Thread by @fmmsdngr

In recent weeks, we have received several inquiries regarding Ajaokuta Steel Plant. Normally, we will not respond to the series of unfounded and obviously fabricated claims surrounding our efforts to bring to life our foremost iron- and steel-making projects

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However, it is crucial to educate the unsuspecting public & present a chronological evolution of issues surrounding the key iron/steel projects in the country. We believe these background knowledge will help to enrich the national discourse on the projects & forge a way out

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For the purposes of this presentation, the following legends apply:

AGF - Attorney General of the Federation
APE - Administrative Panel of Enquiry
ASCL - Ajaokuta Steel Co Ltd
ASP - Ajaokuta Steel Plant
CA - Concession Agreement
DSC - Delta Steel Co
FGN - Federal Govt of Nig

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FSA - Framework Settlement Agreement
GINL - Global Infrastructure Nigeria Ltd.
GIHL - Global Infrastructure Holding Ltd.
GSHL - Global Steel Holding Ltd
ICC - Int’l Chamber of Commerce Court of Arbitration
MCA - Modified Concession Agreement
MoJ - Minister/Ministry of Justice

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NCP - Natl Council on Privatization
NIOMCO - Natl Iron-Ore Mining Co
NRC - Nigerian Railway Corporation
NSCD - Natl Steel Council Decree
NSDA - Natl Steel Devt Authority
SPA - Share Sales & Purchase Agreement
TPE - TyazhPromExport
USSR - Union of Soviet Socialist Republics

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We lay bare below a historical timeline of significant developments of issues relating to the steel projects.

1971: NSDA established w/ responsibility for planning, construction & operation of steel plants but also exploration of raw materials required in steel production

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1974: Decision to site ASP in Ajaokuta in the then Kwara State

1977: Confirmation of viable deposits of iron-ore, limestones & dolomite at Itakpe, Obajana & Osara respectively on sites w/in 100km radius of Kabba–Okene–Lokoja triangle

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1977: Decision to locate NIOMCO in Itakpe, w/in the same radius, to serve as a raw material feeder plant for ASP

July 1979: Contract for working drawings, supply and installation of technological equipment and steel structures of ASP awarded to Messrs TPE of defunct USSR

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Sept 1979: ASCL, DSC & NIOMCO formed under S2 of NSCD No 60 of 1979

1980: Wimpey contracted to build Metallurgical Training Complex; Boskalis awarded the river port; project management awarded to Pan African Consultancy Services Ltd & Metallurgical Eng’g Consultants

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Other civil eng’g works contracted to Fougerolle Nig/Fougerolle SA (raw material plants, coke oven, blast furnance thermal power plant); Bilfinger & Berger/Julius Berger (steelmaking shop & rolling mills), & Dumez Nig/Dumez Afrique (auxiliary shops, lime & refractory plants)

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Below is a simple flow chart design of the operations at ASP:

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1983: Inauguration of Light Section Mill (LSM) of ASP

1984: The Light Section Mill (LSM) in ASP as well as the Rolling Mill in DSC ran for a short period and were shut down due to lack of operating capital

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1996: TPE contract terminated under Supplement 34

2000: TPE contracted to conduct Technical Audit of ASP

June 2003: FGN grants Messrs. Solgas Energy of USA a 10-year Concession for rehabilitation, completion, management & operation of ASP

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August 2004: Cancellation of Concession Agreement with Messrs. Solgas Energy due to non–performance

August 2004: FGN grants Messrs. GINL 10-year concession (w/ option of another 10-year extension) for the rehabilitation, completion, management & operation of ASP

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Feb 2005: FGN grants GINL 10-year (w/ option of extension) Concession for rehabilitation, completion, management & operation of NIOMCO

Feb 2005: GINL purchases 80% of DSC shares from FGN through Delta SPA. GINL took management control of DSC

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October 2006: FGN grants GINL a 20-year concession in respect of the Central Rail line from Itakpe to Ajaokuta to Aladja

May 2007: FGN entered into Ajaokuta SPA with GINL giving 60% of the issued share capital of ASCL to GINL

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Effectively, by end of May 2007, GINL had gained ownership control of ASP (60%) & DSC (80%); a 10-year Concession Agreement (with option of another 10-year extension) in respect of NIOMCO and a Railway Concession with a duration of 20 years, from their effective dates

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August 2007: President Yar’Adua constitutes an APE to look into the activities of GINL in ASCL, DSC & NIOMCO

Dec 2007: APE submits its report and recommends the termination of the GINL Concession Agreements with respect to ASCL and NIOMCO

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Feb 2008: FGN through the NRC, terminates the GINL 20-year CA with respect to the Itakpe-Ajaokuta-Aladja Central Railway

April 2008: FGN cancels concession of NIOMCO due to GINL’s failure to show capacity & convinced that the CA was skewed in favour of GINL

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NOTE: If FGN had waited 25 more days, it could have taken advantage of clauses 3.2 & 12.1 of Ajaokuta SPA. GINL had an obligation to pay US$162m by 25th May 2008 for the purchase of ASCL shares – and it was apparent that this payment would not have been made by the due date

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April 2008: GINL took Nigeria to the ICC claiming huge damages for wrongful termination and breach of Contractual Agreements in respect of ASCL and NIOMCO. The Arbitration dragged for 4 years

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Dec 2012: President Jonathan approves out of court settlement as best option to resolve the logjam with GINL, having taken legal advice that the cost of termination may be substantial. The AGF/MoJ constitutes team to negotiate with GlNL on behalf of FGN

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Jan-May 2013: FGN negotiating team met trice w/ GINL resulting in a “Framework Settlement Agreement (FSA)” dated 1 May 2013. FGN resolved through mediation & conciliation between its negotiation team & GINL, to re-concession NIOMCO to GlNL for 7yrs & take back ASCL from GINL

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Dec 2014: To implement the points already concluded in the FSA, 3 further meetings were held. 1st on 05/05/2014, 2nd on 30/07/2014 & 31/07/2014. 3rd meeting of 05/12/2014 concluded the agreement schedule of the modified concession agreement

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14th June 2016: Not entirely satisfied with the terms of the initial MCA, the Ministry of Mines and Steel Development led by the Minister, Dr. Kayode Fayemi - @kfayemi, initiated a modified NIOMCO Concession Agreement (MCA) as an Addendum to the 2013 FSA

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