MANILA, Philippines - The Department of Environment and Natural Resources (DENR), through its Mines and Geosciences Bureau (MGB), will study the viability of an integrated iron and steel facility in the country.
The move is prompted by the unstable and increasing prices of iron and steel in the world market which is bound to affect the local economy in terms of possible higher prices of vehicles and consumer products.
Environment and Natural Resources Secretary Horacio C. Ramos, said “the country is endowed with iron resources that can supply the iron ores and concentrates for the planned integrated iron and steel facility.”
“With that, the possibility of making the iron and steel industry as a major backbone of the country’s industrialization program is extremely favorable,” he added.
In a report to President Arroyo, Ramos recommended the creation or revival of a work and study group for the integration of the Philippine Iron and Steel Industry utilizing indigenous iron ore.
Ramos said the iron ore potentials of the country – like the iron ore deposits in Sta. Ines, Antipolo, Rizal; Abra de Ilog in Occidental Mindoro; and Midsalip in Zamboanga del Norte – need to be fully assessed.
He also recommended a study on the viability of setting up an iron processing and steel plant noting that the estimated minimum feed requirement for such a plant is around 2.4 million tons per year, and the estimated capital expenditure for such plant is around $1.6 billion.
He said there is a need to study the option of imposing government control on the exports of iron ore within the next five years, taking into consideration the need to conserve the resource for the possible establishment of iron ore and steel processing plants as well as the rights and privileges of companies exploring and or producing iron.