The development of the Iron and Steel Industry in Africa

UNITED NATIONS

ECONOMIC (

AND L

SOCIAL COUNCIL ■

ECONOMIC COMMISSION FOR AFRICA Standing Committee on Industry Natural Resources and Transport Addis Aba*a, 3-13 December 1963

M?aV2>

Distr, LIMITED

E/CN.H/lNR/27

29 November 1963 Original: ENGLISH

DEVELOPMENT OF THE IRON AND STEEL INDUSTRY IN AFRICA

63-3967

TABLE OF CONTENTS

CHAPTER I INTRODUCTION

CHAPTER II THE SCOPE OF THE STUDY

E/CN.14/INR/27

CHAPTER IV CHAPTER V

PART A

CHAPTER III THE MARKET FOR IRON AND STEEL

STEEL CONSUMPTION AND ECONOMIC DEVELOPMENT 9-11 ACTUAL STEEL CONSUMPTION AND ESTIMATED

FUTURE REQUIREMENTS

PART B

CHAPTER VI RAW MATERIALS AUD FUEL CHAPTER VII REGIONAL RESOURCES

CHAPTER VIII THE PRESENT STEEL INDUSTRY AMD TRANSPORT

SYSTEM

12-20

21-24 25-45

46-48

CHAPTER IX

CHAPTER X

PART C

FACTORS GOVERNING THE SIZE AND LOCATION OF

INTEGRATED STEEL PLANTS 49-59

ALTERNATIVE REGIONAL PLANTS: SPECIALIZAr- TION AND DEVELOPMENT

CHAPTER XI COMMERCIAL AHD INDUSTRIAL POLICY CHAPTER XII PLANT AND PROCESSES

CHAPTER XIII CAPITAL AND MANPOWER REQUIREMENTS: COSTS

OF PRODUCTION

AITNEX I STEEL CONSUMPTION AND ECONOMIC DEVELOP

MENT

60-69 70-75 76-98

99-111

.ANNEX II RAILWAY RATES

E/CH.14/INH/27

TEE DEVELOPMENT OF THE-IRON AND STEEL

...._-,. - , .,..■ .. INDUSTRY :IN AFRICA . ■ ■_..-, . .■ -.

CHAPTER I . . .;

■" ■■ : ::" INTRODUCTION :" <■' ;

1. This report has "been prepared in response to the recommendation of the Standing Committee on Industry, Transport and Natural Resources of the Eoonomio Commission for Africa, in December 1962, that the Secretariat should undertake a study of the possibility of establishing and develop ing modern iron and steel plants in Africa on a sub-regional basis. This recommendation was endorsed by the Economic Commission for Africa at its

fifth sessio-n in February 1963. ... ..,...., .-■-.,;

2. The Standing Committee recognized.that the multiplication of. small^-.., Size iron and. steel plants .was neither desirable nor practicable, because Of the inadequacy of markets, scarcity pf capital and --.skilled labour, and the heavy capital investment in an integrate^ iron and steel plant.. There fore it.was recommended that each of the African sub-regions as, defined by the secretariat, should be considered as a unit. It was, however, felt that consideration should be given to the possibility of division of labour between African countries. It might be necessary for various countries to develop and specialise in different branches of the industry. One reason for this was that it took some yeara to build up a large-scale iron and steel plant, and therefore if a twenty-year period were considered, more plants would be needed, coming into production at different periods of time, and specialization and division of labour would be according to the stage of production. The Standing Committee agreed that there should be four main African sub-regions consisting of North Africa, West Africa, East Africa, and South Africa; boundaries between the sub-regions being drawn as far as possible in the light of a realistic assessment of possible and effective means of communication within each sub-region and an adequate market for basic industries. However, it was emphasised that the sub- regional groupings should not be regarded as water-tight and are a

e/cf. 14/1

Page 2

transitional stage. The eventual goa* should be an African common market which would comprise all the countries in the region irrespective of sub- regional groupings, and as industrialization proceeded in each country and sub-region more intra-African trade would take place, sub-regional countries would accordingly be modified and the common market ideal brought

nearer,

3. The study envisaged was to examine possibilities of sub-regional co*-'

operation in the planning.of integrated'iron and steel plants; and'should take. into account: the'existing location'of'plants (where' ffie£ exist)y;pians

of governments, prospective volume and pattern of demand over a'20-year period together with plants required to meet"it; on a country and sub^

regional basis. It would cover as far as possible suet 'aspects'1 6f the

subject as raw materials and sources of energy,'current and future demand, capi'tal aiid ;mak-p;:oVbrr'rWq.^ii'eEnen-ts-> co^-brdihation' of ;-transport,facidities, linking"' the" countries/:ikter^66un^ry:^ade^ practices:,:; altexnative;;si£esa^

of'plants, and" ;ti^[Wr¥esp;bndirig numtoe^ of" plants. de.sirabievalte_^nativeJ>D 'locations,' alternative3 techniques of? p^duci?io*v relative costs under." */$

alternative :hyp6't^ae^:,;- and i^ter-country.-specialiaa.tion within each Wa?*;

region. ■- ■--■ •- -■--

4. -"While the present study was being initiated, $&f Committed recommeiided of .being relatevely self-contained and within whicii'some' degree -of dm-*®*

regional co-operation has .already been "'establxshe'S. " This ' investigation wa^s .. ...Qarried-out'in/the early part 19^| by'a''team'of "experts''which "included-^ D

M.A, Denis, ,Under Secretary for'^Steei,''Ministry of "Industry, Paris^fe. L:±

A.H. Lec^ie,. Head of Technical and Researcfr'iivision, "Iron and: Steel'Board, Londorf| Mr^B.. ,Nomvete, Chief "of'Indus try "Section; of V&' Divisi6h' for •; -: ■ Industry,. Transport, and Natural Resources/'' "ii!maUe;an eiamination of£ibfte main features, governing" the possible location of • an" integrated steelwofk- and:. their, conclusions'from a'major part' of'^V present report.- Informal tion was also obtained from a aues!tionnaire;reiai;ihg to' res6urces and ra%

material, existing iron and steel" plants and studies'cohcer'hing' their ■

Page 3

establishment or extensiqn,; and on the. actual, and prospective consumpr-...

tion of steel. Replies.:".% vurying;^e:.:$ail: were received frc^.most African countries and efforts have ,b©en,mg.de, and will continue, to be made,- to.

