Dr Oladele Alake kicked off his tenure as the Minister of Solid Minerals Development with his attendance at the Africa Down Under (ADU) conference in Perth, Western Australia in September 2024. The visit heralded what was to become a global and local investment promotion of the Nigerian solid mineral sector. The Minister’s presentation at the conference spurred a lot of attention as key mining companies and stakeholders such as Atlantic Lithium, ASX Ltd. etc. were in attendance at the conference. During his time in Perth, the Minister also had meetings with Mr. Bill Johnston the former Minister for Mines, Petroleum, and Hydrogen Industry and had discussions about collaborations between Australia and Nigeria.
As a follow-up to the ADU, in April 2024, The Minister was invited as a keynote speaker to the virtual Nigeria-Australia Business Investment Forum held in Melbourne. It was organized by the Australia Africa Chamber of Commerce.
Following the meeting in Australia, the Minister attended the UN General Assembly (UNGA) event in New York, USA. During the visit, the he participated in the US-Africa Business Summit organized by the Corporate Council on Africa in which he gave a keynote address on the need to look towards Nigeria as an important source of the globally in-demand critical minerals. It was also an opportunity for engagements with investors and financiers such as the US International Development Finance Corporation (DFC) who expressed interest in unlocking financing for projects such as infrastructure related mining projects.
In the same month of September, under the directive of the Minister, the Director-General of the Nigerian Geological Survey Agency (NGSA) attended the Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference in Busan, South Korea. It was reported that successful meetings were held with state-owned mining company Korea Mines Rehabilitation Corporation (KOMIR) and the Korean Institute of Geosciences and Mineral Resources (KIGAM). During the meeting, the South Korean entities expressed interest in revisiting Memorandums of Articles (MOUs) previously signed with Nigeria for exploration of critical minerals. It is expected that these discussions will be pivotal by the time of the incorporation of the new Nigerian mining company; a critical part of the Minister’s 7-point agenda, as the new company will be a vehicle for joint ventures with entities such as the South Korean KOMIR.
In October 2023, as a proof of the effectiveness of the Minister’s investment drive, Canada-based Orosur Mining through its UK subsidiary, Lithium West Ltd, announced its investment of over USD$5m in Nigeria’s lithium pegmatite belt in an area spanning more than 332km^2 in Kwara, Niger and the Federal Capital Territory (FCT).
Orosur Mining is a South American mineral exploration company with dual listing on the Toronto Stock Exchange (TSV) Canada and the Alternative Investment Markets (AIM) London, focused on the discovery and development of high quality precious and base metals deposits. Their entry into Nigeria is an indication of Nigeria’s readiness for international junior miners which is a precursor to the entry of the majors.
The London Mines and Money event held in November 2023 had companies such as Anglo American, BHP, Barrick and others in attendance. The Minister’s speech gave an overview of Nigeria’s mining policy and regulatory framework. He emphasized the commitment of the Federal Government of Nigeria to attracting investment and sustainable development in Nigeria. Following the presentation, the Minister had a meeting with the United States Assistant Secretary for Energy and Natural Resources, Geoffrey Pratt during which discussions were held about areas of synergy between Nigeria and the United States in developing Nigeria’s critical minerals for mutual benefit of both nations and leveraging on the historic bi-lateral relationship between both countries.
At the sidelines of the event, meetings were also led by the ministry’s delegation with companies such as Demerara Resources Ltd, Woodcross Resources Ltd, etc. Today, Woodcross Resources is at advanced stages of establishing a tin refinery in Nigeria – the first of its kind. Woodcross Resources which is currently operating in a tin smelting facility with a production capacity exceeding 1,000 tonnes of London Metal Exchange (LME) Grade A, has set its eyes on Nigeria. This is a welcomed investment, considering Nigeria’s strong history of tin production in Jos, Plateau State. In March 2024, the Woodcross team came into Nigeria and had a meeting with members of the Ministry to inform and keep the ministry abreast of its activities post the meeting at the London Mines and Money. They informed the Ministry that they have secured the necessary financial backing. The company made commitment of over $50m and noted that their project is expected to generate $300m in annual export revenues over the next 4 years.
