Ajaokuta Steel:FG Apologizes Over Failure To Meet Target As 11 Firms Show Renewed Interest In Plant

The federal government has apologized to Nigerians over its failure to meet their 2022 target date to launch the  country into the global club of iron and steel producers.

Speaking to journalists on the achievement of his ministry on Thursday, in Abuja,  as part the President Mohammadu Buhari Scorecard series, the minister Olamilekan Adegbite, the  Minister of Mining and Steel Development walked back on his earlier promise.

He lamented that the onset of COVID-19 pandemic halted all progress made to attain the objective.

According to him,the Russians were expected to arrive the Country on or before March 2020 in line with the bilateral agreement reached in Sochi, to ascertain  what went wrong ,what needed to be changed or serviced, but regretted that the arrangement was however halted on its track by the onset the pandemic.

He added:”Through out 2020,2021 they could not come and we said we cannot continue to wait,lets go some other route. Now we are not just talking to Russia. Of course the 11 companies I mentioned , three are of Russia origin. People are interested to bring in their own money into Ajaokuta and make sure it works. Because the Plant is still good,if you put in what is required, it will start producing in less than two years.

“What government has done is to employ the transaction adviser, that will guide us in the process.We are working with the Infrastructure Concession Regulatory Commission ( ICRC). Like I said we may not get Ajaokuta to work again (in the life of this administration).

“And maybe this is the right forum to apologize to Nigerians because I promised that it will work in the third quarter of the year. This is not giving excuse. We couldn’t do it. I give an unreserved apology for that…. The process is ongoing, before we leave office,we will concession Ajaokuta in a more equitable terms than what we had previously. We are looking for people who will bring money ” Adegbite assured.

He said government is unrelenting in its effort to put  the company in the right frame ahead of the impending concession,  stating  for instance, that  government has successfully weaned Ajaokuta  of all legal encumbrances arising from the previous concession.

He added that the seven year legal battle started by the former concessionaire, Messers Global, has been resolved amicably, and at little or no cost to government.

Commending the patriotic zeal of the country  legal lead,the minister disclose that the country’s legal team has successfully negotiated the $7billion compensation claim, entered by Messers Global to a mere $496 million.

He disclosed that the federal government will soon invite bid for an equitable concession of the company, pointing out that already eleven companies have indicated interest to bring needed funds to revive the company.

The minister admitted that artisanal mining feeds directly into the banditry system going on across the country,especially in Zamfara State.

He said it was for this reason government took  drastic measures to halt all mining activities in Zamfara State , including the legal ones  all in the effort to curb activities of bandits.

He said the positive steps to operationalize the mining sector and open interest in the nation’s massive gold reserves  has attracted billions of dollars in FDI .

He listed some of the interest to include Segilola Gold Company with an Investment portfolio of $900m, African Natural Resources and Mines limited (Investment Portfolio of $600m); Kian Smith Gold Refinery; Dukia Gold and precious Metals, among others.

The ministry he said has “facilitated smooth agreement and partnership between Dukia Gold and Philoro Global Trading Company in Switzerland to produce world class Gold bars and coins.

“This was to ensure that gold coming out of Nigeria, sourced, refined and traded by Dukia Gold will always meet and surpass the standards, conditions and guidance set by Organisation for Economic Corporation and Development (OECD) and London Bullion Market Association (LBMA)”.

He disclosed that Nigeria has generated over N300 million from local production of barite insisting that no reason would be adduced for any person importing the mineral henceforth.

He said exploratory activities undertaken by the ministrh shows that highly sought after minerals needed for energy transition like nickel, cobalt, chromium, tungsten and litium have been found in high qualities across the country.

Arc. Adegbite disclosed also that about 26 companies have shown interest in the mining of the country’s vast bitumen deposit, assuring that exploration of the mineral will reduce the cost of construction in the country.

In his remarks,Alhaji Lai Mohammed, Minister of Information and Culture lauded the vision of the Buhari administration especially in the area of food security. But for improved local production of rice ,he wondered how the country would have survived the pandemic without a scare.