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Foreign Mining Companies to be Mandated to Invest in Domestic Processing for Licensing, Says FG

October 17, 2023

Minister of Solid Mineral Development, Mr. Dele Alake, has announced that international mining companies seeking licenses to operate in Nigeria will be required to invest in domestic processing as part of the licensing process. This significant policy shift was unveiled during the Nigeria Mining Week event held in Abuja.

Alake emphasized the necessity for mining companies to present comprehensive business plans that emphasize “value addition” as a prerequisite for obtaining licenses. He underscored that this policy is strategically aimed at fostering job creation and economic growth. He further stated, “I am pleased to report that this initiative is already in progress, with several companies having commenced operations in Nigeria.”

One prominent example cited by the minister is Ganfeng Lithium Industry Ltd., a Chinese company that is presently in the process of constructing a $250 million lithium processing facility in Nasarawa State. This state-of-the-art facility is anticipated to process approximately 18,000 tons of lithium ore on a daily basis, with the primary objective of producing batteries designed for electric vehicles, in accordance with Minister Alake’s statement.

Alake elaborated on the government’s broader strategy, indicating that the mining industry is currently undergoing a process of modernization. The government is making substantial investments in data collection, allocating over N15 billion over a span of seven years to fund the National Integrated Mineral Exploration Project (NIMEP). This initiative is intended to significantly enhance the availability of mineral data, facilitating more efficient and sustainable mining practices in Nigeria.

 

Credit: Imran Muhammad/X

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