DENR mulls establishing integrated iron-steel facility in RP
By Rhodina Villanueva
(philstar.com) Updated June 03, 2010 02:23 PM
MANILA, Philippines – The Department of Environment and Natural Resources (DENR), through its Mines and Geosciences Bureau (MGB), is set to conduct an assessment on the viability of establishing an integrated iron and steel facility in the country.
DENR Secretary Horacio Ramos said the move is prompted by the unstable and increasing prices of iron and steel in the world market, which might impact the local economy in terms of possible higher prices of vehicles and consumer products.
The assessment was triggered by a directive from President Arroyo.
“The country is endowed with iron resources that can supply the iron ores and concentrates for the planned integrated iron and steel facility. With that, the possibility of making the iron and steel industry as a major backbone of the country’s industrialization program is extremely favorable,” Ramos said.
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In his report to the President, Ramos recommended the creation or revival of a work and study group for the Integration of the Philippine Iron/Steel Industry Utilizing Indigenous Iron Ores.[/SIZE]
The group is tasked to fully assess the iron ore potential of the country — the iron ore deposits in Sta. Ines, Antipolo, Rizal; Abra de Ilog in Occidental Mindoro; Midsalip in Zamboanga del Norte). Most of the known Philippine iron ore deposits, terrestrial or offshore, are magnetite deposits that are suitable for a direct reduction furnace.
“They will also study the viability of setting up an iron processing/steel plant. The estimated minimum feed requirement for such a plant is around 2.4 million tons per year, and the estimated capital expenditure for such plant is around $1.6 billion,” Ramos noted.
Additionally, the group will study the package of incentives that can be given to mining companies producing iron ore and to those willing to put up iron ore and steel plants.
“They will check the option of imposing government control on the exports of iron ore within the next five years, taking into consideration the need to conserve the resource for the possible establishment of iron ore/steel processing plants as well as the rights and privileges of companies exploring and/or producing iron. This should also include a study on possibly imposing controls on the price of substitute materials (e.g. cement) which price might increase,” Ramos said.
The DENR chief said he has already directed the MGB to come up with an updated resource inventory for iron and other iron-bearing deposits in the country.
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