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British Steel Lisburn helping build Northern Ireland's biggest hotel

Hundreds of tonnes of steel from British Steel’s Lisburn operation are being used to help build Northern Ireland’s biggest hotel.

Source : Strategic research Institute
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Steel prices are likely to get support in global markets

Economic Calendar reported that Steel prices soared sharply in the last twelve months, strengthened by Donald Trump’s aggressive infrastructure plans, China’s production cuts and higher import tariffs from European countries and the United States. Several analysts have raised their target prices for steel makers considering improving market fundamentals. Jefferies increased its target stock price for US Steel to USD 50 from USD 45, expecting the company to beat the Wall Street consensus estimate for EBITDA of USD 1.25 billion.

ArcelorMittal, the largest European steel maker, also received a strong buy rating from Bank of America, saying that the macroeconomic environment appears very helpful. In addition, Morgan Stanley also expects strong growth in demand for U.S. and European metals and mining space.

Encouraging ratings clearly indicate a positive trend in steel prices in the coming months. Although, the steel industry has also been experiencing significant challenges in the form of record level of inventories in China and the recent growth in interest rate, which could have a negative impact on the construction and housing industry, which is the key to steel demand.

Following the United States, China has also recently increased their interest rate, putting pressure on housing and construction industries. Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute said that the country’s steel demand could decline around 1.9% this year, thanks to strong growth in the production of major steel-making ingredients.

However, on the positive side, China has also reaffirmed their strategy to curb excess steel production this year, which will continue to offer strong support to prices. On the other hand, U.S. has proposed new antidumping duties on steel from eight countries, including Japan, Australia, Belgium, South Korea and Taiwan, which will further improve steel prices in the coming months.

Source : Economic Calender
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Demand from steelmakers boosts coal shipments

Daily Press reported that up in the hills beyond the Allegheny Front, coal operators have rehired miners and revved up their longwall machines, continuous miners and roof-bolters, and exports of coal across Newport News piers are surging because of a sharp spike late last year in the price of the special grades of coal used to make steel.

And even though prices are dropping now, it looks as if the volume of coal moving through the port will remain strong after last year's slump.

Coal exports through Hampton Roads last month rose more than 50 percent from last year's level, led by a nearly five-fold increase at Newport News' Pier IX, according to the most recent Virginia Maritime Association statistics.

Mr Harry Childress, president of the Virginia Coal and Energy Alliance said that "A lot of mines are open again. Though prices have slipped, people are still feeling pretty good."

The reason is last year's surge in the price of metallurgical grade coal, from lows of about USD 70 per metric ton in February 2016 to USD 300 by the end of the year, which prompted operators across southern West Virginia and southwest Virginia to reopen shuttered mines, said Joe Aldina, director of coal market research at PIRA Energy, an analytics and forecasting unit of S&P Global Platts.

Source : Daily Press
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Iron ore glut to drive down prices – CISA chief

The Australian reported that global iron ore market faces a prolonged period of oversupply that will drive a sharp fall in iron ore prices over the rest of this year, one of the Chinese steel industry’s most senior voices has warned. Mr Li Xinchuang, the vice-president of the China Iron and Steel Association, told the Global Iron and Steel Forecast Conference in Perth that he expected to see iron ore prices fall to as low as USD 55 a tonne later this year. He warned that the strong production at the world’s iron ore majors, the continued ramp-up of Vale’s big S11D deposit in Brazil and Hancock Prospecting’s Roy Hill mine, and the government-ordered closure of some of China’s steelmaking capacity would combine to force iron ore prices lower.

Mr Li said that “It is predicted that world iron ore supply will increase by about 50 million tonnes. (Combined) with reduction of Chinese steel industry, it is inevitable to see a downturn of iron ore demand, which cannot be compensated by other countries or regions over a short term. Thus oversupply will still be the condition of the world iron ore market.”

Mr Li previously correctly warned that Chinese steel consumption would peak at just over 700 million tonnes back in 2014, confounding the earlier expectations from the likes of BHP Billiton and Rio Tinto that Chinese steel demand would eventually climb to 1 billion tonnes a year.

He also noted that the use of scrap metal would grow rapidly in the coming years into an important substitute for iron ore.

