Raw materials needed to keep Scunthorpe’s blast furnaces going – including a huge shipment of coal – have now been paid for, Angela Rayner confirmed today.
The Deputy Prime Minister made the announcement on a visit to the huge site this afternoon, in the wake of the government’s takeover from Chinese owner Jingye.
Ms Rayner declared the country’s last blast furnaces were ‘crucial to the British steel industry’ and said: ‘We’re confident that we’ve got the raw materials and these furnaces will continue to be fired, and that was really important for the future of British Steel, and the Government stepped in and took the action that was necessary.
‘Yes, there’s more that we need to do over the next coming months and years, but this was a crucial step forward for British Steel in the UK.”
Pushed on whether the Government had paid for the materials, she added: ‘We’ve got the raw materials they’ve been paid for, and we’re confident that the furnaces will continue to fire.’
Ms Rayner could provide no further details of when the 55,000-tonne shipment of coking coal – on a ship which docked at the nearby port of Immingham on Thursday – would be unloaded and delivered.
Entrance to the Scunthorpe steelworks in Lincolnshire
Angela Rayner at Scunthorpe Steelworks where she announced supplies have been paid for
It is likely to be moved by rail from Immingham into the steelworks’ coal handling facility.
Ms Rayner’s announcement came after it emerged there was less than a month left to prevent supplies running out.
Union officials said remaining coking coal and iron ore supplies at the site in Scunthorpe, North Lincolnshire, would only last until early May.
There was chance to ‘buy’ another fortnight using a ‘Salamander tap’ on one of the furnaces – in which a hole is made to drain liquid metal but it is then kept warm, so it could be restarted.
If had supplies run out, the furnaces would die down making them very difficult to restart.
Earlier today, supply trains began rumbling into the site bringing coking coal and iron ore from existing stockpiles.
Meanwhile, dozens of businesses, including Tata and Rainham Steel, rallied to help British Steel with offers of managerial support and raw materials.
Scunthorpe steelworks, home to Britain’s last two blast furnaces, which were under threat
Alun Davies, national secretary of the Community steelworkers’ union, arriving for talks at Scunthorpe yesterday, said this morning: ‘There are enough raw materials to last until May 9 under normal operations or May 23 if Bess (one of the two furnaces) is tapped.
‘We are confident British Steel and the government are working to get the raw materials in.’
Andy Prendergast, national secretary at the GMB union, said: ‘We’re confident that the deal being done with the raw materials, and the steps being taken will get there on time, and ultimately that has the potential to preserve the future for the plant.’
Asked about an expected timeline for getting the material in, Mr Prendergast said: ‘We’re being told it’s going to come in good time, so we’re… hopeful that it’s the next 48 hours but we haven’t had confirmation of that.
Remaining coal stocks at Scunthorpe steelworks where supplies have dropped critically low
‘I think for us the key thing is that we keep this plant going and keep (UK) virgin steel-making capacity.’
There was excitement outside the steelworks this morning as a train with over 20 iron ore trucks arrived at the plant shortly before 11.30am, followed by a train of coking coal, both from Immingham Port on the Humber Estuary.
But a source stressed the wagons were moving existing stockpiles – and that talks were continuing to secure fresh supplies.
The boat carrying 55,000 tonnes of coking coal from Japan, worth around £7m, arrived at Immingham, 25 miles from Scunthorpe, on Thursday but unloading was held up amid negotiations over payment.
The government moved to reassure unions representing 3,000 staff at the steelworks, with Exchequer Secretary to the Treasury James Murray saying: ‘The raw materials, the shipments have arrived, they’re in the UK, they’re nearby.’
Mr Murray, speaking to Times Radio, said: ‘There were questions about getting them (the supplies) into the furnaces, that is what the officials are focused on right now.’
But the minister refused to guarantee the furnaces will continue running, claiming the plant’s Chinese owners, Jingye, ‘accelerated’ the shutdown of one furnace.
A second boat of coal is thought to be arriving at Immingham later this week.
The blast furnaces and iron ore stock yard (background) at the British Steel site in Scunthorpe
The government faced criticism over the time taken to unload coal from the boat, with ex-Tory leader Sir Iain Duncan Smith urging them: ‘For God’s sake, get on with it.’
Earlier today, British Steel announced the appointment of long-term British Steet managers, Allan Bell as new interim Chief Executive Officer and Lisa Coulson as interim Chief Commercial Officer.
The appointments, signed off by Business Secretary Jonathan Reynolds, will ‘ensure consistent and professional leadership’.
