[size=15pt]Can Ajaokuta Steel Company Be Revived?[/size]

BY USMAN A. BELLO, 23 FEBRUARY 2013

http://allafrica.com/stories/201302250974.html?viewall=1

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Ajaokuta Steel Company Limited (ASCL) was conceived to be the driving force of the nation's quest for technological advancement. Works on Ajaokuta Steel Company commenced under the administration of Alhaji Shehu Shagari in 1979 and by the time of its commissioning in 1983, the project had achieved about 95 percent completion rate.

However, since its commissioning in 1983, it has been embroiled in controversy. Part of the criticism against the project is that its machines are obsolete in addition to having an outdated blast furnace model of steel production plant.

However, as at 1983 when it was commissioned, the following rolling mills of the steel plant were in operation: Light, Billets, Wire rod, medium section and structural mills.

It was assumed then that profits generated would provide the needed funds for the completion of the remaining five percent of the blast furnace.

Unfortunately, after President Shagari's removal from office in 1983, the steel plant was abandoned, while most of its engineers trained in Russia to work in the plant, left to join other companies, while some retired.

The four mills in Ajaokuta Steel Company between 1985- 1987 started optimal production, unfortunately international politics played a devastating blow to the dream of steel development in the country.

Former President Olusegun Obasanjo during his administration also tried to revitalize the steel plant by concessioning it to Global System Steel Holdings Limited (GSHL) in 2005, despite criticisms from steel workers and labour leaders.

The Indian firm was allegedly accused of going against the concessional agreement, which led to a faceoff between the firm and the company's workers. The agreement was terminated in 2008 by President Umaru Musa Yar'Adua , who set up an Interim management Committee (IMC) to oversee it.

Weekly Trust learnt from the Ajaokuta Steel branch chairman of the Iron and Steel Senior Staff Association of Nigeria (ISSSAN), Comrade Abdulkareem Jimoh, that the concessionaires were just toying with the future of Nigeria, alleging that instead of completing the primary plant, GIHL was trading in iron ore and making billions of naira without showing commitments to revitalizing the company.

Weekly Trust also learnt that the steel plant which gulped about $5 billion has the capacity of producing 1.3 million metric tonnes of liquid steel annually.

However, at the end of 2012, President Goodluck Jonathan appointed Engr. Isah Joseph Onobere as the sole administrator of Ajaokuta Steel Company. This made the new administrator the first pioneer staff of the company to occupy such position.

Shortly after this appointment, the controversy over the plant being obsolete resurfaced in the media, although the federal government, through the Ministry of Mines and Steel, said the steel plant would not be closed down, but people are skeptical that the government may still be acting a script of the IMF and World Bank.

Engr. Isah, at a press briefing recently, debunked the insinuations that the steel company's plant was obsolete. He said the plant's facilities and equipment are in good conditions generally, adding that passion and nationalism have been the propelling force behind the workers, who have guarded the equipment against vandals in disguise.

"The technical audit report by the Ukrainians recently states that the situation of the steel plant's equipment and facility are satisfactory. Mechanically, the Ajaokuta plant's equipment and facilities are generally in good condition," he stated.

According to him, the blast furnace model which Ajaokuta steel plant has is the best in the world.

"In 2010, the world statistical year book put the total crude steel rates produced globally at 1.4 billion tones, of which 74 percent of it was through blast furnace. This is the technology adopted in Ajaokuta steel plant, then how can a technology that produces such percentage of world steel be considered as obsolete," he queried.

He said if vision 20-20-20 is to be realized President Goodluck Jonathan should adopt the stand taken by the Egyptian government when they were confronted with a similar report by the IMF and World Bank, which stated thus:"profitability is not only measured in terms of the accountants' balance sheets. Multiplier effects, social security and economic potentials of an enterprise are greater indices in measuring profitability."

He said the steel plant, if completed, has the capacity of producing 1.3 million metric tonnes of liquid steel as well as net provider of employment.

The sole administrator told journalists that the management wants to put the completed four rolling mills of the plant in use to prove that it is not obsolete.

According to him, the company has entered into a Public- Private- Partnership agreement (PPPA) with some local and foreign investors to put the four dormant rolling mills into operation.

"Reprom, a Ukrainian - Nigerian steel company has reached some understanding of mutual commercial collaboration with the operations of the light session mill. Reprom will provide 10,000 tonnes of billets per month for conversion at the light section mill and Ajaokuta Company stands the chance of generating huge revenue as conversion fee," he said.

He said negotiations are already on with cement companies, refineries and petrochemicals and the National Mathematical Centre to make use of the medium and structural section, which consists of fabrication shop, foundry ,pattern making shop , power equipment repair and rubberizing shops and the metallurgical training Institute .

