Enhancing Nigeria’s Mineral Industry: A Shift Towards Local Processing
Nigeria has recently announced a substantial shift in its approach to the mining industry, opting to exclusively grant new mining licenses to companies with local mineral processing plans. This change is aimed at maximizing the value derived from Nigeria’s solid mineral deposits, marking a departure from the country’s previous policy of exporting unprocessed raw materials.
Despite being Africa’s leading energy producer, Nigeria has historically reaped minimal value from its abundant mineral resources. The mining sector’s contribution to the nation’s gross domestic product remains below 1% largely due to inadequate incentives and neglect.
In an effort to encourage more investment in the mining industry, the Nigerian government plans to issue additional licenses, offer a 75% stake in a state-owned solid minerals corporation for investors, and establish a special security unit to combat illegal mining activities. Efforts are also underway to regulate the artisanal miners who currently dominate the sector, with the government organizing these miners into cooperatives.
Segun Tomori, a spokesperson for Nigeria’s minister of solid minerals development, has detailed additional incentives, including tax waivers on mining equipment imports, streamlined processes for securing electricity generation licenses, and enabling full repatriation of profits. However, the exact effective date of these guidelines has not been specified.
Furthermore, the government plans to review the plans of companies looking to set up plants and add value to the Nigerian economy in exchange for these incentives. Last September, Nigeria announced its intention to form a state-backed minerals corporation, the Nigerian Solid Minerals Corporation, which will focus on the extraction of various minerals such as gold, coal, iron ore, bitumen, lead, limestone, and baryte.
In other mining news, Legacy Iron recently announced its first ore sale from Mount Celia, marking a significant milestone for the company. Similarly, Nepal has issued extraction permits to 159 mines as part of a broader effort to harness the nation’s underground resources. Sigma Lithium also obtained board approval for a $100m expansion of its plant in Brazil, with the goal of doubling its green lithium production capacity to 520,000 tonnes per year by 2025. Additionally, Oberon is set to acquire Saskatchewan mineral claims from Carbon Markets, while Stillwater Critical Minerals received further investment from Glencore for exploration and development activities.
The mining industry continues to attract attention and investment from various companies globally, showcasing the strong potential for growth in this sector.
For those interested in receiving more industry-leading data and insights, it is recommended to consider subscribing to Mining DECODED for full access to premium companies, themes, and actionable data spanning 22 global industries. Do not miss out on the latest in the aerospace, defence & security, food service, and medical devices sectors, among others. Please reach out to the GlobalData team for further information on how their data can drive your business forward.
