In a bid to unlock potentials in the solid minerals sector, Nigeria and Saudi Arabia are collaborating to extract and process iron ore into steel.
This development was disclosed in a statement signed by the Special Adviser to the Minister, Kehinde Bamigbetan. According to the statement, the two countries discussed this initiative during a meeting on the sidelines of the Resourcing Tomorrow event at the annual Mines and Money Expo in the London borough of Islington, United Kingdom.
Minister of Solid Minerals Development, Dr. Dele Alake, and Deputy Minister of Minerals and Energy of Saudi Arabia, Engr. Khalid bin Saleh Al-Musdaifer, explored plans to extract iron ore and process it into steel within Nigeria. Dr. Alake advocated for the extraction and beneficiation of iron ore in Nigeria, emphasizing that value-added exports would secure better prices than raw ores. In response, Engr. Al-Musdaifer expressed Saudi Arabia's interest in sourcing iron ore for its steel industry and assured that the government would consider Nigeria's proposal for domestic downstream value chain development. A follow-up meeting is scheduled for Riyadh during the Future Metals Forum in January 2025.
Additionally, Dr. Alake engaged with other investors, such as tin manufacturers Woodcross and the Gerald Group, fund managers AMG, and Business Idea Development from China. The meetings produced positive results, with Woodcross confirming a preliminary survey of tin mining in Jos, which revealed sufficient tin ores to justify long-term investments. They are expected to make a final investment decision by February 2025.
The Gerald Group also reported their findings in the tin sector and expressed interest in a joint venture. Dr. Alake encouraged them to accelerate the project's launch, highlighting the plans of the Tinubu administration to establish the Nigerian Solid Minerals Corporation as a potential joint venture partner.
Further discussions included funding opportunities with the Director of AMG Group, Ajay Commem, and Managing Director of Business Idea Management Centre, China, Young Chan. Both institutions showed interest in supporting mining projects in Nigeria, with the Minister directing the Executive Secretary of the Solid Minerals Development Fund to collaborate with them.
Dr. Alake concluded the business meetings by engaging with over 30 mining entrepreneurs from across the globe. The forum discussed the African Extractive Minerals Bank, with Dr. Alake promising to include the proposal on the agenda for the next AMSG meeting in Riyadh, Saudi Arabia.
Saudi Arabia currently operates a strong steel industry reliant on iron ore imports from various African countries.
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