Ajaokuta Plant Needs N99bn, Says Imoke
iSPAT replaces Solgas
From Samuel Famakinwa, Ahamefula Ogbu, Onyebuchi Ezigbo in Abuja and Yinka Kolawole in Lokoja
Power and Steel minister, Senator Liyel Imoke yesterday told the House of Representatives Committee on Steel that N99 billion was needed to overhaul facilities at the Ajaokuta Steel complex. This is just as the federal government has positioned an indian firm, iSPAT to take over from Solgas to manage the firm.
Imoke disclosed that the amount, which was not provided for in the 2004 budget, would, however, be needed for the completion of the rail project, rehabilitation of roads, as well as putting the port at Ajaokuta into usable shape.
The minister, who was in the House to brief the legislators about the new management team that has taken over from Solgas also declared that the government has recalled all sacked staff of the steel plant.
"The infrastructure that will make Ajaokuta viable is not yet there. They are rail line, functional ports, roads, and electricity. Without these facilities, how can we move 1.3 million coking coal to the plant? We need to dredge the channels and open access to sources of raw materials," the minister told the lawmakers.
Meanwhile, the new Ajaokuta management contractors, Global Infrastructures Nigeria Limited, a subsidiary of ISPAT yesterday formally took over of the steel plant, promising to achieve commercial production of steel from the plant in the next six months.
At a press conference jointly addressed by the Minister of Power and Steel, Senator Liyel Imoke and chairman of the management team, Mr. Pramod Mittal in Abuja, the firm said it was prepared to achieve among others, the start-up of power plant, Billet Mill, Sinter plant and heating up of coke ovens in the first six months of commencement of the new contract.
The company also said it would ensure the revival of workshops, utilities and auxiliaries, supplies of Iron Ore, Limestone and Dolomite from mines and match recruitment, training and development of human resources with pace of resuscitation at the steel plant.
"We have a very good rehabilitation plan and design. Our objective is to bring this plant into operation as soon as possible and we have given fixed targets to government in terms of planning and operations and we are going to demand fixed targets from employees of the company. Our target is to complete the steel-making capacity by 2005," Mittal said.
The Chairman further assured that his team would within the next twelve months activate the Blast furnace, Steel Melting and Casting plant as well as Medium structural Mill of the plant, adding that they will attempt to achieve the set targets even at an earlier date.
On how the new team would cope with the enormous challenges of kick-starting the plant, Mittal said they had already started putting resources in place and mobilizing manpower to site having negotiated the contract.
"We intend to use and optimize the utilization of all existing natural resources available in the country, which includes optimizing the operation of the Port in Warri, optimizing the utilization of Iron Ore, Optimizing the Dolomite Mine, Limestone.
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