Nigeria’s Federal Government Hails $1 Billion Iron Ore to Steel Project as Breakthrough in Value Addition

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The Federal Government has welcomed the planned $1 billion iron ore to steel project in Kogi State as a significant breakthrough in its campaign to promote local value addition in the solid minerals sector.

Minister of Solid Minerals Development, Dr. Oladele Alake, praised the project, saying it aligns with the government’s policy of reversing the “pit to port” approach, where raw minerals are exported without processing.

The project, a joint venture between Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China, aims to establish an iron ore mining site that will feed a steel manufacturing plant, promoting industrialization and job creation. The Minister assured the promoters of the government’s cooperation to ensure the project’s swift delivery.

Dr. Alake emphasized the importance of local value addition, citing the significant trade imbalance between Nigeria and China, which can be addressed by exporting finished or semi-finished mineral products.

He highlighted the government’s new policy requiring mining license applicants to disclose plans for processing raw minerals.

Chief Executive Officer of Chart and Capstone Integrated Limited, Chief Abel Edijala, commended the Minister for streamlining the license application process, making it efficient and corruption-free.

He outlined the project’s model, which will service the Nigerian economy’s industrialization needs.

Sinomach-He’s Vice Manager, Hou Encai, confirmed the company’s readiness to commence the project, highlighting its expertise in mining, iron making, steel rolling, and infrastructure construction.

The company will serve as the master contractor, providing engineering, procurement, installation, commissioning, and training services.

The Memorandum of Understanding (MOU) signing was witnessed by dignitaries, including Nigeria’s Consul-General to China, Ambassador Gbadebo Afolabi, who confirmed Sinomach-He’s integrity following a due diligence check by the embassy.

This project marks a significant milestone in Nigeria’s solid minerals sector, promoting value addition, job creation, and industrialization, with the potential to improve the country’s trade balance and foreign exchange earnings.

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