Exploring New Opportunities: Barrick Gold Corp. and Rio Tinto Group Show Interest in Nigeria’s Mining Sector
Nigeria is garnering attention from major mining companies such as Barrick Gold Corp. and Rio Tinto Group as the West African nation seeks to develop its underdeveloped mining industry. Olamilekan Adegbite, Nigeria’s mining minister, disclosed that these companies have expressed strong interest in exploring opportunities within the country.
In an interview during a mining conference in Riyadh, Saudi Arabia, Adegbite revealed that Barrick Gold Corp., based in Toronto, and Rio Tinto Group, headquartered in London, are contemplating the prospect of entering the Nigerian market. He conveyed the government’s confidence and stated that discussions with these companies are currently in progress.
This heightened interest comes as Nigeria endeavours to diversify its economy and reduce its dependency on oil revenues. As Africa’s leading producer of crude oil, the country aims to emulate the success of Thor Explorations Ltd., a Vancouver-based company that effectively launched Nigeria’s first industrial gold project. The accomplishments of Thor Explorations Ltd. are viewed as a positive sign for potential investors in the Nigerian mining sector.
Notable recent developments in the country’s mining industry include the successful launch of a gold mining project by Thor Explorations Ltd. in southwestern Nigeria. This achievement marks a significant milestone as it signifies a shift towards formal and industrial-scale mining activities within the country. It has been reported that the company aims to achieve an annual gold output of 85,000 ounces, showcasing the potential for sustainable mining operations in Nigeria.
Looking ahead, the Nigerian government plans to facilitate the auctioning of mining rights for valuable minerals such as gold, lithium, copper, and limestone later this year. This initiative is anticipated to foster an environment that stimulates additional investment and growth within the Nigerian mining industry.
Despite possessing substantial reserves of valuable metals such as gold, zinc, lead, and iron ore, Nigeria’s mining sector has predominantly operated using informal methods and basic equipment. Consequently, the contribution of mining to the country’s gross domestic product has been marginal, standing at less than 0.1% prior to the recent advancements.
Historically, mining played a more substantial role in Nigeria’s economy, accounting for 4% to 5% of the GDP in the 1960s and 1970s. However, the shift towards oil production caused a decline in the mining industry. With the renewed interest and potential investments from major global mining companies, Nigeria aims to reinvigorate its mining sector and restore its position as a significant player in the global mining landscape.
Furthermore, Nigeria is addressing challenges related to gold smuggling, with a significant portion of illegally extracted gold being transported to destinations such as Dubai. Adegbite disclosed that the Nigerian government is actively engaging with authorities in the United Arab Emirates to combat these illicit practices, seeking cooperation to put an end to illegal gold trade.
The growing interest from reputable mining corporations and the proactive measures taken by the government demonstrate Nigeria’s commitment to creating a conducive environment for investment and sustainable mining operations. As the nation advances towards unlocking the full potential of its mining sector, partnerships with industry leaders such as Barrick Gold Corp. and Rio Tinto Group are vital to realising this vision.
