KARACHI, May 14: Sindh minister of industries and commerce Abdul Rauf Siddiqui laid on Wednesday the foundation stone of induction furnace project of the upcoming first private sector steel project -- Tuwairqi Steel Mills -- near Port Qasim.

The furnace is the intermediary phase of the 1.28 million tons per annum capacity art-of-state Tuwairqi Steel based on Midrex process.

The project is expected to be completed by the first quarter of 2009 when the direct reduction plant will also be approaching its completion. The Direct Reduced Iron (DRI) plant will be completed at a total cost of $265 million. The induction furnace includes the installation of a 60MW capacity power plant, while another power plant of 25MW will be installed for DRI. The DRI is the steel making plant.

Addressing a gathering on the occasion, the Sindh minister assured that his government would extend all possible assistance for completion of the project. He said the government was keen to attract investment and create job opportunities in the province.

Mr Tariq Barlas, vice-chairman and chief executive of Al-Tuwairqi Group of Companies, said that his company was keen to promote steel making industry in Pakistan because of its great potential and immense prospects in future.

Zaigham Adil Rizvi, director projects spoke on fast rising steel prices around the world because of the mounting demand. With increasing local production, he said, Pakistan would be able to save considerable foreign exchange now being spent on import.

Director Projects, Midrex, Paul Max Love, NED University vice-chancellor Abul Kalam and Board of Investment director general Riazul Hasan also attended the ceremony.