Beijing Kuntai Investment Co Limited, a leading Chinese Company has expressed its intention to purchase iron ore from Pakistan,
The Daily Times of Lahore reports that a trade inquiry has been sent to the Commercial Section Embassy of Pakistan in China.
Pakistan has iron ore deposits of more than 780 million tonnes.
Showing posts with label Pakistan. Show all posts
Showing posts with label Pakistan. Show all posts
Sunday, March 28, 2010
Monday, March 15, 2010
Pakistan Government To Launch Iron Ore Exploration Plan
A report in the Pakistani newspaper, the Pakistan Observer, suggests that the government of Pakistan is to explore for local deposits of iron ore for industrial purposes. The plan is being formulated by the Engineering Development Board as part of the country’s national steel policy.
Under the plan 1.5 million tonnes of iron ore will be mined each year by 2020.
The Pakistani government and the EDB will also give incentives for investors in the steel sector.
The report did not specify where the exploration will take place.
Iron ore is widespread in Pakistan and since the late-eighties, discoveries have been made in Balochistan and Punjab. However, much of the iron ore is low-grade and the country’s steel mills import much of their supply.
Under the plan 1.5 million tonnes of iron ore will be mined each year by 2020.
The Pakistani government and the EDB will also give incentives for investors in the steel sector.
The report did not specify where the exploration will take place.
Iron ore is widespread in Pakistan and since the late-eighties, discoveries have been made in Balochistan and Punjab. However, much of the iron ore is low-grade and the country’s steel mills import much of their supply.
Sunday, January 17, 2010
Pakistan Urged To Provide Better Coal Transportation
To increase Pakistan's coal production by 20 percent, the country's Coal Sub-Group has proposed that focus must be made on the improvement of underground transportation of coal and construction of roads from coal bearing zone to the market, sources told Daily Times on Saturday.
The Coal Sub-Group emphasised on greater exploitation of the indigenous energy resources, which was an important strategy in Energy Security Action Plan, which envisaged the share of coal from the 6 percent to 19 percent in 2019, the sources maintained.
The group was of the view that the provincial governments were unable to provide the requisite assistance to the private coal miners to overcome the difficulties.
The sources said that in January 2007, Energy Logistic Committee (ELC) was constituted under the chairmanship of the secretary Petroleum and Natural Resources and the ELC constituted three sup-groups on coal, gas and oil, headed by respective director generals.
In order to achieve the objectives of the ELC, the Coal Sub-Group proposed that focus must be made on the improvement of underground transportation of coal and construction of road from coal bearing zone to the market through an umbrella PC-I.
The Coal-Sub Group had submitted its detailed report proposing to provide technical know-how to the private mine owners to make the transportation system efficient both underground and surface components and to increase the production by 20 percent in order to achieve the targets specified in the Energy Security Action Plan
The impediments hampering transportation system were the lack of technical and financial capacity of small mine owners to develop infrastructure and mechanisation of mines to make the transportation system efficient and manual underground transportation and non-availability of road.
The sources claimed that total estimated coal resources of Pakistan were more than 185 billion tonnes. The present net demand of coal in the country was about 10.1 million tonnes out of which 4.1 million tonnes were produced locally and 6 million tonnes were imported.
About 90 percent of coal mines were operated by small mine owners and average annual production remains at 4.1 million tonnes, out of which more than 90 percent was consumed in the brick kilns industry. The share of coal in the overall energy mix during the last five decades declined from 68 percent in 1948 to 10.1 percent in 2009.
Average share of Pakistan Railways in the transportation of coal was about 30 percent and the remaining imported and indigenous coal was transported through roads. The sources claimed that the coal was intensively used in power generation, as an industrial fuel, brick kilns, cement, coal briquettes, coal gasification and underground coal gasification.
Under the umbrella project the objectives would be completed in five years time starting from 2009-10. The implementation of the scheme would in turn augment coal production by 15-20 percent annually.
