American Club Circular No. 37/12 1 DECEMBER 19, 2012 CIRCULAR NO. 37/12 TO MEMBERS OF THE ASSOCIATION Dear Member: INFORMATION REQUIRED WHEN OFFERED A SHIPMENT OF IRON FINES THAT MAY CONTAIN DRI (C) Background The process of manufacturing direct reduced iron (DRI) from iron ore, and subsequent hot briquetting procedures, generate unwanted by-products in the form of dust and broken chips. Some manufacturers recover these materials and offer them for shipment. Historically, such cargoes have mainly originated from Venezuela and Trinidad, although shipments have also been made from the US, Mexico and Libya. This cargo has been responsible for a number of casualties in the past, most notably the YTHAN in 2004, in which six crew members lost their lives as a result of explosions that occurred in four of her five cargo holds and which also caused the total loss of the vessel. This cargo was not specifically included in previous editions of the Bulk Cargo Codes. Following extensive discussion, a new schedule was drafted to encompass this material and was included in the 2009 edition of the IMSBC Code, which became mandatory on January 1, 2011 (the latest version of the Code was issued this year). The entry is DIRECT REDUCED IRON (C) (By-product fines), and the definition of the material is based only on its production, particle size and density, without reference to the metallic iron or moisture content. Despite extensive publicity, cargoes are still being offered, and shipped, which do not have DRI in their descriptions, but which in fact are blends that contain a significant proportion of DRI (C) fines. Descriptions have included reoxidised iron fines, iron fines (blend), iron ore pellet chips, oxide fines, pond fines, sludge fines, remets, clarifier slush and dust, spent iron fines and lodos. Other, similar cargoes include DRI in the description, but are offered on the basis that they are not DRI (C) and therefore do not need to be carried in accordance with the DRI (C) Schedule of the Code. Members should also be aware that, even if the cargo offered is not DRI (C), in some instances stockpiles are adjacent and non-DRI cargo can become contaminated with DRI fines. This Circular provides guidance to Shipowners, Masters and Charterers on the information to be requested to assist in the identification of DRI cargoes and the correct, safe practices for carriage. For the avoidance of doubt, it is the position of the International Group of P&I Clubs (IG) that cargoes with DRI in their descriptions should be declared using the appropriate Bulk Cargo Shipping Name (BCSN) for a DRI (C) cargo and prepared, loaded and carried in accordance with the provisions of the IMSBC Code. American Club Circular No. 37/12 2 Information to be obtained before loading Cargo blends containing DRI (C) can be identified by their chemical composition, details of which must be requested. The chemical composition must include the total iron content (Fe), the metallic (or free) iron content (Fe o ) and the moisture content. This information should preferably be supported by a certificate from an independent testing laboratory and must relate to the cargo that is being offered for shipment: in other words, a “generic” analysis is not acceptable. The certificate should state the method and standards that have been followed when obtaining the samples that have been tested (preferably ISO 10835: 2000) and the standards that have been followed to determine the metallic iron co