Delta Steel chief laments cancellation of NIOMCO agreement

23 September 2011, Sweetcrude, Warri- Joint Managing Director of Delta Steel Company Limited (DSC), Aladja, Delta State, Dr. Sam Nwabuokei, has expressed concern over the challenge of sourcing raw materials as a result of the cancellation of agreement with National Iron Ore Mining Company (NIOMCO), Itakpe.

Nwabokei made this known in his presentation to the Senate Ad-hoc Committee investigating the activities of the Bureau of Public Enterprises (BPE), which was on oversight/physical inspection of the company in Aladja at the weekend.

He also identified poor power supply as one of the constraints facing the investors in their efforts to fully re-position the company for sustainable growth. The Delta Steel Company has a staff strength of 3,000 employees.

A statement by the BPE spokesman quoted the chairman of the Senate Ad-hoc Committee, Senator Ahmad Lawan, as saying that the purpose of the visit was to ascertain if the Post-Privatisation Agreement between the core investor in DSC, Global Infrastructure Nigerian Limited (GINL), and BPE was being honoured.

He urged the management of the company and its host communities to kick-start a process towards signing a Memorandum of Understanding and to work together harmoniously as they both need each other for peaceful coexistence.

Meanwhile, the core investor in the Aluminium Smelting Company of Nigeria (ALSCON), Rusal Aluminium Smelter Company Limited, informed the visiting senators during their assessment visit a fortnight ago that a large-scale modernisation programme is underway which will make the firm a highly efficient and modern production facility.

The programme, according to Mr. Anatoly A. Polovov, Managing Director of the company, includes the completion of uncompleted facilities as well as the overhaul of buildings and equipment that had not been fully utilised for almost a decade.

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  • Ane

    Corrupt leadrship, ldseerahip with vision deficiency will not allow for the fulfillment of those promise.Nigeria has leaders with the like mind of an Obama, for them to get hold of ldseerahip is a major challenge, due to the electoral system.I believe that consistent dialogue & other impactful strategies by U.S can help this great but struggling Giant of Africa