Kebbi poised to become Lithium processing hub as El-Tahdam secures $500m investment

Nigeria’s mining sector is on the cusp of a transformative era, spearheaded by the ambitious vision and strategic execution of El-Tahdam Exploration Limited.

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This burgeoning Nigerian mining company, established to unlock the nation’s vast reserves of crucial Electric Vehicle (EV) minerals and rare earth minerals such as Lithium, manganese, iron ore, copper, rubidium, gallium and graphite has rapidly emerged as a key player.

Bolstered by strategic initiatives and a robust investment in exploration and mining rights, El-Tahdam has now attracted significant global attention and foreign investment, culminating in the recent partnership with TSG Mining Group.

Over the past three years, El-Tahdam has laid a robust foundation, strategically investing approximately $5 million in exploring and experimenting with the specific type of lithium ore from Libata, Kebbi.

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The team of EL-Tahdam has spent more than one year in China to learn the processing technologies of Lithium.

After getting the recovery rate of 92%, which is among the highest in the world, EL-Tahdam has ordered a full set of processing equipment, specially designed for their mining site in Libata, Kebbi.

How the Federal Government’s Vision Fuel Mining Sector Renaissance

The recent strides within Nigeria’s mining sector, exemplified by El-Tahdam Exploration Limited’s groundbreaking initiatives and significant foreign investment, are occurring against a backdrop of deliberate and commendable efforts by the Federal Government, spearheaded by the Minister of Solid Minerals Development Dr Henry Dele Alake.

The leadership of the current minister has been widely lauded as game changing for the industry, injecting renewed dynamism and strategic direction into a sector long recognised for its untapped potential.

One of the most impactful initiatives under his leadership has been the establishment of Mining Marshals. This proactive measure has been instrumental in sanitizing the mining landscape by tackling the pervasive issues of illegal mining, ensuring greater regulatory compliance, and fostering a more secure and transparent operating environment for legitimate operators like El-Tahdam.

This decisive action has not only curbed the illicit exploitation of Nigeria’s mineral resources but has also significantly boosted investor confidence, demonstrating the government’s commitment to creating a level playing field and protecting the interests of those who adhere to due process.

Furthermore, the Minister has actively engaged in promoting Nigeria’s mining potential on both domestic and international platforms, articulating a clear vision for the sector’s contribution to the national economy.

These efforts align seamlessly with the Federal Government’s broader agenda to diversify the economy away from oil dependence and attract crucial Foreign Direct Investment (FDI) and Foreign

Portfolio Investment (FPI)

This overarching economic strategy, championed by the administration, has provided the necessary impetus and confidence for companies like El-Tahdam to pursue ambitious projects, knowing that their investments are supported by a government committed to sector reform and economic growth.

The synergy between the Minister’s focused reforms and the Federal Government’s economic vision is undeniably creating a fertile ground for the resurgence of Nigeria’s mining sector.

Establishing a Comprehensive Lithium Processing Value Chain

Building on this strong foundation, El-Tahdam has ambitious plans to establish a comprehensive lithium processing value chain within Nigeria.

The company’s strategic roadmap includes the construction of three state-of-the-art lithium processing plants in Kebbi, Kwara, and Kaduna states.

Each plant is designed with a daily processing capacity of 3,000 metric tonnes of lithium ore (with an average grade of 1.5% to 1.6%) to produce a 6% lithium concentrate. This translates to a combined daily input of 9,000 metric tonnes of lower-grade ore, yielding 2,250 metric tonnes of 6% lithium concentrate. Further solidifying its integrated approach, El-Tahdam plans to establish a Lithium.Carbonate plant in Lagos.

This pioneering facility will utilize the 2,250 metric tonnes of 6% concentrate as input, targeting a yearly production of 80,000 metric tonnes of high purity 99.9% lithium carbonate, accounting for almost 5% of the global market share.

This integrated processing model, the first of its kind in Nigeria, will considerably enhance the value of Nigerian lithium ore before export, leading to increased royalty revenues for the Federal Government.

By processing lower-grade ores domestically and refining higher grades to lithium metal, Nigeria will move beyond simply exporting raw materials, a practice that has historically deprived the nation of significant economic benefits.

Recent data indicates that Africa continues to lose billions annually due to the export of unprocessed minerals, highlighting the urgent need for value addition within the continent. This initiative by El-Tahdam directly addresses this issue.

Ultimately, this strategic move is expected to attract global battery manufacturing giants like CATL and Sunwoda, as well as electric vehicle manufacturers such as Tesla and BYD attracting the broader ecosystem of battery and electronic device manufacturers to Nigeria, drawn by the availability of processed lithium.

Furthermore, it will provide a substantial boost to local EV manufacturers like Innoson Motors and encourage the growth of Nigeria’s broader domestic electric vehicle industry, aligning with the nation’s industrialization objectives.

Towards one of Africa’s Largest Lithium Processing Facility: Backed by $500 Million Investment

The remarkable strides made by El-Tahdam have garnered substantial international attention, culminating in the recent $500 million investment by TSG Mining Group.

This major investment underscores the global confidence in El-Tahdam’s vision and Nigeria’s potential as a key player in the lithium market.

As part of this landmark deal, TSG Mining Group will invest $250 million in establishing the modern processing plant in Kebbi State, slated to be operational by the end of 2025, with all necessary equipment having been procured.

Prior to the investment, El-Tahdam had secured a 25-year mining license (renewable up to 50 years) to support the partnership. TSG Mining Group’s key investors include Zhejiang State-Owned Capital and Sunwoda (stock code: 300207, with a market value of 6 billion USD). Leveraging Zhejiang State-Owned Capital’s financial strength and Sunwoda’s technological expertise in the new energy sector, TSG has built a comprehensive industrial chain spanning investment in mining rights, extraction and processing, and trade and sales.

The synergy between these two major shareholders provides a solid foundation for the group’s resource integration in the African market.