Institutions told selling scrap metals, used vehicles to steel producers

Ministry of Mines (MoM) and the federal Public Procurement and Property Authority jointly called on governmental and private institutions for vending of scrap metals, used vehicles and machineries to steel producers through legal channel.

The Authority and Ministry held a joint presser on Friday at the headquarters of MoM.

The two agencies called for selling of scrap metals, aging vehicles and machines from private, governmental entities including universities, regions and city administrations to be sold out through a legal way—though the Ministry.

Last month, the Ministry of Finance in a circular ordered the direct provision of scrap metal to industries based on allocations from the Ministry of Mines.

In their joint presser the two institutions announced that the country spends over $1 billion in a year to purchase of metal whereas local steel industries underperforming—basically stems from shortage of inputs.

Ethiopia imported 2.5 billion worth metals and steel inputs in the last two years.

“The temporary measure taken by the government to solve shortage of inputs is legal vending of scrap metals from various entities,” Takele Uma, Ministry of Mines said.

He outlined the efforts of the Ministry to provide steel scrap iron to manufacturers in Addis Abeba and Dire Dawa cities. He further calls for trading of more inputs by governmental and private institutions in a legal way.

He said that a task force has established to oversee and take measures on those institutions, which failed to do obey what he dubbed a “national call”.

Haji Ibsa, Director General of the Public Procurement and Property Authority on his part said that, “Vehicles, machinery and scrap metals, which have imported with very scare foreign currency, seen disposed everywhere and polluting the environment.”

In a circular signed by Ahmed Shide, Minister of Finance, 160 governmental agencies and 36 developmental enterprises were ordered to sell used vehicles and scrap metals to steel manufacturers, he said.

He further unveiled that the Authority registered 2700 vehicles owned by governmental agencies, which are out of service, indicating price rate has set to sell these properties.

Accordingly, a kg of steel scrap will be sold at a price of 64 Birr, scrap vehicle/machinery 51.75 Birr, and used vehicle parts 51.25 Birr.

There are entities having significant number of properties to be sold out.

Takele explained that the former Metal and Engineering Corporation (METEC), which changed its name to National Industrial Engineering Corporation, accumulated 500 million tons of scrap and used vehicles.

He stressed that, “If we allocate these scrap metals and used vehicles properly to industries we can cover two years demands of steel manufacturers, and a cost of $2.5 million can be saved”.

With a plan to ease the problems in the steel industry, Takele said, “The Ministry is commissioning a survey on the development of steel.”

He further told journalists that MoM and Ministry of Justice are jointly crafting a directive on importing steel industries imports of inputs.