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Rediscover Nigeria Steel

Steel

AJAOKUTA STEEL COMPANY

The Ajaokuta Steel Company was established in 1979 with the aim of operating an integrated steel plant. The plant never became fully operational even though work reached more than 98% completion. Expenditure was in excess of US$5billion on the plant and infrastructure on 24,000 hectares of land.

The facilities available at the plant include four rolling mills, a captive power plant, repair shop complex and foundries. It was to be executed in phases of an initial 1.3 million metric tonnes (MMT) of liquid steel, to be expanded to 2.6million M.T and finally 5.2million M.T per annum in the third and final stage. It is designed to use the blast furnace technology.

MAJOR PRODUCTION UNITS PHASE 1

UNIT                                                                 ANNUAL CAPACITY

Coke Oven                                                       880,000 MT

Iron Making                                                      1.35 MMT

Steel Making                                                    1.3 MMT (Liquid Steel)

Billet Mill                                                           795,000 Tonnes

Light Section Mill                                               400,000 Tonnes of rods & light

Wire rod                                                           130,000 Tonnes of Wire Coils

Medium Section & Structural Mill                       560,000 Tonnes of Structural Steel

Thermal Power Plant                                        110 MW of electrical energy

Forge Workshop                                               4,200 Tonnes of forging
        
Fabrication Workshop                                       4,600 Tonnes of fabricated structures.

Machine and tools shop                                    19,000 Tonnes of machined Products.

Foundry Shop                                                    7,000 Tonnes of ferrous
                                                                          and non ferrous casting.

Lime Plant                                                          91,000 Tonnes.

 

The plant equally has power equipment repair shops, rubberizing shops for the repair of conveyor belts and the manufacture of seals and adhesives, a refractory plant in addition to an oxygen plant.

FEEDER MATERIALS

Iron ore deposits found at Itakpe, Kogi State were to feed the steel plant in Ajaokuta, linked by a 51 km standard gauge rail line. The iron ore deposit has a proven reserve of 200 million tonnes of average content of 36% Fe. It is to feed Ajaokuta with 2.15 million tonnes of concentrate of 64% Fe and 550,000 tonnes of super concentrate 67% Fe to Delta steel plant.

ITAKPE IRON ORE MINING PROJECT

The concessioning programme of government ihas not been very successful at the National Iron Ore Mining Project at Itakpe. The task of supplying iron ore concentrates for the integrated steel plants is undergoing a review to get the mines back to work. To deliver the initial 2.15 million tonnes of feeder material to Ajaokuta and 550,000 tonnes to Aladja totalling 2.7 million tonnes,  an output of 7.28 million tonnes of Run of Mine (ROM)is required. This involves moving 28 million tonnes of over burden materials.

IMPACT ON ECONOMY

The commencement of work at Ajaokuta and Itakpe is a strong indicator that Nigeria's dream of being a steel producing nation with its attendant technological take off will soon materializes.

The plant through its foundries and workshops can contribute towards the rehabilitation of ailing industries and in the fabrication of machines for new plant.

The expected rise in the generating and distributive capacity in the power industry can better be achieved with the plant's ability to repair faulty transformers. Government is making effort to find suitable partners to commence production at all the plants.

DELTA STEEL PLANT

The Delta Steel Plant located at Aladja, Delta State was designed as an integrated steel mill to produce and feed the three inland rolling mills at Osogbo, Jos and Katsina with billets.

FACILITIES

The plant is fully built up and consists of the main steel plant, a Lime Plant, an Oxygen / Nitrogen Plant, in addition to a foundry and workshop.

JOS, KATSINA AND OSOGBO PLANTS

Each of the three inland steel rolling mills in Jos, Osogbo and Katsina has capacity for 210,000 M.T annually. They were established to process billets into products such as wire rods and bars. The Jos steel plant was privatized and commenced operation in 2006. It is currently owned by a consortium of Nigerian and foreign technical partners operating as Zuma Steel. The programme for the privatization of the Katsina and Osogbo steel rolling mills is still ongoing.

OPPORTUNITIES IN THE STEEL SECTOR

The ongoing dredging of the River Niger from Warri in Delta State to Baro in Niger State will significantly improve the delivery cost of steel from the Aladja steel plant to Nigeria's domestic market.
Currently, almost all the country's entire steel consumption is imported. The privatization programme opens new opportunities in the following areas:-

  1. Plant Acquisition or concessioning.
  2. Investment in setting up pins and clip making plants.
  3. Slag processing plants.
  4. Welding electrodes.

There are ongoing and planned mega- projects in Nigeria and some are being planned for the immediate future  for which investment in the steel industry will confer advantages: They include:-

  • The 2,565km Trans-Sahara Gas Pipeline Project and Inland Delivery
  • Gas Projects for power supply and industrial consumption. The TSGP (from Nigeria through Niger and Algeria) is expected to come on stream in 2016 with an investment of USD20Billion.
  • Steel plates for the Maritime Industry.
  • Water supply and irrigation dams.
  • Giant offshore Oil and Gas Projects.
  • Resuscitation of the railways and building of new railway lines.
  • Giant water transfer projects from the Congo River to Lake Chad.
  • Ongoing water projects in various parts of Nigeria.
  • New refineries and petro chemical projects
  • New Dams for Power supply.
  • Infrastructural projects like Bridges, Housing and Road construction.

 

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