Posted on 20 Sep 2024
The Nigerian government has signed a memorandum of understanding with Chinese companies China Civil Engineering Construction Corporation (CCECC) and Sinomach-He to establish an iron ore to steel plant in Kogi State, Kallanish notes.
The agreement was signed on the sidelines of the Forum on China-Africa Cooperation (FOCAC) attended by Nigeria President Bola Ahmed Tinubu. This marks a significant step in Nigeria’s drive towards industrialisation, according to presidential special advisor on information and strategy Bayo Onanuga's post on X. Under the agreement, Sinomach-He will act as the master contractor and deploy its expertise in the project engineering, procurement, installation, commissioning and training.
Solid minerals development minister Dele Alake has pledged full cooperation from the federal government, with the promoters to ensure the successful and timely delivery of the project.
He says the government has reversed the policy of exporting raw minerals to ensure local value addition, which is crucial for creating jobs for youth, transferring skills, and improving trade balance with other countries. As part of the new conditions for approval, applicants for mining licences must now include plans for processing the raw minerals. Alake highlights the trade balance between Nigeria and China heavily favours China by over $1 billion due to Nigeria's export of raw minerals.
"Once Nigeria starts to export finished or semi-finished value-added mineral products to China and other trading partners, our balance of trade will be more favourable, and our foreign exchange earnings will improve. With aggressive local value addition and the revenue from it, the prospects of reducing our debt burden in the nearest future is possible,” he adds.
Explaining Sinomach-He’s readiness to start the project, its vice manager, Hou Encai, notes the state-owned company was established in 1958 to meet the needs of the Chinese economy and has over 15,000 staff including 2,000 engineers on its payroll. It has the technology to excavate ores from the earth and can evaluate the iron ore potential of any site, he adds.
Source:Kallanish
