The Federal Government of Nigeria has signed a $1 billion iron ore steel deal with China, marking a significant step in promoting local value addition in the solid minerals sector.
The agreement, involving Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China, is seen as a breakthrough for Kogi State and aims to bolster industrialization and economic growth.
In a statement by Kehinde Bamigbetan, Special Adviser to the Minister of Solid Minerals Development, Dr. Oladele Alake, the minister pledged the government’s full cooperation to expedite the delivery of the project.
Alake emphasized that the Federal Government has shifted from the pit-to-port policy, which previously allowed the export of raw minerals, to a new policy focused on local value addition, ensuring more job creation, skill transfer, and a more favorable trade balance.
Alake also outlined that companies applying for mining licenses must now include plans for processing raw minerals locally as a condition for approval.
He highlighted that this move will help Nigeria improve its trade balance with China and other partners by exporting value-added mineral products, which would, in turn, boost foreign exchange earnings and help reduce the country’s debt burden.
Chief Abel Edijala, CEO of Chart and Capstone Integrated Limited, commended the streamlined and transparent license application process under Alake’s leadership. He explained that the iron ore site will feed a steel manufacturing plant, serving Nigeria’s industrial needs.
Meanwhile, Hou Encai, Vice Manager of Sinomach-He, expressed readiness to start the project, outlining the company’s capabilities in mining, iron making, and steel rolling.
Sinomach-He, a state-owned enterprise with over 15,000 employees, will act as the master contractor for the project, handling engineering, procurement, installation, commissioning, and training.
The Memorandum of Understanding (MoU) was presented during President Bola Ahmed Tinubu’s recent visit to China, signaling deepened cooperation between both nations in industrial and economic development.
Additionally, Ambassador Gbadebo Afolabi, Nigeria’s Consul-General to China, confirmed the integrity of Sinomach-He following due diligence conducted by the embassy.
Get instant and latest news updates via Our WhatsApp Community or Google News online channel.
