Document ID: chunk:federal_register_of_legislation:F2024C00846:clause:1_41:p1
Version: federal_register_of_legislation:F2024C00846
Segment Type: clause
Provision Reference: sch 1 cl 41 (pt 1/3)
Character Range: 235521–238215

41  Primary Steel
 (1) Subject to subsections (4) and (5), tonnes of continuously cast carbon steel products and ingots of carbon steel that:
 (a) are produced as part of carrying on the primary steel manufacturing activity at the facility; and
 (b) are of saleable quality.
 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing continuously cast carbon steel products and ingots of carbon steel through the physical and chemical transformation of iron feed material (which may include, but is not solely comprised of, cold ferrous feed) into crude carbon steel products and hot-rolled carbon steel products.
 (3) The activity in subsection (2) is the primary steel manufacturing activity.
Examples:  Smelting iron ore in a blast furnace to make pig iron, and then making carbon steel from the pig iron and added scrap metal using a basic oxygen furnace.
Making direct reduced iron from iron ore using direct reduction, and then making carbon steel from the iron using an electric arc furnace.
Note:  Cold ferrous feed, such as scrap metal, can be used as a co-input in the primary steel manufacturing activity. Steel produced on a production line where cold ferrous feed is the only iron feed material does not meet the definition of the primary steel manufacturing activity, and therefore section 44 is applicable.
 (4) For subsection (1), if the amount of coke oven coke imported into the facility to produce the continuously cast carbon steel products and ingots of carbon steel is equal to or greater than 5% of the total amount of coke oven coke consumed in carrying on the primary steel manufacturing activity, then tonnes of continuously cast carbon steel products and ingots of carbon steel are given by the following equation:
  Tonnes of continuously cast carbon steel products and ingots of carbon steel = Qp + (1 – 0.1 c) Qi
  where:
 Qp is the quantity of continuously cast carbon steel products and ingots of carbon steel that meet the requirements of subsection (1) and are not produced using coke oven coke imported into the facility.
 c is:
  (a) if the facility is using a production process that uses coke oven coke and requires less than 0.4 tonnes of coke oven coke to produce a tonne of continuously cast carbon steel products and ingots of carbon steel for the majority of its steel production—the number of tonnes of coke oven coke required to produce a tonne of continuously cast carbon steel products and ingots of carbon steel for the facility, divided by 0.446; or
 (b) otherwise—1.
 Qi is the quantity of continuously cast carbon steel products and ingots of carbon steel that meet the requirements of subsection (1)