A South Korean iron and steel company will enhance its shareholding in Tuwairqi Steel Mills Limited (TSML) by 50 percent and, if the move materialised, it will result in a state-of-the-art integrated steel complex and also attract more investment in the country, an official said.
Pakistan is meeting its demand-supply gap through imports and spending billions of rupees every year on it, through strengthening of this joint venture of the South Korean Pohang Iron and Steel Company (Posco) and a private sector TSML, will boost exploitation of local steel and iron resources, which will help boost the economy, Board of Investment (BoI) Chairman Mohammad Zubair said during a meeting of the visiting delegation of these companies.
He applauded the successful operation of Tuwairqi Steel Mills through local iron ore, which will help towards attracting more investors to the country.
“By producing high-quality steel within Pakistan, we can start manufacturing machinery and equipment by meeting the demands locally and without depending on imports. This activity will also add value to the downstream industries by reducing the production cost within the country.” Zubair said.
It is estimated that by 2015, the demand for steel products will be near 18 million tons, while local supply is only 10 million tons. If the local resources in Thar and other areas were exploited, it could help bridging the gap, he said, adding that currently, two-fifths of the country’s demand is met through domestic resources.
A delegation comprising Nam Sik, senior executive vice president of Posco; Shajeel Azhar, chief executive officer of TSML; Zaigham Adil Rizvi, country head / director projects; YooYoungho, resident director; and Kang SeungGi, senior manager of Posco, called on the BoI chairman.
Sik informed the BoI chairman, “Initially, Posco has partnered with TSML by investing $15 million in the direct reduced iron (DRI) project of TSML. Subsequent to commercial operation of the DRI project, Posco is keen to increase its shareholding ratio in TSML up to the threshold level of 50 percent.”
Rizvi said that after trial production of around 120 days, the plant demonstration test (PDT) was performed for 100 percent capacity test run of the plant.
Early this year, Al-Tuwairqi kicked off the commercial production of TSML’s first phase; a direct reduction of iron (DRI), making plant with the capacity to produce up to 1.28 million tons per annum of high quality DRI, which is evidently steel’s most versatile metallic and a preferred raw material for quality steel making worldwide, he said.
The first phase has been completed with an overall investment of $350 million. The Phase-I of the project is 1.28 million tons per annum DRI plant, he said.
TSML is a joint venture of Al-Tuwairqi Group of Saudi Arabia and Pohang Iron and Steel Company of South Korea.
Tuwairqi Steel Mills charges its reduction furnace through indigenous iron ore from Balochistan. The first trial consignment of DRI Grade lump iron ore reached TSML from MashkiChah District of Balochistan. The ceremony in this regard was held on September 4 at the Port Qasim Plant in Karachi.
In another meeting with Mathew Bartley, managing director of Nexif, Zubair said, “The government has an ambitious target of having at least five percent of the total power generation of the country that is 9,700MW through alternative / renewable energy by 2030.”
Bartley briefed the BoI chairman that the company is already active in Pakistan’s power sector having made an investment for infraCo Asia (subsidiary manager) in a 50 percent interest in Metro 50MW wind project and 49 percent interest in the adjacent Gul Ahmed 50MW wind project.
A member of the delegation said that investment worth $1.5 billion is ready for the production of 800MW. Zubair assured him of all the government support to mature this potential investment.
Bartley said that their team, which has extensive international power experience working for multinational power companies is working with Gul Ahmed Group in implementing these two projects.
The Metro project is well-advanced and scheduled to commence by the end of the year. The Gul Ahmed project is ready to follow the footsteps of Metro project next year.
He said that Nexif is also interested in the implementation of large-scale coal-fired power generation project in Pakistan.
Source: The News
