FG Implements Policy for Local Mineral Processing in Nigeria

The Federal Government has introduced a new policy requiring mining companies to establish processing plants in-country.

This announcement was made on Thursday May 23, 2024 . According to the Federal Government, the move aims to halt the practice of exporting raw materials for processing abroad.

This policy was announced by the Minister of Solid Minerals Development, Dele Alake, during a media briefing marking the one-year anniversary of President Bola Tinubu’s administration.

Alake emphasized the government’s commitment to revitalizing the sector, highlighting the revocation of over 9,000 dormant mining licenses. These licenses were issued to companies that failed to utilize them for production.

Despite the revocations, the ministry has received an influx of new applications, with over 4,000 licenses issued to applicants.

Alake expressed confidence in the sector’s potential to rival the oil and gas industry and create new wealth streams for Nigeria.

In a related development, the Minister of Steel Development, Shuaib Audu Abubakar, revealed that the government has approved a $25 million investment to revive the Ajaokuta Steel Plant in Kogi State.

The initial focus will be on producing iron rods for the construction industry. Abubakar also disclosed plans to secure private sector funding to partially produce critical military hardware, reducing the country’s reliance on imports.

The ministry is exploring options to collaborate with international partners, including the original Russian constructors or companies from China, India, and Nigeria, to maximize the plant’s potential.

Additionally, plans are underway to develop an industrial park on the plant’s expansive site, complemented by a 100 megawatt power plant to ensure uninterrupted electricity supply.”