The Nigerian government has recently announced that it will only grant new mining licences to companies that have a plan for processing minerals locally. This is a big change from the country’s previous policy of exporting raw materials without processing them first.

Nigeria, despite its status as a major energy producer in Africa, has yet to fully capitalize on its abundant mineral resources, with the mining sector contributing less than 1% to the nation’s gross domestic product. This can be largely attributed to the lack of incentives and attention afforded to the industry.

In order to attract greater investment in the mining sector, the government is undertaking a number of initiatives. These include plans to issue additional licenses to companies, as well as the establishment of a state-owned solid minerals corporation, which will offer investors a 75% stake. In addition, a special security unit has been created to combat illegal mining activities, and efforts are being made to regulate and organize artisanal miners into cooperatives.

Furthermore, the government aims to provide tax waivers on mining equipment imports and streamline the process for obtaining electricity generation licenses in order to further incentivize investment. Companies will also be permitted to repatriate their profits in full, on the condition that they demonstrate plans for establishing processing plants and adding value to the Nigerian economy.

Additionally, it has been reported that the government plans to establish a state-backed minerals corporation, known as the Nigerian Solid Minerals Corporation, with a focus on extracting a variety of minerals including gold, coal, and iron ore, among others.

Positive developments in the mining sector have also been making headlines. For example, Legacy Iron recently announced its first ore sale from Mount Celia, marking a significant milestone. In Nepal, 159 mines have been issued extraction permits as part of an effort to harness the nation’s underground resources. Sigma Lithium has received approval for a $100 million expansion of its plant in Brazil, with the goal of doubling its green lithium production capacity by 2025.

Furthermore, Glencore’s investment in Stillwater Critical Minerals will support its exploration and development activities, while Canadian nickel exploration company EV Nickel has completed a private placement, raising aggregate proceeds of $5.12 million. True North Copper has also secured $5 million through a share placement.

The recent advancements in Nigeria’s mining sector, along with the promising developments in the global mining industry, are certainly worth monitoring closely. As the government takes steps to attract more investment and add value to its mineral resources, the future of the industry appears to be very promising.