Ajaokuta Steel Company to gulp N6.2bn in 2017Ajaokuta Steel Company allotted N6.2 billion.

Ajaokuta Steel Company to gulp N6.2bn in 2017

The dysfunctional Ajaokuta Steel Company has been allotted N6.2 billion of the N23.2 billion allocated to the Federal Ministry of Mining and Steel Development.

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Ajaokuta Steel Company to gulp N6.2bn in 2017

The dysfunctional Ajaokuta Steel Company has been allotted N6.2 billion of the N23.2 billion allocated to the Federal Ministry of Mining and Steel Development.

The parastatal got the highest allocation among the 10 agencies under the ministry with a budget of N4,272,797,371 as indicated in the proposed 2017 federal budget before the National Assembly.

Still Dysfunctional

Although not functional yet, Ajaokuta Steel Company has a management and some staff.

Concessioning of Ajaokuta Steel Company was also assigned the sum of N2.09 billion.

Kayoed Fayemi, Minister of Mining and Steel Development had promised that Federal Government would settle the litigations between it and Global Steel.

He said the company had been partly concessioned and the process would be finished in 2017 for the company to run in full capacity of 5.2 million MT annually.

The Ajaokuta Steel Company in Kogi State sits on 24,000 hectares of land and has been idle for over forty years.

Other Budget Allocations

The ministry’s allocation to the Nigerian Geological Survey Agency, NGSA was N3.8 billion and the National Iron Ore Mining Project, Itakpe, Kogi State, N1.7 billion.

Mining Laws

Out of the ministry’s budget, N20 million is to be used to amend Mining Laws, which the minister had said in his maiden ministerial media briefing were to be built upon.

This is to address the problems of illegal miners, smuggling and nautical exploration of minerals which have resulted in environmental pollution and deaths, revenue loss, robbery attacks and exploitation by money-bags who sponsor them at the expense of their lives.

Mines and Mineral Buying Centres

About N99 million was set aside for Artisanal Mines and Registration of Mineral Buying Centres.

Analysis Equipment

The ministry allotted N330 million for equipping of National Geosciences Laboratory, Kaduna with basic equipment for mineral analysis.

For years now, sector operators have been doing mineral sample analysis outside Nigeria, in Australia, Canada, Ghana, Namibia and South Africa.

Operators in the mining sector and potential investors have been awaiting this.

Mapping and Database

Most potential investors are yet to be convinced of Nigeria’s mining sector or see her as a mining country due to her lack of reliable geosciences data and maps.

To sort this, the ministry allotted N199.5m to produce geological Maps and Complete Database Upgrade.

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