Luanda, Angola, 7 June – Angola’s minister for Geology and Mining, Joaquim David, Friday in Luanda announced there was a project underway to build a new steelworks in the province of Kwanza Sul.
“There are already commercial agreements set up and we are currently discussing funding,” said David during his visit to the Sociedade Angolana de Siderurgia (SAS) steelworks, and explosives and gunpowder company, Companhia de Pólvora e Explosivos de Angola.
Cited by Angolan news agency Angop, the minister said that the ironworks currently had enough equipment to operate with the power available, adding that the equipment made it possible to produce 60,000 tons of steel per year.
“SAS is operating well and has already exceeded past production levels,” David noted referring to production levels during the colonial period, which never reached 10,000 tons per year.
According to the minister, this improvement is still not enough. “We estimate that national consumption is between 500,000 and 700,000 tons per year, which is why there is a need to build new steelworks to increase domestic capacity and export the surplus,” he said.
In his turn, the chief executive of Sociedade Angolana de Siderurgia, Francisco Fernandes said that the company was currently working at just 30 percent of its capacity, because it required further investment. This year the company has so far invested US$3 million.
Management of the steelworks is in the hands of China’s Chung Fong Holding. (macauhub)