Unlocking Nigeria’s Lithium Potential: Orosur Mining’s Investment Endeavour

Canada’s Orosur Mining to Invest $5 Million in Nigerian Lithium Exploration

Orosur Mining, an esteemed Canadian mineral exploration company, has declared its dedication to invest $5 million in the exploration of Nigeria’s extensive lithium deposits. This significant investment is being made as the Nigerian Geological Survey Agency (NGSA) has committed to providing valuable geosciences information to support the endeavor.

During a recent meeting with Dr. Dele Alake, the Minister of Solid Mineral Development, and Dr. Abdulrazaq Garba, the director-general of the NGSA, Mr. Louis Castro, the Executive Chairman of Orosur Mining, expressed great confidence in Nigeria’s regulatory environment in the mining sector. He conveyed his optimism that the initial investment will pave the way for numerous future investments in Nigeria’s highly lucrative solid minerals sector, particularly due to the country’s substantial lithium reserves.

In addressing the Minister, Castro announced, “As part of our ongoing strategy to secure high-quality mineral exploration opportunities in key jurisdictions worldwide, Orosur Mining has entered into a Joint Venture agreement to explore several exploration licenses across Nigeria, which we believe hold great potential for lithium mineralisation.” He also sought the Minister’s support for the company’s investment decision in Nigeria’s mining sector.

Dr. Abdulrazaq Garba, the director-general of the NGSA, emphasized the agency’s dedication to providing comprehensive mineral information about Nigeria to Orosur Mining. He assured the Canadian firm of ample geosciences data on lithium mineralisation across the country and expressed the agency’s readiness to leverage its globally recognized technical expertise to maximize the investment outcomes for the mining firm.

Furthermore, Dr. Abdulrazaq Garba reaffirmed to Castro that in line with the NGSA’s mandate on mineral exploration, the agency had successfully generated reliable data sets on Nigeria’s lithium resources and information on other minerals in the country.

Engr. Obadiah Simon Nkom, the director-general of the Nigeria Mining Cadastre Office (NMCO), highlighted the simplification of mineral licensing processes for interested firms through the electronic mining cadastre (eMC+) platform of the agency.

In its efforts to revitalize the Nigerian mining sector, the federal government is actively encouraging investments in mineral exploration as part of its policies to advance the administration’s Renewed Hope Agenda. Minister Alake previously outlined the government’s prioritization of seven essential minerals, including lithium, and their deposits for maximal development. He also assured stakeholders of creating a conducive business environment for investors.

The federal government’s commitment to uplifting mineral exploration is evidenced through the National Integrated Mineral Exploration Project (NIMEP), a project supervised by the NGSA and endorsed by industry stakeholders.

As a means of streamlining the business landscape for mining in Nigeria and promoting Foreign Direct Investment, the federal government has introduced several policy measures to incentivize mining investors. Notably, the mining sector in Nigeria benefits from Pioneer Status, entitling companies to a tax holiday and a comprehensive set of incentives designed to create a favorable investment environment for the solid minerals and mining sector.

These measures include deferred royalty payments, capital allowances of up to 95% of qualifying capital expenditure, and exemptions from customs and import duties for mining operations’ plant, machinery, and equipment. Additionally, mining investors enjoy tax holidays, tax concessions, and other benefits, strengthening the ease of doing business in the mining sector.

In conclusion, Orosur Mining’s substantial investment in Nigerian lithium exploration, supported by the NGSA and the country’s favorable regulatory framework, signals a promising trajectory for the mining sector. With the federal government’s proactive approach to incentivizing mineral exploration and creating an enabling business environment, Nigeria is poised to attract increased foreign investment and propel the development of its solid minerals sector.