■ visit each in due course, -tt.h? ?:^.-.>-. ■-■■ ■ '.■ • ■ :- :, '-, ... .: **'•"? ■•■ " ;

:■■'•■■:::. - ;;,.: ■ r ■■ ■■' SCOPE OP TEESTODY ■**-?•■ ■'■ ' '■ :S' '■■■0-°-

5., , .aSbe report is divided into three parts* It begins with a chapter, on ifhe (demand for.-,steel which establishes, the present level of consumption by, "types and bv, outlets in the various, countries and regions and forecasts its probable future development over.a^jper^od of :20 years, Hhis. informa tion is fundamental to the study sinpe.4;t determines the present and poten tial market available to local steel works and therefore the size and type of works which can be economically installed. At the same time it indicates

the parallel development of the steel ^usi'ng industries which is required.

The second part provides complementary information on the facilities for producing and distributing steel and includes chapter on raw material resources, including energy, an existing steel works, including current plans for development and on the transport system available for the assembly

of raw materials and the delivery of finished products. The third part deals with the future development of the iron and steel industry and covers the various aspects of development referred to in the Introduction. The basic "problem is that of the location and development of steelworks to supply in the most efficient way the expanding needs of the African market.

Integrated works based on local raw materials and producing finished steel are in general the most efficient units and also those which by their use of local material make the greatest contribution to the national product.

In general the larger the area they serve the greater the economies aris

ing from large-scale production; (i.e. the lower are process costs), while

on the other hand the greater the cost involved in assembling raw materials and distributing finished products. (i.e. the higher are transfer costs.

The balancing of these two influences, leads to a number of natural regions in each of which a steel works can efficiently operate, A number of important

Page 4

/

consequences foJJtowrtfxom this conception. First :of all, the steelworks.

- must be- located at the 'most, advantageous point?'in. regard to :total costs;

of production (transfer costs plus process cost) within the natural area

which broadly speaking should correspond with the sub-regions refertedp.to

in Chapter I, The factors governing this location are discussed in Chapter IX. Secondly, the various countries ■■.comprising the area must subsequently-

co-ordinate their commercial and .development.plans so as to treat the area as a single unit of development from a steel point of view, i.e. using only steel supplied from ..the. .local works as far ,as .available, in the types required, git&ag new steel-busing industries with.due regard .to local sup-

■ plies of: steel and co-ordinating transporting■development; accordingly,. : These matters -are considered in ohapter IX (transport)3 .chapter X (Cost

of production) and chapter X? ^Commercial policy)* ■ .>■■ .. •. ■

6, "While the integrated steelworks is the basic unit to be erected,'"'and

to obtain the full economies of"'scale should be 'the sole unit two other

types enter into consideration, first the steel melting unit based oh local

scrap and secondly, the re-rolling unit based'on billets or other semi manufactures of steel. The' erection of ;eit'her'J'b!f'those types in a region

served by the integrated works' can be justified initially under certain circumstances (chapter fIX)"'Wfc the more so as' they'are able''to provide

an outlet for semi-finished products from the integrated works,"and can

Be specialized on varieties of finished steel conflicting as little^as

possible with' those' supplied !by the integrated works (chapter IX), Eventual

ly as* the market expands "such works may be able to undertake the production

of iron and develop into integrated workso ":''; l~u l'r!~" ' :; -;■ -;0-;

/

Page 5

PART A

■•:[:•■.. •&ttxbutttti£ £>■"■• ''■- '-u x^lS.xv ti fis-. ■ :i ?%fc t>;.->:r; ivoji.-'1 ■ ■ .';■''■■#

' CHAPTER 331

I a12 ..rnaf-ctji-'y'.-- .".■*y$:i;'..- >. •;.'■*.■ ■.--/, ■■ 'A1'." fl»TA. X<^' * • -^ ''■"-' * '■' '■''■■''■

saidiffl frtft :^ ;j C/3^E. piiKE.T FOR IRON .AND. StEEL... ....^ .,. . ^

f. "When considering the erection of a steel plant, account must be taken of the location .and of the size and nature of the present ana: fulrure market for its products. Although resources are important, domestic self-sufficiency in the raw materials used in a primary steel plant is not necessarily a

prerequisite to starting an iron and steel industry; unless there is a suf ficient internal market, or'an export market can be found, an economically- sized plant cannot be established. In addition to total steel consump tion, an analysis of the various end uses of steel is required in order to decide what products are to be made. In the initial phases of develop ment of a "country mainly bars? rods, galvanized sheets arid sections for building and construction are required together with railway materials and tubes for transport and public works. Some sheet and plate for repair work will be used but it is only with the 'subsequent development of metal- using industries that substantial quantities !of flat products will be

required,

8. 05ie location of the market is also of great importance? a plant has

to be located where most of its products will be sold (chapter VIIl). As

a result of developments in technology, the cost differentials of raw

materials, power, and other items used in the production of iron and steel,.

are relatively small compared with cost differentials in transport costs of finished iron and steel products. This has resulted in a relative increase in the significance of the location of markets, rather than location of raw materials, as the dominant factor in choosing a site for a steel plant. In Africa, as in other parts of the world, the main market centres will be where the density of population is relatively high. In

the case of Africa as shown in figure A this higher density (over 25 per

square mile) is mainly on the coast but with some notable exceptions, namely in North Africa in the Nile valley, in West Africa in the Niger

valley through Mali and Nigeria, and the Congo valley up to Brazzaville/

Leopoldville while in East and Central Africa there are five main

E/CN.14/IJJR/27

Page 6

concentrations. These are the Zambezi valley up to and including Lake Byasa, the Wile valley area around Khartoum/Om&irman/Medani, the Lake Victoria and Tanganyika area; the Addis Ababa district and the mining area of Northern Rhodesia and Katanga. Each of these areas is served by

a ,:ra:i4?ay system which, aleo connects it with the coast. Higher popula-' tion densities (over iLCX) per square mile) are found in West Africa on the

coast between Accra and Port Harcourt and inland in the Kano district and in East Africa round Nairobi and on the northern shores of Lakes Victoria and Tanganyika. Bearing in mind that consumption per head will also be higher in the more densely populated areas a rough estimate of their

current annual steel consumption is:

Estimated annual steel consumption in normlation areas ('000 tons)

Mali

West Africa.(lfigeria/Ghana) , 200

N* Rhodesia/Katanga

East Africa Addis Ababa Khartoum

Nyasaland '10,

Note to. the Ma

Page f

ALGERIA: t

ANGOLA:

CHAD:

CAMEROUU:

CEK.AFR.REP.

CONGO'

CONGO

Afarioan cities &d Population over 45,000

" " 100,000

Algiers Or an ...

Constantine Bone

Sidi-Sel-^Abbes

Mostaganem Setif Tl'emoem : Philippeville Blida

Bougie Luanda

Fort Lamy

Yaounde Douala

Bangui

DAHOMEY: *

Leopoldville EHzabothville Jadotville Luluabourg Stanleyville

■

Cotonou

iJate I960.