For preparation PC-I provinces and special areas were requested to provide their requirements for construction of roads from mine to market in the coal bearing zones in their area. In response the governments of Balochistan and Sindh have conveyed their proposals however rest of the federating units have not sent their proposals despite repeated reminders.
Source: Daily Times, Pakistan
The Coal Sub-Group emphasised on greater exploitation of the indigenous energy resources, which was an important strategy in Energy Security Action Plan, which envisaged the share of coal from the 6 percent to 19 percent in 2019, the sources maintained.
The group was of the view that the provincial governments were unable to provide the requisite assistance to the private coal miners to overcome the difficulties.
The sources said that in January 2007, Energy Logistic Committee (ELC) was constituted under the chairmanship of the secretary Petroleum and Natural Resources and the ELC constituted three sup-groups on coal, gas and oil, headed by respective director generals.
In order to achieve the objectives of the ELC, the Coal Sub-Group proposed that focus must be made on the improvement of underground transportation of coal and construction of road from coal bearing zone to the market through an umbrella PC-I.
The Coal-Sub Group had submitted its detailed report proposing to provide technical know-how to the private mine owners to make the transportation system efficient both underground and surface components and to increase the production by 20 percent in order to achieve the targets specified in the Energy Security Action Plan
The impediments hampering transportation system were the lack of technical and financial capacity of small mine owners to develop infrastructure and mechanisation of mines to make the transportation system efficient and manual underground transportation and non-availability of road.
The sources claimed that total estimated coal resources of Pakistan were more than 185 billion tonnes. The present net demand of coal in the country was about 10.1 million tonnes out of which 4.1 million tonnes were produced locally and 6 million tonnes were imported.
About 90 percent of coal mines were operated by small mine owners and average annual production remains at 4.1 million tonnes, out of which more than 90 percent was consumed in the brick kilns industry. The share of coal in the overall energy mix during the last five decades declined from 68 percent in 1948 to 10.1 percent in 2009.
Average share of Pakistan Railways in the transportation of coal was about 30 percent and the remaining imported and indigenous coal was transported through roads. The sources claimed that the coal was intensively used in power generation, as an industrial fuel, brick kilns, cement, coal briquettes, coal gasification and underground coal gasification.
Under the umbrella project the objectives would be completed in five years time starting from 2009-10. The implementation of the scheme would in turn augment coal production by 15-20 percent annually.
For preparation PC-I provinces and special areas were requested to provide their requirements for construction of roads from mine to market in the coal bearing zones in their area. In response the governments of Balochistan and Sindh have conveyed their proposals however rest of the federating units have not sent their proposals despite repeated reminders.
Source: Daily Times, Pakistan
Thursday, December 31, 2009
Turkish Chrome Ore Market In A Bullish Mood
Asian Metal reports that now many Turkish chrome ore suppliers are offering lumpy chrome ore 42% at above USD 300 per tonne CIF CFR China due to the tight supply in such a winter condition. Meanwhile, the Pakistani chrome ore market follows Turkish chrome ore trend with a high price level.
A major producer in Turkey reported to Asian Metal that the chrome ore market is bullish, as they have received many recent enquiries from Chinese buyers. According to the source, he signed contracts with a total quantity of 80,000 tonnes and their price range for lumpy chrome ore 40% to 42% was between USD 315 and USD 325 per tonne CFR China.
He said that "I heard many Turkish chrome ore suppliers increase their offers for lumpy chrome ore 42% to above USD 300 per tonne CFR China due to tight supply in such a special season." He added that as the supply in the following weeks would be tighter and tighter, the price of Turkish chrome ore market is likely to go up further.
A Turkish chrome ore trader offered about USD 300 per tonne CIF China for 2,000 tonnes of lumpy chrome ore 42% to 40% recently.
The trader said that "Although we received many enquiries from Chinese buyers and those buyers ask for USD 10 to USD 15 per tonne lower than our offers, we would rather watch the market than sell our stocks at low prices. I think Chinese buyers will come back to accept our prices in January."
