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The Eastern Cape is lobbying for the construction of a steel mill in the Coega Industrial Development Zone that would sell at the export parity price to local consumers.
The Provincial Jobs Strategy launched in East London on Thursday said the mill would underpin the competitiveness of the local steel consuming industries, particularly the automotive cluster.
Further, it says that a steel mill would allow for the attraction of other steel-intensive industries such as shipbuilding.
The two-day Job Summit heard that there are considerable opportunities in the maritime industry, including shipbuilding that a coastal province such as the Eastern Cape should take advantage of.
It says the establishment of an integrated steel plant in the Eastern Cape would dramatically change the landscape and job creation possibilities, adding that the employment potential in downstream steel-consuming industries is significant and could be of the order of 30 000 to 50 000 jobs.
The Strategy says that the Coega IDZ would be “an excellent location” for a 200 series stainless steel plant, depending on the availability of iron units.
Government is currently considering the establishment of a steel mill to offset the monopoly held by Mittal, contending that this would force that company to drop its current monopoly prices that are between 30 and 50% above a competitive price.
The Strategy says that the Industrial Development Corporation, through the Eastern Cape Development Corporation must now be asked to assess the viability of a 200 Series stainless steel plant.
The Provincial Job Strategy also wants the province to take advantage of the Coega IDZ’s new status as the manganese hub of South Africa.
It states that there are opportunities for it to become a global ferro-manganese hub, although it warns that because of the energy-intensive nature of the industry that this would depend on the supply and price of electricity.
It suggests a manganese alloy strategy should also be developed.
(Source: Metro Minute - to subscribe mail metminutes@iafrica.com)
