6 hours ago
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By Owen Akenzua
Federal Government has restated commitment to ensuring that the Premium Steel and Mines Limited formerly known as Delta Steel and Mines Company, Ovwian– Aladja in Delta State is resuscitated for optimum contribution to the national economy irrespective of the ownership structure.
Minister of Steel Development, Prince Abubakar Audu stated this during inspection visit to the facility at the weekend
Prince Audu expressed the assurance that the resuscitation of the Premium Steel and Mines Limited whose promoters have experience in the nation’s economy would contribute immensely to the vision of Mr. President to grow the national Gross Domestic Product to one trillion US dollars.
According to the Minister, the location and technology at Premium Steel Plant makes it a choice Steel sector asset nearest to a deep sea with access to railway network linking ASCL/NIOMCO.
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He stated that the Plant which had become moribund since 2021 has an installed capacity to produce one million tonnes of liquid steel and there are other ancillary units of the Plant.
Prince Audu affirmed the readiness of the Ministry of Steel Development to midwife the process to actualize full commercial operation of the Premium Steel and Mines Limited under the Renewed Hope administration.
”We must make sure that efforts culminate in early completion and operation of the Plant in eighteen months. The enormous Iron Ore resources and other Steel raw materials in Nigeria will be harnessed to support the operation of the Premium Steel Plant. ”
”The operation of the Plant at full capacity will generate over 5,000 direct jobs and 10,000 indirect jobs for the Nigerian economy. ”
The Minister of Steel Development said he had the mandate of Mr. President to intervene and resolve all issues holding the Premium Steel and Mines Limited and other steel assets in other parts of the country down and ensure that the noble vision of founding fathers was realized in the steel industry.
”I want to reassure you of the Federal Government’s commitment to facilitate and support the efforts of the Management of Premium Steel in resuscitating this national legacy asset and will do all in its power to ensure an enabling environment.”
” As we champion the emergence of a virile Steel Industry in Nigeria, we will not neglect our role in ensuring production of quality products while promoting and protecting the local operators in Nigeria. .
”We have already commenced action starting from Ajaokuta Steel Company Limited, National Iron Ore Mining Company, Itakpe, Aluminium Smelter Company of Nigeria, Ikot-Abasi, Delta Steel Company (Now Premium Steel & Mines Limited) to the Inland Rolling Mills at Oshogbo, Katsina and Jos”, stated Audu.
The Minster who emphasized the critical role of steel in industrial development of the nation said steel had remained a strategic industry for ages and an index of progress of a nation , contributing immensely to any industrial revolution.
He stated further, ”For Nigeria to stake its right place in the global order, it must be committed to the growth of its steel industry. Mr. President is aware of this critical role of the Steel sector and has remained resolute in promoting policies to support the industry”
The minister who described as unacceptable a situation where the country imports four billion dollars worth of steel annually, said the present administration had resolved to reverse the trend.
The Chief Executive Officer of the Premium Steel and Mines Limited, Sahil Vasweni hinted the minister about the partnership arrangement between the company and a Fortune 500 Global Steel firm for the resuscitation of the steel facility in two years.
He also revealed some operational issues around raw materials security especially Iron Ore resources and other logistics challenges.
The minister who was accompanied by top management of the ministry was taken round the steel facility and assets by the company’s Vice Chairman Mahesh Vashmi, the Chief Executive Officer, Sahil Vasweni.
Recall that the history of Delta Steel Company, Ovwian– Aladja project dates back to 1977 when the Federal Government of Nigeria entered into contract with a German-Austrian consortium to develop an integrated Steel Plant in Aladja based on Direct Reduction and Electric Arc Furnace Technology.
The project was commissioned in 1982 with the hope to facilitate Nigeria’s transition into a Steel producing country but production activities were halted in 1997 due several issues. With the hope of private capital injection, the company was privatized to Global Infrastructure Holdings Limited in 2005 and eventually the Asset Management Company of Nigeria sold the company to Premium Steel & Mines Limited in 2015.
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