Foreign Investors In Nigeria’s Minerals Sector Will Benefit Cape Town’s Convention Protections – Alake

The Minister of Solid Minerals Development, Dele Alake, has assured foreign investors in Nigeria’s solid minerals sector that the federal government will leverage the full benefits of Nigeria’s status as a signatory to the Cape Town Convention on International Interests in Mobile Equipment to safeguard their investments.

Alake gave the assurance at the signing ceremony of an Engineering, Procurement and Construction Management (EPCM) Memorandum of Understanding (MoU) between Dukia Gold & Precious Metals Refining Company Limited and SGS Bateman on the sidelines of the Investing in African Mining Indaba held in Cape Town, South Africa.

Dukia Gold is Nigeria’s foremost precious metals refining and bullion trading company, operating a Mines-to-Market ecosystem spanning exploration, responsible mining, refining, bullion trading, and digital gold products.

The Minister emphasised that Nigeria’s participation in the Convention provides strong assurance to international lenders, leasing companies, equipment financiers, and technical service providers.

“It is important to note that Nigeria is a signatory to the Cape Town Convention on International Interests in Mobile Equipment,” Alake said.

“This provides a robust assurance framework for international financiers and service providers. It strengthens confidence that mining equipment and mobile assets deployed into Nigeria can enjoy internationally recognised protections — a key factor for project finance, asset leasing, and structured equipment procurement. ” he said.

Also known as the Cape Town Treaty, the Convention standardises transactions involving movable property. It establishes international standards for the registration of sales contracts, security interests (including liens), leases, and conditional sales agreements, while providing legal remedies in cases of default — including repossession and clarity regarding bankruptcy proceedings.

Describing the Dukia–SGS Bateman partnership as a significant milestone and a strong signal of Nigeria’s rising profile in the global mining value chain, Alake reiterated that the mining sector remains central to Nigeria’s economic diversification strategy.

The Minister stated that the Federal Government recognises the initiative’s strategic importance and will continue to provide an enabling environment for credible investors and technical partners to succeed.

He highlighted the impact of deliberate reforms introduced by the Federal Government to unlock opportunities across Nigeria’s mining and minerals value chain.

These reforms include improved regulatory clarity, streamlined licensing processes, investor-friendly fiscal incentives, and prioritisation of infrastructure to support mineral development and beneficiation. According to the Minister, these measures are already yielding measurable results.

“The sector has been recording growth, with mining contributing more significantly to GDP, reinforcing the momentum of the reforms and our commitment to sustained sector expansion,” he said.

Alake described the Dukia-Arinola Mineral Resources Development Project — a special purpose vehicle of Dukia Gold & Precious Metals Refining Company Limited — as emblematic of the future of mining in Nigeria.

He noted that the project prioritises local value addition, beneficiation, and integrated Mine-to-Market development.

“It is especially encouraging that the project is structured around a scalable polymetallic processing strategy, designed to support phased growth from early-stage operations into large-scale industrial capacity over time,” he said.

The MoU marked a significant milestone in the structured advancement of the Dukia–Arinola Mineral Resources Development Project, located in Ose and Owo Local Government Areas of Ondo State, Nigeria, within the Igarra Schist Belt (NGSA Owo Sheet 265).

The Minister added that the private-sector-led initiative aligns strongly with national development priorities, noting that it will stimulate economic activity, create employment across skilled and semi-skilled categories, deepen local procurement, and contribute meaningfully to Nigeria’s aspiration to achieve a $1 trillion GDP by 2036.

He further emphasised that projects such as the Dukia-Arinola Polymetallic Mine-to-Market initiative will enhance Nigeria’s capacity to efficiently connect mineral production to markets — by road, rail, air, and sea — while strengthening the broader industrial ecosystem required for competitive mineral exports.

“I commend Dukia Gold and SGS Bateman for their commitment to this partnership and for their confidence in Nigeria’s mining future,” Alake stated.

“I encourage all stakeholders to support the successful implementation of this project in line with best practices, safety standards, environmental responsibility, and shared prosperity.”

The Minister also extended an open invitation to world-class mining contractors, engineering firms, equipment manufacturers, and outsourced mining service providers to engage with the project as it progresses into execution phases.

He noted that structured Requests for Proposals (RFPs) and Expressions of Interest (EOIs) are expected for various workstreams.

Alake underscored Nigeria’s growing recognition as an emerging hub for critical and strategic minerals, with increasing emphasis on assured provenance, responsible sourcing, and traceability.

“Our ambition is clear: to grow mining beyond its historic role and position it as a strategic contributor to national GDP, foreign exchange earnings, and industrial competitiveness,” he affirmed.

Also speaking at the signing ceremony, Chairman of Dukia Gold & Precious Metals Refining Company Limited, Tunde Fagbemi, described the MoU as a strategic step toward feasibility-driven execution and long-term mineral beneficiation.

“This MoU marks the beginning of a structured EPCM partnership to advance the Dukia–Arinola Project toward feasibility and disciplined execution,” Fagbemi said.

The project spans approximately 184 km² across the SSML-053234, ML-066732, and EL-038524 licenses and has progressed through extensive technical work, including geological mapping, geochemistry, geophysics, trenching, and diamond drilling.