Pinpet steel mill nears production restart, backed by Russian technical support
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Hsu/Pearl (NP News) - Jan 8
Preparations for pig iron production are underway at Steel Mill No. 2 (Pinpet) in southern Shan State and 19 of the facility's 22 workshops have already passed trial runs.
"In cooperation with Russia's TPE company on pig iron production, trial runs have been completed at 19 workshops. Three key workshops remain: the oxygen production workshop, the main Romelt smelting workshop, and the waste-heat power generation workshop. Once these are finished, pig iron production will begin—with an annual output of 200,000 tonnes, according to the original design," a source close to the project told The Statesman journal.
The remaining three workshops are currently being finalized in cooperation with a Russian partner. Following their completion, pig iron production will commence, targeting an annual capacity of 200,000 tonnes.
"Two types of raw iron ore—totaling around 70 million tonnes—are located near the plant. Limestone is available in a nearby village, while dolomite will be sourced from Hopone Township, about six miles away. Sand will be procured via tender from the Pyay–Nyaung area, and coal will be transported from the more distant Kyethi region. All raw material sites already hold extraction permits from Mining Enterprise No. (1) under the Ministry of Natural Resources and Environmental Conservation," he said.
Production is expected to launch in the 2026–2027 fiscal year. The resulting pig iron will be supplied to Steel Mill No. 1 in Myingyan to support its smelting and steelmaking operations.
"Currently, we are prioritizing the oxygen workshop with Russian experts, targeting production by February, 2026. Work on the other remaining workshops continues simultaneously. The main Romelt smelting facility will receive Russian funding; once secured, implementation preparations are already in place for completion next year, with production expected in the following fiscal year. Russian experts are providing ongoing support," he added.
Although the project had previously been suspended for various reasons, it resumed after 2021.