The government will shortly announce a new 'National Steel Policy' to double the indigenous steel production to 10 million tons per annum by 2015, or 15 million tons by 2020. The present capacity is only 500,000 million tons annually. The outline of the proposed policy was discussed in a brainstorming session of steel stakeholders convened at the Engineering Development Board, here on Thursday.
The policy is expected to be announced within a few weeks. Along with doubling the production to bridge a growing demand of steel products, the policy would also focus on developing infrastructure and mines for usage of local iron and coal.
A committee for the development of steel industry was set up during the session to push through the formulation of the steel policy. The name of Tariq Chinoy was proposed as the convenor of the committee with Nauman Wazir, Irshad Mowji, Khalil Khan, Mian Tariq Waheed , Khalid Khan,, Azam Zubair and Razzak Gohar as members. Secretary EDB, Javed Ashraf would act as the co-ordinating secretary.
Earlier, in his opening remarks, EDB General Manager Asad Elahi highlighted the development of the steel sector. In reply to Business Recorder's query, Asad Elahi said major iron ores reserves in the country totalled nearly 948 million tons located at Kalabagh (350 million tons-mt); Dilband (Kalat (200 mt), Kirana, Sargodha (110 mt); Niazmpur, NWFP (66 mt); Pezu, NWFP (45mt); Pachinkoh, Balochistan (45 mt); Langrial, NWFP, (30 mt); Chilgazi (23 mt); Amir Chah, Balochistan (12 mt); Dammer Nisar, and both in Chitral, NWFP (18.5 mt), and Chigendik , Balochistan (5 mt). Thus each of the four provinces have iron ore reserves in some quantity or the other.
He said the total estimated steel production capacity amounted to 1,190,000 metric tons of which steel billets comprised 400,000 metric tons and steel melters about 3,600,000 metric tons rolled iron products 800,000 metric tons, and cold rolled products were 200,000 metric tons.
A number of bottlenecks faced the steel industry. They were non-development of mines, which require huge equipment worth about PKR 4 billion. In addition there were too many taxes, as well as shortage of gas and electricity; and investment finance was not forthcoming. Lack of rail and road transport to transfer the products is another major hurdle, he added.
Naveed Iqbal, Project Manager, Punjab Mine development and Exploration, told Business Recorder that he had two steel explorations at hand. Iron ore deposits in Chiniot of 110 mt is covered with alluvial deposits 70 to 180 metres deep down. He needed three high-pressure aquifers to dig deep to extract the high quality ore, which is of a unique quality. But the problem is in finding a vertical shaft to reach that level.
Sajid Hussain of Tuwairqi Steels also informed this correspondent of credible manganese deposits in Balochistan and NWFP, and also suggested a national action plan for setting up regional steel mills. He also suggested creation of a training institute to produce skilled manpower.
Irsahd Mowjee said the government should formulate a policy to encourage investment in the mineral and iron ore sectors; as well as joint ventures between the government and foreign expert companies. Pakistan Steel Melters' Association Vice-Chairman described power outages as the main cause for less production.
He also spoke of the paucity of technically qualified labour, and also suggested creation of at least three technical training institutes at Gujranwala, Islamabad and Lahore. Masud Daher from MilleZeum asked for grant of 200 acres of land either free, or at nominal cost, in addition to zero tariffs for importing plant equipment and raw materials as well as exemption from income tax for next 10 years.