In London, the Minister also had a key meeting with the Deputy Prime Minister of the United Kingdom orchestrated by Carousel Bi Energy – a company desirous of establishing a lithium battery giga factory in Nigeria and by extension, investing in the lithium value chain – exploration, mining, mineral processing and power generation. This engagement is still ongoing evidenced by following up meetings at the Future Mineral Forum in Saudi Arabia and the recent MinDiver World Bank investment roadshow held in London in May 2024.
In a report submitted to the Ministry in December 2023 by Emma Priestly, the World Bank consultant to the Ministry of Solid Minerals Development for investment promotion, she noted that perception about the Nigerian mining sector has gone from ‘no way’ to ‘what has Nigeria got’. This is a clear sign of progress and evidence of the change in the perception that Nigeria is solely an oil and gas country, to the belief that the it is a potential mining destination. The report noted interest from investors and financiers such as Stand Hanson, Greg Wales, Chesterfield Resources Ltd, Critical Minerals and much more, expressing interest in investing in Nigeria.
In January 2024, the Honorable Minister led the delegation to the Saudi Arabia Future Minerals Forum (FMF). At this conference, the Minister formed the Africa Minerals Strategy Group (AMSG) and was appointed its Chairman. In recognition of this group, in April 2024, the Minister of Industry and Mineral Resources for the Kingdom of Saudi Arabia, Bandar Ibrahim Al Khorayef wrote to the Minister about Saudi Arabia’s willingness to engage with the AMSG for the coordination of mining investments and securing supplies to meet the Kingdom’s supply needs for energy and electric batteries. Meetings were also held at the sideline of the FMF with Saudi Prince bin Fahad bin Abdullah bin Mohammed Al Saud Faisal, who expressed interests in investing in Nigeria through his family office amidst other investor meetings.
As a follow-up to the meeting held in London with the Deputy Prime Minister, a meeting was held with the Scientific Advisor to the UK Minister of State for the Department of Trade & Industry, Investment Security Unit, Industry and Economic Security – Minister Nusrat Ghani. These meeting was a continuation of exploring possible synergies between the UK and Nigeria in the area of critical minerals. It is expected that relationships such as this will be leveraged on, at the incorporation of the new mining company or when the new exploration program for the sector is defined and announced.
The Minister also had a meeting with the Director of the Corporate Council on Africa and the Chairman of Jean Boulle Group – Mr Jean-Raymond Boulle. During the meeting, Mr Boulle expressed interest in investing in Nigeria and informed the Minister that he is currently prospecting; it is hoped that they will make adequate progress in their activities in Nigeria. A key outtake of the FMF following the Minister’s participation in the ministerial roundtable was that Nigeria is to participate in the Minerals Innovation Acceleration Park (MIAP) designed to connect the super region for positive impact by building capacity in the following areas: 1) Geological database for exploration; 2) Mining technologies incubators, 3) Mining start-up accelerators and, 4) Social-environmental programs and infrastructure.
In May 2024, through the Ministry of Foreign Affairs, the Kingdom of Saudi Arabia wrote to the Honorable Minister to express interest for Nigeria’s participation in initiatives agreed during the roundtable – 1) the establishment of a critical minerals framework and green metals hubs, 2) sustainability expectations and, 3) center of excellence. The goal is to build and strengthen the super region made up of Western and Central Asia and Africa. Nigeria’s participation in this initiative is expected to bring about investment into the nation through frameworks and approaches that will be clearly defined through Nigeria’s participation in the initiative.
