Apr 14, 2008
State still studying viability of new steel plant - MpahlwaBack
Africa|ArcelorMittal South Africa|Bloomberg|Highveld Steel|Industrial|Industrial Development Corporation|Africa|Mozambique|South Africa|Building|Carbon-steel Plant|Steel|Steel Complex|Steel Industry|Department Of Trade And Industry|South African Government|Fabrication|Iron Ore|Iron-ore|Mandisi Mpahlwa
© Reuse this
"I do know that there are various initiatives that are under way, all of which are aimed at assisting us in terms of availability of steel perhaps much cheaper grades than we are able to get currently from Mittal," Mpahlwa added.
Bloomberg News reported that the feasibility study, which was being overseen by the State-owned Industrial Development Corporation (IDC), would likely be complete in September.
Mpahlwa also noted that there was also "an initiative that we [South African government] have with Mozambique, to establish an iron and steel complex that will stretch between two of our provinces, Limpopo and Mpumalanga, as well as the southern part of Mozambique."
He added that it was an important initiative between the two countries, and that the Department of Trade and Industry continued to do work in a broad number of areas regarding the steel industry in South Africa.
"But, I think that the conclusiveness really as to whether a second steel facility is feasible and viable - that will come in due course," Mpahlwa stated.
The South African government was pursuing the options to deal with the steel pricing issue.
The study was one of five actions aimed at reducing the cost of steel inputs to the downstream fabrication sector, the others being a strengthening of the Competition Act; the creation of a State-owned enterprise pricing and procurement framework; reviewing the role of merchants in the value chain; and putting in place measures to reduce the exportation of scrap.
But while previous plans were centred primarily on the desire to increase the local beneficiation of ferrous minerals, such as iron-ore and manganese, the new study was interrogating the viability of an integrated mill.
It was understood that the prefeasibility study was being undertaken by State minerals and metallurgical research house Mintek, in collaboration with the IDC.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years. The buildings will be the same and most of the staff will be the same but as the...