Nigeria, abundant in over 44 minerals across 500 locations, is evolving into a major player in Africa’s mining sector. The government aims to elevate the mining sector’s GDP contribution to 10% by 2026 by fully exploiting its vast mineral resources. Upcoming events like Africa Mining Week in Cape Town will spotlight investment opportunities in Nigeria.

Bitumen: Nigeria possesses 42.47 billion tons of probable bitumen reserves, ranking sixth globally. Major deposits are located in Lagos, Ogun, Ondo, Rivers, Bayelsa, and Edo States. A $1 billion investment by Owena Bitumen Exploration Nigeria Limited aims to develop these reserves in Ondo State.

Limestone: With approximately 10.6 billion tons, Nigeria has one of Africa’s largest limestone reserves, spread across 14 states. This resource is key for job creation and economic diversification, particularly in cement production through companies like Dangote Cement.

Coal: Nigeria’s coal reserves are significant, estimated at 2.75 billion tons, mainly found in Gombe, Kogi, Nasarawa, and Enugu States. The Zuma Coal Mining Project, operated by Zuma Energy Nigeria Limited, has a production target of two million metric tons annually over 25 years.

Iron Ore: The Itakpe mine in Kogi State hosts around 3 billion tons of iron ore, a crucial resource for Nigeria’s industrialization. The iron ore is processed to 67% purity and supplies steel plants like Aladja and Ajaokuta.

Gold: Nigeria, with 21.37 metric tons of gold reserves, is the sixth-largest gold holder in Africa. Major deposits are spread across Zamfara, Kaduna, Bauchi, Niger, and Osun States, while initiatives, including a new gold refinery by Kian Smith, aim to enhance the gold value chain.

Nigeria’s mining sector offers significant opportunities for investment and economic growth, driven by its vast mineral reserves in bitumen, limestone, coal, iron ore, and gold. By attracting global investors and focusing on sustainable exploitation of these resources, Nigeria aims to diversify its economy and improve its mining contributions to GDP.

Original Source: energycapitalpower.com

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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.

Analyst Steven Olajumoke highlighted that the recent N26 billion sand mining agreement between Japaul Gold and Gravitas Investment Limited is set to boost Nigeria’s GDP through tax revenues, royalties, and dividends. This project, which involves extracting 3.5 million cubic metres of sand for the reclamation of Gracefield Island in Lekki, Lagos, is expected to generate over 1,000 jobs and enhance local businesses.

This contract is also anticipated to improve local infrastructure, leading to better roads and utilities. The reclamation project, which covers 200 hectares of land, aims to develop luxurious amenities such as a golf course and shopping malls, paving the way for a premier destination similar to Banana Island.

Olajumoke further explained the environmental and social advantages, which include habitat creation, the reduction of pollution, and increased standards of living for locals. The deal promises to enhance educational and healthcare resources alongside vital infrastructure improvements.

N26 billion sand mining deal between Japaul Gold and Gravitas Investment Limited is a significant investment aimed at economic development in Nigeria’s mining sector. It focuses on extracting sand for land reclamation in Lekki, Lagos, while promising job creation, infrastructural improvements, and boosts in tourism. Developing local content and enhancing environmental protection are also key aspects of the project.

The N26 billion sand mining deal is expected to yield economic, environmental, and social benefits for Nigeria. Analysts project that it will significantly contribute to GDP growth, create jobs, improve local infrastructure, and enhance living standards while ensuring environmental sustainability. The project embodies a key step towards local content development and tourism enhancement in Nigeria.

Original Source: newtelegraphng.com

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On Wednesday, the House of Representatives advanced a bill aimed at enhancing funding for mineral exploration and extraction in Nigeria through public-private partnerships. Lanre Okunola, the bill’s sponsor and representative for Surulere II, Lagos State, argued that the legislation would modernise the mining sector by securing investment and promoting sustainable practices. The proposed framework is designed to create a mining public-private partnership programme, facilitating the integration of private capital and expertise in the industry. The focus includes diversifying the economy beyond oil dependency while attracting local and international investors.

The bill establishes a Technical Management and Advisory Council to oversee mining activities and ensure adherence to sustainable practices, including site rehabilitation post-mining. A Mining PPP Coordinator will be tasked with policy formulation, operational supervision, and performance reporting, which will be submitted annually to the President. Okunola emphasised the transformative potential of the bill, highlighting benefits like job creation, economic diversification, and enhanced global competitiveness.

