Egypt’s MEC seeks renewal of coking coal production license

Egypt’s MEC seeks renewal of coking coal production license

Egypt’s Middle East Carbon (MEC), a leading manufacturer of coking coal in the Middle East and Africa (MEA) region, has called upon the Suez Governorate authorities to renew the production license of its existing plant in the Governorate.

Company chairman Walid Abu Raya said the plant had obtained clearance from General Authority for Investments (GAFI), but the governorate didn’t renew the production license, forcing the company to stop production from July 2022.

Raya said the plant constitutes a key source of foreign exchange for Egypt since it is required to export a minimum 50 percent of its production.

Before closure, the plant exported 80,000 tonnes out of its total production of 140,000 tonnes, mainly to Bahrain Steel Company in Bahrain; Emirates Steel in the UAE, Kuwait Steel in Kuwait; Sohar Steel and Jindal Steel in Oman; Al Rajhi Steel and SABIC in Saudi Arabia, and El Fouladh in Tunisia.

Raya said the company was unable to honour some of its existing contracts in Saudi Arabia, Kuwait, Bahrain and Oman due to stoppage of production.

Moreover, a recent coal shipment destined for the plant couldn’t be offloaded despite environment ministry’s clearance due to production stoppage.

The delays had cost the company $241,000 in fines at the rate