History and
Development History and
DevelopmentThe history of Steel Development in Nigeria dates back to the pre-independence era. In 1958 initial efforts were made towards the establishment of a metallurgical complex. At that time, action was directed towards the establishment of mini mills that would substitute the limited quantity of imported steel materials which Nigeria was consuming then. As a first step towards this, extensive market surveys were carried out on steel demand and projections were made, it soon becamel clear that with the already known availability of iron-ore inj the Agbaja and Udi areas of the country. It would be more helpful to think in terms of an intergrated steel plant. Coal was also available and with the construction of the hydroelectric Kainji Dam, it was expected that electrcity would be available in sufficient quantity.
As a result, intensive studies aimed at determining the feasibility of an integrated steel plant were initiated. As these studies were pursued, various international bodies made proposals at various times. The proposals offered various technological processes both proven and unproven, however, the subsequent pilot tests that were carried out on the Agbaja and Udi iron ores later proved that they were unsuitable for the direct reduction process that was envisaged. Although small scrap based, privately owned steel plants were established, it soon became obvious that the output of these plants could, in no way, cope with the growing demand of steel products in the country.
In 1967, a team of soviet experts were invited to conduct a feasibility study for setting up an iron and steel plant in Nigeria. The Soviet experts presented a feasibility report which recommended the use of the blast famace process for iron making. The report also pointed out that the known iron ore deposits in the country were of poor quality, and recommended that further geological surveys for exploration of better ores and coal for the proposed iron and steel industry should be carried out. This suggestion was careflilly examined and it eventually led to the commissioning of Techno-export, an agency of the USSR Government and the Geological Surveys of Nigeria to undertake the job. The agencies were jointly sponsored by the government of the then USSR and Nigeria to carry out aero magnetic survey of over 22 percent of the country in 1970. Ground magnetic surveys and drilling for suitable types of iron ores and coal followed thereafter.
The investigations revealed that raw materials in reasonable quantity suitable for steel production abound in the country. These include iron ore deposits estimated at over 200 million tones at Itakpe Hill, near Okene, cooking coal estimated at 120 million tones at Lafia in Nassarawa State, marble at Jakura and Ubo in Kwara State, Limestone at Mfamosing in Cross River State,. Dolomite at Barum and Osara, and refectory clays at Onitbode/Oshiele etc.. With these discoveries the basis for setting up asteel plant was established.
To farther emphasize government development on the projects, the Nigerian Steel Development Authority (NSSDA) was established in April 1971. It had the resoonsibility for the establishment and the general development of the steel industry in the country as a whole. It was to be established later in 1979.
In 1973, Messrs Tiajprom export of the USSR was commissioned to prepare a preliminary project for the establishment of the first Iron ore and steel plant in Nigeria. The report which was submitted in 1974 was rationalized and accepted in 1975. Government specifically accepted the recommendation that the plant should utilize Itakpe Iron Ore and a blend of local and imported coals to produce long steel products only. Also in 1975, Government decided that Ajaokuta should be the site for the steel plant and Ajaokuta Steel project as is now known, was born.
Another bold and giant step for steel development projects was taken in the 1975/80 development plan, when government set up two additional plants based on the direct reduction processes, that would take advantage of the vast resources of gas which at the time was mostly being flared away. Studies were intensified in this direction and after carefill consideration the Direct Reduction process was selected and a site was chosen at Ovwain, Aladja. This led to the establishment of the Delta Steel Company which was commissioned in January 1982. Complimentary to the setting up of the Delta Steel plant. Government decided on the establishment of rolling mills at three key market centres of the ,country namely: Oshogbo, Jos and Katsina, with a production capacity for 210,000 tonnes of steel for each mill per annum. They were commissioned in December 1982.
The Three Inland Rolling
MillsThe three inland rolling mills at Katsina, Oshogbo and Jos were established to manufacture steel products such as iron rods, bars and wires using steel billet from the Delta Steel Company. Each of the mills has a capacity for an output of 210,000 metric tones of rolled products per year.
The recorded increases in the capacity utilization of Delta Steel Company positively affected the production levels of the three mills. However, the projects are beset with some constraints. Some of these problems are peculiar to some of the mills, while others are of a general nature. For instance, all the rolling mills experienced a market glut as a result of substantial importation of steel products by major construction firms in the country.
