Nigeria is getting serious about mining! The government is making it a rule for foreign mining companies to invest in processing and refining metals like lithium and zinc within the country. The minister of mines, Dele Alake, announced this at a Nigeria Mining Week event in Abuja. He said that companies will need to show business plans for “value addition” before they can get licences. This is all about creating jobs, according to Alake. He mentioned that some companies have already started operations in Nigeria, which is great news.
One example he gave is Ganfeng Lithium Industry Ltd, a Chinese company that is building a lithium processing plant in Nasarawa state. The plant will process about 18,000 tons of lithium ore per day to make batteries for electric vehicles. This is the kind of investment the government is looking for.
Nigeria wants to attract more investors to its mining sector, which has been underdeveloped for a long time. Currently, mining contributes less than 1% to the country’s gross domestic product. Nigeria, known for its oil production, also has rich deposits of gold, limestone, and zinc. The government wants the mining industry to play a bigger role in diversifying the economy away from oil.
Alake also mentioned that the mining industry is being modernized. The government is investing in data collection and has spent over 15 billion naira ($19.6 million) in seven years to gather mineral data through a National Integrated Mineral Exploration Project (NIMEP). According to Alake, the project has led to significant discoveries, putting Nigeria on the world map of lithium-rich countries.
In addition, Nigeria plans to establish a state-backed company to attract investments for the extraction of gold, coal, iron ore, baryte, lead, bitumen, and limestone. This shows the government’s commitment to developing the mining industry.
This is a big step for Nigeria, and it shows the country’s determination to make the most of its natural resources. It’s an exciting time for the mining sector in Nigeria, and it will be interesting to see how these new policies and investments will shape the industry’s future.