Document ID: chunk:federal_register_of_legislation:F2024C00846:clause:1_39:p1
Version: federal_register_of_legislation:F2024C00846
Segment Type: clause
Provision Reference: sch 1 cl 39 (pt 1/2)
Character Range: 227492–230121

39  Primary iron

 (1) Subject to subsection (4), tonnes of metallic iron products, excluding any gangue, that:
 (a) are produced as part of carrying on the primary iron production activity at the facility; and
 (b) are exported from the facility; and
 (c) are of saleable quality.
Example:  The facility produces 100,000 tonnes of metallic iron products that meet the requirements of this subsection. 10% of the metallic iron products consists of gangue, in the form of non‑ferrous impurities such as silica (SiO2) and aluminium oxide (Al2O3), corresponding to 10,000 tonnes of gangue in total. No coke oven coke is used in the production process, so subsection (4) does not apply. As such, the metric is 90,000 tonnes.
 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of the physical and chemical processing of iron feed material into a crude iron product suitable for export from the facility.
Examples:  Pig iron, hot briquetted iron, direct reduced iron and cast iron are each a crude iron product that may be suitable for export from a facility.
 (3) The activity in subsection (2) is the primary iron production activity.
Example:   The production of crude iron products from iron ore pellets using direct reduction.
 (4) For subsection (1), if the amount of coke oven coke imported into the facility to produce the metallic iron products is equal to or greater than 5% of the total amount of coke oven coke consumed in carrying on the primary iron production activity, then tonnes of metallic iron products are given by the following equation:

metallic iron products = Qp + (1 – 0.108 c) Qi

where:

Qp is the quantity of metallic iron products, in tonnes, that meet the requirements of subsection (1) and are not produced using coke oven coke imported into the facility.

c is:
 (a) if the facility is using a production process that uses coke oven coke and requires less than 0.4 tonnes of coke oven coke to produce a tonne of metallic iron products for the majority of its iron production—the number of tonnes of coke oven coke required to produce a tonne of metallic iron products for the facility, divided by 0.468; or
 (b) otherwise—1.

Qi is the quantity of metallic iron products, in tonnes, that meet the requirements of subsection (1) and are produced using coke oven coke imported into the facility.
Note 1: Qp may or may not have been produced with coke oven coke.
Note 2: Qp and Qi do not need to be directly measured; they can be calculated from the consumed ratio of coke oven coke imported into the facility to coke oven coke used to produce metallic iron products