ArcelorMittal South Africa is planning to spend R343,8million in capital expenditure at its Newcastle works.

ArcelorMittal South Africa is planning to spend R343,8million in capital expenditure at its Newcastle works.

The company is the South African arm of the world's largest steel producer.

ArcelorMittal South Africa said yesterday the capital would be used to improve the plant's production capacity, as well as improve its safety, health and environmental impact by bringing the plant in line with worldwide environmental standards.

Expenditure will be split into three parts, with R103,2million spent on the sinter plant refurbishment, R74,6million on a hot metal desulphurisation project and R166million on the blast furnace mini-reline.

The projects form part of ArcelorMittal South Africa's capacity expansion programme to increase its liquid-steel production to 9,5million tonnes by 2011, the company said.

Construction and installation for the hot metal desulphurisation project began in November 2007 with commissioning taking place in January 2008.

Refurbishment of the sinter plant and raw materials handling plant will begin in May this year to coincide with the mini-reline of Blast Furnace No 5 at Newcastle.

The hot metal desulphurisation project will assist the Newcastle operations to reduce their carbon dioxide generation.

The chief executive for ArcelorMittal South Africa, Rick Reato, said: "The construction and commission of the hot metal desulphurisation plant will add about 80000 tonnes in liquid steel to Newcastle." - I-Net Bridge