1955 1958 1957

1959 1959

Population

I960 v

884,000 ! 393,000 223,000

164,00^>

105,000 r

69,000

94,000 "':

83,000 88,000 93,000

63,000 189,590

50,000

53,833 118,857 81,700

93,500

402,492 183,806 74,664 115,049 126,533 56,200

Date ETHIOPIAt

GABON:

GAMBIA:

GHANA

GUINEA:

IVORY COA.ST?

LIBERIA

MADAGASCAR:

MALI:

MAURITANIA*

MAURITIUS:

MOROCCO;

NIGER:

NIGERIA:

Addis Ababa Asmara Dessie

Libreville

Bathurst

Accra

Conakry

Abidjan Bouake

Monrovia

Tananarive

Bamako

Kaedi

Port Louis

Casablanca Marrakesh

Tangier Rabat Meknes .

Oijda

1958

Niamey

Ibadan Lagos Ogbomosho Kano

1959 I960, i960 I960 I960,

1956

i960 I960

177,00

I960 .

..Population 450,000 120,000 53,000

21,565

337,770 112,491 187,500 70,000

41,396 247,917 68,600 8,500

109,896 961,000

242,000 '

216,;000 142,000 22^000 177,000 129,000 101,000

18,000 600,000 364,000 140,000 130,000 123,000

-

NIGERXLu(i0.ont 'd,) Ife

- ■ ■

E/CN.14/INR/27 . .

Page 9'

Population 111,000

LlIX

HYASALAHDM"

N. RHODESIA:

S. RHODESIA:

RWANDA:

LIBYA:

KENYA:

UGANDA:

SMEGAL:

■; ■•;;>..•(■■■■

SIERRA LEOHEi

Abeokuta Onitsha Ilesha

Port Harcourt Bnugu

Aba

Yerwa-Maidugar Benin

Zaria

1 ■ - ■ p f'

Katsina

, ■ ~j p?' ■

Blantyre/Limbe

Lusaka Broken Hill Kit we

Ndva

Salisbury Beria Buiawayo

Usumbura

Tripoli

Mombasa Nairobi

Dar es Salaam

Entebbe

Dakar

Freetown

I960

1961

1961

1961

1959 1957 1962 1959 I960 1957 1959 1955 1959

100,000 84,000 77,000 72,000 iZfQQQ 72,000 63,000 58?000 57,000 54,000 54,000 53,000

46,150 75,840 45,300 92,000

284,210 59,600 190,000

50,443 194,686 152,000 260,800 128,742 10,941 185,820 100,000

Mogadieoiou

Khartoum Omdurman

Tunis

Alexandria Asynt Cairo". \

Mansura Port .Said Suez Tanta

I956

1956 1959

Damanhux El Mahlia El

Kubra Giza Imbaba Tsmailia

; ■■ t/.u'sxit*.,1 ■■■-

1957 1959

•$<j:\1..£'J\

93, 116, 410, 1,350, 120, 2,852, 124:

160 174 111 113 144

90c

152 175

103 321 000

400 500 (000 ,300

,200 ,200

,187

,000 V3G0

*?■Ron ,000 ,000

ZANZIBAR

].-■■..'!. .i "-.I ,1,

Page 11

CHAPTER IV

STEEIi COHS01CP-TIOK AKD ECONOMIC DEVELCffME&T , .

9« -SjLnce steel-is. used in all sectors of the eopnomy? |n building and oonB'iruc^ion? and in machinery and; transport equipment, it follows that

the consumption of steel is closely related to the development of the

economy as measured by the g^-oss domestic product- Steel is consumed either directly in the steel-using industries of the country concerned or indirectly in the form of imported vehicles, machines and equipment oif Various kinds. 'The extent1 to whicn it is consumed directly obviously depends on the'existence' of steel-using industries which in an under

developed country will "be first theL building and construction industry and, secondly, the repair industry engaged in repairing imported vehioles and machines. Only at a later stage will'a substantial use of steel ihvengineer ing activities take place, Insofar as the relation between GDP and steel consumption, either direct or total, is an exact one and the same for all countries, it would be the case that steel consumption depended entirely on the level of GDP and the consumption of steel per head in all countries would bear the same proportion to GDP per head. That this is, in fact, approximately the- case is ?lllustrated for the countries of the African continent in Table1 I and Figure B. ''"

10, It would also be expected, however, that steel consumption would be closely rela^d to the capital formation content of GDP since the steel content of the buildings and machinery which constitute capital formation . is much higher than is that of GDP in general. In fact, from surveys made

ln,a number,of under-developed countries, it is generally indicated that the expenditure of one US$ on capital formation will on the average involve the consumption directly and indirectly of about 0.36 kg. of steel at 1961

Page 12

TABLE X: ".*•'>'■>

Cross domestic ©roduct and sieel consumption '-1-1'

Coun-fcry

^Population i$'6O

: -(million) i

Algeria

Angola _ .

Burundi-RuancLa ,, ,; : Cameroun ... f .., ■ Central African,Republic Chad . . . ,... , .. , (... :...

Congo (Brazzaville)

Congo .(^Sopo^dville), ,. .

Dahomey ■.... . .., . . . ...

CDP 195b ! ■■'- Steel-: Consumption^ 1959-61 .?otal Per,iieai. .. ; iTo.tai,:. . t./.:;i Vper.-.liead

million \ 600 tone ' ks:.

*■■':. '-■'. •':■' . .-..-. '"1. l%■'.;■'-■"' . -..'•-.■; ■;■.../'.-■ si>jo "j ■ 1

2,265 - 220, : 40P ,U -,■; , ■ ,36,5

.456 . ,., ,114.

v<X35....r. K , 114,.

, 182... , ..,70.

14.2 1j168 60.0

Ethiopia : . .t , Gabon r;( ,,...r.

Gambia , ;;,,.. t Ghana ,.. ... .,.

Guinea .,. , . ,.■■.

Ivory Coast Kenya

Liberia Libya Madagascar Mali

Mauritania . Mauritius Morocco Mozambique Niger Nigeria

Portuguese Guinea Reunion

,. !.■■■ . 20.0.

^.. , _^.. 0.4r.;;

, _.; .. , ... .. .6.8 i(.

3.2 8.1

' i.3"

■,: - v.ai:,-. ":UCV: ■ . j ■■

1.2 5-4

.. r !.!: 4.1

6.7

0.6

ii.6

6,4 2.9 35-1 0.6 0.3

^.. •--, Iff -

:i; -,.-, 311.

615^, ,

582

"1A6"'"

5?6

~- 428

133 v 1,753

420

I69

2,740 37 70

:: 40,,.;.,

! r 2°9

...v --J4 . (,

,.,■15?,,,.,.