According to him, when eventually the negotiations with the companies are concluded, thousands of direct and indirect jobs will be created, while the 110MW captive electricity generating plant would also complement the nation's electricity supply.

Also, ZSM/MZV are fully ready to partner with Ajaokuta on how to optimize the wire rod mill even as Caltech limited, a British company would soon move to site.

The sole administrator was not the only one in this school of thought. The Chairman/ CEO of Reprom Nigeria limited, Attah Achimugu, said the steel plant is technically healthy to handle steel production like other plants in the world

Attah, whose company is working out a joint venture agreement with Ajaokuta Steel Company, said they will start with 10, 000 tonnes production capacity and gravitate to more than 400,000 tonnes of finished products as soon as the agreement is concluded.

According to him, the strength of a steel company is the workforce. He assured that the company would re- engage over 12,000 Nigerian engineers that were laid off due to unhealthy government policies against the steel company.

He said what Ajaokuta requires just like any other electronic industry is digitization, adding that it could be completed in less than 10 months.

Attah said all parameters of an integrated steel plant were complete at Ajaokuta steel plant with functional drives.

"What is required in Ajaokuta is adequate funding and maintenance. There is a steel plant in Ukraine that is over 105 years old and still working perfectly with minimal maintenance," he said.

Also, Senator Nurudeen Abatemi- Usman, (PDP, Kogi Central),criticized the DFID report for misleading the federal government.

Senator Nurudeen while reacting to a purported assessment report compiled by the Department of International Development (DFID) said the economic value of Ajaokuta Steel Company was marginal and urged government to completely shut down the steel plant.

In a statement made through his media aide, Michael Jegede, the Senator described the call as not only misleading but a calculated attempt to make Nigeria and other African countries a perpetual dumping ground for their steel products.

He called on President Goodluck Jonathan to disregard the report, which he said was based on falsehood, stressing that the steel plant at Itakpe Iron Ore can generate over two million jobs for teeming youths if properly funded.

He advised the federal government not to listen to the western world but go ahead to resuscitate abandoned steel companies to encourage technological advancements in the country.

Meanwhile, a former deputy general manager administration with Ajaokuta, Nuhu Audu, also disagreed with the IMF advice.

He said the advice was meant to benefit the interest of the western world and not Nigeria's interest.

According to him, for a nation to develop and attain industrialization, steel development is a major catalyst.




Ukrainian investors to inject $2.6bn in Ajaokuta Steel Company

http://nigeriarising.com.ng/sector-report/infrastructure/ukrainian-investors-to-inject-2-6bn-in-ajaokuta-steel-coy/

Ukrainian investors are making plans to inject $2.6 billion into the reactivation of Ajaokuta Steel Company Limited.

Speaking during a courtesy visit to the Minister of Mines and Steel Development, Alhaji Mohammed Sada, in Abuja on Tuesday, Ukranian Ambassador to Nigeria, Serhii Khanenko who was accompanied by the President, Ukrainian National Foreign Economic Corporation, Mr. Yergency Kazik, said with their business partner, Reprom Company Limited, the investors were ready to reactivate Ajaokuta Steel Company Limited to operate optimally.

Expressing optimism that the steel complex would be handed over to the Ukrainian companies to revamp, the envoy invited the minister and his management team to visit Ukraine to assess similar industrial complexes in the Eastern European country.

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The Managing Director, Reprom Company Limited, Nigeria, Mr. Attah Achimugu, said the minister had requested the financial plan to revamp the Ajaokuta steel plant, having adopted the technical plan of the company.

He stated that currently Reprom has $2.65 billion to execute the project and ramp up production capacity to 3.9 metric tonnes of steel per annum.

The ambassador said the Ukrainian team came to explore areas of partnership with the Nigerian government in the development of its solid mineral resources as well as to specifically indicate their interest in the reactivation of the Ajaokuta steel complex.

Towards the sustainable growth of the steel sector, Sada said the Federal Government was ready to remove any bottleneck in the privatisation of steel companies in the country.

Describing the visit as timely and important, Sada said President Goodluck Jonathan had given timelines on all outstanding issues affecting the nation’s steel plants in order to move forward.

According to him, government was working proactively towards ensuring that the interest of various stakeholders is brought on board for the development of Nigeria’s steel industry.

Sada reiterated the present administration’s determination to tackle all critical issues impeding the successful privatisation of the nation’s steel companies.

On the Ajaokuta proposition, the minister said: “We reiterated the need to come up with a clearer business model for the project, including cash flow; we also talked about sources of funds for this because we made it critically clear that government is not likely to invest, but is relying on the existing assets of the place to do business.

