Pakistan Steel Mills (PSM) has opened another Letter of Credit (LC) to import 50,000 metric tonnes of coal from Australia. According to a PSM spokesman, the imported coal would be used as one of basic raw materials in the steel-manufacturing process at the PSM.
Moreover, PSM was still seeking the purchase of iron ore, tenders for which were in the process, he said adding that soon the iron ore shipments would be finalized after completion of necessary formalities.
The spokesman quoted Chief Executive Officer of PSM Major General Mohammad Javed (Retd) as expressing the hope that after the availability of raw materials in continuity Pakistan Steel’s production level would improve.
The CEO said after opening of the LC the raw material would take about more than 60 days in being shipped to the Pakistan Steel. “This transitional period must be included in the count down,” he said.
The PSM recently purchased two ships containing 110000MT of coal which arrived last month after a long way from Australia and Canada after the release of first tranche of bailout package. Now this is the third LC for the import of coal. According to Pakistan Steel’s production plan the production units are currently working properly while after the induction of raw materials the production would be increase accordingly.
PSM to stop raking over coals
