Newsexpress place banner advert Yudala genuine products
Ajaokuta Steel Company needs $1bn for rehabilitation —Association

By News Express on 23/10/2015

Share on facebook Yahoo mail icon Gmail icon

Views: 1,854


Mr. Sanusi Mohammed, Secretary-General, African Iron and Steel Association, said about 1.1 billion dollars would be required to revive the Ajaokuta Steel Company in Kogi.

Mohammed told the News Agency of Nigeria on Thursday in Abuja that the association estimated that the sum would be used for the internal and external rehabilitation of the steel company.

He said the fund would be used to rehabilitate the steel production plant, complete the remaining blast furnace, raw materials sites and construction of railway and access roads for easy movement of steels.

According to him, if the fund is released, Ajaokuta rehabilitation can be completed within three years, including the external infrastructure.

Mohammed, however, said that if 300 million dollars could be released from the amount required, it could be used to rehabilitate part of the company for mini production to commence.

He said 43 smaller companies with different areas of specialisation were located in Ajaokuta, adding that they could only operate if the steel company was revived.

“If government can invest 300 million dollars for a start on Ajaokuta steel company, at least 25 out the 43 companies will commence operations on materials for producing cars.

“Some will be producing railway steels, flat sheet, bitumen among others; the funds that will be generated through these 25 companies could be used to complete Ajaokuta steel companies.”

The secretary-general said the Ajaokuta company had 78 per cent required materials or deposits within 150 kilometres radius from the plant.

Mohammed said over the years, all proposals to government for the development of the deposits and their modes of transportation, especially for limestone, fireclay and dolomite had not yielded the desired result.

According to him, other smaller steel companies in Nigeria will not require much fund for their rehabilitation, compared to Ajaokuta; Delta Steel Company may require 100 million dollars for its rehabilitation.

He recalled that the challenges facing Nigerian steel companies could be traced to lack of political will and mismanagement by the past administrations.

Mohammed said the Ajaokuta steel company was first concessioned under the former President Olusegun Obasanjo's regime to Messrs SOLGAS of the United States of America but could not positively turn the plant around.

He explained that another agreement was entered with an India company called Global Infrastructure Holding Limited (GIHL) to run two of the rolling mills at Ajaokuta until it was completely grounded.

He said there were allegations that GIHL removed some machinery and equipment in Ajaokuta which they bought from the government to Delta Steel Company.

“The company removed the accumulated 94,000 tonnes of scrap at Ajaokuta to Delta steel company for its use and exported the finished products to other countries.”

He said the Delta steel company, built with 1.5 billion dollars, was sold at 30 million dollars to GIHL, far less than what was spent for its completion.

Mohammed said the Delta steel was extensively run down with accumulated loans from local financial institutions and were not able to meet the repayment obligations.

He also said the Inland Rolling Mills at Jos, Oshogbo and Katsina, were liquidated to private companies, with exception of Katsina steel rolling company, but had failed to operate the plants. (NAN)

•Photo shows Ajaokuta Steel Company Complex.

Source News Express

Posted 22/10/2015 10:28:33 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Ex-NEMA DG Sani Sidi gives account of stewardship...

Ogboru: God has vindicated us —Uduaghan •Delta leaders...

Drug barons set rules in Ibadan ‘evil forest’...

Group seeks EFCC’s investigation into Jonathan, Ayeni and...

Kelechi Iheanacho, Asisat Oshoala, others win 2016 Glo-CAF...

Army ends up Operation Python Dance in South-East...

Q3 2015: UBA records 44 per cent growth...

We must fight to save the lives of...

British Trade Mission pledges to assist develop Niger...

Bayelsa’s life-and-death election, By Olusegun Adeniyi

Now that Obiano has become APGA BOT Chairman…...

Senator seeks life insurance for NYSC members

 

Latest News FG releases Unity School Common Entrance Examination results Cloudy weather to persist today with chances of rain, thunderstorms Police hunt for killers of KAI official APC commends the Senate on PIB passage Nigeria, China work on prisoners’ transfer agreement NEMA moves 270 Nigerian returnees from Cameroon PIGB: Senate approves unbundling NNPC Obasanjo, Osinbajo speak on the lessons of Biafra 2 soldiers arrested for disrupting sitting of Edo Mobile Court NYSC mobilises 2,356 corps members to Delta Kogi demolishes 18 houses used by criminals Ekweremadu canvasses total removal of age requirement for political offices

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (246,413 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (222,906 views) Shameless Genevieve Nnaji exposes breasts in public (184,704 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (165,333 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (158,331 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (138,343 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (120,820 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (118,185 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (106,196 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (102,596 views) Lagos plane crash: Journalist releases victims’ names (101,274 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (95,507 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (27) Business (2,562) Business Verdict (16) Columnists (683) Complaints & Requests (89) Enterprise & Opportunities (153) Entertainment (322) Features (444) Global Business Monitor (151) International (1,378) Interviews (122) Live Commentary (28) Love Matters (54) News (24,710) Opinion (719) Pidgin (8) Politics (3,700) Religion (533) Sports (1,265) Stock Watch (18) AMA & Al Jazeera Global Update

 

Words on marble

 

UBA Wise Savers Promo

 

Machester United vs Ajax

 

APO Newsbreak logo

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!