FG, PSML Sign $1.3bn deal to Revive Delta Steel Coy
The Federal Government has signed a sub-lease agreement to restore and fully operationalise the Delta Steel Company, now known as Premium Steel and Mines Limited (PSML), Ovwian-Aladja, Delta.
The agreement was between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML.
A statement issued in Abuja on Thursday and signed by Salamatu Jibaniya, Head of Press and Public Relations, Federal Ministry of Steel Development, said PSML had committed to investing more than $ 1.3 billion in raw materials.
The agreement is expected to facilitate the reactivation of the integrated steel plant, strengthen Nigeria’s domestic steel production capacity and reduce dependence on imported steel products.
The Minister, Shuaibu Audi said the management of PSML had committed to inject more than 1.3 billion dollars into the project for raw materials exploration and exploitation.”
Audi said it also covered steel plant rehabilitation and modernisation for sustainable operation to achieve full capacity production of One million metric tonnes of liquid steel per annum.
According to the minister, the company is expected to restore the plant to its designed production capacity of one million metric tonnes of liquid steel annually.
“It is also expected to commence commercial operations within 18 to 24 months, subject to sustainable iron ore supply,” he said.
Audu said the agreement was a major step in the Federal Government’s efforts to reposition Nigeria’s steel assets to drive industrialisation, economic diversification, job creation and sustainable national development.
He said the successful implementation of the agreement would support the reactivation of NIOMCO and development of the Ajabanoko iron ore deposits.
”The project is expected to create about 5,000 direct and more than 20,000 indirect jobs” “The project will also support Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.
“Increased production will boost freight movement along the Central Rail Line and encourage greater utilisation of the Delta Steel Company Jetty.”
Audu said the reactivation of Delta Steel Company was in line with President Bola Tinubu’s Renewed Hope Agenda.
The minister said the project was not merely about restoring an old industrial facility but about rebuilding Nigeria’s capacity to produce steel locally.
“The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life.
“It is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation,” he said.
The minister said the Federal Government would continue to work with responsible private-sector investors to unlock the enormous potential of Nigeria’s steel sector.
He said such efforts would require adequate raw materials, infrastructure, policy coordination and an enabling business environment.
Audi noted that reliable access to iron ore and other critical raw materials from NIOMCO, dependable power, logistics and supporting infrastructure would be critical to the success of the project.
The Delta Steel Plant was established in 1982 as an integrated steel plant, with an installed capacity of one million tonnes of liquid steel per annum.
The plant eventually ceased operating as an integrated steel facility, prompting renewed efforts by the Federal Government to attract private-sector investment for its reactivation. #FG, PSML Sign $1.3bn deal to Revive Delta Steel Coy# Naira Gains on Robust FX Liquidity Strength, Weaker US Dollar
