Community urges government to jettison planned concession of Itakpe Steel

Udu community yesterday warned the Federal Government to jettison the planned concession of Iron Ore Mines Company at Itakpe to Global Steel Holdings Limited (GSHL)

The community said it would have “untold adverse ramifications on the prospect of the Aladja Steel Complex, Ovwian-Aladja.”

In a letter dated July 15, 2016 signed by the Otota of Udu Kingdom, Chief Sam Odibo on behalf of the Udu people as host to the Aladja Steel Company, to President Muhammadu Buhari, the community advised the Federal Government, through the Ministry of Solid Minerals that Global Steel Holdings Limited, GSHL, were former investors at the old DSC and their personal experience with the company when it held sway at the steel firm were not conducive for any form of business partnership in Nigeria for now especially in the Iron and Steel sector.

“The concessioning would invariably have untold adverse ramifications on the prospects of the Aladja Steel Complex and stem it from actualizing its set goals.” The statement reads in part.

The Udu community said they were sounding the warning as host community to alert government to understand that with the antecedents of GSHL at the old DSC Plant which led to its ouster as major investors in the company a few years ago, that there was every likelihood that same records would be replicated by GSHL at Itakpe or Ajaokuta Steel Complex to the pains of the Federal Government, and the Nigerian people, and that this would impede the revival of the Steel industry.

They equally urged the parastatals responsible for the sales of the Iron Ore Complex, Itakpe to take into account, the prospect of the Aladja Steel Complex and halt negotiations in order to avoid a repeat of the abysmally woeful performances, which characterized the management of the old DSC by GSHL.

“The circumstances under which this Indian company vamoosed and abandoned DSC, the stories surrounding the intervention of AMCON with the scarce funds of Nigerian to enable the new investors come on board the Nigerian Steel Industry etc, are too green to be forgotten, or ignored so soon. One question calling for answer is, if Global Steel has money enough to purchase NIOMCO, and run NIOMCO, why did AMCON come to its rescue”