GOVERNMENT INTERVENTION - Nigerian Mining News https://nigeriamining.today Thu, 06 Feb 2025 06:56:53 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.5 https://nigeriamining.today/wp-content/uploads/2023/10/Screenshot-2023-10-31-at-19.14.10-150x150.png GOVERNMENT INTERVENTION - Nigerian Mining News https://nigeriamining.today 32 32 Foreign Investors Target Nigeria’s Lithium Wealth Amidst Rising Demand https://nigeriamining.today/2025/02/06/foreign-investors-target-nigerias-lithium-wealth-amidst-rising-demand/ Thu, 06 Feb 2025 06:56:49 +0000 https://nigeriamining.today/2025/02/06/foreign-investors-target-nigerias-lithium-wealth-amidst-rising-demand/ Nigeria’s lithium mining, particularly in Nasarawa, attracts foreign investors amid global demand. Many miners work […]

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Nigeria’s lithium mining, particularly in Nasarawa, attracts foreign investors amid global demand. Many miners work in artisanal, often illegal, conditions. The government aims to regulate the industry and attract investment, notably from Chinese companies, amidst concerns of environmental risks and local conflicts. The future of this sector depends on sustainable practices and improved regulation.

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

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Nigeria’s Tin Mining Faces Decline Amid Global Demand Rising https://nigeriamining.today/2025/01/29/nigerias-tin-mining-faces-decline-amid-global-demand-rising/ Wed, 29 Jan 2025 00:21:12 +0000 https://nigeriamining.today/2025/01/29/nigerias-tin-mining-faces-decline-amid-global-demand-rising/ Nigerian tin mining is declining due to resource depletion, illegal practices, and regulatory failures. Locals […]

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Nigerian tin mining is declining due to resource depletion, illegal practices, and regulatory failures. Locals report significant shortages, jeopardising household incomes. Enhanced governance and exploration of untapped resources are crucial for sustainability and meeting global demands.

Tin mining in Nigeria’s Plateau State has been a significant source of income for locals, but its glory days are fading rapidly. Many former miners, like Jugu Samuel, are now seeking other employment due to diminishing resources and challenges in retrieval. Local mining activities, often unlicensed and conducted under unsafe conditions, have raised concerns about the environmental and economic implications of the dwindling supply of tin, which is crucial for various technologies.

The demand for tin has surged with the global shift towards renewable energy, making the substance critical for energy transition technologies like solar panels. However, illegal mining, poor regulatory enforcement, and corruption undermine potential revenue for the Nigerian government. Despite being the ninth-largest producer of tin globally, Nigeria faces shortages, with local miners and suppliers reporting drastic declines in accessible tin due to concerns over resource depletion and increasing insecurity in mining areas.

The situation surrounding tin mining in Nigeria highlights a pressing need for effective governance and regulatory frameworks that can balance economic benefits with environmental sustainability. The significant decline in supply calls for immediate action to explore untapped resources and revitalise the mining sector, ensuring it can meet local and global demands responsibly.

Original Source: dataphyte.com

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Illegal Lithium Mining in Nigeria: Community Collusion and Government Challenges https://nigeriamining.today/2025/01/10/illegal-lithium-mining-in-nigeria-community-collusion-and-government-challenges/ Fri, 10 Jan 2025 20:53:18 +0000 https://nigeriamining.today/2025/01/10/illegal-lithium-mining-in-nigeria-community-collusion-and-government-challenges/ Nigeria is rapidly emerging as a source of lithium, but illegal mining is rampant in […]

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Nigeria is rapidly emerging as a source of lithium, but illegal mining is rampant in regions like Kakanfu, facilitated by compromised officials and local leaders. Despite government efforts to clamp down on these practices, weak enforcement and community complicity hinder progress, leading to lost revenues and environmental damage. The situation underscores the need for structured governance to regulate the mining sector effectively and curb illegal activities.

Nigeria is becoming a significant source of lithium as demand for renewable energy technologies grows. However, illegal mining operations flourish in communities like Kakanfu in Kwara State, where local leaders and compromised officials collude with artisanal miners. PREMIUM TIMES’ investigation revealed a complex network enabling the illicit sale and transport of lithium, with community members negotiating deals that often bypass national regulations. Although the government is pursuing reforms to regulate mining activities and collect taxes, inefficiencies in enforcement and local corruption allow these illegal operations to persist, undermining potential revenues and environmental protections.

