FG hails firm’s $600m investment in solid mineral sector

The federal government has commended the African Natural Resources and Mines Limited on its $600 million (N183 billion) investment in an integrated iron ore mining processing and steel production.

African Natural Resources and Mines Limited, is located in Kagarko Local Government Area of Kaduna State.

The Minister of Finance, Mrs. Zainab Ahmed, made the disclosure at a meeting with the firm’s mangement led by Mr. Raj Gupta.

According to the Minister in a statement signed by her spokesman, Mr Paul Ella Abechi, the investment will boost the solid minerals sector and the entire economy leading to increased revenue generation and job creation.

She said, “In a bid to diversify away from oil and increase government revenues, I met this evening with African Natural Resources and Mines Limited led by Mr. Raj Gupta who are investing $600m in an integrated iron ore mining, processing and steel production project in Kagarko Local Government, Kaduna State.

“This is about the first major investment in the mining sector in more than two decades. The project will have a capacity of 5.4 metric tonnes per annum and will create 3,500 direct jobs and thousands of indirect jobs.”

According to her, “About 36 megawatts of electricity is to be generated from the waste heat which will increase power supply to Kagarko Local Government to help develop other industries and urbanize the local area. The surplus will also be added to the national grid.”

Mrs. Ahmed explained that the company will carry out beneficiation, pelletizing and convert iron into direct used iron for steel manufacturing and also galvanise the industrial space into a hub of production of finished goods for local consumption and export.

“The integrated steel manufacturing project has its focal point in mining iron ore, beneficiating, pelletizing and transforming into Direct Reduced Iron (DRI) which is the primary raw material in steel manufacturing.”

She also noted that the “project will drive industrial and community development, generate more power, create employment for locals, substitute imports, crude steel production, royalties and reposition the mining sector”, she stated.

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