Minerals

Abuja, March 12, 2024: The Minister of Solid Minerals Development, Dr Dele Alake, has urged mineral- rich African countries to use their proven mineral reserves as equity in joint ventures.

The minister made the call while speaking at the Ministerial Roundtable on Powering Africa in Washington DC.

In a statement by his Special Assistant on Media, Segun Tomori on Monday in Abuja, the minister was quoted as saying that the move was better than taking loans, which  worsened the plight of their people.

He lamented the undue pressure African governments faced from loan marketers, despite global concerns about the declining capacity of many countries to repay their debts.

” It is an interesting paradox that in spite of their chronic indebtedness, African countries remain the target of institutional and private loan sharks marketing short and long term credit to ministries, departments and agencies.

“Indeed, in the first month after a minister is sworn into office, he is literally bombarded by these marketers promising above the table and under the table deals,” he said.

Alake, who also serves as the Chairman of the African Minerals Strategy Group, the body of ministers of mining and mineral development in Africa, urged an alternative to loans, suggesting the use of proven mineral reserves as equity.

” In the mining sector, in-situ equity, where the verified value of un-extracted mineral can be the equity of the owner in joint ventures, is a better financial arrangement than the road to chronic indebtedness.”

He said that only loans that could be repaid with the returns from the project should be taken to alleviate poverty among the people.

“I have criticised the predilection of Nigerian governments to sign the dotted lines of loan agreements on the flimsiest excuse mostly with stiff conditions which hurt the common people.

“ Therefore, I believe African governments should exercise patriotic circumspection and due diligence before committing their sovereignty,”he said.

The minister’s presentation set the tone of his meetings with investors on the sidelines of the conference.

In top-level talks with the delegation of the United States International Development Finance Corporation (IDFC), he shared the President Bola Tinubu Administration’s vision of repositioning the sector to compete with others for investment.

According to him, the administration has focused on developing the critical minerals sector to diversify the economy away from reliance on oil.

He added that the administration was determined to sanitise the mining sector, including establishing a new security architecture to secure the mining environment and providing the necessary to aid in making critical decisions.

Speaking further at the parley with the Chief Operating Officer (COO) of the U.S. IDFC, Agnes Dasewicz , he mentioned that Nigeria possessed 44 critical minerals in commercial quantities and is reforming the sector to attract major players.

On her part, Dasewicz lauded the renewed focus on solid minerals by Nigeria and expressed her corporation’s interest in providing the required support to strengthen the mining sector value chain.

She said that their corporation partners with private sector players to deliver financing to mining companies to facilitate their expansion.”

She said that her organisation has the interest in engaging Nigeria in its critical minerals sector, especially as it has great potential.

To implement areas of partnership, further engagements will continue between the minister’s team and representatives of the US IDFC.”

The minister also had fruitful deliberations with a cross-section of private sector players in the mining industry, including KRL International, securing their commitment to delve deeper into the mining sector.

Abuja, Feb. 1, 2024: The Federal Government is partnering with the United Kingdom to establish a joint technical working group for the development of critical mineral deposits in the country.

Dr Dele Alake, Minister of Solid Minerals Development announced the partnership in a statement by his Special Assistant on Media, Segun Tomori on Wednesday in Abuja.

The reports that the partnership followed a meeting between Alake and the UK Deputy Prime Minister, Oliver Dowden on the sidelines of the Mines and Money conference in London in December, 2023.

A delegation of the British High Commission led by Deputy High Commissioner, Johnny Baxter had also paid a visit to the Minister of Solid Minerals Development on Tuesday to fine tune details of the collaboration.

Alake said that the partnership aims to culminate investments in the mining sector value chain.

The minister said that President Bola Tinubu’s administration was determined to improve ease of doing business in the mining sector.

This he said would be done through the establishment of new security architecture for natural resources.

He said that the administration was also establishing an efficient governance structure by creating a Nigerian Mining Corporation led by the private sector.

The minister restated the commitment of the government to sanitise and reposition the mining sector, aimed at boosting its capacity to contribute substantially to the nation’s revenue.

He said the move would reduce the over dependence on the oil sector, and make mining compete favourably with the sector in contributing to Nigeria’s Gross Domestic Product.

Abuja, Dec. 15, 2023:The Minister of Solid Minerals Development,  Dr Dele Alake has tasked Geoscientists on boosting development in the solid minerals sector.

