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About 1.5 million tons metal scrap recoverable from shipwreck in Onne, says Ogbeifun

           …as $652 USD estimated to reactivate Ajaokuta Steel Coy
CEO Starzs Group, Engr. Greg Ogbeifun

Nigerian Shipowner and Chief Executive of Starzs Group, Engr. Greg
Ogbeifun, has called attention to the fact that about 1.5 million tons of metal
scrap could still be salvaged from a wreckage that had remained abandoned
at a jetty in Onne, Rivers for some years now.

The erstwhile president of the
Ship Owners Association of Nigeria (SOAN) disclosed this in an interview with
Onepageafrica recently.

He said: “If you come to our
shipyard in Onne, next to it is a shipyard that has gone under long time ago.
In front of their jetty is an abandoned marine equipment in which you can have
between 1 million to 1.5 million tons of metal scrap. And this metal scrap is
what the steel plant needs to produce steel products.”
He suggested that the
government sets up a committee involving its agencies; the Nigerian Maritime
Administration and Safety Agency (NIMASA), the Ministry of Mines and Steel, and
that of Petroleum to closely carryout a review of the equipment and decide on
what to do.
He said that the steel ministry
could actually initiate the process of taking out this wreck to a ship breaking
compound, cut it up and move the steel to a steel plant like Ajaokuta or Delta
Steel where the steel plates can be produced to Lloyds’ standard and used for
ship building.
Meanwhile, the Ministry of
Mines and Steel Development had earlier in April under the former minister, Mr.
Bawa Bwari, announced that that an estimated $ 652 million USD would be
required to reactivate equipment and machines at the Ajaokuta Steel Company
The ministry announced it
shortly after it received the Report of a Technical Audit from the Sole
Administration of the company, Sumaila Abdul-Akaba, in Abuja.
The News Agency of Nigeria
reported at the time that the Federal Government had set up the Technical Audit
to find out how much was required to complete the Steel Plant.

According to Bwari, the
estimated amount was part of recommendations contained in the Technical Audit
Report presented to him.

Bwari said following that completion
of work by the Technical Audit, the next line of action was for the ministry to
appoint transaction advisers to advise the Federal Government on the best
strategy to adopt to operate the Steel Plant.

He commended the Nigerian
Society of Engineers for recommending capable engineers that conducted the
Technical Audit.

He said: “I am pleased to see
that our local engineers conducted the technical audit successfully, some have
suggested that foreigners should conduct the process but we can see the good
job our own engineers have done.

“Today, we know what is
remaining to be completed in the plant and what to do within a stipulated time,
we need to start work on areas that are remaining.
“I want to appreciate those
that preserved the steel plant thus far that made it not to become moribund.”

Earlier, Abdul-Akaba said that
the engineers were able to discover that the Plant had attained 95.7 per cent
completion, and not 98 per cent that had been reported.
He said the engineers had also
come up with lots of recommendations that would revive the Ajaokuta Steel

Ajaokuta Steel Plant is sited
on 24,000 hectares of land in Ajaokuta, Kogi, about 38 kilometres from Lokoja,
the state capital.

The Plant was conceived and
steadily developed with the vision of erecting a Metallurgical Process
Plant/Engineering Complex with other auxiliaries and facilities.

The company is meant to
generate important upstream and downstream industrial and economic activities
that are critical to the diversification of Nigeria’s economy to an industrial

The Plant dubbed “Bedrock of
Nigeria’s Industrialisation’’ is also designed to produce iron and liquid steel
from Iron Ore Mines at Itakpe, also in Kogi, about 52 kilometres from Ajaokuta.

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