Vietnam promotes a new steel project

Jul.3 MetalBiz-Vietnam Steel Corporation (VNSteel) at present is choosing contractors and equipment suppliers for the billet plant with annual production capacity of 500,000 tons in the county Baosheng of Lao Cai Province. Kunming Iron&Steel Company Limited is a joint venture partner of the new project, square billet projects include a blast furnace with 500 cubic meters and a converter with 50 tons.

The above-mentioned two companies each hold 45% of the project's stock equity, and the remaining 10% is held by Lao Cai Mining. Kunming Steel will provide coke for the project, in exchange for obtaining iron ore produced by this project.

The iron ore of new projects will be supplied by the nearby iron ore mines Quisa. In addition, it is necessary to import the high-graded iron ore, Quisa's iron ore grade not less than 54%. It was noted that after the contract was signed, the new project will begin construction, and it is expected to be put into operation in 2012.

Vietnam Steel Corporation's Thai Nguyen Iron&Steel, Taiyuan, the installment of 580 cubic meters of blast furnace steel plant is being under way. A new blast is provided by Metallurgical Group and it is expected to be completed in 2011. The iron ore will be supplied by nearby Trai Cau new mines.

It was learned that the rolling mill in Taiyuan project is provided by Danieli, a rolling mill will be considered to be installed in Lao Cai project in later stage.

Two small blast furnaces have started to produce billet in Taiyuan project, in addition also has f a rolling mill with an annual capacity of 500,000 tons. As reported earlier, in view of the current market conditions, the production time of blast furnace project will be delayed.