A Pakistani chrome ore trader informed that they offered for 1,000 tonnes of lumpy chrome ore 40% to 42% at about USD 300 per tonne CIF Chinese main ports recently, but there was no deal concluded with Chinese buyers recently.
According to the source, they sold 1,000 tonnes of the material at about USD280 per tonne CIF Shanghai port a week ago. It added that "Now we refuse to sell the material at below USD290 per tonne CIF CMP, as we expect higher chrome ore prices next month, just following Turkish chrome ore market trend."
Source: Steel Guru/Asian Metal
A major producer in Turkey reported to Asian Metal that the chrome ore market is bullish, as they have received many recent enquiries from Chinese buyers. According to the source, he signed contracts with a total quantity of 80,000 tonnes and their price range for lumpy chrome ore 40% to 42% was between USD 315 and USD 325 per tonne CFR China.
He said that "I heard many Turkish chrome ore suppliers increase their offers for lumpy chrome ore 42% to above USD 300 per tonne CFR China due to tight supply in such a special season." He added that as the supply in the following weeks would be tighter and tighter, the price of Turkish chrome ore market is likely to go up further.
A Turkish chrome ore trader offered about USD 300 per tonne CIF China for 2,000 tonnes of lumpy chrome ore 42% to 40% recently.
The trader said that "Although we received many enquiries from Chinese buyers and those buyers ask for USD 10 to USD 15 per tonne lower than our offers, we would rather watch the market than sell our stocks at low prices. I think Chinese buyers will come back to accept our prices in January."
A Pakistani chrome ore trader informed that they offered for 1,000 tonnes of lumpy chrome ore 40% to 42% at about USD 300 per tonne CIF Chinese main ports recently, but there was no deal concluded with Chinese buyers recently.
According to the source, they sold 1,000 tonnes of the material at about USD280 per tonne CIF Shanghai port a week ago. It added that "Now we refuse to sell the material at below USD290 per tonne CIF CMP, as we expect higher chrome ore prices next month, just following Turkish chrome ore market trend."
Source: Steel Guru/Asian Metal
Monday, July 13, 2009
Pakistan To Import Iranian Iron Ore
The Moj News Agency has reported that Iran has agreed to sell iron ore to Pakistan Steel Mill at a price 12% percent than the price at which Pakistan is importing the ore from India.
PSM has signed a MoU with Iranian officials and a contract will soon be signed for importing Iron ore during July and August.
As per report, a Pakistani delegation has already visited Iran to assess the suitability of iron ore for use at Pakistan Steel, which estimates that it will import 185,000 tonnes per year of Iranian iron ore.
The use of Iranian ore has been under discussion for 10 years, but no previous management has made a final decision.
Source: Steel Guru
PSM has signed a MoU with Iranian officials and a contract will soon be signed for importing Iron ore during July and August.
As per report, a Pakistani delegation has already visited Iran to assess the suitability of iron ore for use at Pakistan Steel, which estimates that it will import 185,000 tonnes per year of Iranian iron ore.
The use of Iranian ore has been under discussion for 10 years, but no previous management has made a final decision.
Source: Steel Guru
Sunday, July 5, 2009
South African Trade Team To Visit Pakistan
A high level mission from South Africa will visit Pakistan by the end of current month to interact with the Pakistani exporters, the Daily Times learnt on Saturday.
The buying mission of South African will be comprised of top importers and decision markers dealing in different major products. This mission will visit export-houses in Karachi, Lahore, Faisalabad and Sialkot to consider the business deals with the their local counterparts.
South African market – with foreign exchange reserves of $33.59 billion and total import volume $87.3 billion in year 2008 - offers tremendous opportunities for Pakistani export sector.
Keeping in view the vastness of South African market and huge import volume, Trade Development Authority of Pakistan (TDAP) had invited the business community of that country to visit Pakistan. The top importers and decisions making authorities related to business sector have planned to visit country during July 20-24. Apart from meeting with the higher government functionaries, delegation will meet the exporters of food and related goods (rice, confectionary, biscuits, candies, fruit juices, ready to eat food, convenience food, snacks, pies etc), textile and clothing and home textile exporters.
