LAGOS MAY 26TH (NEWSRANGERS)-The Federal Government has restated its resolve to facilitate and support the reviving of moribund Premium Steel and Mines Limited, Ovwian-Aladja, Delta State, to run at full capacity in order to provide 5,000 direct and 10,000 indirect jobs, targeted at the economic growth and development.

The company formerly known as Delta Steel and Mines Company would optimally contribute to the national economy when resuscitated, irrespective of the ownership structure, said Abubakar Audu, Minister of Steel Development, who was on an inspection visit to the facility.

Delta Steel Company, Ovwian– Aladja project dates back to 1977 when the Federal Government of Nigeria entered into a 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 inaugurated in 1982 with the hope of facilitating Nigeria’s transition into a steel-producing country, but production activities were halted in 1997 due to several issues. With the hope of private capital injection, the company was privatised 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.”

Audu said the reviving of Premium Thrust Steel Company, whose promoters have experience in the nation’s economy, would contribute immensely to the vision of President Bola Tinubu to grow the national Gross Domestic Product (GDP) to one trillion US dollars.

He noted that the location and technology at Premium Steel Plant make it a choice Steel sector asset nearest to a deep sea with access to a railway network linking ASCL/NIOMCO.

Audu explained that the Plant, which had become moribund since 2021, has an installed capacity to produce one million tonnes of liquid steel, adding that there are other ancillary units of the Plant.

He affirmed the readiness of the Ministry of Steel Development to midwife the process to actualise full commercial operation of the Premium Steel and Mines Limited under the Renewed Hope Agenda of President Bola Tinubu.

‘We must make sure that efforts culminate in early completion and operation of the Plant in 18 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”, Audu stated.

The Minister said that he has the mandate of President Bola Tinubu to intervene and resolve all issues holding the Premium Steel and Mines Limited and other steel assets in other parts of the country and ensure that the noble vision of the founding fathers was realised 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 the 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 Minister, who highlighted the critical role of steel in the 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.

”For Nigeria to stake its rightful 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, he said.

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.

Sahil Vaswen, the Chief Executive Officer of the Premium Steel and Mines Limited, 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 and the Chief Executive Officer, Sahil Vasweni.

BusinessDay

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