It was generally envisaged that improvement on the facility on ground would be made every 5 years of the preceding phase, there has been no remarkable improvement since the first phase due to poor capacity utilization in virtually all the mills and plants due generally to the ensuing economic recession with its attendant excibitant inflationary rates which partly put developmental constrained on the part of Government.
Whatever constraints that have emerged in the historic journey so far, relate more to the vagaries and unpredictable dynamics of the international economic systems.
Government would however continue to explore solutions to these identified constraints within the limit of permissible resources. Consequently, Government opted for the completion of Ajaokuta Steel, the Itakpe - Warn - Ore rail line and rehabilitation of Delta Steel, Aladja in the 1997-99 Rolling Plan, as a way to boost steel production.
Ajaokuta Steel Company
The Ajaokuta Steel company was established on the 18th September, 1979 and charged with the task of constructing and operating an integrated iron and steel plant at Ajaokuta.
Ajaokuta Steel plant was planned to be built in three stages. The first stage of 1.3 million tones to produce long steel products was followed by immediate expansion to 3.6 million tones for the production of 1.3 million tones of flat products in addition to the long products. The third stage is the expansion of the complex to produce 5.2 million tones of various types of finished and semi-finished steel products including heavy plates and heavy sections. The plant is designed such that it can be expanded up to 10 million tones eventually subject to demand. The steel complex is almost completed.
The Delta Steel Company which was commissioned in 1981, was conceived as one of the key industrial projects of the Third National Development Plan. In contra-distinction to Ajaokuta Steel Project, the Delta Steel Plant uses the direct reduction thereby utilizing the abundant natural gas.
The Delta Steel Company was designed to produce and feed the three inland rolling mills at Jos, Katsina and Oshogbo with billets.
The project raw material - iron ore is imported from Brazil. It is hoped that when the Itakpe iron ore project comes on stream, it would eventually satisfy about 10% of its requirements. The steel plant also utilizes limestone which is locally sourced from Mbamosing in Calabar - natural gas supplied from the Ughelli gas fields. Electric energy from NEPA grid, and scrap which is also obtained locally. Other raw materials which are mostlyimported include electrodes; ferro alloys, and refractories. Iron ore aione constitutes approximately 35% in value terms of total outlay on raw materials, consumables, and spare parts) while the rest account for the remaining 65%.
The plant has an installed capacity of 1 million metric tones of liquid steel which corresponds to 960,000 tonnes of billets. It is tilized by its own rolling milling for the production ofre-inforcement rods and shapes, while two thirds are Supplied to the inland mills. Other ancillary product include industrial gases such as oxygen, argon and nitrogen used for various industrial purposes; burnt hydrated lime for water purification and soil stabilization, and foundry products- various castings and mechanical spare parts for in-house use and for other industrial establishments which request for them. Other market intermediate products include: Direct Reduced Iron (DRI) pellet and cold briquetted products (CBI). These are used by other steel mills or foundries as their raw materials for production of various iron and steel products.
National Metallurgical Development Centre, Jos, was one of the entities carved out of the now defunct Nigerian Steel Development Authority (NSDA). It was established in 1972 as the NSDA materials Testing Laboratory, Jos, but later renamed Metallurgical Research and Test Division with the specific objectives of analyzing and upgrading raw materials related to iron and steel production with a view to determining their values and suitability for use in iron and steel production. The analyses and research work centred mainly on iron ores, coal, limestone, dolomite, refractory clays etc.
The objectives of the National Metallurgical Development Center, Jos, are to undertake applied research in various branches of metallurgy including testing and bonification of minerals, extraction and refining of iron and steel development of alloys and their physical, mechanical and chemical properties: corrosion and surface protection; examination of failure-and various other related projects.
AchievementsThe center has successfully documented all the major deposits that have so far been located i.e. Agbaja, Koton Karfe, Shokoshoko, Tajimi, Ajabanoko, Agbado-Okudu, Toto Muro and Itakpe. Also the center has successfully perfected the process of beneficiating the Itakpe iron ore into super concentrates which met the required specifications of the direct reduction steel plant at Delta Steel Plant. Finished Steel products from metallised pellets produced from this super concentrate were turned out at Delta Steel Company. They have even been proved to be of better quality than pellets usually produced from imported concentrates.
Also at the center, Research Officers have developed a lubricant for wire-drawing from local raw materials, and this lubricant has been established to be superior to imported analogue and is at present in high demand in some metallurgical plants in the country. Similarly the center has manufactured suitable high temperature furnance - lining bricks from local materials and has documented data on the major five clay deposits in addition to carrying out detailed characterization and documentation of the foundry moulding sands available in the country.
