ISLAMABAD: Prime Minister’s Advisor on Finance and Revenue Shaukat Tarin is said to have started playing his role in the revival of Tuwairqi Steel Mills Limited (TSML), closed for the last few years due to a dispute on price of gas with the Ministry of Energy (Petroleum Division), well informed sources told Business Recorder.
The company’s Pakistani head recently met with Chairman Board of Investment (BoI) and gave him a briefing on the issues of TSML along with possible solutions.
Finance Advisor who flew to Saudi Arabia from Washington to join Prime Minister Imran Khan during his meeting with Crown Prince Muhammed Bin Salman on November 10, 2021, had directed Chairman BoI to “please meet them (the representatives of the company). They have suffered a lot over the year.”
The Steel Mills, a joint venture of Saudi Arabia and South Korea, argued that as indigenous gas is a scarce resource, there is a dire need to prioritize its utilization to optimize gas efficiency.
The efficiency of DRI plant is 83-86.5 percent, followed by combined cycle power plant by 60 percent maximum, simple cycle gas turbine 42 percent maximum, domestic household use 25 percent and urea fertilizer plants 70-75 percent.
TSML intends to go for mechanized mining and dry beneficiation at multiple sources in order of priority at Pachinkoh, Machkichah, Chitral and Nagarparkar etc. Wet beneficiation and palletisation plant will be at TSML site.
TSML, sources said, is expected to arrange RLNG for operation due to shortage of domestic gas, for which concessional tariff would be sought. The company also intends to focus on use of domestic iron ores whose reserves are sufficient in the country.
The sources said an American investor who did not receive good treatment at the Ministry of Industries and Production two years ago and a local investor from Sialkot are making efforts to revive the mills as both Saudis and Koreans are no more interested in the plant.
“As we understand, the issue mentioned in the submission pertains to a number of government ministries and concerned entities. Chairman BoI be made focal person and empowered to proactively and effectively coordinate among the various Ministries and the entities concerned of the GoP,” said Country Head/Director Projects, in his letter to Finance Advisor.
Previously, TSML had indicated new investment of $700 million on revival of the plant. Then Advisor to Prime Minister on Industries and Production Abdul Razak Dawood also met with the representatives of TSML Ashraf Qazi Chairman of CIENA Group (new investor) in Washington wherein different options were discussed.
TSML which was already in arbitration against GoP has written several letters since the PTI government took over.
The company, in its previous proposal, had maintained that it wants complete revival of the steel sector through a fully integrated steel complex (state-of-the art) with a capacity of 1.28 MTPA extendable to 1.5 MTPA.
Copyright Business Recorder, 2021
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