The meeting is also scheduled with the sports goods, pharmaceuticals, building materials and related items, leather upholstery, footwear, polysterfibers and yarn.
Exporters said that products like surgical equipments, textile products, rice, spices and sports goods have good market in South Africa because South Africa is the main shopping centre of seven neighboring countries.
South Africa’s main exports to Pakistan include synthetic staple fibre, hot rolled & flat rolled steel products, stainless steel, iron, chemicals, newsprint and uncoated craft paper, pig iron, ferro-alloys, scrap metal and preservatives. Pakistan’s main exports to South Africa include woollen fabrics, synthetic staple fibres and cotton, leather goods, bed and table linen, footwear, cotton yarn and fish.
Officials said that visit of South Africa, buying mission signifies greatly in the current situation when buying houses in its traditional USA and EU markets are reluctant to visit Pakistan due to bad security situation. “It will send a positive signal to the entire world that circumstances are no so worse as is being portrayed about the country in the world”, officials said.
Source: Daily Times, Lahore
The buying mission of South African will be comprised of top importers and decision markers dealing in different major products. This mission will visit export-houses in Karachi, Lahore, Faisalabad and Sialkot to consider the business deals with the their local counterparts.
South African market – with foreign exchange reserves of $33.59 billion and total import volume $87.3 billion in year 2008 - offers tremendous opportunities for Pakistani export sector.
Keeping in view the vastness of South African market and huge import volume, Trade Development Authority of Pakistan (TDAP) had invited the business community of that country to visit Pakistan. The top importers and decisions making authorities related to business sector have planned to visit country during July 20-24. Apart from meeting with the higher government functionaries, delegation will meet the exporters of food and related goods (rice, confectionary, biscuits, candies, fruit juices, ready to eat food, convenience food, snacks, pies etc), textile and clothing and home textile exporters.
The meeting is also scheduled with the sports goods, pharmaceuticals, building materials and related items, leather upholstery, footwear, polysterfibers and yarn.
Exporters said that products like surgical equipments, textile products, rice, spices and sports goods have good market in South Africa because South Africa is the main shopping centre of seven neighboring countries.
South Africa’s main exports to Pakistan include synthetic staple fibre, hot rolled & flat rolled steel products, stainless steel, iron, chemicals, newsprint and uncoated craft paper, pig iron, ferro-alloys, scrap metal and preservatives. Pakistan’s main exports to South Africa include woollen fabrics, synthetic staple fibres and cotton, leather goods, bed and table linen, footwear, cotton yarn and fish.
Officials said that visit of South Africa, buying mission signifies greatly in the current situation when buying houses in its traditional USA and EU markets are reluctant to visit Pakistan due to bad security situation. “It will send a positive signal to the entire world that circumstances are no so worse as is being portrayed about the country in the world”, officials said.
Source: Daily Times, Lahore
Thursday, April 30, 2009
Steel Plan Aims To Tap Into Pakistan Iron Ore Reserves
Pakistan is all set to finalise a draft of its long-term National Steel Policy in the next two weeks after consultation with provincial mining departments.
The policy aims to bridge the supply-demand gap by achieving steel production of 15 million tonnes by 2020. Pakistan has more than 1.42 billion tonnes of proven iron ore reserves. Of these, about 947 million tonnes were spread in Punjab (Sargodha and Kalabagh), North West Frontier Province (NWFP) (Nizampur and Hazara), Balochistan (Kalat and Chaghi), which contain 20 to 60 per cent iron. Kalabagh retains 450 million tonnes of iron ore reserves containing 30-35 per cent iron content.
The government is focusing on these sites and has planned to establish steel mills in these areas in collaboration with foreign and local investors, who may be provided incentives, well-placed official sources said.
Under this initiative, the private sector would be encouraged to invest in these areas. They would be provided special incentives like cut in duty or zero duty on imports, provision of land and other infrastructure facilities, sources said.
