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President Bola Ahmed Tinubu’s government has initiated talks with the government of Saudi Arabia on the extraction and processing of iron ore into steel.
This development was confirmed in a statement signed and released Monday by the special adviser to the Minister of Solid Minerals Development, Dele Alake, Kehinde Bamigbetan.
The statement disclosed that Alake and the Deputy Minister of Minerals and Energy of Saudi Arabia, Khalid bin Saleh Al-Musdaifer, advanced talks on the partnership at the just concluded Resourcing Tomorrow at the annual Mines and Money expo in London, United Kingdom.
Naija News understands that plans to extract iron ore and process steel in Nigeria were discussed during the meeting.
Saudi Arabia currently boasts of a solid steel industry that imports iron ore from various African countries.
However, Alake pitched for the extraction and beneficiation of iron ore to steel in Nigeria, adding that the value-added exports would attract better prices than raw ores.
Responding, Al-Mudaifer confirmed Saudi Arabia’s interest in sourcing iron ore for its steel industry and assured the Minister that the government would consider Nigeria’s proposal for the domestication of the country’s downstream value chain.
According to the statement, a follow-up meeting has been scheduled for Riyadh, the capital of Saudi Arabia, during the Future Metals Forum in January 2025.
It added that Alake also met other investors such as tin manufacturers Woodcross and Gerald Group, fund managers AMG and Business Idea Development, China.
“Set up by the mining investment group, Core International, the meeting yielded positive results. Woodcross confirmed it had done a preliminary survey of tin mining in Jos and discovered evidence of sufficient tin ores to justify the long-term investment in processing that could meet current global demands,” the statement read.
Represented by directors Mehdi Ali and Hassan Dhanji, Woodcross has committed to making a final investment decision by February 2025.
In response, Alake promptly established a Ministerial Committee tasked with initiating the start-up in accordance with the established timeline and providing weekly progress reports.
Meanwhile, the Gerald Group, under the leadership of Brendan Lynch, Head of Business Development, and Anya Sarin, Vice President of Communications, has also conducted research into the tin sector in Nigeria and expressed interest in pursuing a joint venture.
Alake urged them to expedite the project’s commencement, emphasizing the Tinubu administration’s intention to establish the Nigerian Solid Minerals Corporation, which would serve as a dependable joint venture partner.
He delegated the project’s responsibility to the Ministerial Committee, which was given a similar mandate.
Additionally, Alake engaged in discussions with Ajay Commem, Director of AMG Group, and Young Chan, Managing Director of Business Idea Management Center in China, regarding funding opportunities for mining projects in Nigeria.
“Commem said he heard of the Tinubu administration’s plan to set up the Nigerian Solid Minerals Corporation, adding that AMG would be willing to source capital and investors globally for the corporation.
“Similarly, Mr Chan said he flew from China to meet the minister to offer opportunities of Chinese capital to the Nigerian mining sector. The Minister directed the Executive Secretary of the Solid Minerals Development Fund to work with both institutions towards supplementing the Fund’s sources of capital for investment.
“The Minister concluded the business meetings with discussions with over 30 mining entrepreneurs drawn from all regions of the world,” the statement added.
The forum evaluated the proposal for the African Extractive Minerals Bank and encouraged the Minister, who serves as the Chairman of the Africa Minerals Strategy Group, to endorse the innovative concept of facilitating exploration funding for mining activities throughout the continent.
In his response, Alake praised the initiative and assured that it would be included in the agenda of the AMSG during its forthcoming meeting in Riyadh, Saudi Arabia.
Additionally, the minister confirmed that President Bola Ahmed Tinubu’s reappointment of Fatima Shinkafi as Executive Secretary of the Solid Minerals Development Fund is in accordance with the agency’s foundational regulations.
On Monday, this information was conveyed in a statement issued by the ministry’s Assistant Director of Information and Public Relations, Ekwugha Chinwe.
In light of the recent discussions regarding her reappointment, the ministry clarified that the SMDF Act does not stipulate any term limits for the Chief Executive Officers of the agency.
“Section 35(2) of the NMMA 2007 stipulates that the President shall appoint the Executive SecretarPresidentrecommendation of the Minister of Solid Minerals Development. No provisions on tenure limit exist in the act governing the agency.
“The act does not stipulate term limit for the chief executive. Therefore, her reappointment by the president does not contravene any law,” Chinwe said.
