In a strategic move by the Anambra State Government to drive profitability and boost the state’s GDP, the State Governor, Prof. Chukwuma Soludo, has announced plans to commence commercialisation and privatisation of the state-of-the-art Kaolin Processing Plant, Umunuko, Ukpor, Nnewi South Local Government Area.
This announcement came following the meeting and decision of the Anambra State Executive Council(ANSEC), having reviewed the Kaolin Factory status report and concluded that it is now ready for commercial production.
Reacting to the news, the Managing Director and Chief Executive Officer of Anambra State Solid Minerals Development Company and Anambra State Petroleum and Energy Resources Limited, Prof.Charles O.Ofoegbu, narrated that it is a welcome development by the state government, as it is the surest way to grow the state’s economy.
He highlighted that privatisation, which he described as a transition that takes a company from being publicly traded to becoming privately held, has its own benefits which includes efficiency gains, increased competition, economic growth and development and many more.
Prof. Ofoegbu stated that the situation he met the Kaolin Processing Plant when he assumed office was horrible, noting that it was completely abandoned for over 20 years by previous administrations, but with the support and visionary leadership of the Soludo-led administration, the Kaolin factory is now refurbished, completed, certified by Standard Organisation of Nigeria and now ready for commercial activities.
“Mr. Governor has given us a go ahead to start commercialisation and see how it can run for three months, after which privatisation follows.”
“We are not selling it off totally, when we say privatisation, we mean the state can now have like 10% or 20% of the share, but then we will allow other investors/private individuals to come in, so the system can grow”, Prof.Ofoegbu said.
Prof. Ofoegbu went ahead to mention that already,the state government through the electricity law which has been signed, is now in the process of discussing with investors who are interested in power generation using the massive gas reserves that we have. According to him, the state is about to build a warehouse to bring in power(750 kva transformer) that will serve the factory and the immediate community that lacks electricity.
Describing the Kaolin factory as the best thing that has happened to the state yet, Prof. Ofoegbu emphasised that his company will do a resource and reserve estimate evaluation of the raw materials so as to convince investors that the plant can be driven for the next 25 years.
The Kaolin products are valuable minerals resources that are classified into industrial and pharmaceutical class. While industrial class are mostly used for paints, coatings, ceramics, plastics, cosmetics etc, the pharmaceutical grade Kaolin are for medicinal purposes. These put together will enhance improved and better performance in it’s productive efficiency and profitability.