; 117:

85

"" '116 ;i^7

116 102

221' ,"

!159"

67

68 81 67 220

v20«0. rIf.,.j

■-:-1.2 - ,,;:

72.0 ,,; ... . .18.0

27.0 .;. ;

6i.os/

17/53^

29.0

5.0^/

_{■ ■ 1}

17-4 V

103.0 30.0 2.8 154.0

• •

11.3

■,*,» .. fa0

■ . 15*0 -,i.t 4*o a ^:1:L*5

■ ,. 6.7

,-iii -8-7

7-4 14,2

14/44

"... 5"3

1.4

70/93

26.3 8.9 4.4 1.1 4.0

33.3

. Consumption of steel in kg per head

__ Consommation d'acier en kg par tete d'habitant

J 15 H

M

S/CK.14/INR/27

Page 14

prices, while the expenditure of one dollar of the GDP on non-capital

goods will involve the consumption of about 0.06 kg. of steel-i Thus,

writing S for the total use of steel, P for-GDP and I for investment,

. the .relation..would b.e ..._..-.-*-. ..-■_ .—««-,

■ "■'■ -:Vfc■•" :3--:.0.06(P-l) ^.,0jr36I ">,, ':o£ii?i.<?

-or, "if p"Ts the- proportion of GDP gotn^'tts ospltal*formation, i.e.

S - P(0.06 +.30p) i [; ., ?*fc-^. -cjcsu

It follows that when p equals .20, which will probably be the average:",

position in Africa, capital formation will be the-main constituent of>: -'

•steel consumption. Countries devoting a higher proportion of national

•income to investment would have a-higher than average total consumption1 of steel in; relation to C&P and would therefore appear above the line

;>in the diagram'as users' o-i^steel. v'If, moreover, "they consumed a higher^

than average proportion directly instead of importing it in the form of machines, etc., this would raise them still further1. Figures of capital formation, especially for past years, are, however j' only available for ^ a limited number of African countries, so that it -ife only possible to 'illustrate its-effect in a few cases. The following table shows the

The stfel content of'Wildings-in the United-Kingdom ranges from 0.25 to 0.6 kg* per % at 1961 prices in the case Qf large public and private,,.

buildings, depending'on whether they are ferro-concrete or

structural steel buildings while industrial buildings are approxxmately twice as steel-intensive. On the other hand, 'small dwellings have 7 ..

a steel content as low as 0.04kg- per $, consisting mainly of metal

windows, "dioors, etc. In overseas countries more steel is used for fencing and roofing. Where mining is an important activity, .^allowance must be made for this since mining structures■are highly steel-intensive, giving a factor of about 2 kg. per $. The steel content of plant

and machinery is related to values which include transport charges and installation charges, which are higher in overseas countries than in the United Kingdom. The average steel content in the United Kingdom 3X3951 was'about'0,6-Kg. per $; "W'&&&£~<B»tiat of vehicles is _.

only affected;by-transportation charges and..averages about 0.7 kg.

RGtrtffiS th,e.Uni-ted'^ingdoBf." In ;therdase_,£;£• 'African -countriesr the estimated-^eel 'content of'Sll cagita^f o^matioh is taken at ,0,30 kg*

per $, The value of the steel content of non-capital expenditure is usually derived as a residual figure and averages about 0,07 kg.

per S in the United Kingdom and approximately the same figure is r:;.r

taken for Africa, -'".y ■'

Page 15 ■'

approximate position in 1956-53 in, Mgeria,--Ghana, the-Equatorial Union,

C ^

Cameroun,

Algeria Kenya*

Rhodesia :1.:' Sudaii r

Ghana Ci - fa**'*

Equatorial. Union

Cameroun

Bhodes^and the

ivXtTfc. !™0 ii .'.; -J"

""table ii"'""

Capital formation .U apisj&jjxm* n*-r ft**A\

Dii-eot Indirect-'" -Total

JlL!zf *'. anf Caifroun *b«W-OAp;Usfla formation was only about 10

P8I> Ce^.,°l^^!^('^: ^FSasuinption per US* "of the' GDP'was'on^

0.08 kgt:;:& Hgeriaj- Ehodeaia"' and' the Equatorial Union where capital forrn^

Z^xon was between 25-.and 30 .per cent of Jhe GUP? st^el^onsumption per $ was BbW*-|5;#;f;^t the relation'between the steel" content of GDP and . !he. d^eKS. Wl*ji; f0^ti0fe4^ .ii.fact^^a fairly close one appear^

:from diagram B vhere thef line s/P - ,Q6 + b3p is shown, in relation jfeq the "

above countries,

11. Capital formation is^hot only theUain 6onstituenV:0f total^eel consumption butyls .at the same time the factor which determines the^owih

~of. J^.^S^^^.^^^re. the jt-ate of .increase in .skel..consuniEti6^/:

The theoretical relation (see annex I) may be illustrated as follows:

■'''.■i I.1' t _-■ Xftq ; 1.: fi

E/CN.14/IME/27

Page1'-16

TABLE III

capital formation

Capital Formation GDP . , Corresponding annual rate

of increase' of QDP — or of steel consumption

Countries with a high value of p have a high rate of increase in;steel consumption. Moreover, as shown in Annex I if the value of p is itself increasing (which is the position in most developing sountries until it reaches a maximum) this will give rise to an additional rate of increase in steel consumption. The approximate situation may "be illustrated for a number of African countries during the period 1959-1956.

TABLE IV

Theoretical rate

^ ■'■'■■ ■ ■ % .

■', ■ : ; ■,-.:

■ ■-.' ' : ' ' , ■;! ;

Algeria o '■;■ vi.

Kenya/Uganda/

Tanganyika Nigeria Ghana

■ 'v>< :'. ">..''' :'

Actual 'rate'

0,17 nil

1'W09

0,14

B'rom average rate of ... - investment

'p ;

.24.

.16 .14

.20

Corresponding rate of incr*

in steel cons.

;■■. - ".10 ■ .V. ■

,06

"•■*■■ .05 ':i-

.08

dt

-.01

From increasing rate of. invesi>-

ment . .

Corresponding rate of incr»in steel consumption

a/ E.g, if gross capital formation is 10 per cent of GDP, then assuming a capital output of 2, it is 5 per cent of the capital stock. Allowing 2 per cent per annum scrapping of assets, this would imply an annual increase of 3 per cent in the capital stock and in GDP.

FIGUREC !CAPITALFORMATION(1956-1958)

LA FORMATION DE CAPITAL (1956-I958)

14/IBR/27 Rhodes,aS xp=.06+.3O.p EquatorialUnion Unionequatoriale

■r Kenya, Tanganyika, Uganda

Ghana Nigeria <Sudan )(,Camero'ji

fCrfflation a- a proportion of GD]

capitalbruteparrapportauPIS

Page 17

In the oase of East Africa although a fairly high average; rate, of invest ment of 16 per cent was achieved during thisr period it was ;a.steadily decreasing rate and so steel consumption did not increase.

