The Minister of Steel Development, Shuiabu Abubakar, says the ministry is exploring a partnership with the Republic of China for the revitalisation of both Ajaokuta Steel Company Limited (ASCL) and National Iron Ore Mining Company (NIOMCO).
Mr Abubakar disclosed this at the opening of the 10th edition of Nigeria’s Mining Week, themed ‘Nigeria Mining: From Progress to Global Relevance`, on Tuesday in Abuja.
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He said that in September 2024, the federal government signed a Memorandum of Understanding with Tyazhmashpromexport (TPE), the original builders of ASCL, based in Russia.
He said the move was to rehabilitate, complete, and operate the plant and NIOMCO Itakpe, both in Kogi State, but the Russia-Ukraine war has hindered progress.
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“Due to constraints as a result of the Russia-Ukraine war, we are now exploring a partnership with the Republic of China for the revitalisation of both ASCL and NIOMCO.
“Mr President will give the final approval based on financial, managerial, and technical competencies.”
He said that the renewed hope agenda under President Bola Tinubu`s government had remained resolute in breaking the nearly five-decade jinx of the steel company`s comatose state.
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According to him, the ministry is in very advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to commence production of input materials for military hardware.
This hardware, he said, includes rifles, vests, helmets, and bullets at the Engineering workshop of the Ajaokuta Steel Complex.
“This understanding is to support the defence sector of the Nigerian economy for improved security,” he said.
He said 12 iron ore deposits across the country were currently at various stages of exploration.
Mr Abubakar said the National Steel Raw Materials Exploration Agency, Kaduna, identified the 12 deposits and was working to generate the needed resource data to drive investments in the sector.
This, he said, was especially on Iron Ore, Cokeable Coal, and Bauxite.
He said local steel production in Nigeria would drive massive local raw materials production, including Iron Ore, Limestone, Dolomite, Refractory Clay, and Coal.
He urged private sector participants at the conference to view investments in the steel raw materials value chain as key to unlocking growth in the sector.
“We are collaborating with critical stakeholders across the federal government, especially our sister Ministry of Solid Minerals Development, in this regard.”
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He said that the federal government’s efforts to reposition the Nigerian Steel Industry for sustainable growth with increased foreign direct investment would only be possible with a sustainable mineral raw materials supply.
According to him, the robust business engagements and policy alignments for the development of strategic minerals like Iron Ore, Fluxes, Coal, and other alloy minerals should see the Nigerian steel industry as a major partner/offtaker.
“The top management of the Ministry of Steel Development, its agencies and industry players are present at this conference and the federal government is ever ready to provide the required enabling environment,” he assured.
(NAN)
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