On a brighter note for Australian producers, Mr Li said China’s high-cost iron ore mines would struggle to compete with seaborne suppliers of iron ore. He said that “The Chinese market will be served mainly by imported iron ore over a long period.”

Source : The Australian
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China iron ore imports may have peaked in March

The Age reported that China's appetite for iron ore is likely to have continued unabated in March, but it seems increasingly likely that the first quarter of 2017 may prove to be as good as it gets this year for imports of the steel-making ingredient. According to vessel-tracking and Port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts that China imported 90.3 million tonnes of iron ore in March.

If the estimate is matched by official customs figures, due next week, it will be only the fifth time that monthly imports have exceeded 90 million tonnes, the other occasions being January this year, November and September last year and in December 2015.
The vessel-tracking and port data is typically more conservative than customs data, undercounting by 3.5% over 2016, meaning that the risk is that March imports are higher than suggested by the data.

China's imports of iron ore in the first quarter of 2017 have been robust, mainly on the back of strong steel prices and optimism about the resilience of the construction and infrastructure sectors, the main steel consumers.

But there are already signs that the market is realising it got ahead of itself, with spot iron ore prices slipping below $US80 a tonne overnight, down more than 15 per cent from the peak this year on February 21.

The spot price is now virtually flat from the $US78.87 at the end of last year, showing that the rally from December 2015 to February, which resulted in prices more than doubling, is starting to unwind.

Much of the focus on why the price gains were unsustainable has been on the rapid build-up of iron ore inventories at Chinese ports, with industry consultants SteelHome saying stockpiles at 46 ports reached a record 132.5 million tonnes in the week to March 31.

This is some 65 per cent higher than the 80.5 million tonnes recorded in October 2015, just prior to the start of the strong rally in prices.

While an overhang of inventories was always likely to eventually cause prices to stumble, it also means that imports may be subdued in the coming months as traders and steel mills work through some of the stockpiles.

Source : The Age.com
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NMDC iron ore production up 20% at 34 million tonnes

Business Standard reported that sale and production of iron ore by NMDC Limited has gone up by 23% and 20% respectively in the year ending March 31, 2017. However, a similar growth in profitability is unlikely as the iron ore prices started firming only towards the second half of the financial year, according to the company sources.

The company has achieved a total production of 34.07 million tonnes of iron ore in 2016-17 as compared to 28.57 million tonnes in the previous year while the sales volumes stood at 35.62 million tonnes as compared to 28.83 million tonnes in 2015-16, according to the company data.

A company official told Business Standard that "Though sales have increased by close to 7 million tonnes over the previous year, we expect a marginal improvement in profits because the company was able to raise the prices from October, 2016 on wards while in the previous months we were reducing the prices in line with global trends as well as the domestic demand.”

Sources said that taking the prices of lumps and fines together, the average price of iron ore sold by NMDC stood at INR 1,796 per tonne in the first quarter, INR 1,681 per tonne in the second quarter, INR 1,991 per tonne in the third quarter while it was around INR 2,100 per tonne in the January-March quarter in 2016-17. The current prices are still at a half way mark compared to the peak prices.

In spite of price increase, the sales jumped 25 per cent in the third quarter touching 10 million tonnes and almost a similar sales volumes were registered in the fourth quarter. Higher sales volume in the second half may, to a large extent, compensate for the lower prices at which little over 15 million tonnes of iron ore was sold to the customers in the first half of the year.

For the nine month period ended December 2016, the public sector iron ore miner has reported a 20 per cent rise in income from operations at INR 5,957.66 crore as compared to INR 4,927.12 crore in the corresponding nine-month period in the previous year. While there was a 14 per cent increase in gross profit at INR 2,503 crore for the 9-month period ending December, 2016, net profit was marginally down owing to a fall in interest income during the same period.

Source : Business Standard
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Iran became self-sufficient in iron ore pellets

Financial Tribune reported that Iran finally became self-sufficient in iron ore pellets after a long period of deficit and is set to export pellets following large-scale expansion of its pelletizing capacity.

The Middle East and North Africa region could be one of the most promising sales destinations, as it is facing a shortage of direct reduced pellets, although Iran is unlikely to target this market.

According to Metal Expert, Iran will prefer other destinations instead, China in particular.

