Nigerian secures funding for critical mineral development, solar power production

Nigeria obtained key funding to fast-track the development of a master plan that will help evolve its critical mineral value chain from extraction to value addition.

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The move signals progress for the push to add layers of value to the nation’s vast mineral resources before they are shipped to markets abroad.

Minister of Solid Minerals, Dele Alake, secured the study facility on Wednesday, which is backed by the Global Council for Critical Minerals, an arm of UN’s Sustainable Energy for All, at the ongoing Mining Indaba in Cape Town, according to a statement by his special adviser, Kehinde Bamigbetan.

University of California, Davis, in partnership with Core International are conducting the research to explore Nigeria’s mineral deposits in order to develop globally acceptable standards for local value optimisation.

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The resolve by African nations to grab a bigger slice of the economic gains from the production of metals at the core of the energy transition is driving governments to demand that such minerals are processed, at least to an extent, before miners export.

Popular demand for green minerals, especially from places like Canada, the US and China, is prompting the world to turn its attention to Africa, which houses about 30 per cent of global mineral reserves.

To boost finances and increase prosperity, Africa is shifting away from the era when producers moved the bulk of its mineral exports overseas in their raw state, denying countries extra economic benefits like job creation, infrastructural development and also additional revenue that come with processing.

Nigeria, whose mining industry contributes below 0.2 per cent to the GDP, according to PwC, due to its largely artisanal nature, sits on proven mineral reserves estimated at $700 billion.

Lithium and nickel, two of the green minerals that are significant to the manufacturing of batteries, solar panels and wind turbines abound in commercial quantities across the country.

The study facility will also facilitate an industrialisation effort targeting local production of solar power products, most of which are currently imported.

“Since we have the materials for the production of solar power, we should vigorously pursue the policy of stopping the importation of solar power products and localise the production in Nigeria,” Mr Alake was quoted as saying.

“We have a large market. Already, a lot of the products in Nigeria service the West African sub-region. So whatever material we are producing or manufacturing has a ready West African market.”