Abdullahi Ibrahim Danjija, a 31-year-old miner in Nasarawa, Nigeria, earns N150,000 ($100) daily from artisanal lithium mining, double the monthly minimum wage. Many miners are attracted to this opportunity due to the increasing global demand for lithium, essential for electric batteries and mobile phones. Despite the allure, much of Nigeria’s mining is small-scale and often illegal, with minimal safety or environmental standards enforced.

At the Gidan Kwano site, some miners avoided media attention, as they operated without legal permits. Nearby, families were seen using explosives to expand their mining operations. Artisanal work thrives, with children and women participating eagerly, providing a means of livelihood as they dig and sell lithium-rich rocks, which costs them only their labour.

China remains the leading consumer of lithium and imports significant quantities while Nigeria aims to attract foreign investment as it promotes its lithium resources. Despite campaigns against illegal mining, the sector is booming. New regulations may require foreign firms to establish processing plants locally, a move that could deter investment from large players like Elon Musk.

Chinese companies have established local operations to refine lithium, even as concerns about inadequate exploration and site verification linger. The Geological Society of Nigeria highlights the need for better regulation and sustainable practices within the mining sector, pointing out that some Chinese miners operate unsafely.

However, artisanal mining can also lead to local conflicts over resource access. Analyst Charles Asiegbu explains that disputes can arise both between communities and with exploration firms. Additionally, armed groups exploit the weak governmental presence in certain regions to conduct illegal extractions while local miners like Danjija continue their hazardous work without respite, even in adverse weather conditions.

The rising global demand for lithium, crucial for electric batteries and mobile gadgets, has drawn interest from miners in Nigeria, particularly in Nasarawa. This interest has spurred artisanal mining, which, though potentially lucrative, often operates illegally without permits or adherence to safety regulations. The Nigerian government is keen to attract foreign investment in this resource sector, but challenges such as illegal mining and civil conflicts complicate efforts.

The burgeoning interest in Nigeria’s lithium reserves highlights both the potential for economic growth and the risks of unregulated artisanal mining. With China as a major player in lithium processing, Nigeria seeks to establish a regulated framework to ensure local benefit from its resources while addressing environmental and community challenges associated with mining operations.

Original Source: punchng.com

The post Foreign Investors Target Nigeria’s Lithium Wealth Amidst Rising Demand first appeared on Nigerian Mining News.

The ongoing conflict between the Osun State Government (OSG) and Segilola Resources Operating Limited (SROL) highlights serious concerns regarding the misuse of state power. Despite SROL’s achievements in establishing Nigeria’s first commercial gold mine and contributing to the economy, the OSG has launched unfounded public accusations that jeopardise SROL’s reputation and investor confidence. Key tactics employed include manipulating the judiciary, misusing media to spread misinformation, and failing to engage in constructive dialogues regarding tax disputes. The OSG’s actions have raised eyebrows, particularly regarding their use of a magistrate court for complex corporate disputes, highlighting a departure from standard legal practices. The accusations of tax evasion and environmental degradation against SROL lack credible backing and distract from valid concerns within the broader mining context. Moreover, the contradictory claims about OSG’s shareholding in SROL further illustrate a troubling trend of undermining profitable ventures that could benefit Osun State’s economy. The intercession of the Federal Government establishes an urgent need for mediating the OSG-SROL conflict; however, the OSG persists with new allegations, raising doubts about their integrity. This ongoing saga poses a risk not only to SROL’s future but also to Nigeria’s potential as a key player in the global mining market, necessitating a shift in OSG’s approach to foster long-term economic stability and attract foreign investment.

Nigeria is richly endowed with over 44 types of solid minerals that could significantly enhance economic growth if managed responsibly. Segilola Resources Operating Limited (SROL) has made strides in the mining sector by establishing Nigeria’s first commercial gold mine, generating international interest and showcasing the potential for ethical, productive mining operations. However, the Osun State Government’s actions against SROL raise serious concerns regarding the governance and stability of business operations in the state.

In conclusion, the OSG’s current approach risks significant harm to both SROL’s viability and Osun State’s economic prospects. Investors prioritise stability and transparency, and the OSG’s tactics threaten to undermine Nigeria’s aspirations as a competitive mining destination. It’s imperative for the OSG to engage in productive dialogues, focusing on long-term benefits for the local economy over politically motivated strategies.

Original Source: www.thisdaylive.com

The post The OSG’s Misuse of Power Against Segilola Resources: A Threat to Nigeria’s Mining Future first appeared on Nigerian Mining News.