Punjab to establish world largest steel mill in Chiniot: CM

[Kompromat]

Sounds like another bogus promise.

 

[DRaisinHerald]

Great if it happens; but it doesn't seem like it will given that it's PML-N.

 

[niaz]

As usual our politicians & press sensationalize all news and love to brag & exaggerate. There is no capacity mentioned in the news. Anyone who reads the full report will know that Shahbaz Sharif said “a big steel mill of the world will be set up in this area” not the largest in world. Thus the headline is misleading.

World’s largest steel mill is Pohang Iran & Steel Company works at Ganging, South Korea with a capacity of 16-million tons of crude iron per year.

Karachi Steel has installed the capacity of ‘One’ million tons that can be expanded to 2-million tons. I had come across a study by the Federal Trade Commission, Washington D. C. published in 1992. In which it was mentioned that Minimum Optimal Steel Plant capacity of a combined iron is 6-million tons with two blast furnaces of 3-million tons each. Nevertheless viable mini steel mills of about 0.5-millin tons also exist. Majority of the steel plants I have come across were between 2- million to 5-million tons.

The news report does not mention plant capacity nor does it clarify whether the plant would be an “Iron Mill” producing only crude iron ingots from a blast furnace or an integrated iron & steel mill with blast furnaces as well as basic oxygen furnaces for producing various grades of steel.

Largest iron deposits in Pakistan are at Kalabagh with estimated reserves of about 300-millions of Iron. Iron ore nearest to Chiniot have estimated reserves of about 100-million tones.

Assuming plant life span of about 30 – 40 years, one would expect the proposed steel mill at Chiniot would be having roughly 2-million to 3-millon ton per annum of blast furnace capacity. Although a far cry from the largest in the world; an average 2 to 3-milion plant requires huge investment and would need an area in excess of about 1000 acres.

On a very approximate basis, an integrated steel mill requires about 1.4 ton of iron ore concentrate, 0.8 tons of high grade coal, 0.15 tons of lime stone and 0.12 tons of scrap steel to produced 1 ton of crude steel. Power requirement of the plant should be in excess of 100MW hence investment in new generation capacity. This means a total outlay in the $1.5 to $2-billion range.

Transporting about 1.5-million tons of coal annually from Karachi does not appear viable. Nearest coal mine to Chiniot lies in the Salt Range and it is logical to assume that Shahbaz Sharif intends to utilize coal from Salt Range to fuel this project.

Don’t know if Salt Range coal is of good enough quality but the quality of semi bituminous coal can be improved thru coking. All this translates into additional coal mines with the output of about 1.5-million tons of coking coal. Additionally, before you can use the iron ore; ore has to be extracted from the ground and washed into ore concentrate. To the best my info Chiniot Iron deposits have not yet been exploited and a large operation is needed to generate about 3-million tons of ore concentrate to feed the mill.

What I am trying to convey is that “Forget” about largest steel mill in the world. Even an ordinary 2-million ton steel plant will be a tremendous boost to the economy of the region.

However the news says that “the Chinese company will give final opinion about the quality and quantity of the iron deposits under the land within ten months”. Therefore all this could be nothing more than speculation.

I sincerely pray to Allah that this comes to fruition.

 

[Asian.Century]

WOW! Great News....Chiniot will be our new steel producer.

 

[AZADPAKISTAN2009]

I am beginning to dislike MOU

 

[Nishan_101]

Gcc investors haha what a joke! You mean GCC terrorists?

But they are the only one who will really invest in Punjab all others will be the owners of MoUs

GCC countries can easily set up a company in Pakistan that will be reliable in terms of Mineral exploration, extraction and refining to make a product out of it.

Punjab can become the first province to welcome them in country as Punjab are facing shortages which they can easily overcome with own resources of Oil, Gas and Coal along with other minerals and in agriculture too...

Sounds like another bogus promise.

I have also said that welcome GCC to invest in Punjab vast mineral resources.

 

[MM_Haider]

hahhaha.. another Josh e Khitabat... and first this chinese firm has to find the bloody ore ... then steel mill...

 

[Nishan_101]

As usual our politicians & press sensationalize all news and love to brag & exaggerate. There is no capacity mentioned in the news. Anyone who reads the full report will know that Shahbaz Sharif said “a big steel mill of the world will be set up in this area” not the largest in world. Thus the headline is misleading.

World’s largest steel mill is Pohang Iran & Steel Company works at Ganging, South Korea with a capacity of 16-million tons of crude iron per year.

