KEY POINTS
- Nigeria, Saudi Arabia discuss local iron ore processing for steel production.
- Global investors express strong interest in Nigeria’s solid minerals sector.
- African Extractive Minerals Bank proposed to fund continent-wide mining.
Nigeria and Saudi Arabia have entered advanced discussions on a potential collaboration to extract and process iron ore into steel, signaling a major step forward in Nigeria’s ambition to build a thriving steel industry.
A statement from Kehinde Bamigbetan, special adviser to Nigeria’s Minister of Solid Minerals Development, revealed that Dele Alake, Nigeria’s minister, engaged in talks with Saudi Arabia’s Deputy Minister of Minerals and Energy, Khalid bin Saleh Al-Musdaifer, during the Resourcing Tomorrow Mines and Money Expo in London.
Boosting local value in Nigeria’s steel industry
The discussions, as reported by Punch,  centered on extracting and processing Nigeria’s iron ore into steel domestically. Alake emphasized the economic advantage of value-added exports, which would yield higher prices than the current raw ore exports. While Saudi Arabia currently imports iron ore from African nations for its robust steel industry, Alake urged the kingdom to consider Nigeria as a partner for local beneficiation.
Al-Musdaifer confirmed Saudi Arabia’s interest in exploring Nigeria’s proposal, adding that the government would examine the potential for a downstream value chain in the West African nation. A follow-up meeting is slated for January 2025 in Riyadh during the Future Metals Forum.
Diversified investor interest
In addition to Saudi Arabia, Alake held strategic discussions with global investors, including tin manufacturers Woodcross and Gerald Group, and fund managers AMG and Business Idea Development, China. Woodcross, represented by Mehdi Ali and Hassan Dhanji, confirmed preliminary surveys in Jos revealed sufficient tin reserves to justify long-term processing investments. A final investment decision is expected in February 2025.
Gerald Group has also expressed interest in a joint venture within Nigeria’s tin mining sector. Brendan Lynch, head of business development, and Anya Sarin, vice president of communications, shared findings on the sector’s potential. Alake encouraged the group to expedite their plans, highlighting President Bola Tinubu’s administration’s establishment of the Nigerian Solid Minerals Corporation as a reliable joint venture partner.
Funding and capital mobilization
Discussions also targeted funding opportunities for Nigeria’s mining projects. AMG Group’s Ajay Commem expressed willingness to source global capital for Nigeria’s planned Solid Minerals Corporation.
Similarly, Young Chan of Business Idea ManagementCentere, China, pledged Chinese capital to bolster the sector. Alake directed the Solid Minerals Development Fund’s executive secretary to collaborate with both entities to diversify funding sources.
African mining collaboration
At the forum, Alake also reviewed proposals for the African Extractive Minerals Bank, which aims to fund mining exploration across the continent. As chairman of the Africa Minerals Strategy Group, he promised to champion the initiative during the group’s next meeting in Riyadh.
Clarifying leadership in solid minerals
Separately, the ministry addressed controversy surrounding the reappointment of Fatima Shinkafi as Executive Secretary of the Solid Minerals Development Fund. A statement from Ekwugha Chinwe, assistant director of information and public relations, clarified that no term limit exists under the SMDF Act for chief executives, affirming the legality of her reappointment.
With Nigeria taking bold steps to partner with global players and strengthen its mining sector, the talks underscore the administration’s focus on positioning the country as a hub for mineral value addition and industrial development.
