Abuja – The Nigeria Metallurgical Society has advised the Federal Government to scrutinise the concession agreement with the Global Steel Holdings Limited, (GSHL) as it contains technological terms that can arm-twist the government.
Prof. Benjamin Adewuyi, President of the society, made the appeal in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.
He said the agreement, signed on Aug. 1, contained several technical and technological terms that could be used by GSHL in future to arm-twist the government, if not rectified now.
“Having gone through the modified Nigerian Iron Ore Mining Company (NIOMCO) concession agreement signed between the Federal Government and GSHL, we discovered some terms that must be corrected now before commencing operations.
“The document of this nature should have been well scrutinised to contain minimal errors that will stand the test of time.
“The agreement shows that the scope of operation of the concessionaire appears to be limitless; GSHL is given the rights to expand, prospect, explore, evacuate, extract and otherwise work the mines and deposits for all minerals,” he said.
He said that the concessionaire had been empowered to mine other minerals such as Limestone, Ferro Manganese, Fireclay and others required for steel production at Ajaokuta Steel, Delta Steel Company and other users.
“The agreement overlooked the fact that the operation of NIOMCO is limited only to mining and beneficiating of iron ores.
“Are we not giving the concessionaire multiple mining licences just like that on a platter of gold? from our own understanding, the concessionaire is to mine and beneficiate iron ore only.
“This clause appears to overlook the fact that GSHL will require exploration and mining licences.
“Hence it must be removed or modified as it cannot be in the best interest of the government, Nigerian entrepreneurs in the mining sector.’’
He also said that the agreement should properly address who owned NIOMCO, as the role of the government in NIOMCO looked very clumsy and could give room for unholy activities by GSHL if not well specified.
“As far as we are concerned, NIOMCO belongs to the Federal Government, hence the activities of GSHL must be subjected to due process in all ramifications.
“This agreement can give the GSHL rooms to manipulate, overprice and dictate terms which can frustrate the steel production.
“We may end up producing the most expensive steel in the world if care is not taken; we must not inadvertently prepare another platform for confusion.
“We are against any attempt that will frustrate the smooth running of Ajaokuta Steel plant before takeoff.
“We suggest that patriotic legal teams should be involved in closing up all loose ends of the agreement.”
He also called for increased participation of Nigerian professionals in the operation of the company, adding that any attempt for GSHL to flood NIOMCO with foreign experts should not be allowed.
Adewuyi said that shipment of iron ore, be it processed or unprocessed out of Nigeria shores under any guise by GSHL or its affiliates and exportation of other materials out of the country, should be scrutinised and controlled.
“The need to monitor the activities of the GSHL cannot be overemphasised to ensure that there are no excesses.
“Therefore, monitoring team must be involved and must not be the usual emergency consulting firms that are floated merely to take advantage of the moment.
“Appropriate government regulatory bodies should be involved in monitoring the plant operation to ensure that international norms and standards are met, especially in equipment servicing and maintenance.
“Staff welfare, security, workplace safety and Nigerians must not be treated as second class citizens in their own country.”
He called on government not to listen to certain individuals whose sole aim to truncate the process of revitalising the Ajaokuta Steel Plant.
He said that such people were already canvassing that the blast furnace in Ajaokuta had become obsolete and should be dismantled for modernisation.
“We are worried for the persistence of such claims which we had faulted in several publications in the past; we only hope that the government will not listen to such unsubstantiated and unprofessional recommendations.
“The blast furnace we have in Ajaokuta is in good shape; maintaining or replacing electric motors does not render the edifice as obsolete.
“We are sure that such recommendations can only come from groups or individuals waiting to impress their selfish opinions on the government.”
He suggested that government should invite and involve the company that designed and constructed the blast furnace and the steel-making oxygen converters of the plant to complete and test run it.
The steel plant must be completed, put into operation and properly handed over before any idea of privatisation or concession.”