Nigeria’s Minister of Mines on Tuesday announced stricter licensing regulations for foreign mining firms, with the aim of encouraging increased in-country processing and refining of metals such as lithium and zinc.
During a Nigeria Mining Week event in the capital, Abuja, Dele Alake unveiled a policy that mandates mining companies to present “value addition” business plans as a prerequisite for license approval.
Alake emphasized that this step is crucial in generating employment opportunities. He further stated, “I am pleased to report that this initiative is already in progress, with several companies having initiated operations in Nigeria.”
The minister pointed to Ganfeng Lithium Industry Ltd, a Chinese firm in the process of constructing a lithium processing facility in central Nasarawa state, as a prime illustration of the investment the government is seeking.
He mentioned that the facility is projected to process approximately 18,000 tons of lithium ore daily, with the primary purpose of producing batteries for electric vehicles.
Nigeria is actively courting investors for its historically underdeveloped mining sector, which has historically accounted for less than 1% of the country’s gross domestic product.
As Africa’s leading oil producer, with significant reserves of gold, limestone, and zinc, Nigeria is determined to bolster its mining sector, envisioning a more substantial contribution to its broader economic diversification goals, reducing its dependence on oil.
Alake revealed that the mining sector is undergoing modernization, with the government making substantial investments in data collection. They have allocated over 15 billion naira ($19.6 million) over seven years towards generating mineral data, a venture managed through the 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.
In the previous month, Nigeria unveiled its intentions to establish a government-backed enterprise aimed at drawing investment for the extraction of various resources, including gold, coal, iron ore, baryte, lead, bitumen, and limestone.
