Nigeria moves to revive Delta Steel Company with $1.3bn investment

The Nigerian Federal Ministry of Steel Development has signed an agreement to facilitate the revival and full operationalization of the Delta Steel Company, currently known as Premium Steel and Mines Limited (PSML), in Ovwian-Aladja, Delta State.

To modernize and rehabilitate the plant, PSML has committed over $1.3 billion. The goal is to return the facility to commercial production within 18 to 24 months. A key component of this revival is a newly signed Sub-lease and Operations Agreement between the National Iron Ore Mining Company, Itakpe, and PSML, which aims to ensure sustainable access to the iron ore required for production.

Originally commissioned in 1982 with an annual capacity of one million metric tonnes of liquid steel, the plant suffered from prolonged operational challenges and previously operated at only 25% capacity before shutting down. The revival project is expected to create approximately 25,000 direct and indirect jobs, supporting the government’s objectives for economic diversification and industrial growth.