Tata Steel shifts S Africa unit location
The Financial Express — March 22, 2005

Concerns raised by a paper manufacturing plant at Richards Bay in South Africa has made Tata Iron & Steel Co (Tisco) shift its 1.2 million tonne per annum (tpa) ferrochrome smelter to an alternate site. The development has resulted in the company shifting its commissioning schedule for the yet-to-be-built plant at Richards Bay by around nine months ie from the second quarter of 2005-06 (July-September 2005) to the first quarter of 2006-07 (April-June 2006).

The project is estimated to cost Tisco around Rs 250-300 crore. The company has plans to enhance the plant capacity to 2.4 million tonne in the second phase of the project. Tisco had been awaiting a positive ‘record of decision’ after a successful “public participation meeting” which took place in January this year. However, Mondi Kraft, a neighbouring paper manufacturing company around the place in Richards Bay where Tisco had originally proposed to set up its plant, raised a major concern stating that the “perception of their customers”, mainly in the food-packaging industry, would be affected adversely, if a ferrochrome plant is set up next to it.

“Based on detailed interactions with them (Mondi Kraft) and understanding the gravity of their problem, Tata Steel has agreed to shift to an alternate location,” Tata Steel managing director B Muthuraman told FE. Tisco would thus, in the next four-five months, carry out a detailed evaluation of the alternate site (within the Richards Bay municipal area) and would conclude a fresh environmental impact assessment (EIA) for the new site.

Thereafter, upon receiving a favourable ‘record of decision’ from the Department of Environment & Agriculture Affairs, it would perform the groundbreaking for the plant by September 2005. “The Richards Bay municipality has confirmed availability of all services to the proposed project at the alternate site; the contracts will be signed after the EIA completion,” Mr Muthuraman said. The construction work for the project is expected to take around 16 months.

Thus the plant commissioning, which was earlier expected to take place in the second quarter of 2005-06 is now being expected to take place by the first quarter of 2006-07.