EXCLUSIVE: Nigeria, Indian firm reach agreement on Ajaokuta Steel Company


Barring any last minute change in plans, an amicable resolution of the ownership crisis surrounding the Ajaokuta Steel Complex might be reached early August when the Nigerian government and Messrs Global Steel Holdings Limited, and Indian firm, are scheduled to sign terms of settlement.

The signing of the terms of settlement will free Ajaokuta Steel Complex from all contractual encumbrances that had left it uncompleted and non-functional for decades, PREMIUM TIMES has learned.

Negotiations for amicable resolution of the ownership crisis of the foremost steel company has dragged on since 2008, leaving the country’s steel and industrial sectors largely paralysed.

Those familiar with the negotiations told PREMIUM TIMES President Muhammadu Buhari had already given approval for the execution of the “modified concession agreement with Global Steel Holdings Limited, following reports of the mediation meetings forwarded to him from the Justice ministry.”


The mediation meetings, reliable sources said, recently held in London, United Kingdom.
The London meetings followed months of negotiations between the Federal Government and Global Steel Holdings, coordinated by an international mediator, Phillip Howell-Richardson.

The Nigerian government’s team to the series of meetings was led by the Minister of Solid Minerals Development, Kayode Fayemi, whose ministry is responsible for the steel sector, our sources said.
The team also comprised top officials of the Ministry of Solid Minerals development and Ministry of Justice.

The Chairman of GSHL, Prammod Mittal, led the consortium’s team to the meetings.
Insiders said part of the agreements reached during the last meeting was that the Ajaokuta Steel Complex reverts to the Nigerian government fully, while its sister company, Nigerian Iron Ore Mining Company (NIOMCO) would be retained by GSHL under existing concession agreement but with Ajaokuta plant gaining priority access to the iron ore from NIOMCO.

President Buhari has repeatedly promised to diversify the Nigerian economy and create jobs through agriculture and extraction of solid minerals.

Mr. Fayemi, who resumed work as Minister of Solid Minerals Development on November 11, 2015, had in many fora restated the Federal Government’s commitment to ensuring that the AjaokutaSteel Complex is revitalised.

The multi-billion dollar Ajaokuta Steel Company is regarded as one steel complex with capacity to help trigger the much-needed industrialisation of the country as well as stimulate growth in the iron and steel sub sector.

Several investors had expressed interest in the completion and running of the plant, including the Russian and Ukranian original builders of the plant; a Chinese consortium and many indigenous steel companies.

Sources at the Ministry of Solid Minerals Development said once all encumbrances have been removed, government would conduct a transparent bid exercise that would be determined purely by technical competence and financial capacity.

Global Steel could not be reached for comments Friday, but the Ministry of Solid Minerals Development confirmed serious negotiation was apace.

Olayinka Oyebode, the chief press secretary to Minister Fayemi said he was aware of the ongoing negotiation, but that he had no mandate from to divulge its details.

The mediator, Mr. Howell-Richardson, was not available when PREMIUM TIMES called his office. His staff, Nicky Doble, said only the mediator could discuss the matter.

Mr. Howell-Richardson’s cellphone failed to connect the multiple times our reporter called.


http://www.premiumtimesng.com/news/headlines/206565-exclusive-nigeria-indian-firm-reach-agreement-ajaokuta-steel-company.html

Indians?? Who carry them come? How can we hand over such an important company to Indians of all people. Abeg, make them hand am over back to us.

agabusta:
Indians?? Who carry them come? How can we hand over such an important company to Indians of all people. Abeg, make them hand am over back to us.

Thank GOd we are free from PDP... It will take us years to recover from what they did to us

SCAM!

APC turn too chop

rolchi:
SCAM!

Which one be scam now? Some of you will not even read the news before running your mouth.

agabusta:


Which one be scam now? Some of you will not even read the news before running your mouth.

of course its scam. like


currency swap with China
school feeding
Ogoni clean up
corruption fight. abi extortion racketeering
budget padding
dasuki trillions
Boko Haram elimination

agabusta:
EXCLUSIVE: Nigeria, Indian firm reach agreement on Ajaokuta Steel Company


Barring any last minute change in plans, an amicable resolution of the ownership crisis surrounding the Ajaokuta Steel Complex might be reached early August when the Nigerian government and Messrs Global Steel Holdings Limited, and Indian firm, are scheduled to sign terms of settlement.

The signing of the terms of settlement will free Ajaokuta Steel Complex from all contractual encumbrances that had left it uncompleted and non-functional for decades, PREMIUM TIMES has learned.

Negotiations for amicable resolution of the ownership crisis of the foremost steel company has dragged on since 2008, leaving the country’s steel and industrial sectors largely paralysed.

Those familiar with the negotiations told PREMIUM TIMES President Muhammadu Buhari had already given approval for the execution of the “modified concession agreement with Global Steel Holdings Limited, following reports of the mediation meetings forwarded to him from the Justice ministry.”


