FG Plans A Bill Regulating Metal Industry
 3rd JAN 2007

The Federal Government is to present a bill regulating the metal industry as part of the on-going reform of the economy. The Director of Steel, Ministry of Power and Steel, Chief Bayo Kolade, made this known to the News Agency of Nigeria (NAN) on weekend in Abuja.

He said that the ministry and the Bureau of Public Enterprises (BPE) had finalised the draft policy, thus ensuring the drafting of the bill. He said the draft bill would soon be presented to the Federal Executive Council for its approval before its presentation to the National Assembly for passage into law next year.

He said that a Metallurgical Inspectorate Department would be established after the enactment of the bill to effectively police the metal industry to ensure its adherence with the country’s laid down laws and policies.

“At the moment, we have more than 25 private metal plants in the country and nobody is regulating their operations to ensure compliance with the nations laws and policies. “It is only the Ministry of Labour that has policies on workers’ safety and the environment ministry on environmental issues.

“The bill being proposed by the ministry intends to address the proper regulations of those private plants. “In addition, the recently privatized firms’ adherence to the metal production and usage guidelines in the country will ensure that the interest of Nigerians and Nigeria are protected,” Kolade added. On the concession of  Ajaokuta Steel Company to Global Infrastructure Nigeria

Limited (GINL) for ten years, he said that the concession agreement was on course as the GINL, an Indian firm, had performed well so far.

He said that the firm had not only maintained the workforce and paid salaries but had equally increased the manpower at the complex in order to meet its commitment to the concession agreement.

Kolade said that the firm produced more than 700.000 tones of rod products at the plant and had demonstrated commitment to the concession agreement, a feat that was not achieved in the past by governments or the former concessionaire Messrs SOLGAS of U.S.

He said that the concession given to the company to run the Ajaokuta-Warri rail line would ensure that the firm completed the rehabilitation of the complex and eventual production of the desired liquid steel. He said the Indian firm had given the ministry assurance that it was committed to the full integration of the various plants within eight months.

The director denied the allegation that the Indian firm was removing vital equipment from the plant without due regard to the laid down concession agreement, saying all items removed were documented. “The only thing that was wrong about the arrangement was the single management structure and the firm’s steel company at Warri.

“We have asked them to change the system to make differences between the concession company and their own company,” he added.
Kolade gave the assurance that the ministry would offer the necessary assistance to GINL to enable it produce liquid steel by granting rights for the mining of the iron ore in accordance with the mining laws. He said that the Zuma West Africa Steel Company, Jos, (former Jos Steel Rolling Mill) would soon start production. Kolade said that the company would take delivery of its imported billets and that the ministry was monitoring the development at Osogbo and Katsina on the plan the new owners had put in place to operate the plants.

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