Chart & Capstone Integrated Ltd and Sinomach-HE Sign Financial and Technical Agreement for $1 Billion Iron Ore-to-Steel Project
Chart & Capstone Integrated Ltd, a Nigerian company, and Sinomach-HE, a Chinese firm, have signed a financial and technical agreement for a proposed $1 billion iron ore-to-steel project in Kogi State, Nigeria.
The project, which aims to bridge the deficit gap in steel production in Nigeria, is expected to commence construction in 2026 and be completed by 2027.
Key Highlights
- Project Timeline: The project is expected to reach financial close by December 2025, with civil works commencing in the first quarter of 2026. Equipment supply is slated to begin in the third quarter of 2026, and project implementation will be in full scale.
- Benefits: The project will not only improve steel production in Nigeria but also create employment opportunities for local employees, enhance backward integration, and promote the upgrading of the China-Nigeria Bilateral Investment Treaty.
- Partnership: The partnership between Chart & Capstone Integrated Ltd and Sinomach-HE is expected to strengthen the comprehensive relationship between China and Nigeria, with Sinomach-HE’s status as a heavy equipment manufacturer and Global Fortune 500 company lending credibility to the project.
- Land Allocation: The Delta State government has committed to allocating a suitable land site in Oleri town, Udu Local Government Area, to be designated as a Special Economic Zone for the steel making plant.
Project Details
The iron ore-to-steel project will involve the production of billets to supply the Nigerian Steel industry, reducing the use of scrap material.
Nigeria requires approximately 20,000 km of pipelines for local and gas projects, including the Trans Saharan Gas Pipeline (TSGP) and the Nigeria-Morocco Gas Pipeline (NMGP) projects.
Milestones Achieved
- Exploration License: Chart & Capstone Integrated Ltd has been granted an exploration license covering 200 cadastre units and 40 square km of iron deposit in Kogi State.
- Geological Surveys: The company has engaged a Chinese firm, WSGRI Engineering & Survey Incorporated Ltd, to carry out geological surveys and core drilling.
- Financial Feasibility Studies: Financial feasibility studies are ongoing in Nigeria, handled by Plyse Professional Services.