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

The post Illegal Lithium Mining in Nigeria: Community Collusion and Government Challenges first appeared on Nigerian Mining News.

Nigeria’s mining sector is rich in various minerals, contributing significantly to the economy, with an estimated US$700 billion in commercially viable resources. However, illegal mining activities, primarily led by foreign criminals, threaten this potential. Since 2020, multiple arrests, predominantly of Chinese nationals involved in illegal mining, highlight the crisis. Policymaking inconsistencies, corruption, and inadequate regulatory oversight enable these foreign actors to exploit Nigeria’s resources, particularly in regions vulnerable to banditry and local criminal networks.

The focus on gold mining attracts foreign demand, worsening criminal activities in the north-west, where links between illegal mining and armed banditry have been established. Despite its economic importance, the mining sector has been neglected by security forces until recent incidents highlighted its connection to broader insecurity. Furthermore, corruption within immigration services facilitates the entry of foreign miners under the guise of tourism.

Law enforcement officials recommend that the Nigerian government prioritise solid minerals to match its oil and gas focus. Comprehensive inter-agency collaboration is vital to address the influx of illegal foreign miners and their links to larger criminal syndicates. Community engagement is essential to combat illegal mining activities, raising awareness of their negative social, environmental, and security implications. Legal reforms are also necessary to enhance penalties for illicit mining and improve regulatory frameworks.

Nigeria, endowed with a diverse range of mineral resources, has immense potential for economic diversification and increased foreign earnings. However, the mining sector suffers from issues like illegal operations, insufficient security, and policy inconsistencies, which hinder its growth. Foreign criminals, particularly from China, have exploited these weaknesses, engaging in illegal mining, which is often linked to wider criminal activities, including banditry and corruption at multiple levels.

The illegal mining activities in Nigeria, particularly by foreign nationals, present significant threats to the country’s security and economic potential. The government’s failure to address these issues through coherent policy, adequate regulatory measures, and improved community engagement exacerbates the situation. Immediate action is required to reinforce regulations, bolster security measures, and enhance inter-agency cooperation, ensuring that Nigeria’s valuable mineral resources are protected and utilised effectively for national benefit.

Original Source: www.eurasiareview.com

The post Nigeria’s Mining Crisis: The Threat of Foreign Criminals in the Gold Sector first appeared on Nigerian Mining News.

The House of Representatives has urged the Ministry of Solid Minerals Development to seek additional funding for the Nigerian Geological Survey Agency (NGSA) to improve mineral mapping and assess Nigeria’s lithium reserves accurately. This initiative aims to stimulate revenue from lithium, which plays a crucial role in clean energy technologies. The call followed a motion by Rep. Victor Obuzor, highlighting the potential of Nigeria’s mineral wealth, particularly in lithium, which is vital for rechargeable batteries and the global energy transition.

The motion proposes establishing a Nigerian Lithium Production Agency aligned with the Nigerian Minerals and Mining Act 2007 to foster a comprehensive lithium industry and regulatory framework. Mr. Obuzor emphasised lithium’s increasing market value, noting a significant jump from $5,180 per tonne in 2010 to $46,000 in 2023. Despite promising lithium discoveries in several states, the country suffers from a lack of comprehensive data on reserves and inadequate funding for mining projects.

Obuzor expressed concern over missed opportunities in the lithium sector, attributing this to underinvestment and inadequate funding structures, such as the Solid Minerals Development Fund (SMDF), which has not effectively catalysed investments in lithium mining. He highlighted the need for urgent action to capitalise on the burgeoning lithium market, which is poised for significant growth in the coming years, as global demand could increase dramatically by 2040, driven by the clean energy push.

Nigeria has abundant mineral resources, yet its mining sector has declined significantly since the mid-20th century, primarily due to the oil and gas boom, which diverted focus from mining. Currently, the mining sector contributes less than 0.8% to Nigeria’s GDP compared to the continental average of nearly 5%. The urgent need for enhanced funding and strategic development in the lithium industry arises amid a growing global demand for lithium, particularly for clean energy applications such as battery production.

To revitalise Nigeria’s mining sector and leverage its lithium resources, increased funding for the NGSA and the establishment of a dedicated lithium agency are essential. With lithium’s soaring price and global demand set to rise, Nigeria has the opportunity to harness its mineral wealth, provided that necessary investments and frameworks are put into place. The call for action from the House of Representatives reflects a critical need for change in the country’s approach to mining and resource management.

Original Source: nairametrics.com

The post Reps Urge Boost for Nigeria’s Lithium Industry to Drive Revenue Growth first appeared on Nigerian Mining News.

The House of Representatives in Nigeria has urged the Federal Government to boost funding for lithium exploration. This call arose from a motion adopted during a plenary session, sponsored by Victor Obuzor, highlighting the significant price rise of high-quality lithium carbonate, which shifted from $5,180 in 2010 to $46,000 in 2023. Obuzor noted that neglecting lithium’s potential could mirror past errors in the oil and gas sector, where only upstream value is pursued.

The motion emphasized the need for improved funding for the Nigerian Geological Survey Agency to enhance mineral mapping and surveys for lithium deposits. Obuzor indicated that significant lithium-bearing minerals have been found in various states, yet there remains no clear estimate of the nation’s reserves. The House expressed concerns about the lack of investment in lithium mining, despite the Solid Minerals Development Fund being established for this purpose.

