The Kurdistan Regional Government has licensed a firm to build a $1.1 billion smelter and steel plant, according to Trade Arabia.
Mass Global was granted the to build the project in the Chamchamal area between Kirkuk and Sulaimaniya, said Haidar Mustafa, head of the industrial projects department of KRG's investment commission.
"The total amount of the project is $1.078 billion [1.25 trillion Iraqi dinars]. The area that the factory will be erected on is (83 hectares)," Mustafa said.
He said the plant would have a production capacity of one million tonnes of steel and iron products annually and construction should start within two months.
The entire project includes a smelter as well as steel manufacturing and steel casting facilities.
Dalshad Mohammed Shakir, Mass Global's project director, said his firm had contracted with the Italian company Danieli to design and build the facility.
According to the report, Danieli had no immediate comment.
"This is a pioneering project in Iraqi Kurdistan with very modern technology, with equipment and machines which are the latest in the iron industry in Europe," Shakir said.
(Source: Trade Arabia)