The construction of Lamergyre’s steel alloy plant in South Africa is set to begin in 2021, according to Lamergyre officials. The proposed greenfield plant will be established in Section 11 of the Coega Special Economic Zone (SEZ), in Port Elizabeth and will have a capacity to produce about 6.5 million tonnes of stainless and alloy steels a year.
According to Lamergyre Alloys Limited CEO Dr. Johan Kruger, project feasibility studies amounting to US $120m will be completed in 2020. Following the completion of the studies, construction works will begin in 2021 with all three phases of the project scheduled to be completed between 2024 and 2026.
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Lamergyre’s steel alloy plant
Once complete, phase I will produce 2.5 million tonnes of stainless steel a year with about 1.5 million tonnes of alloy steel, while Phase II will focus on increasing the steel output to 4.5 million tonnes a year. Phase III is expected to increase the capacity further to 5 million tonnes a year.
Lamergyre estimates full operations by 2026 and full capacity production in 2027. Once full operations start it will own the source of its raw materials by partnering with local mining houses while also working with engineering experts to improve productivity and fund new technology to enhance productivity and cut down on costs.
Lamergyre has also signed a cooperation agreement with Direct Nickel (DNI) for the development of a processing technology, which will allow the stainless steel plant to access the nickel in adequate quantities for its stainless steel production. Furthermore, the project is expected to create sustainable jobs in both the steel industry and mining sector. It is also expected to boost the economic activities of South Africa while also uplifting the Eastern Cape economy.