The setting up of mills at these specified areas would reduce the cost of production and help cater to steel requirements of the country, they said. The areas, where the government wants to produce steel, are Makerwal-Sho (Mianwali) having iron ore reserves of 706m tons, Chichali-Chughlan (Mianwali) 369m tons, DG Khan (56 million tons) and Chiniot 17m tons. These are located in Punjab. In Balochistan, Pachinkoh (Nokundi) has iron ore reserves of 45m tons, Chigendik (Nokundi) 5m tons, Chilghazi (Dalbandin) 2.47m tons and Dilband (Mastung, Kalat) 200m tons. Besides, in NWFP, Pezu (DI Khan-Bannu) bristles with reserves of 13 million tons and Damar Nisar (Chitral) three million tons.
Zaigham Adil Rizvi, Director (Projects) Tuwairqi Steel Mills Ltd (TSML) said: “It is a matter of our survival to use local iron ore, as import from Brazil, Australia and others was costly this year. TSML will need about two million tonnes of iron per annum.”
Under-construction TSML plant located at Bin Qasim Karachi is Pakistan’s first private sector integrated steel manufacturing project and Al Tuwairqi Holding has so far invested about $300m. Rizvi said that the group was aggressively planning to develop iron ore sites in Balochistan in order to reduce dependence on imports.
Experts believe that developing and using local iron ore for steel production could keep the sector protected of international price shocks, fear of reduced supplies, high sea freight, carrying costs and logistic problems. During the fiscal year 2007-08, Pakistan’s annual steel requirement was about five million tons while domestically it produced 3.75 million tons. The reaming gap was catered through imports for which the national exchequer pay million of dollars.
Source: The News, Karachi
The policy aims to bridge the supply-demand gap by achieving steel production of 15 million tonnes by 2020. Pakistan has more than 1.42 billion tonnes of proven iron ore reserves. Of these, about 947 million tonnes were spread in Punjab (Sargodha and Kalabagh), North West Frontier Province (NWFP) (Nizampur and Hazara), Balochistan (Kalat and Chaghi), which contain 20 to 60 per cent iron. Kalabagh retains 450 million tonnes of iron ore reserves containing 30-35 per cent iron content.
The government is focusing on these sites and has planned to establish steel mills in these areas in collaboration with foreign and local investors, who may be provided incentives, well-placed official sources said.
Under this initiative, the private sector would be encouraged to invest in these areas. They would be provided special incentives like cut in duty or zero duty on imports, provision of land and other infrastructure facilities, sources said.
The setting up of mills at these specified areas would reduce the cost of production and help cater to steel requirements of the country, they said. The areas, where the government wants to produce steel, are Makerwal-Sho (Mianwali) having iron ore reserves of 706m tons, Chichali-Chughlan (Mianwali) 369m tons, DG Khan (56 million tons) and Chiniot 17m tons. These are located in Punjab. In Balochistan, Pachinkoh (Nokundi) has iron ore reserves of 45m tons, Chigendik (Nokundi) 5m tons, Chilghazi (Dalbandin) 2.47m tons and Dilband (Mastung, Kalat) 200m tons. Besides, in NWFP, Pezu (DI Khan-Bannu) bristles with reserves of 13 million tons and Damar Nisar (Chitral) three million tons.
Zaigham Adil Rizvi, Director (Projects) Tuwairqi Steel Mills Ltd (TSML) said: “It is a matter of our survival to use local iron ore, as import from Brazil, Australia and others was costly this year. TSML will need about two million tonnes of iron per annum.”
Under-construction TSML plant located at Bin Qasim Karachi is Pakistan’s first private sector integrated steel manufacturing project and Al Tuwairqi Holding has so far invested about $300m. Rizvi said that the group was aggressively planning to develop iron ore sites in Balochistan in order to reduce dependence on imports.
Experts believe that developing and using local iron ore for steel production could keep the sector protected of international price shocks, fear of reduced supplies, high sea freight, carrying costs and logistic problems. During the fiscal year 2007-08, Pakistan’s annual steel requirement was about five million tons while domestically it produced 3.75 million tons. The reaming gap was catered through imports for which the national exchequer pay million of dollars.
