AIG boss to FG: $600m steel plant ‘ll boost Nigeria’s economy


Managing Director African Industries Group Company Alok Gupta Monday  said the company’s $600 million integrated steel plant will be Nigeria’s biggest non-oil Foreign Direct Investment (FDI).
Besides, the AIG boss also said the new plant would boost the nation’s economy and lead to  mining of 5.4 million tons of iron ore in the country.
He spoke  when Minister of Mines and Steel Development Olamilekan Adegbite visited the project site in Kagarko in Kaduna state.


Gupta stated that about 36 MW power plant would  be constructed from the waste heat recovered from the plant, which he said, would be  partly used for captive consumption.  
 “We expect to commission the Phase I of the project by end December 2020. We will be mining 5.4 million tons of Iron Ore, beneficiate the ore to produce high grade concentrate followed by making into pellets and then finally into Directly Reduced Iron (DRI).


“The DRI will be used to make steel billets and will avoid our need to import the same. We are also building a 36 MW Power Plant from the waste heat recovered in the process, which will be partly used for captive consumption.  
“Let me also highlight the key benefits of the project at this stage: About $600 million (USD) investment will be Nigeria’s biggest non-oil FDI, will serve as a catalyst for development of solid minerals sector by attracting other serious investors following our example in downstream processing.  
“The project will eliminate the need to import steel billets thereby saving scarce foreign exchange. 


“Currently 100% of steel production in Nigeria is from scrap route, which is a diminishing resource. Producing steel from locally available iron ore will lead to sustainable economic development, considering the abundance of iron ore reserves in the country.
“The project will also contribute significantly to the Nigerian GDP by way of royalties and direct & indirect taxes,” he said.
On other benefits of the project, the he AIG boss said:  “With the completion of first phase of project, there will be significant economic and industrial development in the area by means of creation of several allied industries and social infrastructure.
“The surplus power generated will further assist in developing other industries and residences and will help in urbanization of the local area.


“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 self-sustaining 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. 
“This is just the start of our long journey and I would like to thank all the people who trusted in us and supported us so far and we hope that you will keep supporting us in setting up of this Integrated Steel Plant.”


Gupta further said: “We, the African Industries Group are a diversified Manufacturing Group involved in the manufacturing of various products including Steel.
“We started our operations in Nigeria in 1971 employing over 8,000 people in our 18 manufacturing plants. We are the largest producer of steel in Nigeria having the lion share of the market with an annual production capacity of over 1.2m tons of finished Steel Products. 
“Now, let me focus your attention to African Natural Resources and Mines Ltd (ANRML). 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 have 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.”
In his remarks, the minister,  Arc. Adegbite assured that the federal government would  support the investors on their  $600million integrated steel plant.
The minister further said henceforth,  the government would ask investors in the mining sector to develop site communities in order to avoid a repeat of the crisis in the Niger Delta.

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