Nigeria to launch lithium, rare earth processing plants

The Ministry of Solid Minerals Development has announced plans to begin the commissioning of lithium and rare earth processing plants across Nigeria, marking a significant step in the country’s efforts to harness its mineral resources.

At the 2nd pre-press briefing for the 9th edition of the annual Nigeria Mining Week in Abuja on Tuesday, the Minister of Solid Minerals Development, Dele Alake, disclosed that the move is part of the government’s strategy to diversify the economy away from oil and capitalise on the growing demand for lithium, a key component in rechargeable batteries.

“In the next quarter, the herculean efforts of serious industrialists in the mining sector will gradually unravel as we begin to commission lithium and rare earth processing plants across the country,” Mr Alake said.

He added that El Thahadat plans to launch its lithium plants in Kwara and Kebbi states, while Hasetins will inaugurate its rare earth, primarily tantalite processing plant in the Federal Capital Territory (FCT) in December.

“A new gold refinery has just been set up in Gwarinpa, and the ministry is working with the company to ensure its take-off. Undoubtedly, we are in the season of harvesting the visionary ideas of the Seven Point Agenda,” he said.

Mr Alake emphasised that Nigeria is blessed with more than 44 mineral types across various categories but stressed that the country must go beyond mere extraction to realise its full potential.

“We are focused on establishing systems and structures that allow Nigerians to benefit directly from our resources. Through local value addition, processing, and beneficiation, our aim is to transform Nigeria’s mineral wealth into industrial and economic power, generating jobs and supporting local businesses in ways that ripple through our economy,” he said.

At the core of this transformative agenda, he highlighted the importance of precision and transparency in data, noting that quality geoscientific information not only attracts investors but also strengthens the credibility and stability of the sector.

Mr Alake added that the government aims to position Nigeria as a destination for well-informed and reliable investments, inviting global partners to engage in mutually beneficial collaborations that will elevate the country’s mining sector to international standards.

He further explained that processing and refining facilities within Nigeria would create local employment, enhance industrial capacity, and generate added economic value beyond the mining sector itself.

He stated that Nigeria is being positioned as a significant player in the global mineral value chain, with a strong commitment to ensuring that the wealth generated remains within local communities.

Mr Alake also spoke about the progress being made in tackling illegal mining, which has long been a threat to both the revenues and the welfare of local communities.

“We are intensifying efforts to protect our resources with robust surveillance and enhanced inter-agency cooperation, ensuring that every mineral extracted contributes to national development and strengthens investor trust in our mining landscape. The establishment of the mining marshals sent clear signals to all illegal miners that a new sheriff is in town and that we shall enforce the Nigerian Minerals and Mining Act, no matter whose ox is gored,” he said.

He added that the consolidation of the mine’s surveillance task force would lead to more effective law enforcement and increased prosecution of offenders. The introduction of satellite technology for intelligence gathering and monitoring of mineral extraction, transportation, and processing would complement the manual operations on the ground.

The minister warned that all illegal and covert mineral activities would be uncovered, with those found guilty facing charges as economic saboteurs.

Turning to artisanal and small-scale mining, Mr Alake highlighted its significance as a source of income for many Nigerians.

The minister explained that efforts are underway to integrate artisanal miners into a formalised system that will enhance their safety, increase profitability, and provide better access to technology.

As of October, he noted that at least 250 new co-operatives had been registered by the Artisanal and Small Scale Mining Department.

The minister said the development was positive news, confirming the effectiveness of the government’s two-pronged strategy to combat illegal mining, which encourages artisanal miners to transition from illegal activities to formal co-operatives.

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He also highlighted progress in trading, noting that October 2024 figures showed the establishment of at least 150 buying centres.

Strengthening this subsector, he concluded, would empower countless communities, create prosperity at the grassroots level, uplift families, and build a stronger economy.