On Tuesday, Britain said that it could sustain the country’s last remaining steel blast furnaces for at least several more weeks after securing a fuel shipment. This marks the latest effort in a desperate government push to preserve domestic virgin steel production.
The government had been working towards securing a sufficient supply of coking coal and iron ore to keep the financially struggling furnaces running after passing emergency laws on Saturday to take operational control of the site in northeastern England from Chinese owners Jingye Group.
According to reports, the furnaces require a continuous supply of fuel and cannot be easily restarted once shut down, all while incurring daily losses of £700,000 ($922,950). Without these, Britain would have to rely on foreign imports for its rail, construction, and automotive needs, which would be risky given current trade wars and geopolitical uncertainty.
Business minister Jonathan Reynolds said that the British industries at the heart of the government’s plans to revive the nation’s aging infrastructure relied on domestic steel. Reynolds is set to visit Immingham port to oversee the fuel loading for transit after the government secured payment for the U.S.-imported shipment previously stored at the docks.
A separate Australian ship transporting coking coal and iron ore was also en route to Britain after the resolution of a legal dispute and the government’s payment.
Sources: Reuters