Chief Executive Officer (CEO) discussed with BoI matters relating to imposition of 10 percent duty on the import of Direct Reduced Iron (DRI) from other countries to Pakistan and special tariff on the feedstock portion of natural gas (raw material) for TSML.
In the meeting, Nam Sik, informed the Chairman BoI that initially POSCO has partnered with TSML by investing $15 million in the DRI Project of TSML. Subsequent to commercial operation of the DRI project, POSCO is keen to increase its shareholding ration in TSML up to the threshold level of 50 percent. The move will result in a state-of-the-art integrated steel complex in the country.
Chairman BoI applauded the successful operations of Tuwairqi Steel Mills through local iron ore which would help towards attracting more investors in the country. He further said that by producing high-quality steel within Pakistan we can start manufacturing machinery and equipment by meeting the demands locally without depending on imports. This activity would also add value to the downstream industries by reducing the production cost within the country.
Zaigham Adil Rizvi, briefed that after trial production of around 120 days, the plant Demonstration Test (PDT) was performed for 100 percent capacity test run of the plant. He further said that early this year, Al-Tuwairqi kicked off the commercial production of TSML’s first phase; a DRI making plant with the capacity to produce up to 1.28 million tonnes per annum of high quality DRI, which is evidently steel’s most versatile metallic and a preferred raw material for quality steel making world-wide.
The first phase has been completed with an overall investment of $350 million. M/s TSML is a joint venture effort of Al-Tuwairqi Group of Saudi Arabia and Pohang Iron & Steel Company (POSCO) of South Korea. Tuwairqi Steel Mills charges its reduction furnace through indigenous iron ore from Balochistan. The first trial consignment of DRI Grade lump iron ore reached TSML from Balochistan. The ceremony was held two days ago at the Port Qasim Plant in Karachi.