Tinubu Administration Initiates Talks With Saudi Arabia On Iron Ore Mining In Nigeria

Tinubu Administration Initiates Talks With Saudi Arabia On Iron Ore Mining In NigeriaThe administration of President Bola Ahmed Tinubu has initiated discussions with the government of Saudi Arabia regarding the extraction and processing of iron ore into steel in Nigeria. This move, aimed at advancing Nigeria’s mining sector, was confirmed through a statement issued on Monday by Kehinde Bamigbetan, Special Adviser to the Minister of Solid Minerals Development, Dele Alake.....KINDLY READ THE FULL STORY HERE▶

The statement revealed that Alake and Saudi Arabia’s Deputy Minister of Minerals and Energy, Khalid bin Saleh Al-Musdaifer, discussed the potential partnership at the recent Resourcing Tomorrow event during the annual Mines and Money expo held in London. The talks centered around the possibility of extracting iron ore in Nigeria and processing it into steel domestically.

Currently, Saudi Arabia imports iron ore from various African countries to feed its growing steel industry. However, Alake proposed that Nigeria could benefit from not just extracting iron ore but also processing it into steel locally, adding that this value-added approach would offer Nigeria better prices than simply exporting raw ore.

In response, Al-Musdaifer expressed Saudi Arabia’s interest in sourcing iron ore for its steel industry and assured that his government would carefully consider Nigeria’s proposal, particularly the development of the country’s downstream steel value chain.

A follow-up meeting has been scheduled for Riyadh, Saudi Arabia, during the Future Metals Forum in January 2025, where further discussions will take place.

Collaborative Talks and Investment Opportunities

Beyond the Saudi discussions, Alake also engaged with various international investors at the expo, including tin manufacturers Woodcross and Gerald Group, and fund managers such as AMG and China’s Business Idea Development.

Woodcross, represented by directors Mehdi Ali and Hassan Dhanji, confirmed it had completed a preliminary survey of tin mining in Jos, Nigeria, which indicated enough tin ore reserves to justify long-term investments in processing. The company has committed to making a final investment decision by February 2025.

In response to Woodcross’s findings, Alake formed a Ministerial Committee to ensure the project progresses on schedule and is delivered within the set timeline, with weekly progress reports. Similarly, the Gerald Group, led by Brendan Lynch and Anya Sarin, also expressed interest in pursuing a joint venture in the Nigerian tin sector. Alake urged them to accelerate the project and emphasized the government’s plan to establish the Nigerian Solid Minerals Corporation, which would serve as a reliable partner for such ventures.

Alake also discussed funding opportunities with Ajay Commem of AMG Group and Young Chan, Managing Director of Business Idea Management Center in China, to support mining projects in Nigeria. Commem expressed interest in sourcing global capital for Nigeria’s mining sector, particularly through the Nigerian Solid Minerals Corporation. Chan also highlighted China’s willingness to invest in Nigerian mining projects, prompting Alake to direct the Solid Minerals Development Fund to collaborate with both institutions to explore additional funding options.

Advancing African Mining Initiatives

The event also featured discussions on the African Extractive Minerals Bank, an initiative aimed at facilitating exploration funding for mining projects across the continent. Alake, who chairs the Africa Minerals Strategy Group, endorsed the concept and promised to include it in the agenda of the upcoming AMSG meeting in Riyadh, Saudi Arabia.

Alake concluded his business meetings by engaging with over 30 mining entrepreneurs from around the world, exploring new investment opportunities and discussing the future of the African mining industry.

Clarification on Fatima Shinkafi’s Reappointment

Additionally, the ministry clarified the reappointment of Fatima Shinkafi as Executive Secretary of the Solid Minerals Development Fund (SMDF), following recent discussions regarding her tenure. The ministry emphasized that the SMDF Act does not specify term limits for the position of the Executive Secretary. As such, her reappointment does not violate any legal provisions, in accordance with Section 35(2) of the NMMA 2007, which allows the President to make such appointments at the recommendation of the Minister of Solid Minerals Development.

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