: James E. Bratina H eritage Technology Group PIZO Furnace Demonstration Operation for Processing EAF Dust December 7, 2007 Annual Review of the MMPC McGill University Author: James E. Bratina H eritage Technology Group

Background 1 Million Tons of EAF dust produced in US each year EAF options today include landfill or Waeltz kilns Current options result in loss of valuable resources PIZO process developed to take advantage of all components of EAF dust in a more energy efficient manner

DESCRIPTION OF THE PIZO PROCESS Primary processing unit is a channel induction furnace Molten bath of iron serves as a heat sink to rapidly heat feed materials Feed material is a mixture of metal oxides and reductants Under high temperature conditions in the PIZO furnace, metal oxides are reduced Volatile metals exit the process as a gas Iron and some other metals go into molten bath Remaining materials produce a molten slag

HISTORY OF PIZO PROCESS Heritage began work on induction furnace process in 2002 using bench and pilot scale equipment First induction furnace patents awarded to Heritage in May 2004 PIZO Process patent application filed April 2005 Began construction of PIZO demonstration facility in mid 2005 Construction of PIZO Process demonstration facility completed in January 2006

OPERATION OF THE PIZO PROCESS PIZO Process is fed continuously Volatile metals are removed continuously through furnace gas collection system as a product Iron product is removed semi-continuously from front of furnace Slag Product is removed semi-continuously from side of furnace The only EAF dust process that produces 3 commercial products in a single step process

PIZO DEMONSTRATION FACILITY Construction began in mid 2005 at the Accucast Foundry in South Bend, Indiana Phase I operation began in January 2006 Phase I operation stopped in April 2006 to make modifications Equipment and engineering upgrades were made Phase II operation started in July 2006 and was completed in September 2006

TABLE 1 TYPICAL COMPOSITION OF SLAG PRODUCED FROM PIZO PROCESS (approximately 50 sets of analyses) 30% CaO27% SiO 2 20% MgO7% MnO 6% Al 2 O 3 4% Fe 2 O 3 2% Na1% S

TABLE 2 TCLP TESTING OF SLAG PRODUCED FROM PIZO PROCESS (from 5 sets of TCLP analyses) Total Metal Concentration TCLP Result Regulatory Limit in Slag Lead < 0.1 ppm ppm (max) 5 ppm Cadmium < 0.1 ppm BDL 1 ppm Zinc 0.1 ppm 1 ppm (max) Not Applicable

TABLE 3 TYPICAL COMPOSITION OF CRUDE ZINC OXIDE PRODUCT FROM PIZO PROCESS (from 12 sets of analyses) 67% Zn 3.0% K 2.5% Cl 1.5% Fe 1.0% Pb 1.0% Na 0.5% S 0.2% F 0.02% Cd.

TABLE 4 TYPICAL COMPOSITION OF IRON PRODUCT FROM PIZO PROCESS (from approximately 20 iron samples) % Fe 3.0% C 0.8% Mn 0.5% Cr 0.25% Cu 0.1% S 0.1% P

CONCLUSIONS AND FUTURE PLANS FOR PIZO PROCESS Demonstration plant proved viability of process during a 6 month operating period Demonstrated process capable of making 3 saleable products using 100% of feed materials in a single step Heritage has begun construction of the first commercial PIZO facility in the United States with Nucor Steel in Arkansas Research is being performed on the expansion of the application of the principles of the PIZO furnace to other feed materials

ACKNOWLEDGEMENTS Indiana Department of Commerce Accucast Technologies Ajax Tocco Magnethermic Mittal Steel Nucor Steel Waltz Holst The Heritage Group