National Steel Raw Materials
Exploration Agency, KadunaThe need for a viable raw materials base for the nation's iron and steel industry informed various government policy thrusts since pre-independence days in the emphasis being placed on sourcing of raw materials locally in the quest for industralization. The economic advantage of local sourcing of raw materials to the mineral based industries include among others: foreign exchange savings and maintenance of healthy balance of payment, true economic and political independence from foreign suppliers, employment generation and rapid development of the hinterland with attendant socio-economic gains.
Established in 1971, the Nigerian Steel Development Authority (NSDA) metamorphosed into the National Steel Raw Materials Exploration Agency in 1987.
It is on record that the Agency has the largest single concentration of highly trained technical workers in the various specialized field of geosciences - exploration geologists, geophysicists, engeering geologists, hydrogeologists, surveyors, drilling engineers, paleontologist/ sedimentologist, analytical chemists etc.
The Agency has among other things, undertaken investigation ofitakpe Hill iron deposit at Okene, Kogi State where 310 million tonnes of iron ore assaying 39 percent iron was proven and the Lafia/Obi cokeable coal with an estimated commercial reserve of some 32 million tonnes. Onibode was estimated at 2.8 million tonnes of refractory clay; Osara dolomite (Kogi State) had a proven reserve of 2.8 million tonnes; Burum dolomite in the FCT was with proven reserve of 4 million tonnes; the Mfamosing limestone deposit in Cross River State was with a reserve of 28 million tonnes; while Ubo marble deposit was with a reserve estimate of 20 million tonnes.
The Metallurgical
Training Institute, OnitshaThe Metallurgical Training Institute was charged with the responsibility of training of personnel, installation and repairs, for various government steel projects.
Established in 1978, Government sought for and obtained assistance from the Government of the Federal Republic of Germany through her agency for technical cooperation. The German Government offered soft loan of 50 million Dutch Mark with 3% interest and a year moratorium, repayable in fiteen years. There was also a technical assistance grant of 25 million Dutch Mark.
Specialized
Courses in the MTITo realize its objectives. Government delimits MIT specialized courses into five, all of which are three years practical/production oriented.
Heavy Mobile Maintenance
The immediate direct impact of the institute on the country's economy include:
Aluminium Smelter Company
of Nigeria Ltd, Ikot-AbasiFollowing government's approval and the signing of various agreements between the Federal Government and the technical Partners led by Ferrostal AG in. October 1989, the Aluminium smelter Company of Nigeia (ALSCON) was incorporated in November 1989.
Government decided to implement the aluminium smelter project in appreciation of the substantial contributions it is expected to make towards the economic development of the country. In the first place, the smelter will utilize a large quantity of the nation's abundant gas resources to generate energy for the production of aluminium. The Aluminium Smelter project is essentially export oriented, as about 85% of its products are meant for export, this would definitely give a boost to Government's quest for diversification of the National sources of foreign exchange.
National Iron
Ore Mining Company Limited, ItakpeIn 1979, Decree No. 60 dissolve theNSDA and established six companies to foster the national steel industry. Among these companies, the AOMC which was developed from the mining division of the defunct NSDA, inherited all the responsibilities of NSDA in the field of mining and production of iron ore and raw materials for steel making.
In February 1987, AOMC was renanned National Iron Ore Mining Copany Limited (NIOMCO). Accordingly, NIOMCO's responsibilities of exploiting, exploring and processing for the Nigerian. Steel Industry were in principle restricted to iron ore.
To carry out its responsibilities, NIOMCO is exploiting, first of all, the Itakpe Iron Ore deposit near Okene, Kogi State. The deposit has a proven iron ore reserve of about 200 million tonnes with an average of about 35 percent Fe content. The Itakpe Iron Ore project is to supply 2.15 million tonnes iron ore requirement ofAjaokuta Steel Company. In addition, it is contemplated to supply about 40% of Delta Steel company requirement corresponding to about 550,000 tonnes per year.
The operation involve blast-hole drilling, charging and blasting, loading and transportation of the broken materials. These are achieved by use of huge mining and ancillary equipment, such as rotary drills, hydraulic shovels, dump tracks, excavators, explosives, trucks etc.
The Itakpe run-off mine ore (36%) would need to be upgraded to obtain its concentrate of the quality (64% FE) required for Ajaokuta and 68 percent Fe for the Delta Steel Plant.