Alake described them as critical in establishing  proposed businesses of investors that Nigeria was wooing to the sector.

He made the call while speaking at the 13th induction ceremony of the Council of Nigerian Mining Engineers and Geoscientists (COMEG) on Thursday in Abuja.

He said that  government had been embarking on engagements both locally and internationally,  aimed at attracting investors to the sectors, and would require the input of key stakeholders .

He said that geoscientists  represented a critical part of the value chain of Nigeria’s exploration, extraction and processing of solid minerals,  aimed at diversifying its economy.

He added that the country required their services to enable it achieve its target of increasing its revenue profile.

”Investors both locally and internationally are coming to us in droves, making enquiries  to bring in direct foreign investments into our economy.

” However, the criticality of your role comes to the fore because once these investors come in, you are the first set of public relations managers .

”Because they need scientists and mining engineers for feasibility studies development, exploration activities or extraction, ” he said.

He urged them to play their roles efficiently to encourage the investors to engage on  long term businesses in the country.

The minister urged them to also update their knowledge and skills,  especially as their work is  technical where new technology continuously evolved.

According to  Alake, his ministry will not have any business with geoscientists not certified by COMEG as part of efforts to sanitise the sector.

The minister said there had been a global upsurge for energy transition, which required a shift from the use of traditional fossil fuel and dependency on oil hydrocarbon to green energy.

He said the situation required mineral deposits in order to sustain the transition  for decades and centuries, which Nigeria possessed.

He said that President Bola  Tinubu is determined to explore such minerals and reposition the sector to address overdependence on the oil industry.

The action, he further explained, would contribute to Nigeria’s Gross Domestic Products (GDP) which would facilitate infrastructure development.

Speaking earlier, the Registrar of COMEG Prof. Zacheus Opafunso,  urged the inductees to be of good behaviour and adhere to  professional ethics in their discharge of duties.

According to Opafunso, as part of COMEG’s mandate, they have visited tertiary institutions running programmes related to the extraction industry, to  ensure compliance to standards and churning out  of  qualified graduates.

He said that about 50 per cent of such programmes had been accredited.

Also speaking, Prof. Akinade Olatunji, President of the Nigerian Mining and Geosciences Society (NMGS) said that no graduate from unaccredited institutions would be registered with them to check quackery.

The 28 inductees comprising of individuals and companies were admitted as members of COMEG.

Abuja, Dec. 5, 2023: The Minister of Solid Minerals Development, Dr Dele Alake, says President Bola Tinubu has identified the solid minerals sector as a pillar of Nigeria’s current efforts to diversify the economy.

Alake made the disclosure while discussing prospects for deep sea mining in Nigeria’s coastal waters during a visit to the Commonwealth Secretariat in the United Kingdom, according to a statement.

The statement issued in Abuja on Monday was signed by Alake’s Special Adviser, Mr Kehinde Bamigbetan.

Alake said that the ministry had developed a seven-point agenda that included  establishment of a solid minerals company.

He said that the agenda also included gathering of big data on minerals reserve to keep mines safe, among other things.

He added that the agenda included socio-economic development of mining communities through effective community development agreements.

The minister urged that the Commonwealth should support efforts of the Tinubu administration.

He said that the ministry would study a dimension of deep sea mining, in collaboration with other ministries, and put together a proposal for further consideration.

Commonwealth’s Senior Director of Trade, Oceans and Natural Resources Department, Mr Paul Kautoke, praised the Nigerian delegation for visiting the Commonwealth Secretariat.

Kautoke said that Nigeria, as a coastal country, could explore the prospects of  deep sea minerals such as copper, cobalt, nickel, gold and rare earth elements.

He said that many Commonwealth countries in the Pacific region were making inroads into deep sea mining.

He said that the Commonwealth could assist to develop a policy, in that regard, for Nigeria.

Abuja, Nov. 1, 2023: Minister of Steel Development, Mr Shuaibu Audu, says the Federal Government will enforce the processing of industrial raw materials locally to boost foreign exchange inflow and enhance job creation.

Addressing the 2nd edition of the Africa Natural Resources and Energy Investment Summit on Tuesday in Abuja, Audu said some pathways had been suggested that transition metals could be produced locally with requisite value addition.

He said such pathways included enforcing the processing of raw materials locally.

“Government will provide an environment conducive to investments in minerals processing plants across the country.

“This will ensure FOREX proliferation and creation of jobs for skilled and unskilled workers in the mining sector.

“We must improve promotional activities for specific minerals; we must build on several on-going initiatives to grow Nigeria’s mining sector.

“Local and global promotion needs to be intensified on lithium, gold, limestone, among others to attract investments into the sector,’’ he said.

The minister said the government would also invest in exploration of bankable data for mining.

“Government will encourage investments in the determination of large volumes and deposits of transition metals.

“We need to secure the mining environment; ensuring a secure environment through enhanced security initiatives remains one of the matters that require urgent attention.

“We need to establish host communities mineral development fund.

“This will address the challenges investors usually encounter with local communities on ownership of mineral deposits,’’ he said.

Audu noted that Nigeria’s journey in the mining sector had been both transformative and evolutionary.

According to him, as Nigeria stands at the cusp of a new era, the pursuit of value addition becomes paramount, particularly in the realm of transition metals.

“The demand for these metals, crucial in the development of green technologies, has surged globally.

“Africa’s potential to meet this demand is vast, yet largely untapped.

“The key lies not only in extracting these metals, but in harnessing our capabilities to produce and refine them locally.

“Doing so is an opportunity to foster economic growth, create jobs, and also maintain control over our resource value chain.

“By investing in domestic refining and production capabilities, we are adding value and also paving the way for sustainable development,’’’ the minister stressed.

He said collaboration between the Federal Government and sub-national governments, industry stakeholders, and investors was necessary to build a robust infrastructure, promote innovation, and instigate supportive policies that encouraged local value addition.

“Furthermore, it calls for a commitment to sustainability, incorporating responsible mining practices, and embracing environmentally-friendly production techniques to mitigate any adverse impact on the ecosystem.

“As the minister of steel development, I stand committed to supporting initiatives that foster the local production of transition metals.

“We are committed to a sustainable future that demands innovation and transformation in steel production, ensuring that our advancements align with global environmental standards,’’ Audu said.

Abuja, Oct. 31, 2023: The Solid Minerals Development Fund (SMDF) and GeoScan GmbH of Berlin, Germany, have signed a Memorandum of Understanding (MoU) on solid mineral development.

Mr Dele Alake, the Minister of Solid Minerals Development, made this known at a news conference after the Federal Executive Council (FEC) meeting, held at the Presidential Villa, Abuja.

Alake said that the significant agreement was formalised on Sunday during the visit of German Chancellor, Olaf Scholz, to Abuja.

He said the partnership with GeoScan GmbH would help Nigeria fully explore its solid mineral resources, which could make a substantial contribution to the country’s Gross Domestic Product (GDP).

He added that the development would align with President Tinubu’s Renewed Hope Agenda of positioning solid minerals as a significant economic driver alongside petroleum.

He said the MoU is expected to advance solid minerals exploration, exploitation, and judicious use of revenue accruing to the Federal Government.

The minister said GeoScan GmBH possesses cutting-edge technology capable of exploring mineral deposits up to 10,000 metres below the surface, which is a remarkable advancement in the field of mineral exploration.

Alake, who emphasised the cost-effectiveness of the proprietary technology, said it was 80 per cent cheaper than current exploration processes and three times faster in locating underground deposits.

“The gathering of geodata is very expensive. Now this particular technology, which is top notch, is 80 per cent cheaper than current processes in the world,” Alake said.

Given Nigeria’s vast and unexplored mineral landscape, estimated to be worth US$ 700 billion, the Minister noted that the MoU with GeoScan GmbH presents a significant opportunity for Nigeria.

‘”We constitute about 0.02 per cent of the global mining budget. With the US$700 billion estimation of our solid minerals deposit, we still have over 90 per cent of the entire landscape of Nigeria unexplored.

‘”And because it’s an expensive business, that underscores the significance of a landmark that we recorded on Sunday with the GeoScan GmbH, supported also by the German chancellor and our President.”

He said no kobo was committed on the part of Nigeria, adding that the company would establish its technology and plant in the country.

“Movement around the country will enable us to further explore all the other mineral deposits that we have,” he said.

He pointed out that many critical minerals, essential for the production of electric vehicles, batteries, and other advanced technological equipment, are abundant in Nigeria.

He added that these resources play a crucial role in the global shift toward clean and green energy, aligning with the global trend of addressing climate change.