Adedokun Waliyu 
The Federal Government has signed a groundbreaking $1 billion iron ore steel deal with China, marking a significant milestone in Nigeria’s solid minerals sector. The agreement, signed in Beijing, aims to promote local value addition and reduce the country’s reliance on raw mineral exports.
Dr. Oladele Alake, Special Adviser to the Minister of Solid Minerals Development, emphasized the government’s commitment to ensuring that mining companies process raw minerals locally. This approach will create jobs, transfer skills, and improve the balance of trade between Nigeria and its trading partners.
The project, located in Kogi State, will be executed by Chart and Capstone Integrated Limited (Nigeria) and Sinomach-He (China). The iron ore site will feed a steel manufacturing plant, supporting Nigeria’s industrialization goals. The project requires tax waivers and holidays to cope with macroeconomic fluctuations.
Sinomach-He, a state-owned Chinese company, brings extensive experience in mining, iron making, steel rolling, and infrastructure construction. The company will deploy its expertise in engineering, procurement, installation, commissioning, and training.
Nigeria’s Consul-General to China, Ambassador Gbadebo Afolabi, confirmed Sinomach-He’s integrity, ensuring a trustworthy partnership.
This deal marks a significant step towards Nigeria’s economic growth and industrialization. With local value addition, the country can reduce its debt burden and improve foreign exchange earnings.
