Udu Community Advises FG Against Sales Of Itakpe Steel To GSHL | Independent Newspapers Limited
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Udu Community Advises FG Against Sales Of Itakpe Steel To GSHL

Delta Steel Company
Posted: Jul 17, 2016 at 2:34 pm   /   by   /   comments (0)



The Udu Traditional Council, the apex traditional authority of the Udu people of Delta State, has called on the Federal Government to jettison the planned concession of Iron Ore Mines Company at Itakpe to Global Steel Holdings Limited (GSHL), alleging that it would have untold adverse effect on the prospect of Aladja Steel Complex, Ovwian-Aladja.

In a letter dated July 15, 2016 and signed by the Otota of Udu Kingdom, Chief (Sir) Sam Odibo, on behalf of the Udu people as host community to the Aladja Steel Complex, addressed to President Muhammadu Buhari, the community advised the Federal Government, through the Ministry of Solid Minerals that GSHL was a former investor at the old DSC and that its personal experience with the company when it held sway at DSC was not conducive for any form of business partnership in Nigeria for now, especially in the iron and steel sector, as the concessioning would invariably have untold adverse effects on the prospects of the Aladja Steel Complex.

It explained that as a host community, it is incumbent on them to impress it on government to understand that with the antecedents of GSHL at the old DSC plant which led to its ouster as major investor in the company a few years ago, there was every likelihood that the same records would be replicated by GSHL at Itakpe or Ajaokuta Steel Complex to the pains of the Federal Government, and the Nigerian people.

According to the letter, “it is based on the ugly experiences and observations, (that)it becomes reasonable and wise to advise the Federal Government to direct the Ministry of Solid Minerals and Ministry of Justice, which are believed to be in the mainstream of negotiation with GSHL, to rescind the planned sale of the Ajaokuta Steel Complex particularly the Iron Ore Complex (NIOMCO) at Itakpe to GSHL in the interest of the survival of the steel sector particularly the old Delta Steel Company, which they failed to manage profitably and is now in the hands of new investors.”

They called on the parastatals responsible for the sales of the Iron Ore Complex, Itakpe to take into account, the prospect of the Aladja Steel Complex and halt negotiations in order to avoid a repeat of the abysmally woeful performances, which characterised the management of the old DSC by GSHL.

“The circumstances under which this Indian company vamoosed and abandoned DSC, the stories surrounding the intervention of AMCON with the scarce funds of Nigerian to enable the new investors come on board the Nigerian Steel Industry etc, are too green to be forgotten, or ignored so soon. One question calling for answer is, if Global Steel has money enough to purchase NIOMCO, and run NIOMCO, why did AMCON come to the rescue,” the Council stated.