■■■ chapter v . :v.v;-;,;

ACTUAL STEEL CONSUMPTION AND ESTIMATED FUTURE REQUIREMENTS

'.'■' '/'■ yr-'^ ..■':■ ■■':•'■'■ — ■■- -

12* From table I the current annual (average I9.59-I96I) consumption of y

finished ste^i"in Africa amounts to 4,200 thousand tons of which just -

over half, i.;o. 2,200 tons, is in the Republic of South Africa which may be regarded a.» developing independently of the\rest of African continent.

Without at the. moment necessarily regarding them as natural regions (see

chapter VIII) the remaining 2,020 tons may be:-divided as follows: v; ■■»

TABLE V

consumption of steel by resrion

('000 tons) (Egypt)

North Africa: Algeria, Libya, Morocco, Tunis £1Q West Africa: Cameroun, Central African Republic,

Chad, Congo, Dahomey, Gabon,

Gambia, Ghana, Guinea, Ivory Coast _fru; , .. ... , . Liberia, Mali, Mauritania, Niger,

;:. -, _, ;. , Nigeria, Senegal, Sierra Leone,

.... ;■ ..: ... . . Togo, Upper Volta, 49O

-;:■>• .v;:Central and East Africa: Rhodesia and Nyasaland ^ ^-,. vVi >;-t} ,'l6O

.tr.;" j.-■-.■■ Kenya/Tanganyilca/iUgaji<ia/Zanzibar;,\ 1^0

Other: Sudan, Congo (Leo.), Ethiopia,240

Madagascar, Mauritius, Mozambique,"

Angola

13. The in tfi^fle regions ove^feie^last 12 ^6 13 gears'is given' in:':tile follbwing table1.

Year "' ;:rS:'Africa

TABLE VI

,.,(.!00Q.. tons)

Africa ^East

Africa Othej

1953 1954 1955 1956 1957 1958 1959 i960 1961 1962

^425"

230

^245

£41

In the case.^ of .^est^Afric^; where expansion waa steady, a straight line-

fitted by the method of least squares(figure D) shows that consumption during this period was increasing, at an annual rate of just over 11 per

cent and the current level "is1 about 600,000 ions per annuih or t.5 kg. per head. At the same"time, WIs'estimated that during the three years 1960-62 tfes^el- content of imported manufactures amounted to 80 per cent of direct steel conductions (ff^toO*****4^>^m tons. From the examination of

■ !*-■<■ ,■.- i

a/ Exports from all countries to these regions plus local production where

known,

b/ Estimates.

Page 19'

JIHSh fibres of mBttW*.^ as -^.available, it would appear-that ,,*M*;ra*,e ;of w,*^ consistent, with capita formation a-t^teady.^te j Qf,2^er cent of the gro dti E»duCt,,:«iying a ^^ ce*t^nnual

increase plua an extra 2 per ^ &r. ^ ^ ^ progt6gs. ^ ^^^

I manufactures of steel.... Alternatively,^*: sama, »^

1 (see .'.nnex 1) with capital fomaation at 18 per, cent, but

l»ra 1/2 per cent each year. In the other regions expansion has been hindered by political devkopaents. .In toth Africa the average rate of expansion over the whole period was 3 l/s'per cent In Hht>d6sia up' to 1357 ^ra'i4 of 10 per cent fas achieved; liT Kenya/

^ngahyika/tJganda &*>'&&■¥<&* 0? l6 per' cent and in^rest of Central Africa up tFWa^k^f per cent, ^ese'ra^e^of growth reflected.arhigh ratB of i^gtment; {capi*al,foration as a;j>tocentage of

GOT) 32 P«:Een*:,in.Hhod83ia,(j.957); 25,pte celit in Algeria ^^j p f?®*;.!1; K?Wa (1?55/1955)O

S-. thsimaiatenanceof stable political

conditions aSd therefore ofva high, l^el of; inv.stmsnt is critical. It

oWUl,l*iWBW*rtta* a rate of investment,of :20;Per oeat, i.e. gross capital

formation equal to 20 per oent of the gross domestic product-will be achieved

a all reg^onc, KiiiJ -Lz,.2^.pc ^U^rt^below the current level in the

fast African Region but it ^plies .that, with stable conditions'investment

; in the other sub^ions .ill increase and w,U eventually'reach this'limit The existence .of ,«moh,a ..limit is one of .the reason, for an ultimate "decline in the rate of inpwasa in .steel .^ump felon, Other long^ter, reasons are , the less intent ,,s of stoel both in c. ; ital formation an4.in the gross . domestic product .itself, a, for example, >,ith..the development'of service

industries u^ng v-,tua!ly no steel. B_ ,3 eivos '^p^ gradual decline

in the steel inten.iv^nass of the economy. In the United Kingdom'this factor-reduces tH, o^oted level of^teel con. .ption by^about two-thirds of 1 per cent a yoar.-^is decline In '^e ra^te of steeVcons-^ption, which is a general pUnomenon, was described in detail in' the! ^publication

method used, to..tte.l

irQfr:cd.n3UEp'tiob-in.rAfrica? would have

B/CH.14/INR/27

Page 20

suggested over the period 1957-1975 a rate of increase in steel consump

tion somewhat higher than the 11 per cent actually attained in West *E*ioa hut, after taking into consideration other factors of which the availability of funds for capital formation was one, this was reduced to 6 per cent.

Alternative forecasts may be accordingly presented as follows!

(a) Capital formation/GDP - 0.20, giving"8 per cent p.a.increase in steel consumption, less 1 per cent for decline in steel

intensiveness.

* . .. These percentages are. applied to the current level of total steel consumption and- direct steel consumption is derived by subtract

ing estimated imports of manufactured^goods. ~

;:o u-u'W Prolongation of current rate of increase e.g. of 11 per cent p.a,

$q O- in the use of West Africa in direct: steel consumption;

(c) "Long Term Trends" estimated increase during the period 1957-1975 of 6 per cent p.a. in direct steel consumption. Method (a) is

•'-■used in the following estimates giving an annual increase^-in

.,,.- .— tbtal steel consumption of 7 per cent and has been applied uniformly

■J:\*+v : to all regions, "J ;-

15. The actual direct consumption of steel is derived from the total con sumption after allowing for imports of steel manufactures; i.e. machinery and transport equipment. At present these imports account for nearly half total steel consumption, and it is, of course, an essential part of a

^development plan that the metal-using industries should "be expanded so as to reduce this proportion. Because of market limitations it is, in general, more difficult to develop the metal-using industries than the steel industry

itself. Activities fall into a number of categories: .. ,;

(a) Repair vork on imported vehicles and machines. This includes

":;■ . '.. .the railway repair shops which are usually the main engineering

. , establishments, . •.,..- '■'■■-•■-■::

*\-jv (h) Jobbing work; i.e. the production oix an individual tesii^of^'- special machines and appliances, tocluding machine tools (pres-

ses).

