Nigeria and Saudi Arabia have announced a partnership to develop the solid minerals sector by extracting and processing iron ore into steel. This collaboration marks a significant step toward leveraging Nigeria’s mineral resources for industrial growth.
The initiative was revealed in a statement by Kehinde Bamigbetan, Special Adviser to the Minister of Solid Minerals Development, following discussions between the two countries during the Resourcing Tomorrow event at the annual Mines and Money Expo in Islington, London.
Minister of Solid Minerals Development, Dr. Dele Alake, and Saudi Arabia’s Deputy Minister of Minerals and Energy, Engr. Khalid bin Saleh Al-Musdaifer, explored strategies to extract iron ore in Nigeria and establish local steel production. Dr. Alake emphasized the importance of value-added exports, stating, “Beneficiating iron ore within Nigeria will secure better prices than exporting raw materials.”
Engr. Al-Musdaifer responded positively, expressing Saudi Arabia’s interest in sourcing iron ore for its steel industry and committing to consider Nigeria’s proposal to develop its domestic downstream value chain. Both parties agreed to continue discussions at the Future Metals Forum in Riyadh, scheduled for January 2025.
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In addition to the Saudi partnership, Dr. Alake held meetings with other key investors and industry stakeholders, including tin manufacturers Woodcross and the Gerald Group, as well as fund managers AMG and China’s Business Idea Development.
Woodcross reported promising results from a preliminary tin survey in Jos, indicating sufficient reserves for long-term investment. A final investment decision is expected by February 2025. The Gerald Group also shared positive findings in the tin sector and expressed interest in forming a joint venture. Encouraging their commitment, Dr. Alake highlighted the Tinubu administration’s plans to establish the Nigerian Solid Minerals Corporation, a potential joint venture partner.
Discussions with AMG Group Director Ajay Commem and Business Idea Development Managing Director Young Chan focused on funding opportunities for Nigerian mining projects. Dr. Alake directed the Solid Minerals Development Fund to collaborate with both institutions to advance these efforts.
Concluding the event, Dr. Alake engaged with over 30 global mining entrepreneurs, where the African Extractive Minerals Bank was a key topic. He pledged to include the proposal in the agenda of the next African Mining and Solid Minerals Group (AMSG) meeting in Riyadh.
Saudi Arabia, a leading player in the steel industry, currently relies on iron ore imports from various African nations. This partnership with Nigeria aims to strengthen local production capabilities and bolster economic growth through strategic mineral resource development.