FG signs agreement to revive Delta Steel Company

The Federal Ministry of Steel Development has signed an agreement towards facilitating the revival and full operationalisation of the Delta Steel Company, now known as Premium Steel and Mines Limited (PSML) in Delta state.

The agreement marks a significant milestone in the government’s ongoing efforts to reposition the steel industry assets as a critical driver of industrialisation, economic diversification, job creation and sustainable national development.

A statement on Friday by the head of press and public relations unit of the ministry, Salamatu Jibaniya, stated that the plant, commissioned in 1982 with an installed production capacity of one million tonnes of liquid steel per annum, was established as an integrated green steel plant with the capacity to contribute to Nigeria’s industrial development.

 It said the plant, however, experienced prolonged operational challenges and was eventually shut down after operating at 25 per cent of its installed capacity.

“The plant has not been operated as an integrated steel plant since 2015, an ugly situation the President Bola Ahmed Tinubu government is poised to change,” it stated.

The management of Premium Steel and Mines Limited (PSML) was committed to inject over $1.3Billion USD into the project for raw material exploration and exploitation, steel plant rehabilitation, and modernisation for sustainable operation to achieve full capacity production of 1million metric tonnes of liquid steel per annum, it stated.

Speaking on the development, the Minister of Steel Development, Prince Shuaibu Abubakar Audu, noted that the revival was consistent with President Bola Ahmed Tinubu’s Renewed Hope Agenda, particularly the administration’s commitment to strengthening local manufacturing, creating employment opportunities, and unlocking the productive capacity of Nigeria’s industrial sector.

He said: “The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life; it is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation.”