SAN FRANCISCO, October 15, (THEWILL) – The Minister of Mines and Steel Development, Olamilekan Adegbite said a 60-man team from Russia will soon arrive in Nigeria to start the Technical Audit of Ajaokuta Steel.
Adegbite said that Russian government had nominated “TYAZHPROMEXPORT (TPE), a Russian company and original builder of Ajaokuta steel” to conduct a technical audit of the steel company to ascertain the level of work to be completed.
“The original builders of Ajaokuta steel TPE are coming with the 60-man team to Nigeria to commence an audit report of the company. I am in contact with them; we are making arrangements for their coming in line with COVID-19 protocol established in Nigeria. They will go through Nigerian protocol on COVID-19 when they arrive”, he said.
The accord to revive Ajaokuta steel company was reached during a meeting between President Buhari and President Vladimir Putin in Russia in 2019.
The foundation laying of Ajaokuta steel company was conducted in 1980 by late President Shehu Shagari and within four years, the company recorded 84% completion.
The steel company, located on 24,000 hectares of sprawling green-field landmass was built on 800 hectares of land over three decades ago. The company which achieved 98% completion since 1994, has not produced a single steel till date.
On improving the sector, the minister said that the ministry had commenced the process of reviewing the mining law. “The law that controls mining is 2007 but we are in the process of reviewing it”, he added.
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He said that some physical incentives for attracting miners to invest in Nigeria include import duty waiver for all mining equipment. Others are tax holidays for foreign miners, three years with a possible extension to five years and low royalty from 3% to 5% compared to some countries that charge 20 per cent royalty and among others.
“These are parts of incentive put in place to attract foreign mining investors; these same incentives are also applicable to local miners,’’ the minister said.
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