Nigeria and Saudi Arabia Explore Iron Ore Partnership and Steel Production
Nigeria and Saudi Arabia have embarked on discussions to establish a collaborative venture in iron ore extraction and steel processing. This partnership aims to leverage Nigeria’s abundant iron ore reserves and Saudi Arabia’s established steel industry. Dele Alake, Nigeria’s Minister of Solid Minerals Development, met with Khalid bin Saleh Al-Musdaifer, Saudi Arabia’s Deputy Minister of Minerals and Energy, at the Mines and Money conference in London to advance these discussions. Saudi Arabia currently imports iron ore from various African nations to fuel its steel production. Minister Alake proposed a value-added approach, suggesting that processing iron ore into steel within Nigeria would yield higher export revenues compared to exporting raw ore. The Saudi Arabian delegation expressed interest in this proposal and committed to further consideration. A follow-up meeting is scheduled for January 2025 in Riyadh, Saudi Arabia, during the Future Metals Forum, to solidify the partnership and outline the specifics of the collaboration.
Nigeria Attracts International Investors for Tin Mining and Development
Beyond the Saudi Arabian partnership, Minister Alake engaged with several international investors interested in Nigeria’s mining sector. Woodcross, a tin manufacturer, revealed its preliminary survey findings, indicating substantial tin ore deposits in Jos, Nigeria, sufficient to meet global demand. The company is poised to make a final investment decision by February 2025. To facilitate the project’s timely execution, Minister Alake established a Ministerial Committee tasked with providing weekly updates on progress. The Gerald Group also expressed interest in Nigeria’s tin sector, proposing a joint venture. Minister Alake encouraged their early involvement and highlighted the Nigerian government’s plan to establish the Nigerian Solid Minerals Corporation, a potential partner for such ventures. This committee will also oversee the Gerald Group project.
Securing Funding for Nigeria’s Mining Projects
Minister Alake’s meetings extended to securing funding for Nigeria’s burgeoning mining sector. Discussions with Ajay Commem, Director of AMG Group, and Young Chan, Managing Director of Business Idea Management Center, China, explored potential investment opportunities. AMG expressed interest in sourcing global capital for the proposed Nigerian Solid Minerals Corporation, while Mr. Chan offered access to Chinese capital for the Nigerian mining sector. Minister Alake directed the Executive Secretary of the Solid Minerals Development Fund to collaborate with these institutions to supplement the Fund’s resources. These funding initiatives aim to provide the necessary capital for the development and expansion of Nigeria’s mining operations.
Reappointment of Shinkafi and the Future of the Solid Minerals Development Fund
Amidst these developments, the reappointment of Fatima Shinkafi as Executive Secretary of the Solid Minerals Development Fund (SMDF) by President Bola Ahmed Tinubu generated some controversy. The Ministry of Solid Minerals Development clarified that Shinkafi’s reappointment is in accordance with the SMDF Act, which does not impose term limits on the agency’s Chief Executive Officer. The ministry emphasized that the appointment process, as outlined in the Nigerian Minerals and Mining Act of 2007, empowers the President to appoint the Executive Secretary based on the recommendation of the Minister of Solid Minerals Development. The reappointment underscores the government’s commitment to continuity and stability in the leadership of the SMDF.
Nigeria’s Strategic Position in African Mining Development
The Minister’s participation in the Resourcing Tomorrow forum also involved discussions on a proposal for the African Exim Minerals Bank. This initiative aims to provide funding for mineral exploration across the African continent. Minister Alake, in his capacity as Chairman of the Africa Minerals Strategy Group (AMSG), expressed support for the proposal and pledged to include it on the AMSG’s agenda at its forthcoming meeting in Riyadh. This commitment showcases Nigeria’s proactive role in driving mineral resource development and fostering collaborative efforts within Africa.
Nigeria’s Vision for a Robust and Sustainable Mining Sector
The series of meetings and discussions undertaken by Minister Alake highlight Nigeria’s proactive approach to developing its mining sector. The government’s focus on attracting international investment, establishing strategic partnerships, and securing funding demonstrates a commitment to transforming the mining sector into a key driver of economic growth. The planned establishment of the Nigerian Solid Minerals Corporation, the clarification regarding the SMDF leadership, and the engagement with international partners underscore Nigeria’s determination to create a robust, transparent, and sustainable mining industry that benefits the nation and contributes to global mineral supply chains. The collaborations and initiatives signal a new era for Nigeria’s mining sector, poised for significant growth and development in the years to come.
