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Ministry, BPE To Revive Moribund Steel Rolling Mills

Source: pointblanknews.com
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The Ministry of Mines and Steel Development on Monday said it was

partnering with the Bureau for Public Enterprises (BPE) to revive the

Delta Steel Company and other steel rolling mills.

The Director, Steel and Non-Ferrous Metals Department in the ministry, Mr.

Also Abdullahi, made this known in a chat with the News Agency of Nigeria

(NAN) in Abuja.
Abdullahi said it was necessary to revamp the companies, including the

steel rolling mills in Jos and Osogbo, to boost steel production and

create jobs.
He said the ministry and BPE were discussing with owners of the mills to

address issues delaying commencement of operations nine years after they

acquired the companies.
He disclosed that the Federal Government sold 80 per cent of its equity in

Delta steel to Global Infrastructure Nigeria Limited, which initially

pledged to bring in foreign investments.
According to him, Global Infrastructure, an Indian company, instead, took

a loan of over N30 billion from some Nigerian banks which it is unable to

repay.
The director said the banks had since “sold the loans to Assets Management

Company of Nigeria (AMCON) and that enabled AMCON to take over Delta steel

company.”
He said the ministry, BPE and AMCON had been discussing with new investors

who had indicated interest to acquire the company.

On Jos Steel Rolling Mill, now Zuma Steel, Abdullahi said it was bought by

a consortium of Nigerian and Ukrainian companies, but had been bogged down

by disagreements and litigation.