|
The Federal
Government of Nigeria has reiterated its commitment
to resuscitate the Steel industry to be among the
top 20 industrialised nations in the world by year
2020.
The Minister of
Mines and Steel Development, Arc. Musa Mohammed Sada
dropped the hint during a familiarisation tour to
the Ajaokuta Steel Company Limited and the National
Iron Ore Mining Cpmpany, Itakpe in Kogi State
The delegation was led
by the Minister of Mines and Steel Development, Arc. Musa
Mohammed Sada.
In the words of
the Minister : "There is no alternative to
resuscitating and developing Ajaokuta Steel Company
Limited and the National Iron Ore Mining Company,
Itakpe if we are serious about industrialisation of
Nigeria. What we have seen here is an investment
that has to be harnessed. It is one of the
springboards to realise our dream of vision 20:2020."
Arc. Sada disclosed
that the Ministry of Mines and Steel Development had
already received the Technical Audit Report on the
two companies and scrutinising it for implementation.
The Minister also
disclosed that the Ministry had received the business
plan of the Interim Management Committee of the two
companies for reoperationalising them.
The Minister
explained that having received the business plan the
seed fund of #650 million will be released to the
Interim Management Committee for reoperationalising
the Light section mill, the Wire rod mill, the
Engineering workshops, the Thermal Power Plant at
the Steel Plant and the Bergeaud Plant at the
National Iron Ore Mining Company, Itajpe.
He said that with
the seed fund, the two companies would be able to
generate revenue for self sustenance.
Arc Sada disclosed
that there are three phases in the resuscitating
plan which include: immediate, medium and long term.
He explained that
the immediate phase is reoperationalisation, the
second phase is completion of the plants and the
third phase is privatisation which is the prevailing
practice in the Steel industry all over the world.
The Minister
explained that previous concessioning, other forms
of disposals and handing overs in the Steel sector
were being looked into to avoid the mistakes of
the past to move forward in the Steel sector.
Sada said what
government wants in the two companies is continuity.
In the words of
the Minister: "If the two companies are generating
revenue and operating at a high profitable level,
everybody would want to come here. So we want a
situation where people will be scrambling to come
here without invitation by government to take part
in activities here."
The Minister
disclosed that Federal Government had reached
agreement with the labour unions of the two
companies on the payment of outstanding salaries and
allowances owed staffers of the two entities.
Arc. Sada advised
the Interim Management Committee of the two
companies to see him on how they could address
some challenges of gas, electricity, customs duties,
transportation with the relevant government agencies.
While welcoming the
Honourable Minister and his entourage, the Chairman
of the Interim Management Committee of the two
companies, Engineer Philip Umunnnakwe said that the
Ajaokuta Steel Company Limited which started in 1979
had not been completed.
Engineer Umunnakwe
said that the integrated steel plant was to produce
1.3 million tones of steel annually in the first
phase and another 1.3 million tones of flat steel
annually in the second phase. He said that the
third and final phase of the plant was to attain 5.2
million tones of steel per year.
The Chairman also
disclosed that the National Iron Ore Mining Company,
Itakpe was designed to meet the entire Iron Ore
requirement of the Ajaokuta Steel Plant and 40% of
Delta Steel Company Limited Iron Ore needs.
Engr. Umunnakwe
disclosed that the Interim Management Committee
reactivated and re-commissioned the Thermal Power
Plant and generated electricity to PHCN at a
capacity of up to 18mw.
The Chairman said
that the Committee had developed a business plan
for the reactivation and reoperationalisation of some
units in the two companies.
He said the
Committee was awaiting the release of the approved
#650 million for the reactivation and
reoperationalisation exercise.
Engr. Umunnnakwe
thanked the Federal Government for its decision to
reoprationalise the two companies and solicited for
the payment of the outstanding salaries and
allowances owed staffers of the two companies.
|
