Metalnewsnet 30 Jun ：

Nigerian Federal Government said that it has received business plan for the re starting of the Ajaokuta Steel Company and the Iron Ore Mining Company from the Interim Management Committee of the two companies.

Mr Musa Mohammed Sada minister of mines and steel development said that the ministry had received the business plan of the Interim Management Committee of the two companies for the reopening of the two entities. He added that having received the business plan, the Seed Fund of NGN 650 million will be released to the Committee to commence work on the re operationalization of the two organizations.

According to a statement signed by Mr Marshal Gundu head of public relations at the ministry, the priority area of the plan is to revive 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.

Mr Sada said that the ministry has already received the Technical Audit Report on the two companies and is scrutinizing it for implementation. He added that "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 industrialization of Nigeria. What we have seen here is an investment that has to be harnessed. It is one of the springboards to realize our dream of vision 20:2020."

He said that the NGN 650 million is to serve as the seed fund, from which the two companies would be able to generate revenue for self sustenance. He explained that the immediate phase is re operationalization, the second phase is completion of the plants while the third phase is privatization, which is the prevailing practice in the steel industry globally.

He explained that previous concessioning; other forms of disposals and handing over in the steel sector were being looked into to avoid the mistakes of the past to move forward in the Steel sector. He added that what government wants in the two companies is continuity, adding that if the two companies are generating revenue and operating at a high profitable level, everybody would want to come here.

He said that Federal Government had reached agreement with the labor unions of the two companies on the payment of outstanding salaries and allowances owed staff of the two entities. He directed the Interim Management Committee of the two companies to meet with him on how they could address some challenges of gas, electricity, customs duties, transportation with the relevant government agencies.

Welcoming the minister and his entourage, Mr Philip Umunnnakwe chairman of the Interim Management Committee of the two companies said that the Ajaokuta Steel Company Limited which started in 1979 had not been completed.

Mr Umunnakwe said that the integrated steel plant was to produce 1.3 million tonnes of steel annually in the first phase and another 1.3 million tonnes 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 tonnes of steel per year.

He also disclosed that the National Iron Ore Mainlining Company was designed to meet the entire Iron Ore requirement of the Ajaokuta Steel Plant and 40% of Delta Steel Company Limited Iron Ore needs. Mr 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 18 MW.

Mr Umunnakwe said that the committee had developed a business plan for the reactivation and re operationalization of some units in the two companies. He added that the committee was awaiting the release of the approved NGN 650 million for the reactivation and re operationalization exercise.

(from allafrica)