The Federal Government says it is preserving an estimated three billion tons of unmined iron ore deposits to supply the Ajaokuta Steel Rolling Complex in Kogi State once the long-awaited steel plant becomes fully operational.
The Director-General of the National Steel Raw Materials Exploration Agency (NSRMEA), Kolawole Michael, disclosed this while assessing Nigeria’s readiness for the revival of the Ajaokuta Steel Complex. He said the decision is in line with President Bola Tinubu’s directive to end the export of unprocessed solid minerals and promote local value addition, industrialisation and job creation.
Michael explained that the high-quality iron ore deposits in Itakpe remain untapped because Ajaokuta Steel, the primary off-taker, is yet to resume full operations. He noted that the original steel development plan assigned different responsibilities across the value chain, with NSRMEA responsible for exploration, the National Iron Ore Mining Company (NIOMCO) handling mining and Ajaokuta Steel processing the raw materials into finished steel products.
According to the NSRMEA boss, laboratory tests have confirmed that Itakpe’s iron ore is among the best in quality and quantity, making it central to Nigeria’s steel development ambitions. He added that while iron ore accounts for about 95 per cent of steel production materials, limestone and coal make up the remaining five per cent. In the absence of Ajaokuta’s operations, limestone deposits have been licensed to local cement manufacturers to maximise economic value.
Michael also revealed that the agency has identified large coal deposits in Obi-Lafia, Nasarawa State, but further exploration is required to improve their quality for steel production and reduce Nigeria’s dependence on imported coking coal. He appealed for increased government funding to modernise the agency’s laboratories, acquire advanced technologies such as drones and strengthen mineral exploration needed to drive the country’s industrial and economic growth.
