Tarin starting to play a role in the rebirth of TSML?
ISLAMABAD: Prime Minister’s adviser on finance and revenues Shaukat Tarin has reportedly started playing his role in relaunching Tuwairqi Steel Mills Limited (TSML), closed in recent years due to a dispute over gas prices with the Ministry of Energy (Petroleum Division), according to knowledgeable sources Business recorder.
The Pakistani head of the company recently met with the Chairman of the Board of Investment (BoI) and briefed him on TSML’s problems as well as possible solutions.
The financial adviser who traveled 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 asked President BoI to “please meet them (representatives of the society). They have suffered a lot during the year.
The Steel Mills, a joint venture of Saudi Arabia and South Korea, argued that since local gas is a scarce resource, it is absolutely necessary to prioritize its use to optimize gas efficiency.
The efficiency of the DRI plant is 83-86.5%, followed by the combined cycle power plant of 60% or less, the simple cycle gas turbine of 42% or less, the household use of households of 25 percent and urea fertilizer factories from 70 to 75 percent.
TSML intends to go for mechanized mining and multi-source dry enrichment in order of priority at Pachinkoh, Machkichah, Chitral and Nagarparkar etc. The wet enrichment and palletizing plant will be on the TSML site.
TSML, sources said, is expected to organize the operation of RLNG due to a domestic gas shortage, for which a concessional tariff would be sought. The company also intends to focus on the use of domestic iron ores, which have sufficient reserves in the country.
ECC and CCoP meetings postponed
The sources said that a US investor who was not treated well at the Department of Industry and Production two years ago and a local investor in Sailkot are working to revive the factories as the Saudis and the Koreans are no longer interested in the factory.
“From what we understand, the issue mentioned in the submission affects a number of government departments and affected entities. The President of the BoI be appointed focal point and empowered to coordinate proactively and effectively between the various ministries and relevant entities of the GoP, ”said the Country Head / Project Director, in his letter to the financial adviser.
Earlier, TSML had indicated a new investment of $ 700 million for the revival of the plant. Next, the Prime Minister’s adviser on industries and production, Abdul Razak Dawood, also met with representatives of TSML Ashraf Qazi, chairman of the CIENA group (new investor) in Washington, where different options were discussed.
TSML, which was already in arbitration against the GoP, has written several letters since the PTI government took over.
The company, in its previous proposal, had argued that it wanted a complete revival of the steel sector through a fully integrated (state-of-the-art) steel complex with a capacity of 1.28 MTPA expandable to 1.5 MTPA.
Copyright Business Recorder, 2021