China's Sinosteel in talks to obtain Nigeria's steel mill

July 11
12:59 PM 2013

Sinosteel, the Chinese government-owned metals dealer, was currently negotiating to take control of Nigerian state-owned steel mill. It would expand its capacity from 1.3 million tons to 5.6 million tons. The information came from Nigeria's mining minister in a visit to Beijing on Thursday.

The sale and upgrade would indicate an investment in Nigeria worth US$6 billion, Musa Mohammed Sada, Minister of Mines and Steel Development, informed Reuters.

Sinosteel did not verify or refute the talks with Nigeria when it was contacted.

Nigeria was Africa's biggest crude oil producer. It pursued China for inexpensive funding that would aid it upsurge the value chain of raw materials' exports. Nigeria targeted the goal to improve its hindered infrastructure.

About a dozen ministers headed by President Goodluck Jonathan visited China to solicit loans. Last week, Finance Minister Ngozi Okonjo-Iweal stated that the loan could be around US$3 billion.

"We have had discussions with Sinosteel... We would hope they will be able to reach some agreement and transfer the management to them," the finance minister said.

"We have a steel programme to produce steel within the country, but the size of the deposits we have of iron ore is more than what we can consume locally, so there is also (a need for) infrastructure development," Sada said.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics