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
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Mr. Zaigham Adil Rizvi is a figure known in the industrial and corporate sector of Pakistan and a distinguished personality in the engineering community. Adil is a philanthropist who strongly believes in paying back to the society and participates generously in welfare services and social development programs.
He holds a Masters degree in Electrical Engineering besides being Masters in Economics. His professional career spreads over 28 years. He has worked for various top-notch public and private sector companies both in Pakistan and abroad. He possesses outstanding leadership skills and believes in unite and lead.
He has participated in several national and international conferences, moots and seminars and is an effective speaker too. Adil has various medals and awards to his credit. His performance-driven behavior towards work and a very strong faith in sincerity to purpose helps him achieve goals even under tough circumstances.
He is currently working in the capacity of Director (Projects), Tuwairqi Steel Mills Limited and Director of TIPECO, both are the subsidiaries of Al Tuwairqi Holding. His down-to-earth vibrant personality and a firm belief on value system make him stand firmly against every challenge both in his personal and professional life.
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