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British Steel: Government races to keep Scunthorpe furnaces burning British Steel: Government races to keep Scunthorpe furnaces burning
(about 2 hours later)
Officials are working to deliver essential raw materials to British Steel's Scunthorpe plant, the government has said, as it races to keep its two blast furnaces burning. Efforts are under way to secure essential raw materials for British Steel's Scunthorpe plant as it races to keep its two blast furnaces burning.
An emergency law rushed through Parliament on Saturday gave the government control of the Lincolnshire site to prevent its Chinese owner, Jingye, shutting it down. The government said officials were trying to obtain the vital coking coal and iron ore needed to power the plant - materials ministers have previously accused the plant's Chinese owner Jingye of selling off.
The government said work was under way to obtain the coking coal and iron ore powering the plant - materials it previously said Jingye had been selling off. An emergency law rushed through Parliament on Saturday gave the government control of the Lincolnshire site to prevent Jingye from shutting down its furnaces.
How quickly materials get to the site is important because blast furnaces can sustain permanent damage if their temperature drops too low, while restarting a shut down furnace is also costly and complex. China's foreign ministry has accused the government of "politicising trade cooperation", which it said could discourage Chinese investment in the UK.
Sourcing and transporting the raw materials to the Scunthorpe plant quickly is critical because blast furnaces can sustain permanent damage if their temperature drops too low, while restarting a shut down furnace is also costly and complex.
Dozens of businesses including steel producers Tata and Rainham Steel have offered help and to supply their raw materials, the government has said.Dozens of businesses including steel producers Tata and Rainham Steel have offered help and to supply their raw materials, the government has said.
"My team are already hard at work on the ground to keep jobs going and furnaces burning," Business Secretary Jonathan Reynolds said in a statement."My team are already hard at work on the ground to keep jobs going and furnaces burning," Business Secretary Jonathan Reynolds said in a statement.
He added: "When I said steelmaking has a future in the UK, I meant it.He added: "When I said steelmaking has a future in the UK, I meant it.
"That's why we've passed these new powers to save British Steel at Scunthorpe and that's why my team are already hard at work on the ground to keep jobs going and furnaces burning.""That's why we've passed these new powers to save British Steel at Scunthorpe and that's why my team are already hard at work on the ground to keep jobs going and furnaces burning."
Civil servants and British Steel officials are trying to secure one such shipment of materials which is sat 30 miles east of Scunthorpe at Immingham Docks. Civil servants and British Steel officials are trying to secure one such shipment of materials which is being stored 30 miles east of Scunthorpe at Immingham Docks.
It comes after Reynolds refused to confirm on Sunday whether the government could obtain the materials in time. On Sunday, Reynolds refused to confirm whether the government could obtain the materials in time.
"I'm not going to get into that," he told the BBC's Sunday with Laura Kuenssberg programme, but said the takeover gave the "opportunity" to obtain the materials needed."I'm not going to get into that," he told the BBC's Sunday with Laura Kuenssberg programme, but said the takeover gave the "opportunity" to obtain the materials needed.
Speaking to BBC Radio 4's Today programme on Monday, Treasury minister James Murray said the government was confident it was doing everything possible to secure the necessary supplies.
Murray refused to be drawn further on the plant's future while commercially sensitive talks aimed at obtaining raw materials were continuing.
Unions have expressed confidence that the government would be able to source the materials needed to keep the furnaces operational.Unions have expressed confidence that the government would be able to source the materials needed to keep the furnaces operational.
Roy Rickhuss, general secretary of the Community Union, which represents the majority of steelworkers, said the blast furnaces are "in a far better position" than before the government stepped in.Roy Rickhuss, general secretary of the Community Union, which represents the majority of steelworkers, said the blast furnaces are "in a far better position" than before the government stepped in.
Speaking on BBC Radio 4's Today programme, Mr Rickhuss said he was certain the plant would remain running and that the furnaces are "secure". Speaking on BBC Radio 4's Today programme, Mr Rickhuss said he was certain the plant would remain running and that the furnaces were "secure".
Charlotte Brumpton-Childs, from the GMB Union, told BBC Breakfast that she had spoke to British Steel on Sunday night and had been reassured the raw materials would be secured by the government. Charlotte Brumpton-Childs, from the GMB Union, told BBC Breakfast that she had spoken to British Steel on Sunday night and had been reassured the raw materials would be secured by the government.
The Scunthorpe plant employs 2,700 people and is the last site in the UK that can produce virgin steel.The Scunthorpe plant employs 2,700 people and is the last site in the UK that can produce virgin steel.
Without the plant, the UK would be the only member of the G7 group of leading economies without the ability to make virgin steel - which the government believes is a risk to the country's economic security.Without the plant, the UK would be the only member of the G7 group of leading economies without the ability to make virgin steel - which the government believes is a risk to the country's economic security.
The site produces the majority of rail tracks used by Network Rail, which built up a stockpile ahead of its possible closure.The site produces the majority of rail tracks used by Network Rail, which built up a stockpile ahead of its possible closure.
In a statement, Network Rail said it does not expect there to be "any impact on the continued delivery of reliable rail services for passengers and freight users".In a statement, Network Rail said it does not expect there to be "any impact on the continued delivery of reliable rail services for passengers and freight users".
The virgin steel made there is also critical for the construction industry, in particular building nuclear power plants, like the ongoing Hinkley Point C project in Somerset.The virgin steel made there is also critical for the construction industry, in particular building nuclear power plants, like the ongoing Hinkley Point C project in Somerset.
The government fast-tracked legislation which gave it control of the plant after talks with Jingye to save it appeared to break down.The government fast-tracked legislation which gave it control of the plant after talks with Jingye to save it appeared to break down.
The company said in March it was losing £700,000 a day at the site, which it called "no longer financially sustainable," and began a consultation on its closure.The company said in March it was losing £700,000 a day at the site, which it called "no longer financially sustainable," and began a consultation on its closure.
Reynolds told the BBC it "became clear" during negotiations that Jingye was intent on closing down the blast furnaces no matter the financial support offered.Reynolds told the BBC it "became clear" during negotiations that Jingye was intent on closing down the blast furnaces no matter the financial support offered.
The government said Jingye refused an offer of some £500m and demanded more than twice as much money, with few guarantees it would keep the plant open.The government said Jingye refused an offer of some £500m and demanded more than twice as much money, with few guarantees it would keep the plant open.
"It might not be sabotage, it might be neglect," Reynolds said of the company's actions."It might not be sabotage, it might be neglect," Reynolds said of the company's actions.
On Monday, Murray said Jingye had "clearly behaved irresponsibly", but added that the actions of one firm does not "speak to all companies who are based in China".
There needs to be a "high level of scrutiny" for foreign investment in critical infrastructure, he added.
China's foreign ministry urged the UK government to hold further talks with Jingye. According to AFP news agency, spokesman Lin Jian said: "It is hoped that the British government will... avoid politicising trade cooperation or linking it to security issues, so as not to impact the confidence of Chinese enterprises in going to the UK for normal investment."
The Conservatives have criticised the government for not stepping in sooner to save the plant.The Conservatives have criticised the government for not stepping in sooner to save the plant.
Tory shadow business secretary Andrew Griffith said the party had supported the emergency law because "it's the least worst option on the table".Tory shadow business secretary Andrew Griffith said the party had supported the emergency law because "it's the least worst option on the table".