So far, the UK government has reserved 94 million pounds to cover British Steel Rescue

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The UK government has already reserved almost 100 million pounds to pay the British steel rescue a few weeks after taking control of its two Chinese owner’s explosive furnaces Jingye.

The business secretary, Jonathan Reynolds take control of the British steel.

The company, the last dress dress from scratch in the United Kingdom, employs about 3,500 people in the United Kingdom, including 2,700 in Scunthorpe.

“The amount of work capital planned for the British steel to date is 94 million pounds, which is considerably smaller, of course, that if we had given a large amount of money to Jingye or if we had to deal with the full loss of the whole place and the British steel business,” he told the deputies.

Reynolds said the money spent so far were much less than if the ministers had allowed The “total collapse” of the British steelwho said it would have cost 1 million £. It was also less than the 1.2 million pounds that Jingye had requested in financial support to maintain his operations in operation while changing to more ecological forms of steel manufacture, he said.

Andrew Griffith, Shadow’s business secretary, warned that the rescue could end up costing thousands of millions of pounds in the long term.

“Isn’t it the truth that, sooner or later, will have to come from the budget of your department at the expense of financial support for the automotive sector, for exporters or commercial negotiators working?” The conservative deputy asked the commons on Thursday.

The ministers have repeatedly said that they have a “war chest” of 2.5 million pounds to spend on Green Steel, which could come from the National State Wealth Fund.

Griffith questioned the idea that cash could be from the National Wealth Fund, which, despite being state property, is independent operating.

The Labor Government hopes to find a new buyer for the British steel in the private sector, although analysts are skeptical of the prospects of a quick sale, given the owner Jingye had estimated at £ 700,000 daily.

Ministers intervened with emergency legislation last month to take advantage of plants after Jingye announced plans to close Scunthorpe explosion furnaces and thousands of workers.

The closure would have abandoned the United Kingdom as the only G7 nation without the capacity to make steel from raw materials, although the Scunthorpe plant is based on imports of iron ore and cooking coal to continue to function.

The ministers had been discussing with Jingye Plans to close explosive ovens and replaced them with electric arches that recycled steel instead of making steel from scratch.

A similar agreement was impacted with India Tata Covering its place in Port Talbot in southern Wales, which has led to the closure of two explosive ovens.

Jingye had requested 1.2 million pounds for his proposed 2 million pounds project to change the manufacture of green steel. It moved away when the Government offered only 500 million pounds.

The business was previously controlled by the State in 2019 by then conservative before being sold to Jingye by a nominal sum. Its ten months in temporary nationalization in 2019 cost taxpayers 600 million pounds.

Industry officials and experts are preparing an “investment case” to attract a third -party buyer for British steel, but the business secretary has said that the company’s nationalization is still a “probable option”.