Lusaka (Platts)--3Jan2012/205 am EST/705 GMT

Zambian Universal Mining and Chemical Industries' steel plant in Kafue was damaged by an explosion at its oxygen tank on December 31, the plant's technical director Julius Kaoma said Sunday.

The plant produces 9,000 mt/month of steel and the company was planning to raise production to 10,000 mt/month, he added.

Investigations are being carried out at the plant, following which a decision will be made on reopening the plant, Kaoma said, adding that damages to the plant were estimated at $845,000.

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Ten workers were also injured during the explosion which occurred at 0029 local time on December 31 (2229 GMT, December 30).

At full production capacity, Universal is able to produce 200,000 mt/year of steel. The company started operations in 2009 with production at 3,000-4,000 mt/month.

Most of the steel produced by the company is exported to South Africa -- which has approved the company's product specifications -- Zimbabwe, Democratic Republic of Congo, Burundi, Malawi and Botswana.

--James Mwambazi, newsdesk@platts.com

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