UK Government Procures Enough Raw Materials to Sustain British Steel Operations.

The British government announced on Tuesday (April 15) that it has purchased enough raw materials to ensure that the last steel blast furnace in the UK can continue to operate in the “coming weeks.”

The Department for Business, Energy and Industrial Strategy stated that the government has taken on the associated costs to ensure that the raw materials docked at Immingham Port could begin unloading on Tuesday. Additionally, another batch of raw materials from Australia is also en route to the UK.

In a statement, the department said, “Following intensive work over the weekend, the government has secured sufficient coke and iron ore for the blast furnace, with the supply enough to support the furnace’s continued operation.”

Last Saturday (April 12), British Prime Minister Keir Starmer convened Parliament during the Easter holiday to pass emergency legislation aimed at taking over the daily operations of the UK Steel company owned by Jingye Group from China.

The new law grants Business Secretary Jonathan Reynolds full control over the company’s operations, directing the board and employees to ensure the timely payment of about 3,000 workers’ salaries and continuing to procure the necessary raw materials for the blast furnace operation.

In order to shut down two blast furnaces in Scunthorpe, Jingye Group recently canceled fuel orders needed to keep the furnaces running. Once the furnaces are shut down, the molten metal inside will solidify, making the restart process very difficult and costly.

This move will result in the UK losing its last factory capable of refining steel from raw materials, significantly impacting domestic industries such as construction, transportation, and defense.

The British government had proposed a £500 million (approximately $650 million) aid package to assist companies in transitioning to a low-carbon electric furnace steelmaking model and to provide subsidies for raw materials. However, Jingye Group ultimately rejected the model as “unsustainable,” leaving the British government with no choice but to intervene directly.