Source: The News, Karachi
Sunday, March 8, 2009
Australian Firm To Invest In Pakistan Copper, Gold Mine
The availability of proven 167 million tonnes copper ore reserve in Reko Dik Balochistan have attracted Australia's Tethayan Copper Company (TCC), which has decided to launch a mega project and invest over $1 billion by 2010, official sources in the Ministry of Petroleum and Natural Resources told Pakistani newspaper, Daily Times, on Saturday.
The mega project would produce 250,000 tonnes of copper annually, thus bringing Pakistan for the first time on the copper-producing map of the world.
TCC finalised a feasibility study of the starter project aiming to produce 40,000 tonnes of pure copper with an investment of $200 million. As a result of extensive drilling in the area about 167 million tonnes copper ore reserves have been proved. Field studies to assess social and environmental impact of the project have also been completed. The sources further said that due to large size of the deposit M/s Antofagasta & Barrick Gold have taken over 100 percent Australian shares of the TCC. The new management has decided to launch a mega project with an investment of over $1 billion next year.
By commencement of the mining activities in the area, job opportunities were expected for about 1200 locals of Balochistan, which would help in removing deprivations of the province. Moreover commencement of the project would give impetus to foreign investment in mineral sector of Pakistan, the sources maintained.
As desired by M/s Antafagasta-Barrick Gold, Ministry of Petroleum and Natural Resources is working on the preparation of international mineral agreement to be signed between the company, government of Balochistan and the federal ministry. To solve the issues relating to the exploration/mining of Reko Dik copper-gold deposits on fast track, a high level steering committee has been constituted by the government of Pakistan having representation from all the stakeholders including the government of Balochistan.
Reko Diq is a giant copper and gold project in Chaghi, containing 12.3 million tonnes of copper and 20.9 million ounces of gold in inferred and indicated resources. The copper-gold deposits at Reko Diq were believed to be even bigger than Sarcheshmeh in Iran and Escondida in Chile. The Reko Diq copper deposits, which are in the neighborhood of Saindak copper project, are four times larger in copper ore tonnage than Saindak. The most credible international surveys suggest that Reko Diq was one of the biggest undeveloped copper projects in the world with over 11 billion pounds of copper and nine million ounces of gold.
The sources further said that potential of the country in this sector was widely recognised but the sector is not developed. The government made the development of the mining industry as ‘priority sector’ in various five years plans, but none of these efforts were materialised. Adequate institutional, human, research and development and other relevant infrastructure have been established for improvement of this sector but they remain under-utilised.
Source: Daily Times, Lahore
The mega project would produce 250,000 tonnes of copper annually, thus bringing Pakistan for the first time on the copper-producing map of the world.
TCC finalised a feasibility study of the starter project aiming to produce 40,000 tonnes of pure copper with an investment of $200 million. As a result of extensive drilling in the area about 167 million tonnes copper ore reserves have been proved. Field studies to assess social and environmental impact of the project have also been completed. The sources further said that due to large size of the deposit M/s Antofagasta & Barrick Gold have taken over 100 percent Australian shares of the TCC. The new management has decided to launch a mega project with an investment of over $1 billion next year.
By commencement of the mining activities in the area, job opportunities were expected for about 1200 locals of Balochistan, which would help in removing deprivations of the province. Moreover commencement of the project would give impetus to foreign investment in mineral sector of Pakistan, the sources maintained.
As desired by M/s Antafagasta-Barrick Gold, Ministry of Petroleum and Natural Resources is working on the preparation of international mineral agreement to be signed between the company, government of Balochistan and the federal ministry. To solve the issues relating to the exploration/mining of Reko Dik copper-gold deposits on fast track, a high level steering committee has been constituted by the government of Pakistan having representation from all the stakeholders including the government of Balochistan.
