*Dr. Oladele Alake, Nigeria鈥檚 Minister for Solid Minerals Development, hails investors for the new $1 billion iron ore-to-steel project planned for Kogi State as a leap forward in the Federal Government鈥檚 campaign to make local value addition the model of development in the solid minerals sector of the economy

Isola Moses | 绿帽献妻

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, has commended investors on the new $1 billion (N1.6 trillion) iron ore-to-steel project planned for Kogi State as breakthrough in the Federal Government鈥檚 campaign to make local value addition the model of development in the solid minerals sector.

Alake stated this while addressing the promoters – Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China-on the sidelines of President Bola Ahmed Tinubu鈥檚 recent official visit to Beijing, in China.

The Minister pledged the cooperation of the Nigerian Government with the promoters to ensure the delivery of the project as fast as possible.

He also disclosed the Federal Government had reversed the pit-to-port policy under which mining companies exported raw minerals to extraction with local value addition which is the best guarantee of jobs for the youths, skills transfer, and better balance of trade between the country and its trading partners.

On new conditions for mining licence approvals

In a further move to promote local value addition, Dr. Alake equally announced that applicants for licences to mine must disclose plans for processing the raw minerals as part of the conditions for approval.

Mr. Kehinde Bamigbetan, Special Adviser to the Minister on Media, stated Dr. Alake said: 鈥淭he trade balance between Nigeria and China is over one billion Dollars in favour of China because the minerals imported from Nigeria are essentially in raw forms.

“Once Nigeria starts to export finished or semi-finished value-added mineral products to China and other trading partners, our balance of trade will be more favourable, and our Foreign Exchange earnings will improve.

“With aggressive local value addition and the revenue from it, the prospects of reducing our debt burden in the nearest future is possible.鈥�

Nigeria has efficient exploration licence application process 鈹�Chief Edijala

Presenting the Memorandum of Understanding (MoU) signed by both companies to the Minister, Chief Abel Edijala, Chief Executive Officer (CEO) of Chart and Capstone Integrated Limited, commended Alake for putting in place efficient licence application process that works without red tape and corruption.

Edijala said: 鈥淲e applied for an exploration licence for our iron ore mining project at the Mining Cadastral Office, and we did not need to see anybody before our application was approved within a reasonable period.

“This shows that the system you have put in place is fair and works for all. I must commend you for this.鈥�

He explained that the model is that the iron ore site will feed the steel manufacturing plant and grow to service the needs of the Nigerian economy for industrialisation.

The company executive further stated that the project would require tax waivers for the importation of equipment and tax holidays during the take-off period to cope with the fluctuations in the macro-economic system and meet targets.

Explaining Sinomach-He鈥檚 readiness to start the project, its vice manager, Hou Encai said the state-owned company was established in 1958 to meet the needs of the Chinese economy, and has over 15,000 staff including 2000 engineers on its payroll.

Encai said the company engages in mining, iron making, steel rolling, steel making, the construction of infrastructure, and handles 80 percent of the steel needs of the Chinese economy.

鈥淚n mining, we have the technology on how to excavate the ores from the earth.

“We can evaluate the iron ore potential of any site and tell you what the feasibility of mineral extraction is on a site.鈥�

He also explained: “We have the equipment needed, including excavators and drilling machines for mining iron ore.

“For transportation of iron ore from site to the factory, my group produces the trucks.鈥�

According to the MoU, Sinomach-He shall be the master contractor and deploy its expertise in the engineering, procurement, installation, commissioning, and training of the project.

Other participants in the meeting were the Executive Secretary-General, Working Committee for Overseas Cooperation of China Association of Small and Medium Entreprises, Prof. He Lixiong, Chairman, Belt and Road Africa Economic Initiative, Mr. Innocent Okonkwo, Sinomach-He Overseas General Manager, Li Ke, and Senior Project Manager, Deng Shiyuan.

Earlier, Ambassador Gbadebo Afolabi, Nigeria鈥檚 Consul-General to China, had confirmed the integrity of Sinomach-He.

The envoy disclosed that a team from the Nigerian Embassy had conducted due diligence on the company and found it suitable for the transaction.

Kindly Share This Story