Edo State has surpassed Ogun and Kogi in the mining sector, achieving a production total of 19.4 million tonnes, primarily aided by the Dangote Group’s dominance, which now controls 54.2% of the market. The latest Nigeria Extractive Industries Transparency Initiative (NEITI) audit revealed that a record 2,833 licences were issued in 2023, a significant increase from the previous year, indicating a burgeoning interest in solid mineral operations. Challenges such as inadequate infrastructure, funding, and regulatory issues persist, but the sector saw a 34.4% rise in total production, reaching approximately 95 million tonnes. Regulatory recommendations from NEITI aim to enhance operational transparency and compliance, fostering an investment-friendly mining landscape in Nigeria.

The mining sector in Nigeria has long been overshadowed by oil, with limited government support and policy implementation for minerals. Despite possessing vast reserves of various minerals, including iron ore and gold, the industry faces significant underexploitation. The NEITI audit is crucial as it provides insights into financial flows and identifies obstacles within the sector, shedding light on operational transparency and regulatory compliance necessary for attracting investment.

Edo State’s ascent in the mining sector illustrates a significant shift, driven by increased licensing and production, despite ongoing regulatory and infrastructural challenges. The NEITI audit highlights the necessity for stronger governance to encourage serious investment and address the high incidence of speculative operators. Moving forward, addressing these concerns will be vital for harnessing Nigeria’s solid mineral potential effectively.

Original Source: www.thisdaylive.com

The post Edo State Leads Mining Sector Growth as Dangote Dominates with 54.2% first appeared on Nigerian Mining News.

Nigeria’s ambition to establish a valuable supply chain for critical minerals, particularly lithium, is receiving an important boost from Sabi, a Lagos-based e-marketplace startup. Sabi has formed partnerships with Italy’s Snowball Holdings and US-based Transition Resources to set up lithium processing plants in Nigeria. Chief Executive Officer Anu Adasolum noted that Sabi will facilitate regular supplies from small-scale lithium miners and provide logistics and quality control services required for mineral exports. Each plant is projected to process up to 1,000 tons of lithium daily, with the US as the primary export market. The drive to move up the value chain in mineral processing also reflects a region-wide effort among African countries to secure better economic returns from their natural resources. The International Energy Agency anticipates that lithium demand could surge 13-fold by 2040, prompting Nigeria to bolster its local processing capabilities. This year, Nigeria has seen the opening of two local processing plants by Chinese firms, indicating a growing foreign investment interest in Nigeria’s lithium sector. Sabi’s role as a facilitator harnesses its experience as an intermediary in other sectors, seeking to generate substantial revenue through mineral exports. Through its proprietary software called TRACE, Sabi can provide exporters with compliance data essential for meeting international ethical sourcing standards. The company operates without physical assets, relying instead on its digital platform to facilitate transactions. Financially, Sabi earns revenue through shares of the processing plant’s exported mineral value, while also offering the option for them to purchase inputs directly from local miners. The growing focus on lithium in Africa parallels similar developments elsewhere, such as Chile’s SQM collaborating with Andrada Mining in Namibia to create a vertically integrated lithium industry.

Nigeria aims to transform its economy through the development of a value-added supply chain for critical minerals such as lithium, cobalt, and copper used extensively in renewable energy technologies. With an expected increase in lithium demand due to the transition to clean energy, African nations like Nigeria are keen to ensure they reap more benefits from their resource wealth. Companies are keen on establishing local processing plants, which could significantly increase the value of exports, doubling Nigeria’s economic returns.

Nigeria’s push to develop its lithium processing capabilities is symbolised by Sabi’s partnerships with international companies, aiming to boost local supply chains while creating economic opportunities. As global demand for lithium surges, Nigeria is strategically positioned to enhance its mineral processing sector, contributing to both job creation and greater economic returns. With further investments and innovations in technology, Nigeria could achieve significant advancements in its mineral industry, ensuring a more sustainable economic future for its citizens.

Original Source: www.semafor.com

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