Editor
By Fatima Saka
The Federal Government of Nigeria has entered into a Memorandum of Understanding with the promoters, Chart and Capstone Integrated Limited, for a $1 billion (N1.6 Trillion) iron ore to steel project in Kogi State, aiming to prioritize local value addition as the cornerstone of development in the solid minerals sector.
During President Bola Ahmed Tinubu’s recent visit to Beijing, China, the Federal Government engaged with the promoters, Chart and Capstone Integrated Limited of Nigeria, and Sinomach-He of China.
According to the MOU, Sinomach-He will act as the main contractor, utilizing its expertise in engineering, procurement, installation, commissioning, and training for the project.
Dr. Dele Alake, the Minister of Solid Minerals Development, assured the promoters of the Federal Government’s full cooperation to expedite the project’s completion. He emphasized the shift from the previous strategy of exporting raw minerals to embracing local value addition, which promises job creation for the youth, knowledge transfer, and a more favorable trade balance with partner countries.
“To encourage local value addition, applicants seeking mining licenses must now include plans for processing raw minerals as part of the approval process. By transitioning from exporting raw materials to exporting refined or semi-finished mineral products, Nigeria aims to improve its trade balance and boost foreign exchange earnings, potentially reducing its debt burden in the near future,’ Alake emphasized.
Upon presenting the signed Memorandum of Understanding to the Minister, Chief Executive Officer of Chart and Capstone Integrated Limited, Chief Abel Edijala, praised the efficient and transparent license application process implemented by the Ministry. He highlighted the project’s objective of supplying the steel manufacturing plant from the iron ore site to support Nigeria’s industrialization needs.
Chief Edijala also mentioned the necessity of tax waivers for equipment imports and tax holidays during the initial phase to navigate economic fluctuations and meet project milestones.
Sinomach-He’s Vice Manager, Hou Encai, expressed the company’s readiness to commence the project, showcasing their extensive experience in mining, iron making, steel rolling, and infrastructure construction to support the Nigerian economy’s industrial growth.
