Locals against Tisco's South Africa venture

The long-pending project of Tata Iron and Steel Company to set up a ferro-chrome smelter plant at Richards Bay in South Africa may be delayed as local residents voice their objections to the plan over environmental issues.

Confirming this, Tisco sources in Kolkata said "There are some competitors, who are trying to send this kind of message. They feel that our presence is threatening to them.

"It (the objections) is not a cause of worry. Our project in-charge had recently visited the area and the project is quite on time," Tisco sources said.

Concerns on environmental grounds could prolong the approval process, potentially delaying Tisco's plans to start construction.

Tisco had planned to set up a 120,000 tpa ferro-chrome smelter at Richards Bay in partnership with Industrial Development Corporation of South Africa at an investment of over Rs 300 crore (Rs 3 billion).

It eventually intends to double the plant's capacity to 2,40,000 tpa and the plant was to be fully operational by 2008-09.

The company planned to produce high carbon ferro-chrome with a 64 per cent chrome content and supply to stainless steel producers in Western Europe, Taiwan, Korea and India, but the project was being delayed in absence of environmental clearance.

Tisco had chosen Richards Bay because it is one of the largest ports in South Africa and will minimise transport costs.

It is already the country's major coal export terminal and the home to BHP Biliton's Bayside and Hillside aluminium smelters.