Iran continues to increase its pellet production potential. As per Iran Steel Comprehensive Plan, after the launch of three new pelletizing plants by Golgohar, MIDHCO’s Sirjan Iron and Steel Company, and Sangan Iron Ore Company, the country’s pelletizing capacity rose to 32 million tons per year.

Domestic demand for pellets in Iran is estimated at 28-29 million tons per year. As it is in excess to the local market needs, Iran can export the surplus.

According to Metal Expert’s estimation, the export potential is at least 3 million tons in case of favorable market conditions and full utilization of pelletizing plants.

Mr Keyvan Jafari Tehrani, the head of international affairs at Iranian Iron Ore Producers and Exporters Association, said this Iranian year (started March 21), the country could export at least 1 million tons of pellets.

A representative of Iran Steel Producers Association told Metal Expert that “Moreover, some new producers are coming in the segment.”

Moreover, the government is providing local producers with additional support, as it plans to cancel the export duty on pellets starting from the beginning of this year.

A market source remarked that “The prospect for exports of pellets from Iran is very clear. Iran became self-sufficient in the segment and will start its export from Q2 2017 by removing 15% export duty.”

China is considered the most promising export destination for Iranian pellet suppliers, as there is strong demand for different kinds of iron ore there, fines, BF and DR pellets, lumps, etc.

An ISPA representative explained that “I believe that it will be easier to export to China, given the fact that they already buy concentrate and other raw materials from Iran.”

Nevertheless, there is the possibility that Iran may not fully benefit from supplies to China in terms of prices as Chinese companies are more oriented on cheaper BF pellets than DR pellets, which is considered a premium product. It is worth mentioning that during the 11 months of the previous Iranian year (March 21, 2016–February 19, 2017) Iranian miners exported 18.5 million tons of iron ore, 96.6% of which were shipped to China, according to Iranian Mines & Mining Industries Development & Renovation Organization.

At the same time, the MENA market, especially Egypt and Arab countries on the periphery of the Persian Gulf, has much higher potential amid the shortage of high-quality DR pellets after the Samarco dam accident. “Although there is shortage of DR pellets in the market, there is some semblance of adjustment as some DR plants in North Africa are working at low capacity,” a market insider told Metal Expert.

Source : Financial Tribune
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South Australian iron ore in demand in China

adelaidenow.com reported that CU-RIVER Mining Australia is accelerating production in South Australia as demand from China strengthens. Last month, the privately-owned exploration and mining company shipped another 75,000 tonnes of high-grade magnetite iron ore to Jingtang, in northeast China.

It is Cu-River’s seventh such shipment since it started production at its Cairn Hill mine, south of Coober Pedy.

Cu-River founder, Chinese businessman Mr Yonggang Shan, bought the mine in April, 2015, from the liquidator of IMX-controlled entity Termite Resources. Mr Shan said it is now looking to double exports. He said that “We starting crushing the existing stockpile in June last year. In September, we moved into full mining production and so far we have shipped 525,000 tonnes of iron ore. We’re on track to pass 900,000 tonnes in our first year (and) beyond that, we’re looking to double annual production.”

He said China is the number one magnetite iron ore customer in the world and its steel industry still has a “large appetite” for Australian raw materials. He added that “We are extracting and processing magnetite that contains residual copper which is desirable right across the world. We expect demand will remain strong for our high quality produce, not just from China but elsewhere. Over time, we see strong potential in other export markets such as Chile, Japan, Korea and India.”

Cu-River has created more than 100 jobs and the flow-on effects are being felt near the mine.

Mr Shan further said that “We are investing significantly in the mine’s infrastructure. As well as employing locally, we have about 70 rooms permanently booked in a local hotel for staff and we’re chartering weekly flights for workers.”

His advice for SA businesses seeking a sustainable export relationship with China includes to understand the unique culture, the market and be realistic about demand for your product or service.

Source : Adelaidenow.com
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Chinese and Australian universities collaborate with FMG on mining sector innovation

ABC NET reported that an iron ore miner and Chinese and Australian universities have formally joined forces to launch a mining and cooperation innovation research model. The collaboration is between West Australian iron ore miner Fortescue Metals Group, the University of Western Australia, the WA School of Mines at Curtin University, Central South University in Changsha, and Sun Yat-San University in Guangzhou.