The proposed bill highlights the urgent need for Nigeria to diversify its economy away from oil dependence and explore its rich mineral resources. By establishing a framework for public-private partnerships, the government aims to attract investment and expertise necessary for sustainable development in the mining sector. Initiatives like the Technical Management and Advisory Council will support strategic oversight to enhance operational efficiency and environmental responsibility, thus aligning industry practices with global standards.

The approval of the mineral exploration funding bill signals a strategic move towards revitalising Nigeria’s mining sector through public-private partnerships. By securing private investment and expertise, Nigeria can harness its vast mineral resources to drive economic growth, create jobs, and improve sustainability practices. Overall, this legislative effort aims to position Nigeria as a competitive player in the global mining landscape.

Original Source: punchng.com

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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

The post Investment in Mining Sector as Key to Nigeria’s Economic Recovery first appeared on Nigerian Mining News.

Mikano Motors LHCV, a division of Mikano International, will showcase Lovol Heavy Industry Group’s products at Nigeria Mining Week 2024, taking place from November 18 to 20 at the Abuja Continental Hotel. Arab Gazi, GM of Mikano Motors LHCV, highlighted the company’s commitment to providing innovative equipment for the mining sector. Lovol’s diverse product range, including excavators and dump trucks, is tailored to meet the rigorous demands of mining professionals in Nigeria. The collaboration aims to leverage Mikano’s market knowledge and enhance productivity through dependable machinery. The event, organised by the Miners Association of Nigeria in partnership with PwC Nigeria and Vuka Group, will gather key players from the mining and construction industries to discuss the latest technologies shaping Nigeria’s extractive sectors. Hosted by the Ministry of Solid Minerals Development, it aims to engage industry professionals and government officials.

Mikano Motors LHCV, a prominent player in the light and heavy-duty construction vehicle sector, plays a crucial role in enhancing Nigeria’s mining capabilities. With Lovol Heavy Industry Group as its partner, Mikano focuses on delivering advanced and reliable machinery tailored for the rigorous demands of the mining and construction sectors. Nigeria Mining Week is a vital event that brings together stakeholders to explore innovations and address challenges in the extractive industries, with an emphasis on collaboration and technological advancement.

Mikano Motors LHCV will proudly showcase Lovol’s heavy equipment at Nigeria Mining Week 2024, demonstrating a commitment to enhancing the mining sector’s productivity with reliable machinery. The event serves as a platform for industry leaders and professionals to converge, focusing on new technologies and solutions for Nigeria’s mining landscape. This collaboration between Mikano and Lovol is designed to meet the evolving needs of mining operations across the country.

Original Source: dailytrust.com

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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

The post Nigeria’s Lithium Sector Boosted by E-Marketplace Startup Sabi first appeared on Nigerian Mining News.

The Nigerian Senate committee on solid minerals has reported significant financial losses in both federal and state revenues due to illegal mining activities. This revelation came after the committee, led by Senator Sampson Ekong (PDP, Akwa Ibom South), visited Niger State to investigate the recent collapse of a mining pit that resulted in approximately 30 fatalities. The tragedy spurred Senator Sani Musa (APC, Niger East) to push for an assessment of the situation by the committee. During the visit, Senator Ekong emphasised the lucrative potential of Nigeria’s solid minerals sector, which could greatly enhance government revenue, diversify the economy, and boost GDP if effectively managed. However, he expressed concerns about the rampant illegal mining operations that not only deplete national wealth but also contribute to escalating insecurity issues. Senator Ekong highlighted the importance of legislative efforts to address the challenges facing the mining industry. He assured stakeholders that the Senate is dedicated to eliminating illegal mining and establishing proper regulations within the sector to promote sustainable growth.

Illegal mining in Nigeria has become a pressing issue as it undermines government revenue and poses security threats. The recent collapse of a mining pit in Niger State, which caused numerous fatalities, has raised awareness about the dangers associated with unregulated mining operations. These activities divert significant financial resources and facilitate criminal behaviour, prompting the Senate to take decisive action in safeguarding the mining sector and reaping its economic benefits.

The Senate committee’s findings indicate that Nigeria is losing substantial revenue due to illegal mining, which also exacerbates security concerns. Legislative measures are being considered to regulate the sector and promote growth, highlighting the potential of mining to positively impact the economy if properly managed.

Original Source: dailytrust.com

The post Senate Reports Billions Lost to Illegal Mining in Nigeria first appeared on Nigerian Mining News.