Business Recorder recently reported that the Russian side has proposed two options to Pakistan for the revival and modernization of Pakistan Steel Mills (PSM). The first involves reviving the existing steelmaking facilities based on the Blast Furnace–Basic Oxygen Furnace (BF–BOF) technology, which is the current system used at the PSM.

The second option is to establish a new mill using the more modern Electric Arc Furnace (EAF) model. Both technologies have their respective merits and limitations, and a detailed feasibility study covering technical, commercial, environmental, and financial aspects is essential to determine the most viable and cost-effective approach.

The BF-BOF process depends on iron ore, coke, and limestone as primary raw materials. PSM, designed originally to operate with imported iron ore and coking coal, required around 1.8 million tons of iron ore annually to sustain its installed production capacity of 1.1 million tons per year.

In later years, limited blending of indigenous iron ore with imported high-grade feedstock was attempted successfully. In contrast, the EAF technology is based mainly on iron and steel scrap—about 70 to 80 percent—while iron ore can only be used after conversion into sponge iron through the Direct Reduced Iron (DRI) process. Globally, according to the World Steel Association, about 71 percent of crude steel is produced through the BF–BOF route, while 29 percent is made........

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