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Nigerian Government woos global mining investors with lower production cost, improved security

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, at the Mines and Money Conference in London, UK Photo: State House

*Dr. Oladele Alake, Minister for Solid Minerals Development, at the Mines and Money Conference, in London, UK, restates the Federal Government’s commitment to cutting red tapes slowing business transactions and improving security of mining operations, listing Nigeria’s unique advantages in regard to lower production cost in surface mining and huge untapped minerals

Alexander Davis | ConsumerConnect

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, Tuesday, November 28, 2023, restated the Federal Government’s commitment to cutting red tapes, which slow business transactions and improving the security of mining operations, among others at the Mines and Money Conference in London, United Kingdom (UK).

Mr. Kehinde Bamigbetan, Special Adviser to the Honourable Minister, inna statement Tuesday, November 28, noted Dr. Alake, while addressing global stakeholders in the mining industry at the event in his 15-minute speech, pitched for more investment in Nigeria.

Nigeria’s unique advantages in mining

The Minister listed the country’s unique advantages, such as lower production cost due to surface mining and billions of Dollars untapped minerals.

According to Alake, recent reports by audit firm KPMG, which reported that mining’s contribution to Nigeria’s Gross Domestic Product (GDP) rose from 0.3 percent to 0.85 percent 2022, indicating 0.63 percent Year-on-Year growth.

“The country’s geological bounty encompasses over 44 distinct mineral types, found in exploitable quantities across more than 500 locations.

“Recently, recognising the evolving global landscape and in response to emerging trends, Lithium has been included as a crucial strategic mineral of global consequence,” said the Minister.

Alake further hinted the administration of President Bola Ahmed Tinubu had embarked on reforms to boost investment by streamlining procedures and reducing hurdles to attract foreign investors.

Recent progress recorded in solid minerals development, by Alake

Showcasing recent progress in creating conditions for solid minerals development to global investors at the Mines and Money Conference in London, Alake highlighted fresh data revealed by the Airborne Geophysical Survey, Memorandum of Understanding (MoU) with German firm Geoscan.

The MoU, he stated, is aimed at gathering more data on solid minerals across the West African country, and access to finance through a new funding facility launched by the Africa Finance Corporation (AFC) and the Solid Minerals Development Fund.

The statement as well said the Minister reminded the global mining community of the Federal Government’s policies on how mining operations must benefit the communities towards processing instead of wholesale export of raw minerals.

Alake asserted: “Nigeria is currently emphasising Solid Minerals Beneficiation and Value-Addition as a panacea for quick and sustainable growth of the Mining Industry….

“By adding value to our raw materials, we not only create higher value products but also generate employment opportunities for our teeming youth and increase the sector’s overall profitability and contribution to the nation’s GDP.”

The Minister, therefore, urged investors to support socio-economic development of the communities where they mine to make mining mutually beneficial.

Dr. Alake also mentioned the recent launch of the revised guidelines for Community Development Agreement, which provides for social amenities, educational support, health and safety environmental facilities in mining communities in Nigeria.

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