Alake Commends Proposed $1Bn Iron-Ore-To-Steel Project In Solid Minerals Sector

$1 Billion Iron Ore-to-Steel Project in Kogi State Promises Local Value Addition

Abuja, Nigeria – The Minister of Solid Minerals Development, Dele Alake, has expressed his support for a new $1 billion iron ore-to-steel project planned for Kogi state, describing it as a breakthrough in the federal government’s campaign to promote local value addition in the solid minerals sector.

During a meeting with the project’s promoters, Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China, on the sidelines of President Bola Tinubu’s visit to China in Beijing, Alake pledged the cooperation of the federal government to ensure the project’s timely delivery.

The government has shifted its policy from exporting raw minerals to promoting local value addition, which is seen as the best way to create jobs for the youths and achieve a better balance of trade. To support this, the Minister announced that mining license applicants are required to disclose plans for processing raw minerals as part of the approval conditions.

Currently, Nigeria’s trade balance with China is heavily in favor of China, as the minerals exported from Nigeria are primarily in raw forms. Alake believes that exporting finished or semi-finished value-added mineral products will improve Nigeria’s trade balance, foreign exchange earnings, and help reduce the country’s debt burden in the near future.

Chart and Capstone Integrated Limited, the local partner, commended the Minister for creating an efficient license application process that is free from corruption. They expressed their commitment to establishing an iron ore site that will feed the steel manufacturing plant, supporting industrialization and the growth of the Nigerian economy.

Sinomach-He, the Chinese partner, assured their readiness to start the project. They highlighted their expertise in mining, iron making, steel rolling, steel making, infrastructure construction, and their ability to evaluate the potential of an iron ore site, provide necessary equipment, and handle transportation of iron ore. Sinomach-He will serve as the master contractor and oversee the engineering, procurement, installation, commissioning, and training of the project.

Other participants at the meeting included Prof. He Lixiong, Executive Secretary General of the Working Committee for Overseas Co-operation of China Association of Small and Medium Enterprises; Mr. Innocent Okonkwo, Chairman of Belt and Road Africa Economic Initiative; Li Ke, Sinomach-He overseas General Manager; and Deng Shiyuan, Senior Project Manager.

Nigeria’s Consul-General to China, Gbadebo Afolabi, confirmed the integrity of Sinomach-He, stating that due diligence had been conducted on the company and found it suitable for the transaction.