President Muhammadu Buhari has been cautioned against the plan to
\nconcession Nigeria Iron Ore Mines Company, NIOMCO, to Global Steel
\nHoldings Limited.<\/p>\n
The traditional council of Udu community, hosts to the moribund Delta
\nSteel Company, which gave the warning accused Global Steel Holdings
\nLimited of being a failed firm, describing the plans as a step in the
\nwrong direction.<\/p>\n
These are contained in a petition addressed to the President, advising the
\nFederal Government to reconsider its stance due to the bad track records
\nthe Indian firm left behind while managing Delta Steel Company.<\/p>\n
The community noted that concession\u00a0 NIOMCO to this Indian firm would
\nclearly spells doom for the entire Nigerian Steel industry as it means not
\nonly tying the fortunes of the Nigerian steel industry to a known failed
\nfirm, but a debtor.<\/p>\n
It stated that the petition is aimed at expressing the reservation of the
\nhost communities over the moves by the Federal Government, through the
\nMinistry of Solid Minerals, to concession NIOMCO at Itakpe to Global Steel
\nHoldings Limited GSHL, former (through BPE) investors at the old DSC.<\/p>\n
The letter reads\u00a0 in parts: \u201cIt is our contention that the unfortunate
\nantecedents of GSHL when the company held sway at Delta Steel Company
\n(Aladja Steel Complex), are not conducive for any form of business
\npartnership in Nigeria, at least not just now.<\/p>\n
\u2018\u2019The history which includes, amongst others: the unsuccessful
\nadministration of the Aladja Steel Complex, the running aground of same,
\nthe accruement of monumental debts for the company and consequently the
\nNigeria community, the subsequent abandonment of the Steel Company, and
\nthe court case between them and our country abroad, should be enough
\ngrounds for blacklisting the firm.<\/p>\n
\u201cSecondly, NIOMCO is the only visible source of raw materials for the
\nNigerian Steel Sector- both Delta Steel and Ajaokuta steel companies.<\/p>\n
Concessioning NIOMCO to this Indian firm therefore clearly spells doom for
\nthe entire Nigerian Steel industry as it means not only tying the fortunes
\nof the Nigerian steel industry to a known failed firm, but also to the
\nwhims and caprices of a known debtor who has vamoosed once and may again.<\/p>\n
\u201cThis planned concessioning is the fears highlighted above and to avoid a
\nrepeat of the abysmally woeful performances which characterize the
\nmanagement of GSHL globally. Indeed, the circumstances under which this
\nIndian company vamoosed and abandoned DSC, the stories surrounding the
\nintervention by AMCON with the scarce funds of Nigeria to enable the new
\ninvestors come on board the Nigeria Steel Industry are too green to be
\nforgotten, or ignored so soon.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
President Muhammadu Buhari has been cautioned against the plan to concession Nigeria Iron Ore Mines Company, NIOMCO, to Global Steel Holdings Limited. The traditional council of Udu community, hosts to…<\/p>\n","protected":false},"author":1,"featured_media":52124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-52123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n