Fayemi advocates expansion of solid minerals processing industry

Minister of Solid Minerals Development, Dr. Kayode Fayemi has maintained that there must be a clear focus on expanding domestic Iron ore and minerals processing industry in order for the country to have a quick economic rebound and achievement of sustainable growth in mining sector.
Such move, the minister said, would promote the economic growth and contribute to the nation’s Gross Domestic Product (GDP).
The minister, who was speaking at the 2016 Stanbic IBTC Bank Iron Ore and Steel business session, in Lagos, said the forum was focused on strategy to improve the iron and steel industry and the Nigeria economy.
Fayemi further noted that steel is the world’s most important engineering material crucial to any country’s industrialisation objectives, adding that Nigeria imports an estimated $3.3 billion of processed steel and associated derivatives, representing 80 per cent of the $4.2 billion total metal products imported per year.
According to him, the steel sector is weak due to poor infrastructure for extracting, processing and transporting bulk material such as freight rail transport, access roads to mines and electrical power.
He however, noted that the Federal Government is of the view that the steel industry can be attractive to investors due to the large untapped demand potential similar to cement in 1990s. The current market size of $3.3 billion per annum has potential to grow to $15.1 billion per annum with increase industrialisation.
However, the Fayemi said its ministry is working with banks on how to create low cost funds for the mining sector, adding that banks are working hard to establish mining desks.
The minister also listed some of the strategy for unlocking the sector’s full potential, which are; comprehensive turnaround of the board mining and metals sector; to build a world class minerals and mining ecosystem designed to serve a targeted domestic and export market for minerals and ores; and to return to global ore mineral markets at a market competitive price point.