Proceeds from illicit mining contribute to a makeshift economy in Kakanfu, fueling the creation of informal camps that serve various illicit activities, including the presence of sex workers. A lack of legal oversight allows resources to be sold and smuggled with relative ease. With ongoing governmental crackdowns and community levies driving down demand, many artisanal miners are reverting to traditional farming. Despite the government’s announcement of new strategies and partnerships to structure the mining sector, challenges remain as local leaders and miners continue to engage in illegal practices.

The rise of lithium mining in Nigeria is closely linked to the global transition from fossil fuels to renewable energy sources, particularly for electric vehicle batteries. Yet, the sector is plagued by illegal mining activities due to inadequate regulatory frameworks, corruption, and local complicity. This has significant implications for the economy and the environment, as Nigeria potentially loses billions in revenue while community-driven illicit activities thrive. The federal government’s efforts to regulate the sector are ongoing, but the effectiveness of these measures is undermined by entrenched local practices.

In summary, the investigation into illegal lithium mining in Nigeria highlights the urgent need for reform within the mining sector. Strengthened governance structures are essential to curb illegal practices that undermine the economy and environment. The collaboration between local communities and illicit miners poses a formidable challenge, indicating that without effective oversight, Nigeria may continue to miss opportunities to benefit from its mineral wealth. Future success hinges on the government’s ability to enforce regulations and foster legitimate mining practices.

Original Source: dataphyte.com

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Investment in Mining Sector as Key to Nigeria’s Economic Recovery https://nigeriamining.today/2024/11/23/investment-in-mining-sector-as-key-to-nigerias-economic-recovery/ Sat, 23 Nov 2024 08:16:56 +0000 https://nigeriamining.today/2024/11/23/investment-in-mining-sector-as-key-to-nigerias-economic-recovery/ Mr. Afam Mallinson Ukatu calls for increased investment in Nigeria’s non-metallic mining sector, stating it […]

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Mr. Afam Mallinson Ukatu calls for increased investment in Nigeria’s non-metallic mining sector, stating it could significantly aid the economy. He urges the Federal Government to revise outdated policies to attract investment. He also highlights the potential of the mining sector to create millions of jobs and emphasizes innovation and sustainability as critical to growth. The manufacturing sector’s importance for reaching a $1 trillion GDP target by 2030 was also discussed, stressing the need for improved infrastructure.

The Nigerian economy stands to benefit significantly from increased investment in the non-metallic mining sector, as highlighted by Mr. Afam Mallinson Ukatu. At a recent event, he urged the Federal Government to recognize the potential of this sector, which could provide abundant jobs and superior returns compared to oil investments. The mining sector is deemed underutilized and could help alleviate the current economic challenges facing Nigeria, provided policies are updated to attract more investors. Ukatu emphasised the importance of innovation and sustainability for the sector’s growth. Despite obstacles including inadequate infrastructure and regulatory challenges, there is potential for resilience and competitiveness in the industry. Similarly, discussions about Nigeria’s manufacturing sector underscored the need for a strategic repositioning to reach a $1 trillion GDP target by 2030, highlighting the importance of infrastructure and reduced production costs to foster growth.

The mining sector in Nigeria, specifically non-metallic mining, is seen as a crucial yet underdeveloped aspect of the economy that could help lift the nation out of its economic troubles. Mr. Afam Mallinson Ukatu, an expert in the field, advocates for increased governmental support and modernised policies to harness this sector’s full potential. The industrial landscape also hints at a need to enhance the manufacturing sector to not only support GDP growth but also improve job creation and economic inclusivity.

Investment in the non-metallic mining sector presents significant opportunities for Nigeria’s economic recovery and job creation. By modernising policies and focusing on innovation, the government can drive this sector forward. Additionally, the manufacturing sector requires immediate attention to achieve ambitious GDP goals. A collaborative approach involving policymakers and the private sector is crucial for fostering sustainable economic growth in Nigeria.

Original Source: www.brandtimes.com.ng

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