KARACHI - A ship carrying 55,000 metric tons of coal for PSM has reached Port Qasim’s Pakistan Steel Jetty from Australia. The unloading of coal has been started through the 4.2 km conveyer belt from Jetty to mill’s raw material stockyard, Pakistan Steel spokesman Salman Ali said.

He said that Government is taking keen interest for the revival of PS and the procurement of raw materials from the bailout package is successfully started by PS management.

He added that the shortage of raw materials is the major cause of all problems currently facing by PS and management is fully exercising to solve this problem, as once the supply chain of raw materials is started then all problems will be solved. This coal was purchased from an Australian company through a long term contract with Pakistan Steel.

Regarding iron ore availability PS spokesman said that, PS management achieved great success in iron making process during the shortage of imported iron ore with the utilisation of local iron ore. PS spokesman said that about 0.1 million tons of local iron ore from Balochistan has been utilised by PS in this financial year. On the other hand two contracts of imported iron ore have been finalised and about 30,000 metric tons of iron ore will reach PS in next 20 days. He also added that many tenders for procurement of iron ore are under process, after completion of all legal paper work process two contracts of more than 100,000 metric tons of imported iron ore will be finalised.

About 1,60,000 metric tons of coal has been purchased after the bail out package. Sources added that PS facing dire need of coal in Oct 2012 as its production reached lowest to 7pc in Oct 2012, which is now on an average of 17pc. Coal and iron ore are basic raw materials for iron making, PS utilised local iron ore instead of imported but PS don’t have any substitute of coal. This coal will help PS to generate metallurgical coke and other by products.

All these procurements are previously finalised in the business plan in order to revive PS and PS is purchasing these raw materials from the two tranches of bail out package of about Rs3.8 billion released in August 2012 and Rs5 billion provided in current month.