Page 21 V

,r (c) Manufacture on a mass-production basis where the market is

sufficiently large; namely, consumer goods such as hollow-ware, including canning of domestic produce, bedsteads, electric stoves, ' sewing machines, bicycles — some of the latter items being partly

■ 'assembled from imported parts — and building components; e.g.

"window and door frames. A sufficiently large market is also * offered by agriculture (ploughs), by the mines'(grinding equip ment), and accessories such as nuts and bolts, nails and valves

and springs. ;■■ : :...iv-

:i:t d^.^ma^et-ffr electrical^ goods is alsro a large one because of

xrb> ;v t-e-hy^rrA1?9^i0^^velppment which is perhaps typical of under-

\ developed countries.^ .Cables 9an be manufactured on a large scale - and also switchgear and transformers. Electric motors can also

be produced but not dynamos which are large units and therefore

.. . . have a limited market,

(e) As far as vehicles, are concerned, the movement, is from the build

ing of bodies on to imported chassis to the actual .manufacture .of chassis in.the.case of trailers, and to the ..assembly of pas

senger cars and commercial .vans..,: l?a some; cases, there is an

element of manufacturing rat^r than assembly as jigs are provided for boring operations and a certain amount of welding is carried

Corresponding to the development of local industry, the market for impbrted

steel1 goofts changes so that imports of fabrications gradually decrease

fcxc6Pt^f6r large structures where the market is limited, while imports: of vehicles ar^e replaced hy imports of components for local assembly except again in th^ case of special vehicles for which the market is limited.

Imports of Machines, however, especially for miscellaneous manufacturing pVPbs^,r increase since 1* is clearly impossible for a local engineering

industry to find a sufficient market for this tyPe:of output. Where the

market for machines is large as in agriculture and mining, the local industry

will, however, increase its share, possibly with an increased use of imported

Page

parts and probably either under foreign management or foreign licence. In total however there tends to be an expanding importation of steel manufac-

tures* ;■.,.. ' . ■ \uv-vi *■■' '«'*-.-•

16. Without-a thorough investigation, it is impossible .to,say exactly what share of the market for steel manufactures might be secured by local industry. In the case of Rhodesia, which U a relatively, well-developed African country, local manufacturers hold about two-thirds of the market for fabrications, about one-quarter of the market for transport equipment and about one-fifth of the market for plant and machinery and in total

(table II) import of manufactures account for one-third of total, steel usage. It is unlikely that this portion will be greatly exceeded either

in West Africa or in the combined Central and East Africa region during the next twenty years. For the North Africa region where for example the proportion in Algeria (Table II) is already less than one-quarter a reduc

tion to one-fifth, as is currently the case in the Republic of South Africa, might be envisaged. The results given in the following table start from

the estimated level of consumption in 1962 as far as the West African and North African regions are concerned. In the case of the East and Central African region where current consumption is far below 1955-1957 levels

it seems reasonable to take this higher level as the starting point.

. For the purpose of establishing a steel works, however, which will naturally produce a limited range of products it is necessary to forecast the demand for steel by types. In doing so it is desirable to have separate estimates, if posaible, for the public sector which accounts for the bulk of investment in building and construction, and normally includes the highly steel-intensive elements of rails and also, although to a lesser extenij, tubes. Aa shown below in ,the case of w«t: Africa building and construc tion accounts for 70 per cent of capital:formation. The steel content has been very roughly estimated to illustrate its division into direct and indirect, the latter consisting of imported machines and vehicles, imported building components, i.e. door and window frames, consumer goods and replace-

. ment parts used in repair work, ;.••■,>■ ■

Pago 23

/4

(CABLE VII

West African Region Total consumption Indirect

Direct

,.BTorth African Region

Total consumption Indirect

.. t Direct . . : ...-,,-,;

East and Central African

Region

Total Consumption Indirect

Direct

1,080 480 600

960 320 6$D "f:

1:>77O -.-. T" 670 ■

1 1,100

1,650 ■ 460

"1,190

' 2,480 880 1,600

2,310 550 1,760

1,260 560

2,160

810 _1,100

3,490 1,160 2,330

1,420

TABLE- VII-1

Capital formation:

Buildings and works Machinery and vehicles

(in millionGDP

content. 1961

_ Steel content ';■'

»\ Direct Indirect

9,660 1^760 1,230 530

in '000 tons

Railway track and accessories

Repairs, consumable stores

and consumer goods

Total: '"""''

B/CN.14/INR/27

Page 24

The actual consumption of steel by types for the period I96O-I962 included in the case of West Africa construction on the Miferma railway which ac counted for atout half the railway material imported, and raised the pro portion of this itemr$Q 22 per^ cent of ;.t6.tal steel consumption. Similarly

the special demand for pipes .associated Miih oil and gas development in North Africa amounted during the period, to nearly one-third of total demand, A more usual .proportion in both cases might, be 15 per cent, but it is'of great importance to forecast these items separately by obtaining long- term plans from the appropriate authorities.

18. . The division of types, excluding railway material in the various regions is given in the following table:

TABLE IX , ■■ ■■■■■

West Africa North Africa, Central and East Africa

1960-1962 I960 . I960

Types :r :

Ingots and semis Bars and rods: h.r.

Sections c.r.

Wire rod

Wire "v..,u;- Strip:-h,ri

30.3)

12.6)

0.5)

41,2

1,4 38*0

S&eets: plain

■ - .galvanized Tinplate

25.O) 24.8

Plate Tubes:

». wheels, axles

Total: 100,0

4.7 32.5 0.2 100.0

13.6

100.0

Page 25

The main items are bars and rods fdr reinforcing, followed in the case of West Africa and East and Central Africa by galvanized sheet, also a construction material.,... and ..then tubes and-sections«™ - ' ■■"'"' 1?» : Future demand,gill a.3,so spring from-the substitution of imported

'mstqEIneSj vehicles, etc. and will require a quite different distribution of ste#i types. To estimate this,.the..following table gives-the deliveries of steel to users in the United Kingdom-other than, construction, "buil'di^ife

and civil engineering and industrial plant: . ,,-;.;

C;-- TABLE X

Deliveries of steel to engineering uses in the United Kingdom

Per cent Ingots and semis

Wire rod ;r Bright steel bars Other light sections Heavy sections

Strip heavy rolled cold-deduced Sheet heavy rolled

cold-reduced ■"•

Tinplate

Plate ■.■ : -.-:: hi

■Tubes . ,r> m ■■ . Porgings and castings

.;,.■. Total: -,

18.8

11.9

9.3 11.2

3,8- •**-

The main new types are cold-reduced sheet, wire rod, plate and tinplate the latter depending largely from the development of the canning industries.

