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Executive summary for the steel mill (Dari)

This report examines the viability of the Afghan Iron and Steel Consortium (AFISCO) consortium's commitment to build a steel mill with an annual capacity of 7 million tons in Afghanistan. The consortium has been awarded three of the four blocks of the Hajigak iron ore deposit, and its steel mill proposal assumes that proximate coking coal deposits can be used. The analysis is therefore based on an integrated model, in which raw material are available at cost. An initial production capacity of 2-3 million tons of iron, with steel making geared towards regional requirements. An economic model including market, raw materials, steel plant, infrastructure, secondary, and tertiary effects on the economy will be helpful in determining the investment optimum. Proactive site selection and a relatively small first phase seem strong, low cost, risk reduction strategies. Subject to the development of the regional mining sector, grinding balls might be the only additional downstream development that is viable.

Details

  • Document Date

    2013/03/01

  • Document Type

    Other Financial Sector Study

  • Report Number

    79742

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Afghanistan,

  • Region

    South Asia,

  • Disclosure Date

    2013/08/27

  • Disclosure Status

    Disclosed

  • Doc Name

    Executive summary for the steel mill

  • Keywords

    chemical plant, coal, coking, gas, iron, iron ore, market entry, mills, mining industry, mining sector, pig iron, product market, raw materials, sale, sales, scrap, slag, stainless steel, Steel, steel mills, steel products, supply cost, tubes

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Citation

Executive summary for the steel mill (Dari). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/785961468197935921/Executive-summary-for-the-steel-mill