London, UK – Nigeria and Saudi Arabia have commenced strategic discussions to promote the domestic beneficiation of iron ore and expand steel production, aiming to unlock value-added export opportunities for Nigeria.
The talks were initiated on the sidelines of the recently concluded Resourcing Tomorrow conference at the annual Mines and Money Expo in Islington, United Kingdom. Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, and Saudi Arabia’s Deputy Minister of Minerals and Energy, Engr. Khalid bin Saleh Al-Musdaifer, met to explore avenues for extracting and processing iron ore in Nigeria.
Dr. Alake emphasized the benefits of extracting and processing iron ore domestically, highlighting that exporting value-added steel would yield higher returns compared to raw ore exports. In response, Engr. Al-Mudaifer acknowledged Saudi Arabia’s interest in securing iron ore for its robust steel industry, which currently relies on imports from Africa. He assured Dr. Alake of Saudi Arabia’s willingness to evaluate Nigeria’s proposal to domesticate the downstream value chain.
A follow-up meeting has been scheduled for January 2025 in Riyadh during the Future Metals Forum to finalize the framework for collaboration.
Partnerships for Mining Development
Dr. Alake also engaged with several global investors and stakeholders during the conference, yielding promising outcomes. Among the investors were directors of Woodcross, a leading tin manufacturer, who confirmed preliminary surveys indicating substantial tin ore deposits in Jos, Nigeria. The company plans to decide on long-term processing investments by February 2025.
To fast-track the process, Dr. Alake established a Ministerial Committee tasked with ensuring the project’s timeline adherence and providing weekly updates.
Similarly, the Gerald Group, represented by Brendan Lynch and Anya Sarin, expressed interest in a joint venture in Nigeria’s tin sector. Dr. Alake encouraged the group to accelerate project commencement, noting the Tinubu administration’s plans to launch the Nigerian Solid Minerals Corporation as a reliable partner for such initiatives.
Boosting Investment in Nigeria’s Mining Sector
Discussions also extended to financing options for Nigeria’s mining projects. AMG Group, represented by Director Ajay Commem, and Business Idea ManagementCentre, China, led by Managing Director Young Chan, expressed their willingness to source global capital for Nigeria’s mining sector. Both groups acknowledged the Nigerian government’s commitment to establishing the Nigerian Solid Minerals Corporation and pledged support to mobilize resources.
Dr. Alake tasked the Executive Secretary of the Solid Minerals Development Fund with working closely with AMG and Business Idea ManagementCentre to supplement capital sources.
Continental Agenda for Mining
In addition to bilateral talks, Dr. Alake participated in discussions with over 30 global mining entrepreneurs on advancing mining exploration in Africa. The forum endorsed the establishment of the African Extractive Minerals Bank to fund exploration projects across the continent. As Chairman of the Africa Minerals Strategy Group, Dr. Alake promised to include the proposal on the agenda for the group’s next meeting in Riyadh.
The minister’s engagements underscore Nigeria’s growing commitment to revitalizing its mining sector as part of the Tinubu administration’s broader economic diversification strategy.