Nigerian govt pledges support for Kogi’s steel project

Share This Story

Share on facebook
Share on twitter
Share on linkedin

The Nigerian Ministry of Mines and Steel Development (MMSD) has recognised the effort that ASX-listed Kogi Iron is making to contribute to the diversification of the country’s economy through the proposed Agbaja cast steel project.

The company received a formal letter at the end of August from Mining Minister Olamilekan Adgebite, stating that the MMSD is willing to facilitate with other Ministries on behalf of Kogi Iron when necessary.

This followed Kogi Iron presenting its proposal for MinDiver project funding of Kogi’s environmental, social and governance (ESG) programmes, which includes water management, infrastructure building, agricultural initiatives and local business opportunities, should the mine proceed to development.

The company intends to prepare and submit a revised proposal and formal application for MinDiver project funding, which is provided by the World Bank, in due course.

Kogi Iron says the letter from the Nigerian government demonstrates its support for the critical path drivers that will accelerate development of the project, particularly in obtaining a competitive gas supply contract and market entry policy for the replacement of steel imports.

In follow-up communications with the Ministry, it provided the company with detailed information on the background, current policy status, administrative processes and key contacts in the Nigeria National Petroleum Company and its government subsidiary gas supplier, Nigeria Gas Company.

Based on inputs by energy consultants and advisers, Kogi Iron has held discussions and initiated an information exchange as the basis of an application for a gas supply agreement to be sourced from the Ajaokuta–Kaduna–Kano gas pipeline.

Nigeria has substantial domestic demand for steel products, which is currently met largely through imports of scrap steel raw materials.

“The company continues to work closely and enjoy the support of MMSD. These working relationships are based on mutual recognition of the importance of the Agbaja project to the future for economic growth in Nigeria.

“The Agbaja Plateau Community expects and deserves tangible ESG and economic benefits from sustainable development of the project,” says Kogi Iron MD David Turvey

Never Miss Out

Stay tuned with the exclusive MMSteelClub Newsletter.

MMSteelClub Newsletter

Pick the categories that interest you most from the list below: