Nigeria to start exportation of gold from June 2021, says Minister

*The Minister for Mines and Steel Development has stated that Segilola Resource Operating Limited, a licensed operator of Segilola Gold Project in Osun State of Nigeria is set to commence the exportation of gold June 2021, creating about direct 400 direct jobs and 1,000 indirect jobs

Isola Moses | ConsumerConnect

As part of the Federal Government’s efforts at diversifying the country’s economy to create more employment opportunities and earn foreign exchange, Segilola Resource Operating Limited, a licensed operator of Segilola Gold Project of the Canadian-based Thor Explorations Limited, is set to commence the exportation of gold June 2021 from Osun State of Nigeria.

The gold project is regarded as part of the government’s initiatives towards the diversification of Nigeria’s economy to create about direct 400 direct jobs and 1000 indirect jobs along the gold value chain, earn more foreign exchange, and save

Hitherto, the Nigerian Government has liberalised the mining sector as it grants five-year tax concession to miners and other perks to exploit the potential in the industry.

Arc. Olamilekan Adegbite, Honourable Minister for Mines and Steel Development, who disclosed this Sunday, February 28 at a forum in Abuja, FCT, described the Segilola Gold Project as a strategic investment for Nigeria’s economic diversification, agency report said.

Adegbite described the company as a poster child and first foreign investor that is doing a genuine and serious business in the country.

The firm was supposed to have started gold exportation in the first quarter of 2021, but that the date was shifted, due to the outbreak of the Coronavirus (COVID-19) pandemic in Nigeria.

He stated: “The company will start exporting gold from Nigeria in June.’’

According to the Minister, the project is being executed by Segilola Resource Operating Limited, a licensed operator and Canadian company, located along Odo-Ijesa─Iperindo Road, in Atakumosa Local Government Area of Osun State.

Adegbite said the company, which was listed and quoted on the Toronto Stock Exchange in Canada, the eighth largest exchange in the world by market capitalisation, commanding some $3.1 trillion, is trying to ensure compliance with the economic diversification agenda of the Federal Government.

The Minister further explained: “Mining is a bit capital intensive. So, we need to attract serious players, people who can put in the money and then, of course, begin to make money after some investment because it has a gestation period.

“Mining is not like trading where you put in your money today, and then, realise profit tomorrow.

“When you do exploration, it can take a year to three years; then you discover the mineral and start the exploitation before money begins to roll in.”

It is recalled that Adegbite had announced August 2020, that Nigeria was set to commence gold production with the launch of the Segilola Gold Project in Osun State.

The take-off of the project would make Nigeria a major gold-producing country and hasten the diversification of the economy and reduction of unemployment rate.

This is also coming after President Muhammadu Buhari unveiled the first batch of the Presidential Artisanal Gold Mining Development Initiative (PAGMDI) gold, which is expected to be part of Nigeria’s external reserves after being purchased by the Central Bank of Nigeria (CBN).

According to proven surveys, Nigeria has discovered large quantities of gold in Kebbi, Niger, Kaduna, Osun, Kwara, Zamfara and FCT.

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