Karachi Steel has installed the capacity of ‘One’ million tons that can be expanded to 2-million tons. I had come across a study by the Federal Trade Commission, Washington D. C. published in 1992. In which it was mentioned that Minimum Optimal Steel Plant capacity of a combined iron is 6-million tons with two blast furnaces of 3-million tons each. Nevertheless viable mini steel mills of about 0.5-millin tons also exist. Majority of the steel plants I have come across were between 2- million to 5-million tons.

The news report does not mention plant capacity nor does it clarify whether the plant would be an “Iron Mill” producing only crude iron ingots from a blast furnace or an integrated iron & steel mill with blast furnaces as well as basic oxygen furnaces for producing various grades of steel.

Largest iron deposits in Pakistan are at Kalabagh with estimated reserves of about 300-millions of Iron. Iron ore nearest to Chiniot have estimated reserves of about 100-million tones.

Assuming plant life span of about 30 – 40 years, one would expect the proposed steel mill at Chiniot would be having roughly 2-million to 3-millon ton per annum of blast furnace capacity. Although a far cry from the largest in the world; an average 2 to 3-milion plant requires huge investment and would need an area in excess of about 1000 acres.

On a very approximate basis, an integrated steel mill requires about 1.4 ton of iron ore concentrate, 0.8 tons of high grade coal, 0.15 tons of lime stone and 0.12 tons of scrap steel to produced 1 ton of crude steel. Power requirement of the plant should be in excess of 100MW hence investment in new generation capacity. This means a total outlay in the $1.5 to $2-billion range.

Transporting about 1.5-million tons of coal annually from Karachi does not appear viable. Nearest coal mine to Chiniot lies in the Salt Range and it is logical to assume that Shahbaz Sharif intends to utilize coal from Salt Range to fuel this project.

Don’t know if Salt Range coal is of good enough quality but the quality of semi bituminous coal can be improved thru coking. All this translates into additional coal mines with the output of about 1.5-miilion tons of coking coal. Additionally, before you can use the iron ore; ore hast to be extracted from the ground and washed into ore concentrate. To the best my info Chiniot Iron deposits have not yet been exploited and a large operation is needed to generate about 3-million tons of ore concentrate to feed the mill.

What I am trying to convey is that “Forget” about largest steel mill in the world. Even an ordinary 2-million ton steel plant will be a tremendous boost to the economy of the region.

However the news says that “the Chinese company will give final opinion about the quality and quantity of the iron deposits under the land within ten months”. Therefore all this could be nothing more than speculation.

I sincerely pray to Allah that this comes to fruition.

Welcome GCC to invest in Punjab vast mineral resources. Although I would suggest that an Arab partnership will be much better as they might setup a better plant which MIGHT be able to deal with Iron, Steel and other Metal Products which they can produce...

For Energy I am sure they would be ready to invest in Oil, Gas and Coal extraction and its exploration as well in Punjab. But they should work as soon as possible so that Punjab would become a Province without a short fall of anything.

 

[SBD-3]

tu khud jokar hai, always suffering from diarrhea.

There is difference between a joker and a retard. A joker does it for fun, a retard, however, does it because of his nature.

 

[Dubious]

He makes a new one after privatizing the old one? Doesnt make sense...could have expanded the old ones...

It is cool he has ideas but at least tackle the electrical prob first which current industries require to generate some $$ before jumping into other projects and then leaving them hanging due to no revenue! Damn these ppl can they at least sit down and plan?!

 

[Hyperion]

I bet Nawaz gets the following from MouU's

M = Meri
o = Oar (urdu wala)
U = Uski

MoU = Meri Oar Uski!

MoUs, MoUs, MoUs....

lets hope at-least some of them materialize

 

[ziaulislam]

MoUs are no doubt good but it means that the investor is serious however, mostly they ran away after bureaucratic, political and judicial mishaps
a few years back a MoU would have been a sure sign but since PPPP era i am seeing MOUs only

 

[Edevelop]

How do you people know its an MoU ? Where does it say in the news ?

 

[Samlee]

Pakistan must produce manufacturing goods with this iron, only making steel mill isn't good enough.

Brother This Is Just The Begining.Once Steel Mill Is Established A Downstream Engineering Industry Will Naturally Follow.Good Times Ahead

 

[VCheng]

Brother This Is Just The Begining.Once Steel Mill Is Established A Downstream Engineering Industry Will Naturally Follow.Good Times Ahead

That is exactly what was claimed for the first steel mill in Karachi decades ago.

How well did that work out?