The Managing Director of African Industries Group Company(AIGC), Mr. Alok Gupta, yesterday said the company’s $600million integrated steel plant would be Nigeria’s biggest non-oil Foreign Direct Investment (FDI).
He said the new plant would boost the nation’s economy and lead to the mining of 5.4 million tons of iron ore in the country.
He also said about 36 MW Power Plant will be constructed from the waste heat recovered from the plant, which will be partly used for captive consumption.
Gupta made the disclosures when the Minister of Mines and Steel Development, Mr. Olamilekan Adegbite , visited the project site in Kagarko , Kaduna State.
He said the firm would inaugurate Phase 1 of the plant by December 2020.
He said: “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 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 per cent 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.” Gupta also highlighted other benefits of the project, including a power plant.
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He added: “With the completion of first phase of the 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.”