Following the motion’s adoption, Speaker Tajudeen Abbas advised the creation of the Nigerian Lithium Production Agency to develop a comprehensive lithium industry and its regulatory framework. Moreover, there will be an audit of the Solid Minerals Development Fund to ensure proper utilisation of resources. Nigeria’s mining sector, once a significant contributor to the economy, now only accounts for less than 0.8% of GDP, mainly due to the dominance of oil and gas development.

Lithium is a critical mineral for renewable energy technologies, yet Nigeria’s potential remains largely untapped. The country’s mining sector is historically significant but has diminished over the years as oil and gas became predominant. Recently, global demand for lithium has surged, leading to increased prices, which may incentivise investment in local exploration initiatives. Effective mining and exploration strategies are essential for rejuvenating this sector and boosting economic growth.

The Nigerian House of Representatives has highlighted the urgent need for increased funding towards lithium exploration and development, recognising the substantial economic benefits that this could bring. By pushing for enhanced geological surveys and the establishment of dedicated agencies, the House aims to unlock Nigeria’s lithium potential, which is critical amidst a global shift towards renewable energy sources. Acknowledging past mistakes in the oil sector, the government is urged to strategically invest in the lithium industry for sustainable economic growth.

Original Source: punchng.com

The post Nigerian House Advocates for Enhanced Funding in Lithium Exploration first appeared on Nigerian Mining News.

Nigeria’s Ministry of Solid Minerals Development has announced plans to commence the establishment of lithium and rare earth processing plants across the country, aiming to leverage its mineral wealth and diversify the economy away from oil dependency. Minister Dele Alake revealed these developments during a briefing for the upcoming Nigeria Mining Week, highlighting a partnership with El Thahadat and Hasetins to set up plants in Kwara, Kebbi, and the Federal Capital Territory. This initiative coincides with the opening of a new gold refinery in Gwarinpa. Alake noted that Nigeria possesses over 44 types of minerals and underscores the need for value addition through processing to drive economic growth and job creation. He emphasised the importance of accurate data to attract investment and the goal of positioning Nigeria as a reliable investment destination. Furthermore, local processing facilities aim to enhance job creation and economic benefits to communities. In combating illegal mining, the government is employing robust surveillance measures and collaborating with various agencies to protect resource revenues and community welfare. Plans are also in place to formalise artisanal and small-scale mining, providing better safety and technology access for participants while leading to the establishment of new co-operatives. Overall, these efforts are designed to stimulate economic empowerment at the grassroots level and enhance national development.

The article discusses Nigeria’s initiative to create lithium and rare earth processing plants, marking a strategic move to bolster the country’s economy by reducing reliance on oil revenue. Given the increasing global demand for lithium, particularly in manufacturing rechargeable batteries, Nigeria seeks to leverage its rich mineral deposits to attract investment and improve local economies. The emphasis on combating illegal mining through stricter regulations and formalising small-scale operations reflects the government’s commitment to sustainable mineral development while ensuring that local communities benefit from these resources.

Nigeria is taking significant strides to advance its mining sector by establishing lithium and rare earth processing plants, with a focus on local value addition and economic diversification. The government’s efforts to formalise artisanal mining and tackle illegal activities exemplify a comprehensive approach to fostering sustainable development and community empowerment in the mining industry. Through these initiatives, Nigeria aims to cement its position as a key player in the global mineral market and enhance the prosperity of its citizens.

Original Source: www.premiumtimesng.com

The post Nigeria to Establish Lithium and Rare Earth Processing Plants first appeared on Nigerian Mining News.

The Federal Government has transformed 250 artisanal miners into cooperatives via the Ministry of Solid Minerals Development, aiming to curb illegal mining practices. Minister Dele Alake announced this initiative, which is expected to formalise mining activities and enhance economic benefits. By October 2024, 250 cooperatives were registered, with 150 buying centres established to facilitate trading. Alake emphasised Nigeria’s potential in the mining sector due to its rich mineral resources, aiming to shift from raw extraction to value addition and local beneficiation. This approach seeks to generate jobs and retain wealth within Nigeria, empowering local industries. The government plans to introduce several projects to enhance mining capabilities, including lithium and rare earth processing plants and a new gold refinery. The upcoming Nigeria Mining Week, scheduled for November 18-20, will discuss crucial topics like environmental reforms and financing innovations, emphasising the government’s commitment to reshaping the mining industry as a cornerstone of the economy. Alake highlighted the administration’s dedication towards economic diversification and community development through a well-structured mining sector.

The Nigerian government aims to formalise the artisanal mining sector, which has largely operated illegally, through the formation of cooperatives. This initiative, part of a broader strategy to transform the mining industry, is expected to improve economic conditions for miners and their communities. Nigeria possesses numerous underutilised minerals that could significantly contribute to economic development if mined responsibly. The push for structured mining aims to bolster job creation and local industry support while aligning with national economic goals.

The Federal Government’s initiative to establish cooperatives for artisanal miners marks a significant step towards formalising the sector and reducing illegal mining. With strong support from the Ministry of Solid Minerals Development, this strategy not only aims to enhance trading activities but also highlights the government’s commitment to leveraging Nigeria’s vast mineral resources for economic growth and community empowerment.

Original Source: punchng.com

The post Nigeria Forms 250 Cooperatives to Support Artisanal Miners and Combat Illegal Mining first appeared on Nigerian Mining News.