BEIJING (Sundiata Post) – The Tinubu-led Federal Government has secured $1 billion for the Kogi Iron Ore to Steel project during the Forum on China-Africa Cooperation (FOCAC), in China.
The Minister of Solid Minerals, Dele Alake, disclosed this in a statement on Sunday. He said the federal government’s policy for all minerals in Nigeria to be extracted and processed to finished or semi-finished stage has been a game changer for the country.
Alake added that more jobs would be created for the country’s youths. He noted that the policy would also facilitate skills transfer and improve the country’s trade balance.
The Minister of Solid Minerals explained that over the years, Nigeria-China trade was in the favour of China. He stated that Nigeria, through President Bola Tinubu’s policy, would enhance the trade balance and increase foreign exchange earnings.
He said, “The $1 billion new iron ore to steel project planned for Kogi State is a major breakthrough in our efforts to promote local value addition in the solid minerals sector.
“During President Bola Ahmed Tinubu’s recent visit to China, I met with the project’s promoters, Chart and Capstone Integrated Limited of Nigeria and Sinomach-He of China, and assured them of the Federal Government’s support for the project’s swift delivery.
“I emphasized the recent shift from the pit-to-port policy, which allowed mining companies to export raw minerals, to a focus on local extraction and value addition.
This change is crucial for creating jobs, facilitating skills transfer, and improving our trade balance. Nigeria’s trade balance with China is currently over one billion dollars in China’s favor, primarily due to the export of raw minerals.
“By exporting finished or semi-finished mineral products instead, we can enhance our trade balance and increase foreign exchange earnings. Through aggressive local value addition, I am confident that we can significantly reduce our debt burden in the near future.”
