It is reported that Iraq's semi autonomous northern Kurdish region has licensed an Iraqi firm to build a USD 1.1 billion smelter and steel plant.

Mr Haidar Mustafa head of the industrial projects department of KRG's investment commission said that the Kurdistan Regional Government issued the license to Mass Global to build the project in the Chamchamal area between Kirkuk and Sulaimaniya.

He added that "The total amount of the project is USD 1.078 billion. The area that the factory will be erected on is 83 hectares."

He said that the plant would have a production capacity of 1 million tonnes of steel and iron products annually and construction should start within two months. The entire project includes a smelter as well as steel manufacturing and steel casting facilities.

Mr Dalshad Mohammed Shakir project director of Mass Global said that his firm had contracted with Italian company Danieli to design and build the facility.

He added that "This project is a pioneer project in Iraqi Kurdistan with very modern technology, with equipment and machines which are the latest in the iron industry in Europe."

(Sourced from www.reuters.com)