FMG chief executive Mr Nev Power said the company was excited by the prospect of engaging the brightest minds from China and Australia in the graduate program. He said that "We used innovative ways to develop and mine orebodies in the Pilbara [in north-west WA] that other companies considered uneconomic. That approach to innovation has been very successful for FMG, and we say our workers have two jobs.”

After founder Andrew Forrest, FMG's second-largest investor is a Chinese group, and Mr Power said fostering stronger ties with China would bring significant expertise. He said that "We will never have all the ideas ourselves within Australia. The more of these links we can build, the more collaboration between universities, the greater level of cultural understanding between countries adds to innovation and helps Australia build its business."

Professor Sam Spearing is the director of Curtin University's WA School of Mines, one of the collaborative academics. He said there was a lot of negative press around about the mining industry tanking, and little understanding of the production phase it had entered into.

Professor Spearing said innovation was changing the way the sector operated, as well as the job profiles of the future. He said that "Basically the way to make mining safe is to move people away from the working space. That means more instrumentation, more robotics, more autonomous machines, which in turn needs different skill sets. There will be a greater need for more skilled technicians, instrumentation operators, more computer science graduates, and all manner of electrical engineering types. But we'll still need the mining stalwarts such as process engineers, metallurgists, geologists, surveyors and engineers. The future jobs will change and become even more focused on high-quality, highly skilled capabilities."

METS sector ready for greater innovation

The mining and energy sectors do not exist in isolation — they may do the extraction and shipping, but they rely on a strong supply chain.

They come under the banner of METS — mining, equipment, technology and services.

METS Ignited is an industry led, government-funded department tasked with strengthening Australia's position as a mining innovation hub.

Source : ABC NET
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EU legt importheffingen op Chinees staal op

Gepubliceerd op 6 apr 2017 om 08:34 | Views: 3.504

ArcelorMittal 16:06
7,76 -0,09 (-1,12%)

BRUSSEL (AFN/BLOOMBERG) - De Europese Unie legt vijfjarige importheffingen op bepaalde Chinese staalproducten op om zo dumping van goedkoop staal uit China op de Europese markt tegen te gaan en lokale producenten zoals ArcelorMittal en ThyssenKrupp te beschermen.

Het gaat om zogenoemde hot rolled coil-producten, een vorm van gewalst staal. De importheffingen lopen tot bijna 36 procent en gaan vanaf vrijdag in. Eerder werden voorlopige heffingen opgelegd na een onderzoek door Brussel naar dumppraktijken door Chinese staalproducenten zoals Wuhan Iron & Steel en Angang Steel.
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JSPL reports 4.8 million tonne sales in 2016-17

BloombergQuint reported that Jindal Steel and Power Ltd said that it clocked its best-ever production and sales of over 4.8 million tonne in the financial year ended March.

JSPL’s production in the fourth quarter went up 12.3% from the previous three months to 1.3 million tonne while sales increased by 11.2% to 1.34 million tonne.

The company’s subsidiary in Oman, Jindal Shadeed Iron and Steel LLC, recorded over 20% higher annual production and sales in FY17 compared to the previous fiscal. It added 1.31 million tonne, or a little less than one-third, to Jindal Steel’s total production and sales.

Source : BloombergQuint
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RINL CMD shares 2016-17 FY performance numbers with team

Business Line reported that Rashtriya Ispat Nigam Ltd has achieved turnover of INR 12,781 crore during 2016-17 as against INR 12,281 crore during the previous year. Addressing senior executives on Wednesday in the plant, CMD Mr P Madhusudan said that “The plant achieved growth of 11% in hot metal production, 10% in liquid Steel, 16% in finished steel and 10% in saleable steel. Another notable achievement was that production from wire rod mill-2 recorded growth of 43%. Gross sinter production touched 6 million tonne mark, marking growth of 5%. The exports amounted to INR 1,048 crore during 2016-17.”

He underscored the need to reorient efforts, improve effectiveness of daily work management and contribute significantly to meet the target during 2017-18. He said that “Though RINL had made significant strides in all areas of operation and marketing, the increase of coking coal and iron ore prices and other inputs had a significant impact on the performance of the company.