20. The following table combines direct steel demand from the expansion of the economy and from the substitution of imports for 1970.

E/CN.14/IHR.27

Page 26 .

TABLE XI

(in '000 metrip tons)

West Africa

Demand _{types types}

980 ..

Rails, etc.

Bars and rod Sections

: ' SxS.% -■.'5.1 h-, Wire rod

Wire Strip

Sheets plain galvanized Tinplate

Plate Tubes

Porgings and castings Ingot and semis

North .Central, and Total Total! ■.-.*■

Demand Demand

1,350

Galvanized sheet is much more important in West Africa and East Africa than in North Africa, In general there are no figures fox the division of sections into heavy and light but a more detailed enquiry in Rhodesia suggests that about half,-will he heavy sections,:i.e. over 80 mm and that

about half of them might lier«thin"thercapacity of a domestic steel

industry.

/CIJ.-14/INE/27

age 27 Page

,RA¥.EA.TEEIALS AUD £UEL. . :: :,::,,!;-■ ■•. >,,.-. , .; ve.»Aa -.. j,. ■ . ■, ; * ■.-. ; < j- ■■ ';.. -. , , ■ ': :i -i$ ' -' v-atfwi 21; "The main raw materials required for iron and steel making are iron

ore, scrapV fuel', pure limestone (including dolomitic limestone) and water.

Raw materials required in smaller quantities are manganese ore and ferro alloys, and mention must also "be made of the need for certain manufactured materials essential for the maintenance of production, notably furnace refractory blocks and "bricks', cashing pit refractories, and engineering spares,' :Asa general :r^XOj hokever, local availability of these secondary raw materials and materials heeded' for maintenance is not of prime^ import ance in the' first stages1 of a" developing steel industry because they can be readily imported. ' feresh water in large quantities is one of the es

sential requirements" for an iron and steel works and it is difficult to visualibe the construction of such a works in countries where water is scarce'at present* This does hot mean that such countries would never, be able to' operate a steel works, but merely that such developments must be delayed until water supplies can "be developed.

22. The raw iron reouired.will, .come from ore, scrap, or both*. Although ore. alone or scrap alone can sustain an iron-and steel; works.; usually both are used. In a country iau the early stages of indiis.trial..development :;■

little scrap will be available. This follows from the fact that there,...

are few metal-using industries from which scrap can "be collected and

little equipment in the form of machines, buildings and vehicles avail- able--for-scrappihgk' vIn Rhodesia, which is a relatively'well developed African countryv scrap arising from the metal-using Industries including building and construction, • lie'* 'process 'scrap isurreh'tly amounts to*'2 kfe.

per head of the population compared with current steel consumption-of-—

19Tkg. per-head, but in Sast:';and-West African''countries rl' kg. per headv.1-.

is likely to be the maximum. Scrap (capital scrap) available from obsolete structures, machines and vehicles is calculated from their ave rage life, i,eu about 50 years, 25 years and 10 years respectively and

at this time distant it is obvious that■there was little installed and therefore little becoming obsolete while in any case only a proportion of what becomes available is collected. In Rhodesia apart from the

mines the main sources were from vehicles including the railways and from industries the total amounting to about 3 kg. per head of the population, But in less developed countries it is doubtful whether more than 1 kg,

per head can be collected^ Not only is the quantitylikely to be col-

lected therefore very small in relation to current steel demand but more over it is likely to be required in part.by the existing iron and steel

foundries. The iron foundries^are likely to be advantageously placed

to'collect the material, e.g. those making agricultural machinery equip ment will collect scrap from local farms and they are very much, less

exacting -than a steel works in regard to quality. Scrap availability will increase rapidly with economic development but will be subject to the time lag of about 20 years already described so that while small steel works depending on scrap will expand they will provide a steadily decreas ing proportion of total steel consumption. On the other hand of course they use a local material which might otherwise not be collected at all or simply exported? they make a useful contribution to s-fceel requirements and more important still do this at a low capital cost since none of the heavy capital expenditure involved in iron making is required and the'y give valuable training in steel technology. It is therefore important' '

to encourage this activity; ■'

23. The extent to which an integrated steel works must be located neajr to one or more of the principal raw materilas is discussed in Chapter :I£.

The next chapter discusses, the raw material availability in.the,;;U various countries insofar ae this information is available. These .raw materials, being naturally occurring minerals, may.be present in much

1/ .Actual estimates were given by UDE■- Cameroun 1 kg. per head and by

Upper Vblta 1/2 kg. per head.

2/ In Hhodesia iron and steel foundries took about l/2 available scrap

Page 29

greater quantities than are known at present. New deposits of iron ore, and new oilfields, are frequently revealed as prospecting proceeds. Numerous iron ore deposits are available but,since^ah integrated works producing a minimum of half a million tons of iron a year and using therefore 2, .

^million, tons of ore is ^under conside'raiion interest only attaches to those deposits. whid'K xndivi'&Uai'ly or'in close proximity can sustain suqh a works.

Assuming that in :view of"the heavy social and industrial investment as sociated with a &teel works a life of 30 tor 50 "years is required ^this means a deposit <<S? -We order of 30 to 50 million tons or the equivalent in adjacent deposits.-c Ihie; assumes: that the" deposit is high .grade whiph

Lower grade deposits under1 50'per1bent can usually be beneficiated to raise

.theiriiron content but tills is exp'ensive ' and1"" ihe naturally, enriched deposits

will almost invariably provide the basis for a steel indus-fcry. In most cases these higher grade deposits occur as pockets of enrichment- in very much larger masses of lower grade iron bearing rook of perhaps:30. to<40 per cent iron content. It should also be rec.ogni^ed, however, that no$

only may new deposits be discovered since it is scarcely, worth while to prbs'pect in areas remote from transport facilities but also ;that in regard to existing deposits it has not been ;worth while, dia.inany cases..%o go to the considerable expense of proving the reserves by ■nui&erjous borings.

