‘$600m steel plant will boost economy’
The Managing Director of African Industries Group Company, Alok Gupta, has said the company’s $600m Integrated Steel Plant will boost the Nigerian economy.
Speaking yesterday when the Minister of Mines and Steel Development, Olamilekan Adegbite, visited the project site in Kagarko, Kaduna State, he said the plant would facilitate mining of 5.4 million tons of iron ore.
Gupta said the phase one of the project would be commissioned by end of next year.
He said the company was also building a 36 megawatts power plant from the waste heat recovered in the process that would be partly used for captive consumption.
The MD said the $600m investment would be Nigeria’s biggest non-oil Foreign Direct Investment and would enhance the development of the solid minerals sector by attracting other investors.
He said the project would end the need to import steel billets and contribute significantly to the Nigerian Gross Domestic Product by way of royalties as well as direct and indirect taxes.
“Our project is not only important for Nigeria or for Nigeria in the African context but for Nigeria in the world context. It complements Nigeria’s desire to be selfsustaining and become an independent steel producer not dependent on imports.
“This integrated steel plant will surely put Nigeria on the world map of crude steel producers of the world.
“Now, let me focus your attention to African Natural Resources and Mines Ltd. Over the last six years, we have completed several milestones including an internationally accepted resource estimate, feasibility studies from various consultants in the world including Canada, UK, South Africa, India and China.
“We’ve also completed environmental and social impact assessment based on both the Nigerian and IFC performance standards. We are mindful of the host community, who stand to benefit substantially from our investment in the development of this region and we have been continuously engaging with them,” Gupta said.
He stated: “Therefore, the power that will be generated here should be extended to the community, if not totally free but at a very subsidized rate. I know that this company has the reputation of doing what is right and the government will be there to support them.”
The Chief of Staff of the Governor of Kaduna, Muhammed Abdullahi, said the state government was discussing further investments in the state with the company.