The mediation meetings, reliable sources said, recently held in London, United Kingdom.
The London meetings followed months of negotiations between the Federal Government and Global Steel Holdings, coordinated by an international mediator, Phillip Howell-Richardson.

The Nigerian government’s team to the series of meetings was led by the Minister of Solid Minerals Development, Kayode Fayemi, whose ministry is responsible for the steel sector, our sources said.
The team also comprised top officials of the Ministry of Solid Minerals development and Ministry of Justice.

The Chairman of GSHL, Prammod Mittal, led the consortium’s team to the meetings.
Insiders said part of the agreements reached during the last meeting was that the Ajaokuta Steel Complex reverts to the Nigerian government fully, while its sister company, Nigerian Iron Ore Mining Company (NIOMCO) would be retained by GSHL under existing concession agreement but with Ajaokuta plant gaining priority access to the iron ore from NIOMCO.

President Buhari has repeatedly promised to diversify the Nigerian economy and create jobs through agriculture and extraction of solid minerals.

Mr. Fayemi, who resumed work as Minister of Solid Minerals Development on November 11, 2015, had in many fora restated the Federal Government’s commitment to ensuring that the AjaokutaSteel Complex is revitalised.

The multi-billion dollar Ajaokuta Steel Company is regarded as one steel complex with capacity to help trigger the much-needed industrialisation of the country as well as stimulate growth in the iron and steel sub sector.

Several investors had expressed interest in the completion and running of the plant, including the Russian and Ukranian original builders of the plant; a Chinese consortium and many indigenous steel companies.

Sources at the Ministry of Solid Minerals Development said once all encumbrances have been removed, government would conduct a transparent bid exercise that would be determined purely by technical competence and financial capacity.

Global Steel could not be reached for comments Friday, but the Ministry of Solid Minerals Development confirmed serious negotiation was apace.

Olayinka Oyebode, the chief press secretary to Minister Fayemi said he was aware of the ongoing negotiation, but that he had no mandate from to divulge its details.

The mediator, Mr. Howell-Richardson, was not available when PREMIUM TIMES called his office. His staff, Nicky Doble, said only the mediator could discuss the matter.

Mr. Howell-Richardson’s cellphone failed to connect the multiple times our reporter called.


http://www.premiumtimesng.com/news/headlines/206565-exclusive-nigeria-indian-firm-reach-agreement-ajaokuta-steel-company.html

Global steel is a fruad, you guys should go to DSC and see what they did there, they will tear the plant down and ship all the parts back to India, OBJ brought them to buy DSC and that was what they did, this govt should carry due diligence before they sell this company, if not it's going to be story that touch.

[s]this is a terrible News,
grossly disappointed with Fayemi,
the Same Global steel that failed to revive DSC Warri, is hand over this mega complex[/s]

Modified* Great development!!!
read only the headline earlier..my bad.

Why not allow the Russians that built it to work on it since they have declared interests. Any way nice move I hope and pray it works,God will take us there

diegwu01:
this is a terrible News, grossly disappointed with Fayemi, the Same Global steel that failed to revive DSC Warri, is hand over this mega complex

If you read the story again you will see that the "agreement reached" is for the Nigerian Government to take back full control of the Steel Complex. It is also written that once government has taken back full control, a new round of transparent bidding will be done to concession the company to an investor with higher Technical/Financial capability.

diegwu01:
this is a terrible News,
grossly disappointed with Fayemi,
the Same Global steel that failed to revive DSC Warri, is hand over this mega complex

At least read the news before opening your mouth. Chai!

It was obj that actually sold ajaokuta to the rogue indians, pmb wants to take it back.

Sources at the Ministry of Solid Minerals Development said once all encumbrances have been removed, government would conduct a transparent bid exercise that would be determined purely by technical competence and financial capacity.


People don't like reading before commenting.

I have this feeling in my heart that the oem will win the bid and restore that complex. Indians are no good for the job not only cuz they are good at industrial prefelage but for the single fact that the Russians are the ones developing their own steel industry.

diegwu01:
this is a terrible News,
grossly disappointed with Fayemi,
the Same Global steel that failed to revive DSC Warri, is hand over this mega complex

See your life. When they asked you to go to school, you were busy climbing trees looking for ripe mangoes.

pacino26:
Sources at the Ministry of Solid Minerals Development said once all encumbrances have been removed, government would conduct a transparent bid exercise that would be determined purely by technical competence and financial capacity.


People don't like reading before commenting.

I have this feeling in my heart that the oem will win the bid and restore that complex. Indians are no good for the job not only cuz they are good at industrial prefelage but for the single fact that the Russians are the ones developing their own steel industry.

My humble opinion is that the Russians , who built it in the first place, should be brought back to continue where they stopped.

From what I heard, the Indians were cannibalising the plant when they had a stint there.

tosin2013:



At least read the news before opening your mouth. Chai!

It was obj that actually sold ajaokuta to the rogue indians, pmb wants to take it back.

My mistake.