He exhorted employees to make greater efforts and stressed the need to ramp up production, achieve the rated capacity from the new units and cut losses through increase in volume of operation.

Source : Business Line
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Tenaris CEO turns more bullish on global oil tubes market

Reuters quoted spokeswoman confirming remarks made by CEO Paolo Rocca at an industry conference in New Orleans reported that Tenaris has lifted its estimate for global OCGT tubes demand in 2017 to 12.1 million tonnes from 10.4 million previously.

In 2016, global OCGT demand was 8.8 million tonnes. OCGT stands for Oil Country Tubular Goods, which are tubes that are used in oil and gas production.

For this year Tenaris expects demand in the United States and Canada to reach 5.2 million tonnes, up from 2.2 million in 2016, while demand from China and Russia should also rise to 3.7 million from 3.5 million. Demand in other areas is seen stable year-on-year.

Source : Reuters
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Primetals Technologies receives FAC for electric steel plant of BMM Ispat

In February, Primetals Technologies received the final acceptance certificates for an electric steel plant and a merchant bar mill supplied to the Hospet production site of the Indian steel company BMM Ispat. With the electric steel plant and the bar rolling mill, the company is expanding its production capacities for structural steels. It is designed for the production of a wide range of end products. These include reinforcing steels, round bars, flat and square bars, angles and channel sections. Low and medium-carbon or low-alloy steel grades as well as spring and free cutting steel can be processed. Primetals Technologies had received the orders in 2012, hot commissioning took place in August 2016.

For the electrical steel plant, Primetals Technologies engineered and supplied the mechanical and electrical equipment for an electric arc furnace with a tapping weight of 110 metric tons, a 110-ton ladle furnace, a vacuum degassing plant and the alloying and additive systems. The electric arc furnace is specially designed for the combined charging of direct-reduced iron (DRI) and hot metal. The electric arc furnace, the ladle furnace, the material charging systems and other auxiliaries are equipped with a dedusting system. The scope of supply also included the entire Level 1 automation and process automation (Level 2) systems, furnace transformers and a dynamic compensation system Static Var Compensator.

For the merchant bar mill, Primetals Technologies supplied the complete mechanical and electrical equipment of the rolling line and the cooling zone as well as systems for bundling and tying up the bars produced. The rolling line includes a six-stand roughing mill in an H-V arrangement including the upstream equipment for loading and unloading the billet heating furnace and also a six-stand intermediate and eight-stand finishing mill, both in an H-V-C arrangement. The stands of the intermediate and finishing mills are equipped with quick-change fixtures, while after the finishing mill there is also a quenching system. The finishing mill and the 102-meter-long cooling bed are linked by two delivery systems. One of them is designed as a twin-channel high-speed system and achieves speeds of up to 25 meters per second.

The rolling mill is supplemented by a finishing shop complete with machines for straightening, bundling, stacking and strapping the rolling stock. Diverse shear systems along the rolling line and in the cooling zone rounded off the mechanical equipment. The scope of supply also included the process automation (level 2), mechatronic components, the motor control center and speed-controlled drive systems for the main and secondary drives including all motors. Primetals Technologies was also responsible for supervising installation and commissioning and for training the customer's personnel.

A few years ago, BMM Ispat Ltd., the second largest steel company in the state of Karnataka, India embarked upon a capacity expansion at the existing facilities in Hospet. The electric steel plant and the bar mill are parts of this program. The iron ore used stems from the group company's own mines in the region.

Source : Strategic Research Institute
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Indian government to rank top 50 secondary steel producers

Business Line quoted Union Minister for Steel, Mr Chaudhary Birender Singh as saying that "The government is going to identify and award the top 50 secondary steel producers of the country for their contribution to nation building." The ranking will draw inspiration from the Smart City ranking approach that takes into account multiple factors.

He added that the govenrment hopes that banks will take into account these rankings and consider lending to these companies at concessional rates.

These ranked secondary steel producers will be categorised as 'Smart Producers'.

According to Singh, the producers will be expected to adopt clean technologies to achieve a better ranking.

Source : Business Line
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Use of domestic steel may be mandatory for government infrastructure projects

Economic Times reported that India is likely to mandate use of domestic steel for government infrastructure projects to boost demand for local companies and check cheaper imports.

