Minister of Solid Minerals and Development, Dr. Oladele Alake, has hailed the $1 billion iron ore to steel project planned for Kogi State as a significant milestone in the Federal Government’s drive to prioritize local value addition in the solid minerals sector.
This was revealed in a statement signed by the Minister’s Special Adviser, Kehinde Bamigbetan, in Abuja. Dr. Alake made the remarks during discussions with the project promoters—Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China—on the sidelines of President Bola Ahmed Tinubu’s visit to China.
The statement affirmed the Federal Government’s full cooperation with the project promoters to expedite the delivery of the initiative, aimed at transforming Nigeria’s mining industry. It also highlighted the government’s decision to abandon the “pit to port” model, where raw minerals were exported, in favor of local value addition, which will create jobs, transfer skills, and improve Nigeria’s trade balance with its partners.
Dr. Alake stressed that new mining license applicants must now include plans for processing raw minerals as part of the approval process, emphasizing the need for value-added exports to boost Nigeria’s economy. “The trade balance between Nigeria and China currently favors China by over one billion dollars because the minerals exported from Nigeria are mostly raw,” he said. “Once we start exporting finished or semi-finished value-added mineral products, our trade balance will improve, and our foreign exchange earnings will rise.”
He further noted that by focusing on local value addition, Nigeria could reduce its debt burden in the near future through increased revenue.
The statement also highlighted the Memorandum of Understanding (MoU) between Chart and Capstone Integrated Limited and Sinomach-He. Chief Abel Edijala, CEO of Chart and Capstone, praised the government’s transparent licensing process, saying, “We applied for an exploration license, and it was approved without red tape or corruption. The system you’ve put in place is fair and efficient.”
Edijala explained that the iron ore mined in Kogi State would feed directly into a steel manufacturing plant, contributing to Nigeria’s industrialization. He also requested tax waivers for importing equipment and tax holidays to ensure the project’s financial viability amid economic fluctuations.
Hou Encai, Vice Manager of Sinomach-He, expressed the company’s readiness to commence work, noting their expertise in mining, iron and steel production, and infrastructure development. “We have the technology, equipment, and logistics to handle the mining and transport of iron ore,” Encai stated.
According to the statement, Sinomach-He will serve as the master contractor, providing engineering, procurement, installation, commissioning, and training for the project.
Nigeria’s Consul-General to China, Ambassador Gbadebo Afolabi, confirmed that due diligence had been conducted on Sinomach-He, confirming its credibility for the transaction.