“We also talked about issues of technical capability and the type of privatisation arrangement that you would like government to have with the investors, and how they intend to tackle the issue of infrastructure, transportation and raw materials.”

He stated that government was handling the Ajaokuta plant and National Iron Ore Mining Company (NIOMCO) as two integrated plants that must work together for the optimal benefits of the steel industry.

kudos ma brother. Keep it coming. Since our media has become too lazy to report good news and therefore have forefieted their blessing, i pray that you recieve their share as you continue to keep us in good mood. May God bless you

^^ Thanks.

I hope all is not on paper as usual.we wants action not just words

Hopefully, the newly completed Ajaokuta-Aladja-Warri wud aid dis resuscitation process.... Plus,

.

Yes,

But there seem to be chemistry behind its problem we don't understand.

It would reposition Nigeria Economy if it can be brought to life, and reduce unemployment .

Are they really serious or politics as usual?


.

taharqa: Hopefully, the newly completed Ajaokuta-Aladja-Warri wud aid dis resuscitation process.... Plus,

Are you sure that rail line has been completed because I dont think I'v seen any report to that effect recently.

Unfortunately, after President Shagari's removal from office in 1983, the steel plant was abandoned, while most of its engineers trained in Russia to work in the plant, left to join other companies, while some retired.

The four mills in Ajaokuta Steel Company between 1985- 1987 started optimal production, unfortunately international politics played a devastating blow to the dream of steel development in the country.

Can anyone expatiate on the part in bold? What exactly happened please?

Ukrainian investors are making plans to inject $2.6 billion into the reactivation of Ajaokuta Steel Company Limited.

Great news coming out of Naija in a long time, as far as I'm concerned. Like I said in my manifesto piece, this is one of the foundations on which a developed Nigeria has to be built. With a potential capacity to employ 2 million workers directly or indirectly through the numerous feed companies around iron ore mining and steel production, it has always amazed me why government after government allowed the place to rut. The industrial revolution in europe and America was built on the back of iron and steel mining.

I hope they revamp the place and get to full production capacity. Kudos to all involved!

It is interesting to note that the Steel Company was grounded to a halt after Shagari was removed. In otherwords, the so-called "honest man" Buhari (who some criminals in here have been trying so hard to sell to us) was directly responsible for its death.
Lagos Metro, Ajaokuta Steel. Beautiful anti-industrialisation track record you got there, my aboki.

We see these atrocities but keep calm. But no think say we be mumu, my broda - We just dey calm down.

The problem grounding Ajaokuta steel is one nigeria.

Pdp usual style. What I want to hear is 'ajaokuta steel was re-opened today'. Even media houses are tired of reporting these rubbish pdp news where they announce projects with fanfare and it goes into obscurity.

Why do a whole country of 170 million people can't make an ordinary steel company operation-able??

Very unfortunate country.

We are starting by april,reprom ukranian engineers will be around first week in april.if u an engineer u may send ur cv to me: femitimothy2000@gmail.com u ar paying noting pls.

This just to show how Gen. Buhari set Nigeria backward with his illegitimate Coup d'etat and truncation of Democratic process.

Can you see nothing meaningful happened under Buhari 1983 - 1985 until Babangida threw him out?

The same will happen again, if he is allowed to come to avenge his frustration on his perceived enemies while abandoning the doctrine of technological development and State building.

Unfortunately, after President Shagari's removal from office in 1983, the steel plant was abandoned, while most of its engineers trained in Russia to work in the plant, left to join other companies, while some retired.

The four mills in Ajaokuta Steel Company between 1985- 1987 started optimal production, unfortunately international politics played a devastating blow to the dream of steel development in the country.

rotas: We are starting by april,reprom ukranian engineers will be around first week in april.if u an engineer u may send ur cv to me: femitimothy2000@gmail.com u ar paying noting pls.

THIS THING IS SCAM... DO NOT FALL FOR IT. BEWARE! BEWARNED!! DON'T FALL A VICTIM. I wonder why this post is still seeing the light.

Another futuristic road leading to nowhere, let em sell the thing jare.

otokx: Another futuristic road leading to nowhere, let em sell the thing jare.

Don't worry we will build our steel firms by ourselves. We do not need ajeokuta and we definitely do not need any westerners (pigs).

otokx: Another futuristic road leading to nowhere, let em sell the thing jare.

A slap is a manual over ride that restores the human brains to default. I think you need it.

