The Minister of Solid Minerals Development, Dr Oladele Alake, has signed a $ 1 billion iron ore steel deal project between Nigeria and China.
The project is a significant breakthrough in the Nigerian government’s efforts to prioritise local value addition in the solid minerals sector. The deal focused on Kogi State was discussed during President Bola Ahmed Tinubu’s recent visit to China in Beijing.
Alake assured the promoters, Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China, of the government’s full cooperation to expedite the project’s completion.
The Minister also emphasised the shift from the pit-to-port policy to local value addition, aiming to create job opportunities for the youth, transfer skills, and improve trade balance. He added that mining license applicants must include plans for processing raw minerals as part of the approval conditions to promote local value addition.
Furthermore, Alake highlighted the one-billion-dollar trade imbalance between Nigeria and China, attributing it to the export of raw minerals. He expressed optimism that exporting finished or semi-finished value-added mineral products to China and other trade partners would improve Nigeria’s trade balance and foreign exchange earnings.
Chief Abel Edijala, the CEO of Chart and Capstone Integrated Limited, praised the Minister for implementing an efficient, transparent, and free-from-red-tape and corruption license application process.
Edijala explained the project’s model, emphasising that the iron ore site would supply the steel manufacturing plant to meet the Nigerian economy’s industrialization needs. Additionally, he requested tax waivers for equipment importation and tax holidays during the initial phase to accommodate macroeconomic fluctuations and meet project targets.
According to the signed Memorandum of Understanding, Sinomach-He will act as the master contractor and leverage the project’s engineering, procurement, installation, commissioning, and training expertise.