Business Ministry of Mines& Steel Devt. Partners With BPE to Revive Industry

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LequteMan

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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.

Mr Also Abdullahi, the Director, Steel and Non-Ferrous Metals Department in the ministry, while speaking with reporters made this known in Abuja on Monday.

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 that 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 Ltd., 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 that 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 that the ministry, BPE and AMCON had been discussing with new investors who had indicated interest to acquire the company.

He said that the Federal Government had put necessary measures to stimulate investments in the steel sector, to ensure growth.
 

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