FG urge mining firms to invest in local processing

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The Federal Government has disclosed that it will mandate international mining firms to invest in local processing and refining of metals such as lithium within Nigeria.

The Minister of Solid Minerals Development, Dr Dele Alake, disclosed this on Tuesday in his opening speech at the 8th edition of Nigeria Mining Week in Abuja.

The Minister explained that the move is essential to help create jobs as he added that such an initiative is already on stream as some companies have already commenced operations in Nigeria.

While speaking further, Alake cited a Chinese company, Ganfeng Lithium Industry Ltd that is building a lithium processing plant in the central Nasarawa state, as an example of the type of investment the government is looking for.

“The plant will process about 18,000 tons of lithium ore per day to manufacture batteries for electric vehicles.”

Alake said the mining industry is been modernized and the government is investing in data collection, spending more than 15 billion naira ($19.6 million) over seven years to generate mineral data through a National Integrated Mineral Exploration Project (NIMEP).

“The preliminary reports from this project have unravelled massive discoveries which have literally put Nigeria on the world map of lithium-rich countries.” He said.

Speaking on the 2023 mining week, Alake noted that the theme of this year’s Nigeria Mining Week, “Capitalizing On Nigeria’s Critical Mineral Resources For Its Growth,” resonates deeply with the aspirations for the nation.

He said, Nigeria, endowed with an abundance of mineral resources, is set for a great leap of transformation.

“If we manage these resources judiciously and responsibly, they can serve as the engine of our economic growth, offering employment opportunities and enhancing the well-being of our citizens.”

“Nigeria is endowed with valuable solid minerals like Limestone, Gold, Baryte, Bitumen, Lead-Zinc, Coal, and Iron Ore, to mention but a few.”

“This natural wealth indicates a significant reservoir poised for exploration and development. These resources can potentially reduce our dependence on oil revenues, diversify our economic base, serve as the bedrock of sustainable development across various sectors, and provide significant job creation opportunities.” He added.

Alake also mentioned that in the recent years Nigeria have witnessed commendable efforts to revitalize the Mining Sector.

“We have worked diligently to streamline regulatory processes, create an attractive investment climate, and instill confidence in domestic and international investors.

“These efforts have borne fruit through strategic partnerships that recognize the immense potential within our borders. These partnerships will be pivotal in building a sustainable and globally competitive mining industry.”

He said the government’s vision for the Mining Sector transcends mere resource extraction stressing that it is firmly committed to conducting mining activities that are environmentally sustainable, socially responsible, and economically beneficial.

He, therefore, expressed optimism that mining operations should serve as catalysts for community development and job creation and adhere to Industry Best Practices that minimize ecological footprint.

“As we promote responsible and developmental extraction, we propagate value addition across the value chain as the essential principle of mineral development.”

“As we convene here today, I want to assure you that the Ministry of Solid Minerals is wholeheartedly dedicated to advancing the Mining Sector in Nigeria.

“We are actively addressing the historical challenges that have hindered our progress, including infrastructure deficits, inadequate geological data, and the emerging imperative needs for modern mining.”

“Our ongoing efforts also encompass improving the ease of doing business within the sector, enhancing transparency, and enforcing regulations that protect the interests of Investors, the Environment, the Mining Host Community, and Gender Issues.” He stated.

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