Itakpe Iron Ore Firm Upgrade Gulps N4bn

Iron oreCrushed iron ore is transported in a railroad car at Vale SA's Brucutu mine in Barao de Cocais. Photographer: Dado Galdieri
  • Itakpe Iron Ore Firm Upgrade Gulps N4bn

A total of N4bn was spent on the upgrading of the facilities of the National Iron Ore Mining Company after the sacking of Indian concessionaire, Global Infrastructure Nigeria Limited, the Federal Government has said.

This disclosure was contained in a memo to the Acting President, Prof. Yemi Osinbajo, by a former Permanent Secretary in the Ministry of Mines and Steel Development, Mr. Baba Faruk.

In the memo, with reference number MMSD/5.5/5.37/11/284, and dated October 13, 2015, Faruk also articulated why the ministry had opposed the out-of-court settlement with the Indian firm, which had been proposed by the Ministry of Justice.

He said, “The ministry looked at the financial implications of executing the Modified Concession Agreement and opined that if NIOMCO was to be given via concession to Messrs GINL, it should be on ‘as is’ basis.

“This position was supported with the fact that the Federal Government has invested N4bn in the improvement of NIOMCO facilities since the exit of Messrs GINL.”

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Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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