Reko Diq is a giant copper and gold project in Chaghi, containing 12.3 million tonnes of copper and 20.9 million ounces of gold in inferred and indicated resources. The copper-gold deposits at Reko Diq were believed to be even bigger than Sarcheshmeh in Iran and Escondida in Chile. The Reko Diq copper deposits, which are in the neighborhood of Saindak copper project, are four times larger in copper ore tonnage than Saindak. The most credible international surveys suggest that Reko Diq was one of the biggest undeveloped copper projects in the world with over 11 billion pounds of copper and nine million ounces of gold.
The sources further said that potential of the country in this sector was widely recognised but the sector is not developed. The government made the development of the mining industry as ‘priority sector’ in various five years plans, but none of these efforts were materialised. Adequate institutional, human, research and development and other relevant infrastructure have been established for improvement of this sector but they remain under-utilised.
Source: Daily Times, Lahore
Sunday, February 22, 2009
Pakistan Steel Mills 'On Path To Recovery'
Despite being affected by the global economic recession and incurring losses, the Pakistan Steel Mills will regain its lost sales and reach a respectable mark of sales by July 2009, Chairman, PSM, Mueen Aftab Sheikh said while addressing a press conference at Pakistan Steel Mills Saturday.
The steel mill recorded sales of Rs 1.5 billion in November 2008, Rs 2.8 billion in December 2008 and Rs 3.8 billion in January 2009.
Mr Aftab said: “we are making efforts to incorporate clause in PPRA rules authorising any government department committee to negotiate with suppliers to adjust the contracted prices equivalent to difference of current international prices of raw material and other consumables.
"We have initiated a project for making briquettes of coke dust 0-15 mm, as in the past around 40,000 tonnes of coke dust was wasted every year, but the coke briquette made from this dust would be worth $20 million per annum.”
PSM has also started using local Sharrigh coking coal to the tune of 5 percent in the plant. The price difference between local and imported coal is $275 per MT. To cut down the surplus contents PSM is also procuring a desulfurization plant to use more local coal as substitute of expensive imported coal, chairman informed.
The PSM management has also approached FBR for the imposition of a regulatory and antidumping duty because EU has imposed 85 percent duty on import of steel products from China. USA has imposed 153 percent dumping duty on Indian steel products and India has imposed 30 percent duty on import of steel products. Due to the global recession, the PSM is operating at 75 percent capacity instead of 90 percent.
The market share of PSM prior to the recession was 20 to 45 percent for long and flat steel products and the rest of demand was being met through imports in case of flat products, whereas long products were being produced locally through re-meltable scrap or ship breaking, he said.
Source: Daily Times, Lahore
The steel mill recorded sales of Rs 1.5 billion in November 2008, Rs 2.8 billion in December 2008 and Rs 3.8 billion in January 2009.
Mr Aftab said: “we are making efforts to incorporate clause in PPRA rules authorising any government department committee to negotiate with suppliers to adjust the contracted prices equivalent to difference of current international prices of raw material and other consumables.
"We have initiated a project for making briquettes of coke dust 0-15 mm, as in the past around 40,000 tonnes of coke dust was wasted every year, but the coke briquette made from this dust would be worth $20 million per annum.”
PSM has also started using local Sharrigh coking coal to the tune of 5 percent in the plant. The price difference between local and imported coal is $275 per MT. To cut down the surplus contents PSM is also procuring a desulfurization plant to use more local coal as substitute of expensive imported coal, chairman informed.
The PSM management has also approached FBR for the imposition of a regulatory and antidumping duty because EU has imposed 85 percent duty on import of steel products from China. USA has imposed 153 percent dumping duty on Indian steel products and India has imposed 30 percent duty on import of steel products. Due to the global recession, the PSM is operating at 75 percent capacity instead of 90 percent.
The market share of PSM prior to the recession was 20 to 45 percent for long and flat steel products and the rest of demand was being met through imports in case of flat products, whereas long products were being produced locally through re-meltable scrap or ship breaking, he said.
Source: Daily Times, Lahore
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