Universal to boost steel output

ZAMBIA is this year targeting to increase steel production to 100, 000 tonnes from 75, 000 tonnes produced last year.

Universal Mining and Chemical Industries Limited (UMCIL) Kafue Steel Plant would however need sufficient scrap metal to meet the target.

Plant technical director, Julius Kaoma said the company was hopeful that there would be availability of scrap metal and constant electricity supply this year to boost production. Dr Kaoma was speaking in an interview in Lusaka.

“In 2018, we produced 75, 000 tonnes of steel, this is because of Zesco and scarcity of scrap but this year we will go up. This year, will go in the range of 100, 000 tonnes. The target for last year was 65, 000 and we managed to get 75, 000 so this was a surplus,” he said.

Dr Kaoma complained that the dumping of foreign steel on the Zambian market had distorted the pricing on the commodity.

Said foreign steel, was being sold at the same price with the local commodity.

“For them this is profit because it is in excess of what they are producing in their own country.

“We are only supplying in Lusaka and the Copperbelt, the rest of Zambia, they are not buying the steel. How can we boost production? Trade within our environment is very poor, most steel in Zambia is imported and this creates a problem for us,” Dr Kaoma said.

Meanwhile, Dr Kaoma said UMCIL was considering setting up a plant at one of the Multi Facility Economic Zones.

Asked if the company was considering new capital injection, Dr Kaoma said:

“The injection has already been done but in the future, we are looking into investing into the special economic zones, we are strategising on how we can increase the capacity of 500,000 tonnes per annum.

“Very soon we will be producing the sponge iron direct reductions and reopening iron ore mine and so we can increase production.”