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.

Captain Dada Olaniyi Labinjo, Executive Managing Director of Silicon Valley Nigeria Economic Development Mining Company Limited, stated that Nigeria could generate over N37 trillion annually from mining if properly developed. He emphasised that mining could significantly boost the economy by creating jobs and generating revenue through taxes and fees for the government.

Labinjo highlighted that such revenue could be directed towards infrastructure development and social programmes. The company’s engagement in the sector aims to play a substantial role in optimising Nigeria’s mining potential and supporting economic growth.

During a recent management visit, Labinjo spoke about mining’s capacity to create thousands of jobs in various sectors like geology and engineering. He noted that mining could increase government revenue through various taxes imposed on mining activities, significantly boosting the nation’s financial resources.

Ambassador Temitope Amina Labinjo-Ajayi, Chairman of SV-NED, praised President Bola Tinubu’s Renewed Hope Agenda for its potential to positively transform Nigeria. She reiterated that mining could when harnessed effectively, reduce Nigeria’s reliance on oil and contribute to economic diversification, vital for long-term economic stability.

She acknowledged that mining infrastructure could benefit local communities and industries, promoting overall development. Labinjo-Ajayi further explained that mining could enhance foreign exchange earnings through mineral exports, promoting better currency stability.

Adediran expressed excitement about the SV-NED’s partnership and its potential to improve local economic conditions and lifestyle. He appealed for establishing a University of Agriculture to tap into local agricultural and mining resources and called for upgrading a decades-old hospital lacking necessary medical infrastructure.

The article outlines the substantial economic potential of Nigeria’s mining sector, highlighting the significant revenues that could be generated through proper management. It stresses the importance of mining for job creation, infrastructure development, economic diversification, and foreign exchange earnings. The involvement of companies like SV-NED is essential to harness this potential and enhance the general well-being of local communities.

Original Source: www.zawya.com

The post Nigeria’s Mining Sector Could Generate Over $24 Billion Annually first appeared on Nigerian Mining News.

Nigeria is seeking $500 million in initial foreign investments in its solid minerals sector through a four-day investment roadshow in South Africa that began on November 6. Organised by the Nigeria High Commission and Rosebank Capital, the event focuses on utilising South Africa’s mining expertise to boost Nigeria’s capacity in the $700 billion sector which includes resources like gold, tantalite, and lithium. Despite the potential, mining exploration in Nigeria is underfunded, with projects facing hurdles such as financing challenges and a lack of expertise.

Niyi Oloruntoba, CEO of Rosebank Capital, noted, “We are targeting at least $500 million in initial investments and that is coming on really well,” indicating discussions for a $200 million project. Yemi Kale, chief economist of Afrexim bank, emphasised that the sector could diversify Nigeria’s economy and contribute $25 billion to its GDP over the next decade, generating up to three million jobs.

Despite challenges, including a heavy reliance on crude oil, the Nigerian government is committed to diversifying its revenue streams. Mary Ogbe, permanent secretary of the solid minerals sector, stated initiatives like tax waivers and guaranteed profit repatriation are being implemented to attract investors. Additionally, small-scale mining licences are being granted to formalise artisan miners in cooperatives.

Nere Emiko, CEO of Kian Smith, reassured potential investors about the sector’s opportunities, revealing promising pathways in the 44 different minerals available in Nigeria. Her insights aimed to dispel concerns and highlight the positive outlook for investing in the nation’s mining industry.

Nigeria is rich in mineral resources, with significant potential for growth in its mining sector, estimated at $700 billion. However, underfunding and other challenges have hindered exploration and exploitation of these resources. The recent investment drive in South Africa is a strategic effort to attract foreign investment and expertise, which are crucial for the sector’s development and diversification of the Nigerian economy away from oil dependence.

The Nigerian government is intensifying efforts to secure $500 million in initial investments to harness its vast solid mineral resources. By addressing financial and technical barriers and offering incentives to investors, Nigeria aims to revitalise its mining sector, create jobs, and increase its GDP contribution. Through partnerships and initiatives targeting sustainable development, the country is working towards a more diversified economic future.

Original Source: businessday.ng

The post Nigeria Seeks $500 Million Investment in Mining Sector During South Africa Roadshow first appeared on Nigerian Mining News.

