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

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The signing of the mining pact between France and Nigeria presents an opportunity for Nigeria to harness its mineral resources for economic diversification while strengthening ties with France. Although the pact can facilitate investment, technical expertise, and advanced technologies, Nigeria must navigate its complexities carefully due to regional tensions and historical grievances against France in West Africa. For Nigeria, the mining sector is a potential economic driver, but vigilance is essential to prevent exploitation and ensure local communities benefit significantly.

Nigeria’s dependency on oil has stifled its economic growth, thus, the mining industry, rich in resources like gold and tin, holds promise for diversification. Partnering with France, a leader in mining technology, could enable Nigeria to build a modern industry that generates jobs and attracts foreign investment. Yet, Nigeria’s recent experiences with military governments and accusations against France of neocolonialism linger, necessitating a cautious approach.

Lessons from the Niger Delta underscore the need for robust regulatory frameworks to guard against exploitation. Clear regulations should emphasize transparency, fairness, and sustainability to protect local interests. Developing local capacity in mineral processing and management is crucial; Nigeria must not overly rely on foreign expertise, as community involvement ensures shared benefits and stable relations.

France’s advanced technology could help monitor and regulate mining practices, averting resource conflicts similar to those experienced in the oil sector. However, it is paramount that these technologies are managed by local institutions to prevent manipulation. Furthermore, combating corruption is essential to secure Nigeria’s economic future, and collaboration among various government agencies can aid in addressing issues of illegal mining and smuggling.

The France-Nigeria mining pact aims to exploit Nigeria’s rich mineral resources as a means to diversify its economy, reduce dependence on oil, and strengthen diplomatic relations with France. While presenting an opportunity for economic growth through mining, the deal comes with risks due to historical tensions in West Africa regarding France’s alleged neocolonial practices. Both nations face the challenge of ensuring that this partnership leads to sustainable development without repeating past exploitative patterns seen in other resource-rich countries.

To maximise the benefits of the France-Nigeria mining pact, Nigeria must adopt a cautious yet strategic approach. Prioritising community involvement, regulatory integrity, and capacity building are fundamental to prevent the pitfalls of past resource exploitation. By asserting its sovereignty and maintaining rigorous oversight, Nigeria can transform this collaboration into a beneficial venture for its people and the economy.

Original Source: www.thisdaylive.com

The post Navigating Opportunities and Risks: The France-Nigeria Mining Pact first appeared on Nigerian Mining News.

Nigeria recently concluded a three-day conference celebrating National Mining Week, highlighting its commitment to enhancing its mining sector. With a focus on attracting investments, the Nigerian government aims to leverage the global increase in mineral demand to diversify its economy. This initiative is part of broader efforts to reduce reliance on oil and tap into the potential of the mining industry to foster economic growth.

The Nigerian economy has been historically reliant on oil exports, making it vulnerable to fluctuating global prices. In light of this, the government is actively seeking to diversify by investing in various sectors, including mining. The National Mining Week conference underscores the government’s dedication to this goal, providing a platform for stakeholders to discuss opportunities and strategies to enhance the mining sector’s contribution to the economy.

In summary, Nigeria’s focus on expanding its mining industry is a strategic move aimed at economic diversification. By capitalising on the global demand for minerals, the country intends to shift its economic dependence away from oil, ultimately fostering sustainable growth and investment in the sector.

Original Source: www.voaafrica.com

The post Nigeria Aims to Expand Mining Sector to Diversify Economy first appeared on Nigerian Mining News.