Global Steel may go into iron, nickel mining, readies $1.6B
By Amy R. Remo
Philippine Daily Inquirer
First Posted 23:42:00 02/27/2008
MANILA, Philippines -- Steel maker Global Steel Philippines is considering investing in iron, nickel mining, with initial an investment of possibly $1.6 billion, Environment and Natural Resources Secretary Joselito Atienza said.
“Global Steel wants to mine for these minerals to locally supply raw materials to its planned integrated steel plant in the country,” Atienza said in an interview.
Indian-owned Global Steel, formerly the government-owned National Steel Corp., earlier announced it was preparing to build an integrated steel plant that would make the Philippines self-sufficient in steel.
The company has not started exploring and is still looking for potential areas rich in iron ore and nickel. Atienza said. He said its interest in mining went only as far as ensuring supply of iron and nickel before putting up an integrated plant.
He added that Global Steel was also interested in putting up an integrated mill for stainless steel.
The two steel mills would require a combined investment of as much as $4 billion, he said.
“We hope Global Steel pushes through with its plans, as these investments are heavier and would therefore also have greater benefits to Filipinos, in terms of employment, for example,” said Atienza, a former mayor of Manila.
According to information from the Department of Environment and Natural Resources, there are no identified sites for iron mining in the Philippines.
Among companies that have been awarded Mineral Production Sharing Agreements, only five have included iron on their lists of potential ores to be mined in their respective areas.
Global Steel’s plant in the southern city of Iligan is currently under the management of Global Ispat Holdings Ltd., one of the worlds biggest steel producers.
With integrated facilities, the Iligan plant operates hot rolling, cold rolling and tinning lines capable of producing more than two million tons of steel a year.
Atienza also said another company had expressed interest in putting up an integrated steel mill in the Philippines.
He said no official commitments had been made to date but Pohang Iron and Steel Co. of south Korea had begun scouting for potential site areas, particularly in the Surigao southern provinces.
Pohang is the third-largest steel producer in the world, operating two steel mills in South Korea. Edited by INQUIRER.net
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