A new financial institution, known as the African Extractive Minerals Development Bank (AEMBank), is being established to support Nigeria’s mining sector. This bank aims to enhance and streamline the entire mining value chain effectively. Recently, the African Minerals Strategy Group (AMSG) has partnered with AEMBank, comprising 16 African nations focused on promoting the mineral sector’s growth within the continent.

AEMBank is formed under public-private partnership (PPP) principles, seeking to discard traditional mining practices. Instead, it will foster a robust value chain centred on value addition, beneficiation, and industrialisation. With the rising demand for critical materials needed for renewable energy, Africa’s potential in this sector is becoming increasingly significant.

Key goals of AEMBank include job creation, enhancing indigenous empowerment, and increasing sovereign revenues through effective funding. The bank aims to help nations leverage their mineral reserves to strengthen their currencies and improve tradeability. Institutional investors and private stakeholders have expressed interest in partnering with this initiative.

The establishment of AEMBank is a significant development for the Nigerian and African mining sectors, which have been historically underfunded and overlooked. With the global energy transition towards renewables, the demand for critical materials sourced from African mines is rising. This bank intends to provide focused financial support to stimulate growth and innovation in the extractive industry, addressing systemic funding challenges and creating a comprehensive value chain.

AEMBank is expected to revolutionise the mining sector in Nigeria and beyond by providing necessary funding and support. By fostering value addition and industrialisation while enhancing local economies, AEMBank aims to meet the challenges of the global transition to renewable energy effectively. Its formation signifies a crucial step towards optimising Africa’s mineral wealth and ensuring the benefits reach its people.

Original Source: businessday.ng

The post AEMBank: A New Era for Nigeria’s Mining Sector Funding first appeared on Nigerian Mining News.

Terrahaptix, a Nigerian drone manufacturer, is set to export drones to South Africa, targeting the mining sector. The company has finalised an exclusive deal with DiggingDeep, a firm dedicated to connecting African mining operations with suppliers, to provide its drones to local mining businesses.

These drones will be used for various applications such as surveying mining locations, inspecting equipment, and monitoring unsafe areas, which helps reduce worker exposure to hazards. Additionally, they will play a role in identifying mineral deposits and keeping track of environmental conditions like air and water quality.

The mining drone market is skyrocketing, with 65% of mines globally employing drone technologies, up from 44% reported in 2018. Expectations suggest the industry could grow from $31.4 billion to $103 billion by 2031.

South Africa will be the fifth African nation to utilise Terrahaptix drones, following Congo, Ghana, Kenya, and Côte d’Ivoire. The company has noted that international sales, now a significant portion of its business, are on the rise, aiming to lead the African drone market within five years. Nathan Nwachukwu, the company’s founder, stated, “This is going to help us solidify our position as a drone leader on the continent.”

Having already exceeded its initial $1.6 million revenue target, Terrahaptix is projected to exceed $2 million in its first year. With the anticipated mining renaissance in Africa and the increasing demand for lithium for electric vehicles, drone demand is expected to rise by late 2024.

With 80% of drone materials sourced locally, Terrahaptix is equipped to expand beyond Africa in the near future.

The article discusses Terrahaptix’s strategic move to supply drones to the South African mining industry, underlining the growing global trend of adopting drone technology in mining. By partnering with DiggingDeep, Terrahaptix aims to enhance efficiency in the mining sector while tapping into a lucrative market that is rapidly expanding. South Africa’s inclusion reflects Terrahaptix’s ambition to become a dominant player in the African drone market, leveraging local sourcing and an increasing international demand for its products.

Terrahaptix is poised to make significant inroads into the South African mining sector with its drone technology, bolstered by a strategic partnership and a fast-growing market. As the demand for drones in mining continues to surge, the company’s focus on local materials and competitive pricing positions it for future success across Africa and beyond. With impressive revenue growth and plans for international expansion, Terrahaptix is on track to solidify its leadership in the continent’s drone industry.

Original Source: newscentral.africa

The post Terrahaptix to Supply Drones for South Africa’s Mining Industry first appeared on Nigerian Mining News.