^^LOL

For those who think it is not possible.everything is set to start up ajaokuta.our Ukraine Engineers are around in thier numbers.either u believe or it is scam.u wil read it in paper soon.let's stop negative thinking.

foreign influence to cripple our tech growth had being there all along. first dey say our or has too much sulfur secondly our mills and furnace are obsolete. They know what we can do if empowered. we are not like other African countries dats y they are scared. Mind u our blast furnace has never worked since installation coz wen fired u can only stop such facility only after ten years for maintenance . Finally I have hope dat niomco and ajaoukuta steel company will spring and lead technology in Nigeria.

HNosegbe:

Can anyone expatiate on the part in bold? What exactly happened please?

Read the history of Nigerian military coups and the underpinning international politics behind the assassination of Murtala Mohammed and you have your answer.

Commencement of steel production means access to cheaper and more reliable building materials. This in turn will help power up massive constructions of skyscrapers and bridges, production of military hard-wares and industrial machineries, transport industry and even roads. This was what the international politics was all about; they never wanted Nigeria to progress. It would have been better if we had discovered Iron-ore before crude-oil. Iron-ore would have been the basis of our economy, while crude-oil would just "back-up" our resources. Firstly, I believe giving the first and initial contract to Russia to build the Ajaokuta plant was perhaps a mistake on its own. Business-wise, a country with deep interests in iron production will only try to sabotage your efforts at starting up your own. Nigeria was a learner and political interests were reasonably exploited. I'm sure millions of dollars were stolen from the initial venture by the Shagari administration.

Isn't it clear that Nigeria is blessed? Every part of the country has at least two resources, yet mostly unexplored. I'm waiting for the moment we'll commence the mining of massive bitumen deposits in South-Western Nigeria.

Hmmmmmm! May God help us.

Is there any update on this development? I wonder why the media's searchlight has never beamed these reports to the whole Nigerian. One needs to be wary of these so called foreign countries who mean no well for African countries. What concerns DFID about that company?
I just have a kind of dogged belief in that steel company that once it can operate, Nigeria's problem has been reduced drastically by a great percentage.
Is there any report concerning the Osogbo and Aladja Steel Companies?

Niomco itakpe is the primary unit of steel production embodied with ore extraction and beneficiation ajaoukuta steel is d center as has the capacity of making any part at all for construction and automobile and as well make what we call ingot and billets which alaja and delta steel feed on to complement work of ajaokuta in terms of steel rolling and metal sheet forming. But with Government effort which many are not aware of in relations to technology we are sure to spring back to boost Nigeria technological growth as many materials and metallurgical engineers, technologists and technicians like me are now becoming so much available and ready for this. Do well to have high hopes. Personally I also think it's disaster to give the Indians any of our steel companies to manage but the Chinese or Germans are way better from experience. One good thing is dat if these steel companies and related ones can work I bet u dat Nigeria will make almost anything it needs as long as it's materials or metals. [b]Niomco itakpe is the primary unit of steel production embodied with ore extraction and beneficiation ajaoukuta steel is d center as has the capacity of making any part at all for construction and automobile and as well make what we call ingot and billets which alaja and delta steel feed on to complement work of ajaokuta in terms of steel rolling and metal sheet forming. But with Government effort which many are not aware of in relations to technology we are sure to spring back to boost Nigeria technological growth as many materials and metallurgical engineers, technologists and technicians like me are now becoming so much available and ready for this. Do well to have high hopes. Personally I also think it's disaster to give the Indians any of our steel companies to manage but the Chinese or Germans are way better from experience. One good thing is dat if these steel companies and related ones can work I bet u dat Nigeria will make almost anything it needs as long as it's materials or metals. [/b]Niomco itakpe is the primary unit of steel production embodied with ore extraction and beneficiation ajaoukuta steel is d center as has the capacity of making any part at all for construction and automobile and as well make what we call ingot and billets which alaja and delta steel feed on to complement work of ajaokuta in terms of steel rolling and metal sheet forming. But with Government effort which many are not aware of in relations to technology we are sure to spring back to boost Nigeria technological growth as many materials and metallurgical engineers, technologists and technicians like me are now becoming so much available and ready for this. Do well to have high hopes. Personally I also think it's disaster to give the Indians any of our steel companies to manage but the Chinese or Germans are way better from experience. One good thing is dat if these steel companies and related ones can work I bet u dat Nigeria will make almost anything it needs as long as it's materials or metals.

The gud news is dat d ukrainians are around.120 of them are expected.just take a trip to ajaokuta now.it wl work again.

Reprom co.nig ltd is making history. Ajaokuta steel is back again.d ukranians are on ground now.work is going on now on d thermal plant to generate power.we should expect wire rods n steel bar coming out in weeks to come.