Business Recorder reported that Pakistan Steel Mills Board of Directors has directed the management to obtain the opinion of Ukrainian contractors regarding the possibility of damage to the Coke Oven Battery-1 if it is preserved indefinitely.
Acting Principal Executive Officer briefed the history of COB-1 to the Board and noted that Pakistan Steel signed a contract on Jan 31st 2007 for reconstruction of the two existing Coke Oven Batteries with M/s Concord Industrial Project Ltd, Ukraine. After its reconstruction, COB-2 was commissioned on Oct 4th 2008 and has been in regular production since then.
Acting officer said the Board that reconstruction of COB-1 was completed in November 2010 and its pre heating started on December 1st 2010. Thereafter, due to continuing financial crises, required stock of coal could not be arranged on completion of prolonged pre heating process of 135 days till third week of April 2011.
The commissioning 3.5 months performance acceptance test as per contractual obligations and subsequent essential non stop operation of COB-1 was then not possible. This situation is corroborated by the fact that during the last 17 months that mid April, 2011 till 4th week of October, 2012, only 6 ships of coal could be managed on July 15th 2011, September 28th 2011, January 12th 2012, February 17th 2012, May 3rd 2012 and May 21st 2012.
The official said that in view of persistent shortage of coal stocks, services of main contractor M/s Concord Industrial Project Ltd., Ukraine, were perforce hired for preservation of the high value reconstructed COB-1
According to APEO, revival plan of Pakistan Steel for achieving the target up to 80% Capacity Utilization steel production necessitates the operation of both the batteries for production of required quantity of metallurgical coke, because steel production beyond 62% CAPU cannot be achieved on just one Coke Oven Battery even at full capacity production level. Consistent supply of coal is required and maintaining stable stock level is, therefore, essential for sustained operation of the two batteries. Pakistan Steel has now managed two ships of coal. Both the batteries are now essentially required to operate by ensuring consistent supply of coal.
Official said that this would, on the one hand, relieve Pakistan Steel from the continued burden of hiring the services of main contractor at a cost of USD 100,000 per month and on the other hand will generate huge dividends in the form of Coke Oven Gas, steam, Coal Tar, Ammonium Sulphate and enhanced power generation from thermal power plant.
The official added that simultaneous operation of both the batteries is necessary for revival/streamlining the production line of Pakistan Steel as per business plan. Operation of the two batteries at higher CAPU may result in surplus quantity of coke, over and above the requirement of Pakistan Steel which may range up to 30,000 tonne per month at maximum CAPU operation of the two batteries. The surplus quantity of good quality metallurgical coke can be sold in local or foreign market. In case such surplus coke is not marketed, it will be easily used in blast furnaces. Long time storage of metallurgical coke does not deteriorate its properties.
