Nasarawa Governor Abdullahi Sule has called for the deregulation of Nigeria’s mining sector to enhance its potential. Speaking at the 60th Nigerian Mining and Geosciences Society Annual Conference in Abuja, he advocated for reforms akin to those in the oil and gas industry, emphasising the need for modernization and liberalisation to attract investment.

Governor Sule highlighted Nigeria’s abundant mineral resources and criticized existing policies that impede growth. Reflecting on his oil industry experience, he underscored the importance of structured revenue-sharing and industry regulations to secure adequate returns for mining states.

During his term, he discovered that despite 416 mining licenses granted in Nasarawa, the state was receiving no significant financial returns, prompting him to challenge the National Economic Council regarding the lack of revenue compared to the oil sector. Recognising flaws in the licensing process, he issued an executive order to ensure that all minerals processed in the state before export, which boosted local investments.

He proudly noted that Nasarawa State now hosts Nigeria’s largest lithium processing plant and several other smaller tin mining operations. Governor Sule urged Nigeria to shift focus towards long-term industrialisation over short-term financial gains, drawing comparisons to China’s approach to mining development.

Sule remains determined to overcome resistance to regulations that would ultimately benefit the sector and the economy. Professor Akinade Olatunji, President of the Nigerian Mining and Geosciences Society, acknowledged the governor’s contributions to advancing mining reforms in Nigeria, culminating in a fellowship award presented to him during the event.

Governor Abdullahi Sule’s call for the deregulation of Nigeria’s mining sector underlines his commitment to modernising the industry. By improving revenue-sharing mechanisms and enforcing operational regulations, he aims to harness the nation’s mining potential for sustainable growth and investment. His proactive measures reflect a determined effort to transform the sector into a vital component of Nigeria’s economy.

Original Source: dailypost.ng

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Two Chinese companies, Canmax Technologies and Jiangxi Jiuling Lithium, have taken control of a Nigerian lithium refinery project, originally established in 2022 by Chinese entrepreneurs. The refinery, located in northern Nigeria, was controversial due to its name similarity to Ganfeng Lithium Group, a major global lithium supplier. The joint venture aims to enhance Nigeria’s lithium sector, which traditionally exports raw materials to China.

Ganfeng Nigeria initially confused the market when it began construction in 2023 and later clarified its lack of formal ties to Ganfeng Lithium Group. The project, with an estimated cost of $250 million, is set to boost local lithium production, coinciding with increasing Chinese investments in Africa’s lithium resources despite significant price drops.

Canmax Technologies plans to invest over $200 million in additional lithium mining sites in northern Nigeria, partnering with local company Three Crown Mines. The founder of Canmax, Pei Zhenhua, is notable for his investment ties to major electric vehicle battery manufacturers.

Nigeria is rich in untapped minerals, including lithium, but much of the extraction remains informal, conducted by small-scale miners. The Nigerian Ganfeng has secured a 10-year mining agreement under state government permits, with the refinery’s first phase expected to finish mid-year and the second phase in four months. Local officials express optimism about the investment’s potential.

The takeover of the Nigerian lithium project by Canmax and Jiuling represents a significant investment in Nigeria’s emerging lithium industry, aimed at satisfying increasing global demand. The collaboration highlights the trend of Chinese companies consolidating resources in Africa to secure essential materials for electric vehicle production. The project is poised to enhance Nigeria’s industrial capabilities while drawing attention to the challenges of informal mining in the country. Overall, these developments indicate a strategic shift in lithium sourcing closely aligned with rising electric vehicle demands.

Original Source: www.mining.com

The post Chinese Firms Expand Investment in Nigeria’s Lithium Refining Sector first appeared on Nigerian Mining News.