Nigeria to start steel production

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The African Industries Group says the completion of its iron ore mining and processing plant at Gujeni, in Kagarko Local Government of Kaduna State has signalled the beginning of Nigeria producing iron and steel in needed in the construction sector.

The Group Managing Director of African Industries Group, Alok Gupta, made the remark during a tour by the plant by the Minister of Mines Solid Minerals, Dele Alake and Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite.

Gupta stated that the journey started in 2016 with the community development agreement and land acquisition which has culminated into the establishment of a fully integrated iron ore processing plant with the capacity to produce 6 million tons of steel per annum.

“The plant is Nigeria’s largest non-oil FDI and marks a significant stride in the direction of utilizing its wealth to make real wealth for Nigeria. The Direct Reduced Iron (DRI) produced here will be a direct substitute for ferrous scrap currently used as raw material for producing steel in Nigeria. It will also gradually position Nigeria as a prominent Crude Steel producer globally.”

He added that the company has created 4,000 direct and indirect employment for Nigerians while investing in the development of its host community.

Speaking, the Minister of Solid Minerals Development Dr Dele Alake said the company is providing local value addition to the minerals mined in the country.

“It’s not just going to mine our iron ore and export it away but they are going to process and refine it here. So, I am happy that we have an example to show to the rest of the companies that are in Nigerias’ Minaral sector. This is a company that is worthy of emulation and I commend the GMD for this remarkable achievement.

“Myself and the Minister of Trade and Investment have gone round and seen the massive investment.Infact,it is reputed to be the largest Foreign Direct Investment in the Mineral sector of Nigeria with about 600 million dollars.I want to say categorically that I had to inform the President that I am coming here.He told me to convey his appreciation to you and that he supports you. This is the practical example of it when we say we want to restructure the economy.”Alake said.

Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite said the ministry is working on the industrial revitalisation plan with a full focus on steel.

“The reason we want prioritise steel is due to the realisation that it is the bedrock for infrastructure development that will revive our industries.” Anite said. 

She added that there will be no accelerated growth in the sector without the approval of the Infrastructure Development Fund that will see the construction of roads and rail lines.


Source link: Daily Trust/

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