The Nigeria Mining Cadastre Office (NMCO) has teamed up with the Department of State Security (DSS) to enhance its staff’s skills in cybercrime security. Director General Engr Obadiah Nkom emphasised the urgency of this initiative due to the increasing necessity to secure NMCO’s cyberspace based on its activities and international engagements. He urged staff to follow the prescribed disciplinary training guidelines strictly.

Nkom highlighted the significance of NMCO’s transition to a web-based system via the launch of the electronic Mining Cadastre Plus (eMC+), which facilitates efficient application processing for Mineral Titles. He underscored the growing number of online applications since its launch in November 2022, stressing the need for users to remain vigilant against cyber threats.

The partnership between NMCO and DSS focuses on improving the agency’s cyber security measures, reflecting a broader trend of increasing awareness regarding digital threats in governmental operations. As more services move online, particularly in sensitive areas like mineral rights and titles, the risk of cyberattacks rises, necessitating improved security protocols and staff education.

The NMCO’s collaboration with the DSS marks a crucial step towards enhancing cyber security within governmental operations related to mining. By focusing on staff training in cyber awareness and reinforcing ethical accountability, NMCO aims to safeguard its online systems and support transparency and efficiency in the mineral sector’s operations.

Original Source: www.thisdaylive.com

The post NMCO Partners with DSS to Enhance Cybercrime Security Training first appeared on Nigerian Mining News.

Experts in Nigeria’s mining sector have called for significant investment in mineral exploration and geoscience data generation to attract international mining firms. During the Nigerian Mining Week in Abuja, they referred to old, neglected mining sites as Brownfields and newer initiatives as Greenfields. Speakers, including Habeeb Jaiyeola from PwC and Fadi Abou Ghazale of Titan Minerals, highlighted the need for credible geological data as a critical factor for attracting global players like Rio Tinto. Ghazale noted the difficulties in securing exploration funding and urged for government support to enhance the investment climate. Furthermore, Simon Nkom from the Nigeria Mining Cadastre Office emphasised the importance of digitising mineral licensing. He pointed out that despite the government’s past involvement in mining, it now seeks to create a supportive environment for private sector investors. Both Nkom and Ayodeji Gbeleyi of the Bureau for Public Enterprises agreed that the lack of available geodata heavily obstructs progress. Collectively, the discussion underscores that enhancing Nigeria’s mineral wealth requires strategic investment and the generation of reliable exploration data.

Nigeria’s mining industry holds substantial potential, particularly in its Brownfield and Greenfield sites. Historically, mining was overshadowed by oil discovery, leading to a decline in exploration efforts. However, experts posit that revitalising this sector could draw investments from leading global mining companies. Key aspects influencing this potential include improved data generation, targeted strategies for mineral exploration, and a supportive regulatory environment, aiming to transition Nigeria into a competitive mining destination.

To attract major players in the mining industry, Nigeria must prioritise investments in mineral exploration and the generation of accurate geoscientific data. The current strategies involve engaging the private sector and creating favourable conditions for junior investors. By developing both Brownfield and Greenfield sites, Nigeria could rejuvenate its mining sector, potentially leading to significant economic mineral discoveries that would appeal to international investors.

Original Source: leadership.ng

The post Strategies For Attracting Mining Giants To Nigeria first appeared on Nigerian Mining News.

Mr. Fadi Abou Ghazale, CEO of Titan Minerals Nigeria, highlights the company’s robust operations in the mineral exploration sector during the Nigeria Mining Week 2024. Titan Minerals is currently engaged in significant projects focused on lithium, gold, and tin, particularly in the Jos and Suleja regions. Ghazale emphasizes the need for Nigeria to attract foreign investment to enhance its mining capabilities and mentions the rising global demand for minerals, especially gold and lithium.

Titan Minerals is investing in state-of-the-art mining equipment to improve project execution and includes extensive drilling operations across multiple states. Their ongoing collaboration with international companies on AIM and the Toronto Stock Exchange reflects the growing interest in Nigeria’s mineral potential. Ghazale asserts that Nigeria should leverage its relative stability, as neighboring countries face security issues, to emerge as a favourable destination for foreign direct investment (FDI) in minerals.

