Minister Lauds $600m Mining Firm, On Value Addition

The minister of solid minerals development, Dr. Dele Alake, has praised an iron ore mining and processing firm, African Natural Resources and Mines Limited (ANRML), for embodying his vision of value addition and beneficiation through its processing of iron-ore, pointing to it as the golden standard for other companies operating in the sector.

He reiterated the federal government’s recent decision to deny mining licences to companies which do not show concrete plans for value addition.

Dr Alake made this comment during a joint visit to the ANRML complex at Gujeni Village in Kagarko local government area of Kaduna State, along with the minister of industry, trade and investment, Dr Doris Nkiruka Uzoma-Anite.

Dr Alake declared the iron ore mining and processing firm  as the largest non-oil foreign direct investment (FDI) in  Nigeria, worth $600 million.

Speaking at the end of the facility tour of the ANRML site, Dr. Alake highlighted the importance of local value addition in the solid minerals sector, a key component of his seven-point agenda upon assuming office in August 2023.

He said value addition was critical to industrial growth, and job and wealth creation

He expressed confidence in the company’s ability to contribute significantly to the nation’s economic growth trajectory saying that its steadfast adherence to principles of local value addition serves as a beacon for the minerals sector, embodying the spirit of Nigeria’s industrial advancement and economic transformation as President Tinubu sets his sights on restructuring Nigeria’s economy.

The minister commended the ANRML for its vision, dedication and tenacity to bring to fruition such  a substantial investment of $600 million over the past seven years.

He compared the company’s journey from site clearing to the current production stage with that of the Tinubu administration which, he said, had begun laying the foundation stones of a productive economy that will benefit every Nigerian at the end. 

He, however, said that the initial steps can be fraught with challenges but in the end when the success is achieved, they will come to appreciate the necessity of the tough policies being implemented now.

He said, “I want to use you, the African Natural Resources and Mines Ltd., as a concrete example of what can happen when you set your mind to it. We have set our minds in this administration and invariably in Nigeria to achieve success. That’s why Mr. President is restructuring the economy. When this company started seven years ago, we saw one of the foundations stages through the video documentary, the amount of concrete that went in to erect a foundation, just to carry a giant edifice. That’s what we are going through. When we get through the gestation period, the results will manifest, and it will herald prosperity.”

On her part, the minister of Industry, Trade, and Investment, Dr Doris Nkiruka Uzoka-Anite, stated that steel was a critical component of the Tinubu administration’s economic sustainability and industrialisation agenda.

She commended the company for its giant strides and assured it that it will play a big role in the infrastructural and industrialisation programmes of the present administration, expressing delight that Nigeria may no longer need to import steel  

She highlighted the key role of local production to affordable consumer prices.

“As we tackle the rising cost of goods, it is imperative to address the underlying components driving these costs. Our focus on the Steel Sector demonstrates our commitment to fostering a conducive environment for industrial growth and economic prosperity,” she added.

ANRML managing director, Alok Gupta, reflected on the firm’s journey that commenced in 2016 with Land Acquisition in Gujeni, which has culminated in the establishment of a fully integrated iron ore mining and processing plant by 2023, a groundbreaking achievement and the first of its kind in Nigeria.

He stated that the real wealth of a nation lies in its natural resources, and pledged that the project will be fully utilised to make real wealth for Nigeria.

Gupta disclosed that ANRML  had a mining capacity of over  five million metric tonnes per annum and its produced Direct Reduced Iron (DRI) will be a direct substitute for ferrous scrap currently used as raw material for producing steel in Nigeria, which will gradually position Nigeria as a prominent crude steel producer globally.

On job creation, he stated that ANMRL had created 4000 direct and indirect employment, just as he stated that in line with Community Development Agreement, the firm had also  invested in the development of host community and made substantial contributions to education, electricity, borehole installations, scholarships, supply of medical drugs, skill training   and local festivities.

“A lot of small businesses such as tailoring, food and goods sellers have also opened shops, generating income and jobs, thereby helping them to prosper,” he said.  

The ANRML chief executive commended the federal government, particularly Ministry of Industry, Trade, and Investment and Ministry of Solid Minerals Development for enabling its progress, adding that ANRML is a testimony of the government’s commitment to reduce steel importation, promote local manufacturing, boost foreign reserves, and contribute to Gross Domestic Product.

He implored the continued support of both Ministries toward  realising the firm’s vision for a prosperous, self-sufficient, and industrially advanced Nigeria.

The traditional ruler, His Royal Highness Engr James Bitrus said no community can develop in isolation, adding that the coming of ANRML had brought hope and economic empowerment to the community.

He said progress is only possible through mutual respect built upon mutual benefits, sacrifices and understanding.

He urged the  company to document its social corporate responsibility not only for the Supervisory Ministries or agencies, but also as evidence-based indicators for posterity to justify it.

The royal father further stressed that ANRML should focus on; education, health, job and food security in their corporate social responsibility, as these aspects have direct bearing with the sacrifices the indigenous people of the community made and are still making for the national benefits.

A Board member of the Company, Dr John Akanya appreciated the management for its dedication, focus, and the foresight to ensure that the project becomes a reality.

Akanya, a former director general, Standard Organisation of Nigeria, also called on the host community to sustain an enabling environment for the project in order for continued benefit to the community, the firm and the country in general.

ANRML head of HR and corporate affairs, Dr Ikenna Michael told our reporter that the company insists on best practices, adding that it is not involved in export as there is a lot of local demand for its products.

Highlights of the visit include the visiting teams inspection tour of the company’s mining site, processing plants such as (the beneficiation for cleansing of raw ore, conveyor, which moves finer products to beneficiation), power plant for mining coal and generating power to the firm and host community, the burning disc and DRI plant, among other facilities.