Bloomberg reported that South African state lender Industrial Development Corp is in talks with potential partners on proposals to build a steel plant to compete with ArcelorMittal South Africa Ltd and Evraz Highveld Steel and Vanadium Ltd.

Mr Dave Cousins IDC executive for mining and beneficiation in a Cape Town conference, without naming the parties involved in the talks, told that the project would have capacity of 2.5 million tonnes a year and use technology to cut output costs.

He said “We have a solution, and we are engaging with partners.”

He added “There is room for additional steel capacity.”

The IDC estimates South African capacity of 9.3 million tonnes a year compared with consumption of 5.4 million tonnes.

Source - Bloomberg

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