In many cases therefore the actual reserves, may be ;Very much great^i* than tHose" given in the following pages. , ■ _ .,.,..,.,.-,. ,,; .,,-..,■■ . ■ .■. -.-, ,-it^s., 24. Thet e.oono.mic: value of the various mineral; depobd-1;&: depends on their distance from the pi.'pe -pf-, 'p, possible steel works, whibh eah be ascertained,, and on their ease of extraction. In general little Information is at

present available on the latter. It is necessary to know this, however, in order to estimate the cost of extraction. Preferably an estimate

should be made by the authorities concerned but failing.this .a .description should be obtained of the location of the ore body within the country;.,work in the case of iron ore, and in the case of a coal de.poeit the thickness of seam, evenness of floor, percentage -of non-ooal material, ash content

and coking value. . , ... .e , , . ,

B/car. u/im/27

Page 30: -. -•

CHAPTER VII RECJIOHAL HE30I/HGSS

25. As table XII shows, West Africa is veryiWell provided with iro* fere deposits, in fact with some of the richest and most'plentiful iroir oi-e deposits in the world.. These ores are both high, and low grade, and w a rather arbitrary division,, ore with less than ,50Iper, cen* <rf iron "aB

"1Md" iS considered low grade ore, whereas ore with *,» than 50 per cent iron as mined, is considered "rich ore". Often, ore.whi^is: low-grade*

"as nuned" may be upgraded to the/'rich" category by the^nventibnal - methods of mineral dressing. Limestone is also available: -in most coun tries of the regions but fuel is. the great, weakness, beMg found in only

one country (Nigeria)... ..-,... . , •.,,

Iron ;cire ■ ri'i-r-.i • i. ■: • .*...-. ■• -r-^'. .' . ■■ ■ -■■.;■.;>

26- Table XIII gives the main particulars of the ores found in tie various

countries,- though in some cases few details are so far available. .The table is not, of course, a comprehensive list .of all the ores available!

in West Africa; it is certain that many other deposits ex^s* and will be found as geological exploration proceeds. 'However, from the!point of

VVieW °f the first iterated" steelworks for West Africa,! it would seem

best to rely on orefields which are already developed. For. the, next ten years or so, there is almost certain to be a world surplus of iron ore[

and there^seems little poihi i* encouraging the expenditure of scarce'' oapitafebn developing-ye¥!MreJBri^ mines^and (requiring even more capital) on long: distaflse railways^' carry ore, when'plenty is available from

existing developments* "i^:^--^o\- .' .' .■■ ■ .-I ■ ,■ :.:. - . ■■■■■>■.

,2!' :,..thiS meane that!H? f^iest!use!8h0uW;be jnade of the^existing '\'., facilities for miHingand'transportingorein^Guinea, Liberia, Mauritania,

and Sierra' Leone", before' heavy' expenditure .on new development^ We !under-

taken. The Higerian deposits could ^opened up 'with lit«.e capital £t

because they'are near the surface and near existing transport facilities

but these ores are relatively low grade.

E/CN.14/IHB/27

Page 31

Coal

28, Apart from relatively inaccessible and uneconomic deposits of low- grade carboniferous material in a few countries (e.g. Guinea and' Sierra Leone), ooal is founji only in the Enugu district of Nigeria, mis is.

plentiful, but is not a coking coal. In general, apart from the.Enugu coalfield, the geological structure of- West Africa is not suclras to

suggest that coal would be found.

Oil and natural gas -

.29. -These are found in Nigeria (Niger delta) and in Gabon, and hopeful' prospecting is going on in several other countries. In the meantime,,,

there are a number of small refineries operating on .imported crude oil.

iO.. Since electricity is a possible alternative fuel for iron and steels- making and in any case large quantities of electricity are required for operating machinery in iron and steel works, the position regarding elec

tricity supplies must "be examined^ ; ' ;.

31. .The limitations of fossil fuel supplies referred to above naturally^..._

reduce the possibility of cheap thermally-generated electricity being available. There are proposals for major hydro-electric works in several

cou^iries, e.g, in Congo (Brazzaville), Gabon,"Ghana and Nigeria, the best

known being the Volta River scheme in Ghana. But high capital cost at small stations and high distribution costs at large stations due to J&e_

great distances to be traversed, mean that even hydro^electricity will ' ■ -^ •■:

'not'be cheap, with the possible exception of the Volta River scheme in Ghana, This is on such a large scale that eventually capital charges per kw will be reasonably low, and the location of the dam and generators

is'sufficiently near the main consuming centres ;.tQ keep distribution costs

within1 bounds♦ . '■■; j ' '

32, Presumably nuclear energy has also been considered as a possible

source of electricity where fossil fuels are scarce, and topographical

conditions preclude hydro-electric power. However, it is unlikely for

Page 32

TABLE XII

iron and steelmakin

Country Cameroun

Iron Ore.

Plentiful low grade Central

African Hepublio

Congo

(Brazzaville

_Small

Low grade, probably

..Bich, plentiful Low grade, fairly- plentiful small amounts of rich ore

Rich and lower grade both -plentiful

Low grade, plentiful can be upgraded "'' !

£ich, plentiful

plentiful,

Low grade, .plentiful

Fuel Limestone

Deposits, exist

Information _Available

Information _Available

Small

Deposits.exist Oil and natural gas

Pure limestone

available near coast

Deposits inland but probably toe

siliceous for use Probably some pure deposits in S.E.

coast area

Information _Available

Low grade, plentiful Oil, natural gas and Widespread deposits of

Low grade and rich

probably plentiful Pure, deposits

available near ooast

E/CN.14/INR/27

Country % Sierra Le|on£: \

j

Togo :.

Iron

.,| plentiful

■ FuelJ ^Limestone

5Low grade j Ismail deposits

Upper Volita . jLiitailable

Only; loical. deposits of oil;and coal are mentioned here. A blank space

.means that np 1^6'al fuels; have., yet been proved. >lthoujgh' prospecting -may be proceeding. Refinery products rtade from! importefi fuel are not

mentioned. Some.countries'have,.considered charcoal as a fuel, but it is doubtful -Wheih^r the reserves of suitable timber would be^ sufficient for an integrated' steelworks. |"1 i.\ ■ , ■'■

TABLEXIII

CountryLocation

(Southofcounts

MekambaTchi"banga53-60Shiene(Conakry

Simandcti

oryCoastMonogaga

BoniHills

MarioRiveriNimba 64-6565-6656-58

Saynr,Maine:AgbajaEnugu

ferampaTonkclili 47-51

33-45

^u3-64 6-914-16 ofreserves(m.tons) AccessibilitytotransportRemarks

0.0. 0506 0.0.0.0. 6-1'151835 Over200^.Railways-to-■'■icoastproposedbutnotbuilt0.1-0.10.11I0.06

ThoughtsimilartoNimba(below) over1001000 Atpresentremote

Cr.andLarge(over200)

8-109-10 Couldbeconnected

[to Liberian Ely,

40Km.fromport

0.03O.Ou0.030.0351500.070.05100.,0*040.04Over2000,060.03H0.6-1P?R0.1oo7-i#3r2700.6-0.ano

■0.06-0.181000.0050.00950-100" CHailways^o

(coast available

Onriver"'Dr.rivertranspcrtMr.railwayj;:.■

AtpresentremoteRly.tocoastavail. Manyotherrichdepositsexist

Rlys.fromMaramoa