On the Run

The future of any nation depends on its ability to build infrastructures from steel. We know how the railroad system opened up America on its quest to become a super-civilization. The utilization of iron ore was the key and the dependence on foreign steel has led to many of our problems today. Although we have railroads which are the true backbone of our economy; we procure steel from nations which don't have iron ore reserves. The cost of everything related to steel is going up and all of our major foundry's are shutting down, because they cannot compete. I had a private conversation with the Ministers of Steel in Nigeria, I warned them of the consequences of dependence on foreign steel. The context of my dialog revolved around the iron ore mine at Itakpe, in Kogii State, Nigeria. As GM of Koch Nigeria, LTD, I saw first hand why they must revitalize that iron ore mine. The initial completion of the mine represented a quantum leap in iron ore production technology which is still decades beyond anything we have on Earth today. The process known as Super-Concentrate modulates iron ore which is 45% pure to 77% pure iron ore. The iron is to hard to make nails, the nail machines can't cut it, the frequent break down makes it not economical. The fact that there are three billion tons of proven iron ore reserve in Africa, 250 million tons of which is in Itakpe would have made it possible for Nigeria to become a world leader in the steel industry. It did not happen. Imagine some one driving a new car who has never driven a car in their life. I can even take you deeper; give the controls of the Space Shuttle to a child. This is what essentially happened at Itakpe. The systematic destruction of the Itakpe Iron Ore Mine was finally stopped last year. The recommission contract was all but a done deal for Koch Nigeria, LTD. It seems like it want happen , there is nothing in the new budget for Itakpe Iron Ore Mine or Koch Nigeria, LTD. It has been talk-talk all the time I was in Abuja. We delivered every document that Procurement requested, the Director of Steel and my MD were hospitalized in the Belgium Accident, Koch gave the Indians the parts they needed to keep production going at Itakpe, and the power point presentation given by the MD at the African Steel Summit opened everyone's eyes to the spoiling of Itakpe.

A company from India was given a free hand to run production by the Nigerian government, the contract went straight from the then director to the Indians, he signed off on it, the rest is history. The contract gave a foreign nation control of Nigeria's future in the world steel industry. Once the parts; which were under the control of Koch, ran out and they defaulted on purchases from other sources, the scavaging began to keep production going. The 50 million tons of ore processed while the Indians ran the mine; a zero in the ledger of income for the Nigerian Treasury. The Indians and their associates never paid the government a dime, it was all pure profit.Where did the money go; somebody got paid. A contract with Koch Nigeria, LTD made it possible to deliver 50,000,000,000 Naira worth of parts and consumables from Belgium to Lagos to Italkpe, The testing, running and recommissioning of the Itakpe Iron Ore Mine seemed a great possibility. It didn't happen; the mine is ghost. There are talks of privatization, the Chinese, Ukrainians, and Europeans talk of purchasing the iron ore mine and the iron ore. The workers and their families are starving; This was all the result of international strategic warfare against the steel industry in Nigeria. The mine fully operational is capable of producing forty million tons of Super-Concentrate each year. You might be thinking where is the market with the current down turn in the steel market price; Nigeria is its on market, the developing nations of Africa are the Market. Let's go back to the premise that steel is the key to industrial and economic progress; What about fifty more Itakpe's all throughout Africa's iron producing belts. We put the word out at the African Summit that Koch Nigeria, LTD can construct those mines; right now. The railroads would do the same thing for Africa that it did for the United States of America during nation building time. Instead of seeing a void from the satellite in space; Africa would be shining as it takes its role in the future of civilization. The Indians were driven from the Nigerian steel industry but the destruction was systematic; it will take eighteen months to re normalize the mine. They destroyed the automation system, heavy ground equipment, the primary crusher, electrical wiring, motors, conveyors, and scavaged the two production lines to keep one running. The fourth line was never installed but they promised to do that so as to win the contract from the start of them taking control of the mine. It seems improbable that one company could be in control of all the steel production assets; mines and foundry's of a nation, destroy or spoil each one without the government taking a stand, it happened. There lacking of funding for the project represents a slap in the face of the nation of Nigeria and Africa, the world.. The table is full; only a few are eating. Oil will not, by itself, sustain nation building; if it could there would be a electrical grid in Nigeria that works. Who is in charge? The destiny of many is in the hands of a blind few should not be the story told for this Nation. It has the formula of the future; its people and in the ground.