Nigeria's Federal Ministry of Steel Development has announced the signing of an agreement aimed at reviving the former Delta Steel Company, currently operating as Premium Steel and Mines Limited (PSML), in Ovwian-Aladja, Delta State.
PSML targets commercial production within two years
The Sub-lease and Operations Agreement, signed between the National Iron Ore Mining Company (NIOMCO) and PSML, is intended to secure a sustainable iron ore supply for the integrated steel complex.
Under the agreement, PSML has committed to investing more than $1.3 billion in raw material exploration, mine development and the rehabilitation and modernization of the plant. The company plans to commence commercial operations within 18-24 months and restore the complex to its installed annual capacity of one million mt of liquid steel.
Commissioned in 1982, Delta Steel operated at approximately 25 percent of its designed capacity before facing prolonged operational difficulties. Although the plant's rolling mill was subsequently reactivated, the facility has not operated as an integrated steel plant since it was acquired by PSML in 2015.
Project to support NIOMCO and Nigeria's 2030 steel target
The project is also expected to support the reactivation of NIOMCO and the development of the Ajabanoko iron ore deposits, while increasing freight activity on the Central Rail Line and utilization of the Delta Steel jetty.
According to the ministry, the investment could create approximately 5,000 direct and more than 20,000 indirect jobs. The revived plant would also contribute to Nigeria's target of increasing its annual liquid steel production capacity to 10 million mt by 2030.
However, the restart timetable remains dependent on the availability of iron ore, reliable electricity supplies, logistics infrastructure and the completion of the required plant rehabilitation work.
