Ukraine to invest $2.6bn in Nigerian mining sector

The government of Ukraine has stated its readiness to invest about $2.6billion in the Nigerian Mines and Steel sector
Ukraine’s ambassador to Nigeria, Serhii Khanenko, stated this when he paid a courtesy visit to the Minister of Mines and Steel, Mr Mohammed Sada.
The ambassador said that Ukrainian investors were ready to inject $2.6billion into the re- activation of Ajaokuta Steel Company Limited, expressing the hope that the project would be given to the Ukrainian government.
He said the purpose of the visit was to explore areas of partnership with the Nigerian government in the development of solid mineral resources as well as to specifically indicate his country’s interest in the reactivation of Ajaokuta Steel Company.
Responding, the minister said that the Federal Government was committed to removing bottlenecks in the privatisation of steel industries in the country.
He described the visit as timely and important, noting that President Goodluck Jonathan had given a time frame for all outstanding issues affecting the nation’s steel industries.
He further said that government was working proactively towards ensuring that the interests of the various stakeholders were brought on board for the development of Nigeria’s steel industries.
The Minister disclosed that the present administration was determined to tackle all critical issues impeding the successful privatization of the nation’s steel industries.
He said “We reiterated the need to come up with clearer business model for the project including cash flow, we also talked about source of funds for this, because we made it critically clear that government is not likely to invest but it is relying on the existing assets of the place to do business”.
“We also talked about issues of technical capability and the type of privatisation arrangement that you would like government to have with you, how you intend to tackle the issue of infrastructure, transportation and raw materials”.
The Minister noted that government was handling Ajaokuta Steel Company Limited and National Iron Ore Mining Company (NIOMCO) as two integrated plants that must work together for the optimum benefits of the steel industries.