Nigeria announces a $1 billion iron ore to steel project in Kogi State as a key move to boost local value addition and minimise raw mineral exports. The project, in collaboration with Chart and Capstone Integrated Limited and China’s Sinomach-He, aims to enhance the trade balance with China and stimulate local job creation and industrialisation.
The Nigerian government, through the Minister of Solid Minerals, Oladele Alake, has announced a significant $1 billion iron ore to steel project in Kogi State, commending it as a breakthrough for local value addition in the minerals sector. This initiative, in partnership with Chart and Capstone Integrated Limited and China’s Sinomach-He, shifts focus from exporting raw minerals to promoting local processing and manufacturing. Alake emphasised at a recent meeting in Beijing that the new policy requires mining companies to submit local processing plans when applying for licenses, which will also improve Nigeria’s trade balance with China, which currently favours Chinese imports. The CEO of Chart and Capstone, Chief Abel Edijala, praised the streamlined licensing process and highlighted the project’s goal of integrating iron ore mining with steel production to bolster Nigeria’s industrialisation. He also requested tax benefits during the project’s initial stages. Meanwhile, Sinomach-He’s Vice Manager, Hou Encai, expressed readiness to start operations, citing their advanced technology and equipment for mining operations. Nigeria’s Consul-General to China corroborated the suitability of Sinomach-He as a partner for this endeavour.
The Kogi State iron ore to steel project is part of Nigeria’s broader strategy to enhance local value addition in its minerals sector. This approach aims to reduce dependency on raw mineral exports, improve job opportunities for local youths, and boost the country’s trade balance. The collaboration with international partners like Sinomach-He intends to leverage technological advancements and expertise in the mining and steel sectors, promoting economic growth and industrialisation in Nigeria.
The $1 billion investment in the Kogi State iron ore to steel project marks a pivotal shift in Nigeria’s mining policy towards local value addition. This project is anticipated to create jobs, enhance Nigeria’s trade balance, and support efforts to reduce the country’s debt burden through increased foreign exchange earnings. The joint venture with reputable partners signals a promising future for Nigeria’s minerals industry.
Original Source: punchng.com