Indonesian plans to reduce annual import of basic metal to promote domestic production

The metal industry is beginning to receive positive signals as the Federal Government intensifies plans to reduce annual import of basic metal (including aluminium), iron and steel, which is valued at $3.3 billion.

The Federal Government is spearheading a move to bring in investors that will develop bauxite, iron ore and other essential minerals that serve as raw materials in the industry. The move is aimed at increasing access to raw materials for the local industry and reducing overdependence on imported materials in the sub-sector. It is also targeted at increasing capacity utilisation in the industry, which currently stands at 52.3 percent, Real Sector Watch has gathered.

Industry players see this as a step in the right direction, as they say the sub-sector, if given more than a passing attention, will add fillip to Nigeria’s quest for economic diversification.

“The government now wants the local industry to have the capacity to produce steel from iron ore as well as grow engineering and production facilities to strengthen the economy,” Oluyinka Kufile, vice-chairman, basic metal, iron and steel group of the Manufacturers Association of Nigeria (MAN), and chairman, Qualitec Industries Limited, told Real Sector Watch in an exclusive interview.

“A committee has already been set up on this. The committee will carry out a survey and will make create investment room for international bidders who will be willing to obtain mining licences,” Kufile says.

The chairman of Qualitec Industries Limited further says that government has assured local manufacturers that efforts are on gear to bring in first-class companies to mine bauxite to produce large quantities of alumina, which are basic raw materials for aluminium production.

According to him, the government has also assured them of plans to create the right atmosphere to bring in smaller smelter companies to serve local aluminium makers.