In a recent interview, Dele Alake, Nigeria’s Minister of Solid Minerals Development, discussed significant developments in the mining sector, highlighting strategic changes aimed at boosting local production and investment. Key points include:
– **Local Value Addition**: Alake emphasises the importance of establishing local factories for processing mined materials, stating that companies must add value before exporting minerals. An example is the newly commissioned lithium factory in Nasarawa State, which will produce batteries from locally sourced lithium.
– **Training and Capacity Building**: To enhance the capabilities of local officials, Nigeria has partnered with Australia for training in mineral exploration and identification, ensuring better regulation and revenue collection from mining activities.
– **Security Measures**: Recognising security as a major concern for investors, Alake outlined plans to improve security in mining areas using technology, drones, and increased collaboration with national security agencies.
– **Environmental and Community Impact**: Mining operators are now mandated to develop environmental reclamation plans to mitigate ecological damage and benefit host communities.
– **Investment Data Enhancement**: The ministry is focusing on generating reliable data to attract foreign investment, ensuring it is certified by international agencies for credibility.
– **Support for Local Contractors**: Local miners are encouraged to form cooperatives to improve their financial viability and access to resources. The timeline for these cooperatives has been extended to facilitate this process.
– **Regulatory Clarity**: Alake is actively engaging state governors to harmonise policies and reiterate that mining operations fall under federal jurisdiction, reducing potential conflicts.
– **Minerals of Interest**: Key minerals being prioritised include gold, lithium, iron ore, and various rare earth minerals, with ongoing efforts to curb illegal mining and export activities.
– **Mining Corporation Plans**: The establishment of a Nigerian Mining Corporation is in progress, aimed at providing a cohesive structure for investment and operations in the sector, ensuring public ownership and alignment with private interests.
Overall, the Nigerian government is determined to transform the solid minerals sector into a key economic driver, addressing both investment appeal and sustainable practices.