The Mining Indaba held in Cape Town, South Africa presented another opportunity for the Minister and the ministry’s delegation to promote the Nigerian solid mineral sector. The Minister delivered a speech on the panel discussion titled ‘Positioning Africa to succeed in diversifying global value chains’. Prior to heading out to Cape Town, the Minister had met with David Greene Charge d’Affaires of the US Embassy. This meeting led to a meeting in Cape Town with President Biden’s Advisor on Energy and Infrastructure – Mr. Amos Hochstein and the Acting Special Presidential Coordinator for Global Infrastructure and Investment, Helaina Matza. The focus of the meeting was on infrastructure development with references to the ongoing Lobito Corridor project – a railway infrastructure project being built through mineral and oil rich parts of Angola, the Democratic Republic of Congo and Zambia – connecting Southern and Central Africa, and provides access to Eastern Africa and a pathway to the Atlantic Ocean.
The US through its Development Finance Corporation (DFC) is unlocking $250m of investment for the project. It’s important that Nigeria’s potential and capacity for a program like this is noted by the US. It is expected that as Nigeria progresses on its exploration programs and definition of the mining economic corridor, we will be able to secure a program similar to the Lobito Corridor that will bring about a positive shift to the sector through ease of transportation and export of goods.
At the Indaba, meetings were also held with the Indian delegation and discussions are currently ongoing with them on how to invest in Nigeria and collaborate on specific areas such as gemstones and jewelry which India has a competitive advantage on.
At the Canadian Prospectors and Developers Association of Canada (PDAC) conference in March, a key highlight was the presentation by DFR Gold. DFR Gold (TSXV: DFR) is a Canadian-listed, West African gold explorer and developer. They were keen to talk about their Gurara Project in Niger State and the progress made in exploration being done in partnership with PW Nigeria as the operating partner. In May, it announced the restructuring and acquisition of controlling interest in the Gurara Project which the CEO stated will enable it focus on the project – this is good news for the sector as its important more junior miners and publicly listed companies are operating in the space.
In May at the just concluded MinDiver London roadshow for the marketing of the final results of the MinDiver project, investors attended and expressed interest in Nigeria and in the new Decision Support System ( DSS) technology. Investors and financiers such as Avenor Mining, Techmet, Carousel Bio Energy, Arkwright Advisory Ltd, Lagata, Hannam & Partners, Beacon Securities, SP Angel and much more were in attendance. Each company in attendance made different enquiries about investing in the Nigerian mining sector which is expected to lead to market entry of some of them in the near future.
Following the conference, Emma Priestly also shared a list of other investors that had been engaged. He said the investors have shown keen interest in the sector. Among them are AMED Funds and Shore Capital.
Besides the international promotion activities, under the leadership of the Minister and his focus on value addition, Nigeria has seen a steady rise in companies establishing mineral processing plants in the country – this is a clear evidence of the future envisioned by the Minister where unprocessed minerals are no longer being exported. For example, in April 2024, the Minister attended the commissioning of the Asba Group’s lithium processing plant which it stated is worth $50m and in a follow-up letter to the Minister, they stated that they will be making further investment in a tin/tantalite processing plant worth $146m and a Tin/Columbite processing plant in Bauchi state worth $67m which brings their investment to approximately $263m.
Weekly, the Minister is inundated with meetings with various types of investors – Asia, Australia, Europe, Middle East, Americas who meet him to express interest in investing and participating in different parts of the mineral value chain.
The Mining Cadastre Office (MCO) has noted the increase in license applications since the start of the Minister’s tenure which is evidence of an increase in investment. In April for example, he met with Glencore – one of the world’s largest globally diversified natural resources companies which in 2023 recorded revenues of $217.829bn. As a major mining company, their interest in our sector is sign of Nigeria’s repositioning in the eyes of global majors and large investors which we expect to start realizing in the near future.
It is apparent that the policies and investment promotion drive of the Minister is paying off for the sector. Mining is a long game – a long-term sector which takes a while for investments made in it to materialize – it’s not one for overnight success. Thus, we expect the seeds being sown today to materialize over time for the benefit of not just the mining sector but for the Nigerian economy as a whole.
Source: ALAKE ON RESCUE MISSION, a publication of the Ministry of Solid Minerals Development, MoSMD.