The Nigerian mining sector is in a pivotal state, with potential for attracting foreign direct investment (FDI) to develop its rich mineral resources. Currently, the focus on minerals such as gold and lithium is intensified by their increasing global demand. Titan Minerals Nigeria, a notable player in this sector, aims to strengthen Nigeria’s position in global mining through advanced exploration and equipment acquisition, while also addressing the need for strategic investments to facilitate this growth.

To elevate its mining sector, Nigeria must aggressively pursue foreign direct investment and foster junior exploration companies. The focus on high-demand minerals like gold and lithium presents a favourable opportunity if the country capitalizes on its stability relative to its neighbours. By enhancing project execution capabilities and international partnerships, Nigeria has the potential to become a global mining destination, appealing to investors seeking opportunities in the mineral market.

Original Source: blueprint.ng

The post Strategies for Attracting Foreign Investment in Nigeria’s Mining Sector first appeared on Nigerian Mining News.

Sibanye Stillwater has obtained an additional €500 million (US$557.3 million) in debt financing to advance its lithium mining project in Finland despite falling battery metal prices. The funding, partially provided by the European Investment Bank (EIB), is aimed at pushing the Keliber lithium project towards production by 2026. Spokesperson James Wellsted expressed confidence in future lithium price recoveries, anticipating market deficits. Although Sibanye hasn’t yet secured offtake agreements for the project, lithium production is expected to reach 15,000 metric tons annually for at least 16 years, benefiting European electrical vehicle manufacturers and gigafactories.

Sibanye Stillwater is a precious metals producer operating primarily in South Africa and the U.S., focusing on gold and platinum. The company is venturing into lithium mining due to the growing demand for this metal, particularly for electric vehicle batteries. The volatile lithium market has seen prices drop significantly due to lower global demand, notably influenced by economic factors like high borrowing costs. The Keliber project is poised to address the anticipated lithium supply shortages in the future.

Sibanye’s recent €500 million financing marks a strategic move to enhance its liquidity for the Keliber lithium project in Finland, amid challenging market conditions. The company’s leadership remains optimistic about future lithium price increases and intends to support the electric vehicle sector through substantial annual lithium production. Despite current market setbacks, Sibanye is positioning itself for recovery in the sector.

Original Source: africanminingmarket.com

The post Sibanye Secures €500 Million Financing to Advance Finnish Lithium Project first appeared on Nigerian Mining News.

The Nigeria Mining Cadastral Office (MCO), under the leadership of Director-General Obadiah Nkom, reported a revenue generation of N8.1 billion since January. This achievement was shared during an oversight visit from the Senate Committee on Solid Minerals, highlighting a commitment to improving the mining sector’s regulatory framework and diversifying the economy. The D-G credited the rise in revenue to increased transparency, stronger enforcement of regulations, and the digitalisation of licensing processes. Since the office’s inception, total revenue has reached N36.048 billion, with a significant portion remitted to the Federal Government’s Treasury Single Account. In addition, the committee discussed key challenges faced by the cadastre, including inadequate funding and limited office space, as well as ongoing litigations that have reportedly been successful for the MCO. Senator Sampson Ekong emphasized the importance of the committee’s oversight to ensure accountability and enhance the mining sector’s economic contribution. The visit focused on evaluating the cadastre’s adherence to regulatory standards and operational efficiency.

The Nigeria Mining Cadastral Office is responsible for overseeing mining licenses and permits within the country. Recently, the MCO has experienced a notable revenue increase, reflective of Nigeria’s efforts to enhance its mining sector’s regulatory framework. The visit by the Senate Committee aims to address operational challenges while ensuring the cadastre complies with federal guidelines. Successful litigation by the MCO also highlights its effective operational measures.

The Nigeria Mining Cadastral Office has experienced a significant revenue milestone, generating N8.1 billion through improved transparency and regulatory measures. The Senate Committee’s oversight visit aims to enhance operational efficiency and accountability within the mining sector. Despite facing challenges like inadequate funding and office space, the MCO continues to successfully navigate litigations, emphasising the need for sustainable reforms and collaboration in maximising Nigeria’s mining potential.

Original Source: nannews.ng

The post Nigeria Mining Cadastral Office Revenue Surges to N8.1bn in October first appeared on Nigerian Mining News.