Source : Economic Times
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ArcelorMittal Duisburg commissions PSI to supply a new steel plant control system

PSI has been commissioned by ArcelorMittal Duisburg to implement PSImetals as the production management system at their basic oxygen steelmaking plant. ArcelorMittal produces high-quality long products in the Ruhrort district of Duisburg

Source : Strategic Research Institute
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Formosa Vietnam steel mill OK to start test runs a year after spill

REUTERS reported that Formosa Plastics Corp.'s steel mill in Vietnam has met environment ministry conditions to start test runs, state television said on Wednesday, a year after a toxic spill from the plant caused the country's worst environmental disaster.

State-run Vietnam television VTV said the ministry announced the conclusion after a three-day inspection visit of the Taiwanese company's plant. It will still require approval by the government before it can go ahead with tests of its first blast furnace.
A year ago, the USD 11 billion (1.2 trillion yen) Ha Tinh Steel plant accidentally spilled toxic waste that polluted more than 200 kilometers of coastline, devastating sea life and local economies dependent on fishing and tourism.

Recovery on the coast has been a slow process and many communities remain angry about the spill and the pace of action to fix the problems.

Formosa has addressed 52 out of 53 violations identified in an official investigation into the spill, VTV cited the ministry as saying.

The remaining violation was its use of a "wet" coking system, which generates more waste than the more modern "dry" coking systems that do not use water as a coolant but are more expensive.

Source : REUTERS
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UK Steel welcomes CfD exemption for steel industry

UK Steel has welcomed the British Government’s plan to exempt specific heavy industries including steel from some of the costs associated with its Contracts-for-Difference scheme.

Companies that bid for CfDs and are guaranteed a specific price for a set period of time for the low-carbon energy they produce. The scheme is funded by a levy on energy suppliers who in turn pass on the costs to end-users.

Mr Gareth Stace director of UK Steel said that “With the introduction of this exemption, we move another step closer to the comprehensive protection from climate change policy costs our sector has long called for. The long term certainty that the exemption provides is a hugely important element in delivering a more competitive business environment for steel makers in the UK, placing them on a more even footing with their EU competitors.”

According to Mr Stace, however, more can be done on industrial energy costs. He said that electricity prices for the sector remain ‘stubbornly high’ in some cases 50% higher than in Germany.

He concluded that “We look forward to working with the government, through the Industrial Strategy framework, to find further solutions to this persistent problem.”

Source : steeltimesint.com
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Zimbabwe importing USD 400 million steel annually

News Day reported that ZIMBABWE is importing USD 400 million worth of steel annually. Speaking at the unveiling and showcasing of the Business Incubation Unit in Mutare on Sunday, which will result in the coal to liquids conversion, Mr John Mangudya Reserve Bank of Zimbabwe governor said it was unfortunate that Zimbabwe was importing steel when it has a steel plant.

He said that “The government has worked hard to clean the balance sheet of Ziscosteel, we all know that Kwekwe was built by Ziscosteel and Zimasco. We want Ziscosteel to start on clean slate so that the debts will not suffocate the business, we are importing $400 million of steel, yet we have our own steel plant.”

He added that “We need to go beyond engineering designs to the economics of doing business. The USD 2,6 million you are asking for the project is doable provided it’s commercially viable. We are a small economy with only 14 million people and some are in the Diaspora.”

Mr Mangudya said the economy was on the rise and that agriculture should be used to transform the struggling country. He said that “We need to transform the economy, we are the masters of our destiny, Zimbabwe is picking up as a country, I said that to some analyst last week that l am seeing people, who are knowing what they are doing. This time last year, there was a serious drought, but six months down the line, we are harvesting, a bumper harvest. We need to transform the economy using agriculture as a base, lets rise and build the country through various aspects.’’

Mr Quinton Kanhukamwe Harare Institute of Technology vice-chancellor said the university has a unique national mandate of developing, incubating, transferring and commercialising technology for rapid industrialisation. He said that “Verify Engineering is currently seized with the task of designing, constructing and commissioning a pilot plant of coal/coal bed methane to liquid fuel using the already existing Fischer Tropsch Technology as a precursor to the designing, erection and commissioning of an eight million litres of liquid per day commercial plant.”

Source : News Day
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