Aside from the scrap recycling aspect, the significantly-lower carbon footprint is also attributable to the type of furnace being used – whether electric arc (EAFs) or induction, the latter of which is operational at Coega Steels.

The Gqeberha mini mill’s furnaces, which are only able to process ferrous material containing iron, melt metals by way of electromagnetic induction.

Blast furnaces, on the other hand, produce steel from iron ore, coke and limestone.

Saini said it was increasingly clear that South Africa was perfectly placed to lead the “green-steel revolution” in Africa, given its strategic position in regional and global markets.

“We have the biggest base of mineral resources compared to other African countries. These carry an estimated value of US$2.5-trillion (R44-trillion). While coal is widely used domestically (nearly 75 per cent of its mined volume is used for, among others, electricity, chemical and liquid fuel production) and the balance exported, the story is different for iron ore.”

He said more than 90 per cent of iron ore mined in SA was being exported due to limited domestic beneficiation (enhancing the economic value of raw materials) and constraints in the primary steel sector’s manufacturing capacity.

Accordingly, Saini said, SA should expand domestic beneficiation policies to include iron ore and coal, thereby enhancing their local value addition and reducing the reliance on exports.

To maximise the country’s potential as a continental leader, it is imperative to revitalise the primary steel sector’s manufacturing capacity.

“This should be done through targeted investments and policy incentives to develop mechanisms that will ensure cost-effective procurement of raw materials for domestic steel producers, therefore enhancing competitiveness.

“By using iron ore to produce Direct Reduced Iron (DRI), we can alleviate potential scrap metal shortages in the domestic market in the future,” Saini explained.

“It is a viable substitute for scrap and aligns well with the future of steel production in the country, particularly given the increasing adoption of EAFs over the next few years.”

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Coega mill confident SA can be continent’s green-steel hub