Apr 14, 2008
State still studying viability of new steel plant - MpahlwaBack
"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
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Video News
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...