Scam, pls help me asked do Indians how they handled Delta Steel Company?

gare:



Global steel is a fruad, you guys should go to DSC and see what they did there, they will tear the plant down and ship all the parts back to India, OBJ brought them to buy DSC and that was what they did, this govt should carry due diligence before they sell this company, if not it's going to be story that touch.

I wonder the kind of people we have on nairaland nowadays. People who don't think or look at issues properly. Ajaokuta steel had already been concession out to Global steel.they had prevented the development of Ajaokuta with various litigations.the previous govt went into an Un beneficial deal with them all due to greed and corruption.they mortgage Ajaokuta steel you are right we are all witness to what they did to Detal steel .We should be grateful to the step taken by the president and the minister. This is because it is the best step. Otherwise we would be paying out of our nose for contract breech. And trust Indians for taking their pound on you.the govt have done the right thing.

diegwu01:
this is a terrible News,
grossly disappointed with Fayemi,
the Same Global steel that failed to revive DSC Warri, is hand over this mega complex

Read the news again. We are trying to take the company back from them. The company has already been concessioned to them since. Taking it back from them has been entrenched in a myriad of knotty legal issues.

That is the problem of Nigeria, we just go into agreements without proper scrutiny, only to realize later that the agreement was not profitable to the country.

Withdrawal from those agreements usually cost the country a lot financially, time-wise, business goodwill, reputation and cost of legal battles.

And one thing people always fail to detect in these failed endeavors are usually those that sell us out due to selfish vested interests. There are usually sell-outs who cash in on the complexities to selfishly make something for themselves and their families at the expense of the country. Until we follow the Chinese way of dealing with these economic saboteurs, our journey will be long.

Back to the matter, Nigeria is looking at the most cost effective way of taking th company back from the Indians. And from the above, I think the plan is to allow them have the ore processing unit instead of leaving them with empty hands.

We can't just leave them with empty hands, there will be consequences. We had our eyes opened when we earlier got ourselves into the mess.

But I just hope with the ore producing unit firmly in their hands, they won't blackmail the steel plant later in the future by starving them of raw materials.

How I wish Ajaokuta steel and Delta steel can actually be brought to life. We've heard too many back and forth stories over these projects, it becomes difficult to be hopefull about them these days.

9japride:
Scam, pls help me asked do Indians how they handled Delta Steel Company?

Learn to read... when you were sent to school to learn to read, you were busy climbing trees in search of ripe mango

*copied*

government should nationalize the two companies they are strategic to our economy.

WinningSun:
government should nationalize the two companies they are strategic to our economy.

Without recourse to the earlier agreements?

1. That will dent our image in the international business community.

2. The parties will go to court. Naija court will order maintenance of status quo until determination of the substantive issue. The court case will then linger for years until everyone gets weary. And the place definitely will lie idle during the years of legal battle.

That is exactlyctly what is happening now. Everybody is tired and the govt of the day is seeking a out of court settlement.

Ejanla07:

of course its scam. like

currency swap with China school feeding Ogoni clean up corruption fight. abi extortion racketeering budget padding dasuki trillions Boko Haram elimination

Enemy of progress. I rebuke you

diegwu01:
this is a terrible News,
grossly disappointed with Fayemi,
the Same Global steel that failed to revive DSC Warri, is hand over this mega complex

The story is a long one, the concession was done many years back and when the government wanted to back out it led to court case, so what they wanted to do since last year was to settle the case so that Nigeria govt can take over fully, however the other sister company may be left in their hand.
Probably part of the ground for settlement

kuuljay:
Why not allow the Russians that built it to work on it since they have declared interests. Any way nice move I hope and pray it works,God will take us there

They wanted to settle the court case with the company before taking the decision on whether to give it back to the company.

obailala:
How I wish Ajaokuta steel and Delta steel can actually be brought to life. We've heard too many back and forth stories over these projects, it becomes difficult to be hopefull about them these days.

We can't just give up Bro. We need to keep hoping.

agabusta:


Without recourse to the earlier agreements?

1. That will dent our image in the international business community.

2. The parties will go to court. Naija court will order maintenance of status quo until determination of the substantive issue. The court case will then linger for years until everyone gets weary. And the place definitely will lie idle during the years of legal battle.

That is exactlyctly what is happening now. Everybody is tired and the govt of the day is seeking a out of court settlement.

though the present agreement is fair enough. but government should ensure incremental ownership of the ore mining. the report made by a concerned Nigerian on NL last year December point out that the billet installed has been sold and the Russians said the can modernize it to be more efficient at a cost of $2.5bn(@last Dec.).
if agreement are concluded this is the best time to revitalised the company as the price of steel and shipping cost has crashed internationally. thereby reducing cost of bringing in equipment. I also learnt it can generate 20,000 jobs directly.

diegwu01:
this is a terrible News,
grossly disappointed with Fayemi,
the Same Global steel that failed to revive DSC Warri, is hand over this mega complex

Read the post in full

obailala:
Learn to read... when you were sent to school to learn to read, you were busy climbing trees in search of ripe mango

*copied*

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