By David Akinadewo-Adekahunsi
The Federal Ministry of Solid Minerals Development has hailed a $1 billion iron ore to steel project planned for Kogi State as a breakthrough in the government’s campaign to promote local value addition in the solid minerals sector.
Solid Minerals Development Minister, Dr. Oladele Alake praised the project, which is a partnership between Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China, during a meeting with the promoters on the sidelines of President Bola Ahmed Tinubu’s visit to China, recently.
He said the project aims to develop an iron ore mine and steel manufacturing plant, creating jobs, transferring skills, and improving Nigeria’s balance of trade.
Alake disclosed that the Federal Government has reversed its “pit to port” policy, now requiring mining companies to disclose plans for processing raw minerals as part of licensing conditions.
During the meeting, the promoters presented a Memorandum of Understanding outlining Sinomach-He’s role as master contractor, deploying its expertise in engineering, procurement, installation, commissioning, and training.
Nigeria’s Consul-General to China, Ambassador Gbadebo Afolabi, confirmed Sinomach-He’s integrity after conducting due diligence.
According to stakeholders, the project is expected to reduce Nigeria’s debt burden and improve foreign exchange earnings through local value addition.
On her part, the Federal Government pledged cooperation to ensure the project’s swift delivery.
