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Nigeria will open two lithium-processing plants backed by China this year

Nigeria will open two lithium-processing plants backed by China this year

The Nigerian mining minister announced that two large lithium processing plants will be commissioned this year. This marks a shift away from exporting raw minerals to adding value at home.

The facilities, which are largely funded through Chinese investors, can help Nigeria transform its vast mineral wealth into employment, technology and manufacturing growth.

Dele Alake, the Mining Minister of Nigeria, said that a lithium processing plant worth $600 million near the Kaduna/Niger border will be commissioned this quarter. A $200 million refinery for lithium on the outskirts Abuja is also nearing completion.

The minister stated that two additional processing plants will be expected in Nasarawa, which borders Abuja and the capital, by the third quarter 2025.

Alake stated, "We now focus on turning our mineral riches into domestic economic value, - jobs, technologies, and manufacturing."

According to announcements made by the governors of each state where the plants are situated, over 80% of funding has come from Chinese companies, such as Jiuling Lithium Mining Company, and Canmax Technologies.

Three Crown Mines, a local investor, owns the remaining stakes.

The Chinese companies did not immediately comment.

The drive for domestic processing comes after a study in 2022 by Nigeria's Geological Survey Agency. This study discovered significant deposits of lithium high-grade across a half dozen Nigerian States, attracting international interest.

These reforms are part of Nigeria’s larger reforms to its underdeveloped mine sector, which contributes currently less than 1% of the nation’s gross domestic production.

The government has also taken steps to formalise artisanal mining, which accounts for most of the current extraction. It has also established a state-owned mining company where investors are allowed up to 75% ownership. (Reporting and editing by Sonali Paul; Isaac Anyaogu)

(source: Reuters)