Apr 14, 2008
State still studying viability of new steel plant - MpahlwaBack
© 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)
Creamer Media Senior Researcher and Deputy Editor Online
Updated 10 minutes ago This six-page brief is a synopsis of key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, revisions and expansion to sector support, competitiveness, and prospects for the sector.
Updated 29 minutes ago The DA and the EFF had caustic reactions to reports that the Passenger Rail Agency of South Africa (PRASA) imported brand new locomotives worth R600-million despite explicit warnings that the trains are not suited for local rail lines. Senior railways engineers and...
Updated 34 minutes ago The statement issued by the ANC and its alliance partners after a summit last week is silent on several key issues, including the crises in state-owned enterprises, and is in conflict with views Cosatu is supposed to have, former Cosatu general secretary Zwelinzima...
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Real Economy Insight: Construction 2015 (PDF Report)
Real Economy Insight: Electricity 2015 (PDF Report)
Real Economy Insight: Road and Rail 2015 (PDF Report)
This Week's Magazine
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...