The Federal Government has reaffirmed its commitment to resuscitating the moribund Premium Steel and Mines Limited, formerly known as Delta Steel and Mines Company, in Ovwian-Aladja, Delta State.
Minister of Steel Development, Prince Abubakar Audu, stated this during an inspection visit to the facility.
Audu noted that he had the mandate of the President to intervene and resolve all issues holding the Premium Steel and Mines Limited and other steel assets in other parts of the country down and ensure that the noble vision of founding fathers were realized in the steel industry.
”I want to reassure you of the Federal Government’s commitment to facilitate and support the efforts of the Management of Premium Steel in resuscitating this national legacy asset and will do all in its power to ensure an enabling environment.”
” As we champion the emergence of a virile Steel Industry in Nigeria, we will not neglect our role in ensuring production of quality products while promoting and protecting the local operators in Nigeria. .
”We have already commenced action starting from Ajaokuta Steel Company Limited, National Iron Ore Mining Company, Itakpe, Aluminium Smelter Company of Nigeria, Ikot-Abasi, Delta Steel Company (Now Premium Steel & Mines Limited) to the Inland Rolling Mills at Oshogbo, Katsina and Jos’,” Audu said.
“We must make sure that efforts culminate in early completion and operation of the Plant in 18 months
“The enormous Iron Ore resources and other Steel raw materials in Nigeria will be harnessed to support the operation of the Premium Steel Plant, ” he said.
Audu noted that the operation of the plant at full capacity would generate more than 5,000 direct jobs and 10,000 indirect jobs for the Nigerian economy.
He assured that the resuscitation of the Premium Steel and Mines Limited whose promoters have experience in the nation’s economy would contribute immensely to the vision of President Bola Tinubu to grow the national Gross Domestic Product (GDP) to one trillion U.S. dollars.
According to the Minister, the location and technology at Premium Steel Plant makes it a choice Steel sector asset nearest to a deep sea with access to railway network linking ASCL/NIOMCO.
He noted that the Plant which had become moribund since 2021 has an installed capacity to produce one million tonnes of liquid steel, adding that there were other ancillary units of the Plant.
Audu emphasised the critical role of steel in industrial development and the nation’s progress.
“For Nigeria to stake its right place in the global order, it must be committed to the growth of its steel industry.
“Mr President is aware of this critical role of the Steel sector and has remained resolute in promoting policies to support the industry, ” he said.
Audu also assured the company’s management of the Federal Government’s commitment to facilitating and supporting efforts to resuscitate the national legacy asset.
He also that the Ministry of Steel Development would midwife the process to actualise full commercial operation of the Premium Steel and Mines Limited
Earlier, the Chief Executive Officer of Premium Steel and Mines Limited, Sahil Vasweni, hinted at a partnership arrangement with a Fortune 500 Global Steel firm for the resuscitation of the steel facility in two years.
He also revealed operational issues around raw materials security and logistics challenges.
Recall that the history of Delta Steel Company, Ovwian– Aladja project dates back to 1977 when the Federal Government of Nigeria entered into contract with a German-Austrian consortium to develop an integrated Steel Plant in Aladja based on Direct Reduction and Electric Arc Furnace Technology.
The project was inaugurated in 1982 with the hope to facilitate Nigeria’s transition into a Steel producing country but production activities were halted in 1997 due several issues.
With the hope of private capital injection, the company was privatised to Global Infrastructure Holdings Limited in 2005 and eventually the Asset Management Company of Nigeria sold the company to Premium Steel & Mines Limited in 2015.
