Boosting Nigeria’s Geological Data Capabilities: A Groundbreaking Partnership

In a significant development within Nigeria’s mining industry, the Africa Finance Corporation (AFC), the Solid Minerals Development Fund of Nigeria (SMDF), and Xcalibur Multiphysics have joined forces to revolutionize the landscape of geo-scientific data and geological mapping for early-stage mining projects in Nigeria. On the sidelines of the Nigerian Mining Week in Abuja, a Cooperation Agreement was signed, signifying a momentous stride in the country’s mining sector.

The primary goal of this collaboration is to advance initiatives that will enhance the availability of Nigeria’s geological data to potential investors worldwide and develop an exploration program for mapping the country’s underground mineral wealth. By establishing a comprehensive database showcasing Nigeria’s resource potential, the aim is to attract long-term investment from banks, mining firms, financial institutions, and individuals.

As a result of a joint venture agreement signed earlier this year between AFC and Xcalibur, this latest initiative in Nigeria serves as a tangible outcome of the program. Through this tripartite agreement, AFC and SMDF will collaborate on exploring suitable financing solutions, engaging with regulators, supporting relevant government agencies, and facilitating government discussions, while Xcalibur will provide technical support, oversee data quality, and conduct economic evaluation studies.

Samaila Zubairu, President & CEO of AFC, underscored the potential of Nigeria’s natural resources and stressed the need to improve the availability of high-quality geomapping data to attract valuable mining investments. This initiative is aimed at establishing Nigeria as a pivotal player in the global energy transition.

Fatima Umaru Shinkafi, Executive Secretary and CEO of the Solid Minerals Development Fund, emphasized the need for increased exploration activity in Nigeria to tap into the country’s geological endowment and support new projects. The partnership with AFC and Xcalibur is expected to stimulate resource exploration activity, derisk resource exploration in Nigeria, and make the country more appealing as a resource exploration destination.

Dario Castellanos, VP Financing and Middle East Director of Xcalibur Multiphysics, expressed enthusiasm for the collaboration, believing that it will bolster the availability of high-quality geophysical data and contribute to the development of critical mineral resources in Nigeria.

Despite being home to 30% of the world’s mineral reserves, Africa only receives 5% of global mining financing. AFC has played a significant role in closing the financing gap in Africa’s mining sector, with investments in critical projects such as the Dynamic Mining Bauxite Mine in Guinea and the FG Gold Baomahun Gold Project in Sierra Leone.

In conclusion, the partnership between AFC, SMDF, and Xcalibur signifies a significant step towards unlocking Nigeria’s mining potential and positioning the country as a key player in the global energy transition.