Nigeria’s Leading Role in Reviving Mining in Africa
In a recent interview at the Future Minerals Forum in Abuja, Dr. Dele Alake, the Minister of Solid Minerals Development, proclaimed that Nigeria is poised to lead a revival of Africa’s mining industry. The objective is to add value and derive maximum benefit from the continent’s extensive mineral resources. According to Alake, Nigeria will take proactive steps to mobilise other African nations and drive robust mining activities, with the goal of advancing the mining sector across the continent. He stressed the importance of collective action, urging African countries to unite in advocating for the continent’s interests in the global mining industry. Alake noted that Nigeria and Uganda have already led a coalition of over a dozen African nations in presenting a case for local value addition and maximum benefit from their mineral resources.
The Minister also highlighted the establishment of the African Minerals Strategy Group (AMSG) as a significant outcome of this coalition. He emphasised the need for a unified voice on the requirement of value addition as a crucial factor in attracting investment in the mining sector. By presenting consistent regulations and laws in different African countries, the coalition aims to demonstrate sincerity and earn global respect for Africa’s mineral wealth. Alake pledged full support from Nigeria’s President in achieving these objectives.
In addition to advocating for value addition, Alake underscored the importance of establishing a complete value chain encompassing exploration, mining, processing, inventory management, transportation, and delivery to end-consumers. He emphasised the necessity of infrastructure to facilitate these processes, particularly highlighting the preference of private sector players to invest in mining sites near ports. As a result, the collaboration with consumer nations on infrastructure provision is seen as a strategic approach that does not undermine local value addition.
Alake also discussed Nigeria’s emerging status as a prime destination for investment in the lithium value chain, citing a “lithium boom” in the country. He pointed out the abundance of this critical metal in various locations, stating that it is readily accessible on the surface of the earth in many areas. This accessibility, he believes, will lead to lower production costs for extraction in comparison to other countries.
Furthermore, the Minister reiterated the importance of Public-Private Partnerships (PPP) and collaboration with multilateral financial institutions to secure the necessary funding for developing the mining sector. He highlighted Nigeria’s proactive measures in this regard, such as the establishment of the Solid Minerals Development Fund (SMDF) to enhance the capacity of local investors in mineral exploitation.
With Nigeria taking the lead in championing the resurgence of Africa’s mining industry, there is optimism for significant advancements in the sector, leading to increased value addition, benefits for local communities, and enhanced competitiveness on the global stage.
