The Nigerian Government has signed a sub-lease agreement for the restoration and full operationalisation of the Delta Steel Company now known as Premium Steel and Mines Limited (PSML), Ovwian-Aladja in Delta State.
The agreement was between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML.
According to the statement in Abuja by Salamatu Jibaniya, Head of Press and Public Relations, Federal Ministry of Steel Development, the PSML had committed to investing over 1.3 billion dollars on raw materials.
It noted that the agreement is expected to facilitate the reactivation of the integrated steel plant, strengthen Nigeria’s domestic steel production capacity and reduce dependence on imported steel products.
The statement quoted Nigeria’s Steel Minister, Shuaibu Audi, as saying that the management of PSML had committed to inject over 1.3 billion dollars into the project for raw materials exploration and exploitation.
Audu said that it also covered steel plant rehabilitation and modernisation for sustainable operation to achieve full capacity production of 1 million metric tonnes of liquid steel per annum.
According to the minister, the company is expected to restore the plant to its designed production capacity of 1 million metric tonnes of liquid steel annually.
“It is also expected to commence commercial operations within 18 to 24 months, subject to sustainable iron ore supply,” he said.
Audu said that the agreement was a major step in the Nigerian government’s efforts to reposition Nigeria’s steel assets to drive industrialisation, economic diversification, job creation and sustainable national development.
He said that the successful implementation of the agreement would support the reactivation of NIOMCO and development of the Ajabanoko iron ore deposits.
”The project is expected to create about 5,000 direct and more than 20,000 indirect jobs.
“The project will also support Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.
“Increased production will boost freight movement along the Central Rail Line and encourage greater utilisation of the Delta Steel Company Jetty,” the minister said.
The minister said the project was not merely about restoring an old industrial facility but about rebuilding Nigeria’s capacity to produce steel locally.
“The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life.
“It is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation,” he added..
GIK/APA