Ajaokuta Steel signs MoU with Private firm on $30m for 300MW Electricity Generation

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Ajaokuta Steel Company Limited (ASCL) in Kogi on Friday signed a Memorandum of Understanding with a private firm, 3D-High Tech Systems Limited to reactivate and operate its 110MW Thermal Power Plant.

Engr Joseph Onobere, Sole Administrator of ASCL who signed on behalf of his company said that the MOU was in line with President Goodluck Jonathan’s recently launched National Industrial Revolution Plan.

Onobere held that to fast-track the country’s industrial development, availability of power was key adding that the objective of the MoU was to generate the much needed energy for operation of the steel plant and for sale to the National Grid.

The Sole Administrator hinted that the company recently entered into similar arrangements for the Light Section Mill, the Wire Rod Mill and the Metallurgical Training Centre.

He commended ASCL staff saying they had shown “uncommon patriotism and loyalty in defending and protecting the entire steel plant facilities” as he solicited their cooperation for the success of the MoU.

Managing Director of 3D-Hitech Systems Ltd, Engr Patrick Azi who signed the MoU on behalf of his company said 30 million U.S Dollars (about N4.8 billion) would be invested into the power plant to revamp and operate the 110MW Thermal Power Plant to generate electricity for sale.

“We are in this business of acquiring property from government or going into partnership with government with a view to revamping them, make our money as investors and leave.

“We intend to sell our products to distribution companies (Discos). We are entering into power purchase agreement with these companies”, he said adding that 3D-Hitech Systems intended to build 300MW plant to run side-by-side with the plant in Ajaokuta.

The Managing Director said that after the consummation of the MoU with the inauguration of the plant in the next 45 days, the company would go into other areas in the plant “because there is a huge opportunity in the plant.

“I see no reason why Nigerians should be buying pipes from other places in the world when we have one of the best facilities. Ajaokuta steel plant is the second largest in the world after Russia, so why can’t we bring it up.”

The Minister of Mines and Steel Development, Arc. Musa Mohammed Sada represented by ASCL Director of Steel, Engr Abdullahi Also said that the TPP would be solely operated by ASCL engineers.

Sada therefore, called for cooperation between the staff, industrial unions and the 3D-Hitech Systems management and urged partners in the MoU to strictly adhere to the terms of the agreement.