Ajaokuta Steel Plant to be completed in phases - Nigerian minister
2011-07-11 09:29:03 [Print]
Nigeria federal government announced that plans to complete the moribund Ajaokuta Steel plant in phases, beginning with the 1.3 million tonne production line.
Nigeria’s minister of mines and steel development Mr Musa Sada disclosed this in Abuja during a meeting with the directors of the ministry and journalists. He said that government would no longer seek to complete the full plant at once, preferring to do it in phases.
Mr Sada said the plant was designed to produce 1.3 million tonne of steel in the first phase; as well as 2.4 million tonne and 5.2 million tonne in second and third phase respectively.
He explained that the mechanical aspect of the plant would soon be completed, stressing that the plan for supply of raw materials for the plant is been worked on.
He said that "I know that sometime during the year we made efforts to see that at least the raw materials for the production of basic materials for steel making is acquired. We started doing something to make sure that we don't come out and start thinking of importation and funding. At the end of the day it is not an exercise, it is an economic activity."
He told “If we are talking about the actual economic reason for getting employment and poverty alleviation for the people we have to start from the mines. This is why the iron ore mining by Itakpe is very important because that is the starting point. We have to make sure that they are working and that the equipments are there and are producing iron ore.”
Mr Sada stressed that “Some of the major problems of the complex have to do with raw materials, because if you go there, there are certain production lines that require very little to produce, but where are the raw materials? It is because the thinking is somehow staggered, but now let everyone come on board. If we are talking about steel production, mines department has an input to make and they must tell us the condition of the mines.”
He disclosed that a road map for the mines and steel sector is to be developed in the next few weeks assuring that government has put in place a solid foundation for the development of the sector
He added that "We are going to break it down and at every stage there are expectations, the immediate, intermediate and long term. The long term in this instance if you are talking about steel sector is total privatization, not the level of privatization we have in some of our steel entities now where you just sell it to somebody and it is not working. The essence of privatisation is optimization of utilisation and production but if sell to individuals and it is still not working."
Nigeria’s minister of mines and steel development Mr Musa Sada disclosed this in Abuja during a meeting with the directors of the ministry and journalists. He said that government would no longer seek to complete the full plant at once, preferring to do it in phases.
Mr Sada said the plant was designed to produce 1.3 million tonne of steel in the first phase; as well as 2.4 million tonne and 5.2 million tonne in second and third phase respectively.
He explained that the mechanical aspect of the plant would soon be completed, stressing that the plan for supply of raw materials for the plant is been worked on.
He said that "I know that sometime during the year we made efforts to see that at least the raw materials for the production of basic materials for steel making is acquired. We started doing something to make sure that we don't come out and start thinking of importation and funding. At the end of the day it is not an exercise, it is an economic activity."
He told “If we are talking about the actual economic reason for getting employment and poverty alleviation for the people we have to start from the mines. This is why the iron ore mining by Itakpe is very important because that is the starting point. We have to make sure that they are working and that the equipments are there and are producing iron ore.”
Mr Sada stressed that “Some of the major problems of the complex have to do with raw materials, because if you go there, there are certain production lines that require very little to produce, but where are the raw materials? It is because the thinking is somehow staggered, but now let everyone come on board. If we are talking about steel production, mines department has an input to make and they must tell us the condition of the mines.”
He disclosed that a road map for the mines and steel sector is to be developed in the next few weeks assuring that government has put in place a solid foundation for the development of the sector
He added that "We are going to break it down and at every stage there are expectations, the immediate, intermediate and long term. The long term in this instance if you are talking about steel sector is total privatization, not the level of privatization we have in some of our steel entities now where you just sell it to somebody and it is not working. The essence of privatisation is optimization of utilisation and production but if sell to individuals and it is still not working."
