August 30, 2008

Qatar Steel Mauritanian venture gets okay

Reuters reported that Industries Qatar’s subsidiary Qatar Steel has decided to move ahead with a USD 2.1 billion iron ore plant in Mauritania after completing a feasibility study.

According to the study published on April 7th 2008 for the developers, which also include Australia's Sphere Investments Ltd and Mauritania's state owned iron ore firm Societe Nationale Industrielle et Miniere, the scheme's capital costs will be USD 2.14 billion.

A prelim study in February 2008 had said project costs would rise by 13% to USD 2.15 billion from USD 1.9 billion due to cost escalation.

Qatar Steel bought 49.9% of the Al Qalb Al Og iron ore venture in northern Mauritania for USD 375 million in November after Saudi Basic Industries Corp pulled out saying returns would be too low.

The project will target 7 million tonnes a year of direct reduction pellet.