Kehinde Fajobi
Nigeria and Saudi Arabia have commenced discussions on extracting and processing iron ore into steel, a development aimed at bolstering Nigeria’s mining sector and advancing its industrial capacity.
The talks were held between Nigeria’s Minister of Solid Minerals Development, Dele Alake, and Saudi Arabia’s Deputy Minister of Minerals and Energy, Khalid bin Saleh Al-Mudaifer, during the Resourcing Tomorrow Mines and Money Expo in London.
In a statement on Monday, Kehinde Bamigbetan, Alake’s special adviser, disclosed that the meeting focused on plans to process iron ore into steel in Nigeria, moving beyond raw exports to value-added production.
“Saudi Arabia relies on importing iron ore from Africa for its steel industry,” Alake said, adding that Nigeria’s approach to beneficiation would attract better export prices.
Al-Mudaifer expressed Saudi Arabia’s interest in Nigeria’s proposal and assured that the Saudi government would consider partnering on domestic steel production.
A follow-up meeting is scheduled for January 2025 in Riyadh during the Future Metals Forum.
The statement also highlighted Alake’s engagements with other investors, including Woodcross, Gerald Group, AMG, and Business Idea Development China, who are exploring opportunities in Nigeria’s mining sector.
Woodcross, represented by directors Mehdi Ali and Hassan Dhanji, revealed findings from a preliminary survey in Jos, which showed sufficient tin ore reserves to justify long-term processing investments.
The firm is expected to make an investment decision in February 2025.
To fast-track these initiatives, Alake has established a ministerial committee tasked with providing weekly updates and ensuring projects align with set timelines.
Similarly, Gerald Group expressed interest in a joint venture in Nigeria’s tin sector. Brendan Lynch, the group’s head of business development, said their research supports collaborative investments, and Alake encouraged swift project commencement.
The minister also discussed funding opportunities with AMG Group’s director, Ajay Commem, and Young Chan, managing director of Business Idea Management China.
Both organisations committed to sourcing global capital for Nigeria’s mining projects.
In another development, Alake lauded the African Extractive Minerals Bank proposal, describing it as a transformative idea for funding mining exploration across the continent.
He pledged to push the agenda at the Africa Minerals Strategy Group’s next meeting in Riyadh.
Meanwhile, the Ministry of Solid Minerals Development addressed the controversy surrounding the reappointment of Fatima Shinkafi as Executive Secretary of the Solid Minerals Development Fund (SMDF).
A statement by the ministry’s Assistant Director of Information and Public Relations, Ekwugha Chinwe, clarified that the SMDF Act imposes no term limits for its Chief Executive Officers.
“Section 35(2) of the NMMA 2007 states that the Executive Secretary shall be appointed by the President on the recommendation of the Minister. No provisions on tenure limits exist,” Chinwe said.
The ministry affirmed that Shinkafi’s reappointment by President Bola Tinubu aligns with the agency’s founding regulations and does not breach any laws.