Nigeria is on the brink of a significant shift in its mining industry, with the upcoming inauguration of two major lithium processing plants set to boost domestic value and economic growth. These plants, backed by Chinese investors, are expected to create jobs, drive technological advancements, and stimulate manufacturing within the country, as reported by Reuters.
According to Mining Minister Dele Alake, a $600 million lithium processing plant near the Kaduna-Niger border is slated for commissioning in the current quarter. Additionally, a $200 million lithium refinery on the outskirts of Abuja is nearing completion. These facilities mark Nigeria’s commitment to harnessing its abundant mineral wealth for economic development.
Plans are also in place for two more processing plants in Nasarawa state, close to the capital Abuja, which are projected to be operational by the third quarter of 2025. Chinese companies such as Jiuling Lithium Mining Company and Canmax Technologies have provided over 80% of the financing for these four facilities, with the remaining shares held by local company Three Crown Mines.
“We are now focused on turning our mineral wealth into domestic economic value – jobs, technology, and manufacturing,” stated Minister Alake, underscoring the government’s priority on enhancing the local processing of minerals. This strategic move follows a 2022 study by Nigeria’s Geological Survey Agency that identified significant high-grade lithium deposits across various states, attracting considerable international interest.
The discovery of these deposits aligns with Nigeria’s broader reforms aimed at revitalizing its underdeveloped mining sector, which currently contributes less than 1% to the national GDP. To maximize the value derived from solid mineral deposits, the government has implemented measures such as restricting unprocessed mineral exports, formalizing artisanal mining, and offering up to a 75% stake in the state mining company to investors.
In a significant policy shift last year, Nigeria announced that new mining licenses would only be granted to companies with plans for local mineral processing, departing from the long-standing practice of exporting raw materials. The objective is clear – to elevate the country’s mining industry by adding value through domestic processing.
The article “Nigeria to launch lithium processing plants with Chinese investment” originally appeared on Mining Technology, a GlobalData-owned brand. Stay tuned for the inauguration of these game-changing lithium processing plants that are set to reshape Nigeria’s mining landscape and drive economic growth.
