November 21, 2008

Acepar requests restrictions on charcoal exports

BNamericas reported that Paraguayan steelmaker Acepar has asked authorities in the country to restrict exports of charcoal, which the company uses as fuel for its furnaces, because it is experiencing supply problems.

An Acepar executive told BNamericas that "If we cannot count on charcoal supply, in the medium term we would have to shut down the furnace and as a consequence our operations.”

Acepar's request comes despite the fact that three years ago it announced plans to invest some USD 20 million to reforest 300 hectare for charcoal production, after it was unable to secure gas supplies from the Bolivian government.

The executive added that "If we could count on the gas, we could think about installing a 1 million tonne per year furnace, but for the time being that's not possible.”

In mid 2006 the company announced plans to invest more than USD 30 million in various works, such as a third furnace with capacity of 750 tonne per day and a 150,000 tonne per year sinter plant. The investments were due to be completed in a timeframe of 18 to 24 months.