South Africa (SA) had secured more than $4bn (R73bn) in funding from both bilateral and multilateral sources for the reduction of carbon emissions. With this financial backing, the country now faces a responsibility to implement actionable plans that align with global climate goals.
Last year, South Africa’s steel production saw traditional coal-fired blast furnaces contribute 2.59 million tonnes of steel, while mini-mills, which utilize scrap metal to produce steel, generated approximately 2.11 million tonnes during the same 12-month period. South Africa’s steel billets produced in the Ggeberha mini mill’s induction furnace has proved that that Country can be the hub for Africa’s green-steel, according to Amit Saini, a director at Eastern Cape-based Coega Steels Pty Ltd. Their works also proved that the secondary steel producers can contribute to the economy in reducing carbon emissions.
The mini-mills emit roughly four to five times less carbon than primary steel producers. The production of “green steel” has gained attraction as industries increasingly adopt sustainable practices to reduce their environmental footprint, explains Amit Saini, one of the directors Coega Steels Pty Ltd.
“This shift is driven by increasing regulatory pressures, consumer demand for eco-friendly products and international commitments to reduce carbon emissions under pacts such as the legally-binding Paris Agreement on climate change,” says Saini.
According to him, steelmaking from scrap recycling is to forefront the green steel production, leading to cutting down carbon emissions as opposed to traditional steel making.
Aside from the scrap recycling, the lower carbon footprint can also be the result of electric arc (EAFs) or induction, the latter of which is operational at Coega Steels, shows reports. The furnaces at the Gqeberha mini-mill are specifically designed to process ferrous materials containing iron, utilizing electromagnetic induction to melt the metals.
“We have the biggest base of mineral resources compared to other African countries. These carry an estimated value of $2.5tr (R44tr),” Saini says.
More than 90% of the iron ore mined in South Africa is being exported, primarily due to limited domestic beneficiation, the process of enhancing the economic value of raw materials—and constraints in the primary steel sector’s manufacturing capacity. South Africa’s potential as a continental leader is to be maximized, as it is crucial to revitalize and strengthen the manufacturing capacity of the primary steel sector.
“SA should expand domestic beneficiation policies to include iron ore and coal, thereby enhancing their local value addition and reducing the reliance on exports,” Saini states.
He opined that since South Africa had received funding from bilateral and multilateral sources to help reduce carbon emissions, there is an obligation to implement actionable plans that aligned with global climate goals.