PROJECT

Projects

Environmental & Social Review Summary

Project Number

8638

Company Name

ALEXANDRIA NATIONAL IRON & STEEL CO.

Date ESRS Disclosed

Feb 5, 2010

Country

Egypt, Arab Republic of

Region

Africa

Last Updated Date

Sep 30, 2022

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 7, 1998
Signed : Aug 4, 1998
Invested : Sep 30, 1998

Sector

Integrated Steel Works

Industry

Manufacturing

Department

Regional Industry - MAS Africa

Project Description

- 2 - February, 10, 1998

International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)

Project Name EGYPT: Alexandria National Iron & Steel Company

Region Central Asia, Middle East and North Africa

Sector Iron and Steel Manufacturing

Project No. 008638


1. This project involves expansion of Alexandria National Iron and Steel Company (ANSDK) existing 1.5 million tpa rebar facility in Alexandria with a 1.0 million tpa flat steel plant. The new expansion will be carried out within the existing premises.

2. This is a category B project, with special issues, according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The special issue is the size of the expansion project, and consequently the total impact of the ANSDK steel complex must be considered. The review of the project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:

· compliance of existing operations;
· air emissions;
· recycling of primary waste materials;
· liquid effluents;
· noise and company load on infrastructure; and
· environmental management and employee health and safety.

The information provided by ANSDK about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.

3. ANSDK existing operations for the production of concrete reinforcing bars are in compliance with Egyptian and World Bank guidelines.

4. The proposed project includes the installation of a third Direct Reduction Plant (DRP), steelmaking shop (SMP) using Electric Arc Furnaces (EAF) and Laddle Furnaces (LF), a Thin Slaber Caster (TSC), and on-line Hot Strip Mill (HSM). The infrastructure design for the proposed project calls for an enclosed area including the melt shop and the laddle furnace shop, were emissions will be filtered through a baghouses system. Dust emission control at the new Direct Reduced Plant (DRP) will include the use of dry dedusting system. Lime fines and limestone fines obtained during the process will be sold to cement industries. ANSDK’s air emissions will comply with Egyptian and World Bank guidelines. To control fugitive dust ANSDK has paved the open areas with concrete. Also, the company maintains green areas that are irrigated using the water from the waste water treatment plant.

4. The process dust from the electric arc steelmaking furnaces is collected and transported by truck to an existing landfill. The company has purchased an additional area adjacent to the current site for the new slag cooling area. The scrap produced in the steelmaking process is recycled into the process. ANSDK’s slag is crushed and separated. Hereby, metals are extracted and the residual slag is sold to the construction industry for asphalt, and concrete filling as well as for road stabilization material.

5. ANSDK has a domestic sewage and an industrial waste water treatment system. The domestic sewage treatment plant after completion of the proposed project will treat 21 m3/h. The analysis of treated sewage complies with the Egyptian and World Bank guidelines, with values after treatment for suspended solids of 15.1 mg/l, BOD 7.2 mg/l, and oil 0.7 mg/l. ANSDK currently recycles 35,000 m3/h of its process water. At present the use of the treated waste water at ANSDK is as follows: discharge to sea 105 m3/h, plantation inside ANSDK 50 m3/h and water for spray cooling the slag and others 30 m3/h, these discharges meet local regulations and World Bank guidelines.

6. The noise level at the DRP will be reduced by enclosing the compressor, and the steelmaking plant will be designed to reduce the sound power level. The project’s electrical energy is supplied by the Egyptian Electricity Authority. The water supply will be provided by the Alexandria Water Authority with a capacity of 2,000 m3/h which is sufficient for the proposed project. The natural gas for the DRP will be supplied via existing pipeline from the Abu Qir offshore gas field. The necessary oxygen, nitrogen, argon and compressed air will be produced on site.

7. ANSDK’s management has recently created an environmental department to direct and manage all the activities related to environment, health and safety issues at the plant. Training programs are provided to technical, administrative, and operational personnel, and includes safety issues, quality control and environmental awareness. A clinic with a resident medical practitioner has been established. Employees receive periodic medical check-ups that includes vision, hearing and lung function examinations. ANSDK provides employees with appropriate personal protective equipment.

8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that ANSDK proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.

9. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by ANSDK and by conducting periodic supervision.

Environmental and Social Mitigation Measures

Broad Community Support