Ime Akpan
Two companies, D Four Metals and Plastona Ltd have entered into a joint venture agreement to establish an ultra-modern $3m (about N1,080, 000, 000) smelting plant and a refinery in Jos, Plateau State for producing exportable products.
The chief executive officer of Plastona, Mr. E. Collins, said in a statement that the deal is informed by the federal government’s policy of adding value to products and services before they are being exported them.
He said the plant which is expected to commence operations in the third quarter of 2019, would have the capacity to produce 11,000 tons of lead ingots annually.
Lead ingots are metal materials required for further processing in steel production.
He explained that setting up the facility would create lots of jobs the unemployed youths while also generating foreign exchange via exports of finished products.
He said Plastona with offices in Lagos and London, would deploy the latest use of blast furnace technology
He added that most of the equipment will be brought in from China where the company’s technical partners are.
Collins also said when completed and fully operational, the facility would help Nigeria save the foreign exchange it spends on importing raw materials it has competitive and comparative advantage.
In his remarks, the chief executive officer of D four Metals, Mr. Olusegun Oyalana, said the total investment over 12 months will be about $3 million.
He added that the plant is expected to break even within 18 months after construction.
‘‘The project is in line with the federal government’s policy of adding value to minerals before export thereby reducing capital flight. The output of the plant will be sold to international companies registered on the London metal exchange,” he said.
He also said the raw materials will be sourced from various local mines in Plateau, Gombe and Bauchi States.
He stressed the need for Nigeria to grow its natural resources saying “this is the surest way to drive economic growth while also diversifying the nation’s economy from hydro-carbon resources to other sectors.”
Oyalana also said “Nigeria has no business being poor considering its huge natural endowments” and called on the managers of the economy to develop friendly policies to attract both local and foreign investments to the country’s solid minerals sector.
