Contrary to wide speculations and media reports describing the Ajaokuta Steel Plant in Kogi State as moribund or obsolete technological wise, the industry is said to be using the BF-BOF (i.e. Blast Furnace) Technology which was deployed to produce about 70 percent of the 1.5 billion tonnes of the World's Crude Steel as at December 2012.
The Sole Administrator, Ajaokuta Steel Company, Engr. Isah Onobere who made this known on Friday while guiding members of the National Good Governance Tour team on an inspection of the site, further explained that out of the 1.5 billion tonnes of crude steel produced globally, 29.3 percent was produced through the Electric Arc Furnace and 1.1 percent through open-hearth Furnace Technology.
"So, if as at December 2012, 70 percent of the World Crude Steel production was achieved through this technology, what has now made it obsolete? I guess it is one set of medicine for the developed nations and another set for the up-coming nations", Engr. Onobere said.
He stated that"The technology therefore remains the most acceptable and applied in Iron making process, the most established, Energy efficient Steel Processing Technology worldwide and easily lends itself to modernization and up gradation".
The Sole Administrator insisted that notwithstanding the long years of partial operation of the steel plant, the technical readiness already achieved has not diminished significantly as preservation of equipment and facilities are constantly undertaken.
Engr. Onobere informed the Team that the Ajaokuta Steel Company Limited (ASCL) is wholly owned by the Federal Government of Nigeria as a parastatal under the supervision of the Ministry of Mines and Steel Development.
"Until the 13th day of November 2012, when I assumed office as Sole Administrator, the company was run by an Interim Management Committee, a 16-man committee that hitherto concurrently managed the National Iron Ore Mining Company, Itakpe from 2nd April, 2008.
"ASCL is the agency responsible for the management and operation of Ajaokuta Steel Plant. The Plant which is being developed in three phases is presently at about 95 percent completion stage of the first phase.
"Government was compelled to stop further capital development on the Plant due to dearth of funds. Following a Technical Audit of the Plant in 2010, it was estimated that about USD 1.2billion is required to achieve the total rehabilitation, completion and commissioning of the Plant ($513m) and balance of external infrastructure ($687m)", Onobere stated.
On his achievements since assuming office in November 2012, the Sole Administrator of the Steel Company said a high level of industrial peace and harmony has been recorded noting that "Staff salaries and emoluments are paid regularly".
Also, within the period under review, he said all pending court cases between ASCL and staff on one hand and between members of the staff unions on the other hand were withdrawn and resolved out of court leading to the peaceful conduct of Senior Staff union elections.
A major achievement within the period, he added is the preservation and maintenance of the vast array of equipment, facilities and infrastructure that make up the Steel Plant to ensure that the status reported during the 2010 Technical Audit of the Plant is maintained and that the strategic national investment that Ajaokuta Plant constitutes is not left to decay.
He informed that "The underground water table at the plant is maintained at safe levels round the clock through continuous de-watering of several tunnels and chambers at the site. The intricate network of power and utility lines within the Plant are maintained and the installed equipment regularly idle run".
He further disclosed to the NGGTour Team that a work plan was drawn up with the view to putting the completed units of the Steel Plant into operation in order to fully engage the staff, generate employment and generate some revenue, add value to the Steel Plant as asset and ensure that the Federal Government's Transformation Agenda, SURE-P, and Vision 20:2020 economic blueprint are realized in the Steel Sector.
He said the work plan is a product of serious and committed endeavour occasioned by the necessity to keep the Plant in working order.
In a bid to operationalize the completed units of the Plant, Memoranda of Understanding were signed with a number of investors.
Federal Ministry of Information (FMI) Nigeria