A leading Canadian mineral exploration company, Orosur Mining, has pledged to invest $5 million in exploration of Nigeria’s vast lithium deposits.
This is just as the Nigerian Geological Survey Agency (NGSA) has given assurance that it will support the venture with credible geosciences information on lithium deposits in the country.
Executive chairman, Orosur Mining, Mr. Louis Castro, who made the disclosure at a recent meeting with minister of Solid Mineral Development, Dr. Dele Alake, and the director-general of the NGSA, Dr. Abdulrazaq Garba, expressed confidence in the investor-friendly regulatory regime in the country’s mining sector.
Castro expressed optimism that the first tranche of investment will lead the way for many more investments in Nigeria’s highly lucrative solid minerals sector, especially as the country has come to be known for its enormous lithium deposit.
Speaking to the minister, Castro said: “I have the honour to announce to you that as a continuation of the company’s strategy of securing high quality mineral exploration opportunities in key jurisdictions worldwide, Orosur Mining has signed a Joint Venture agreement to explore a number exploration licences across Nigeria which the company considers to be highly prospective for lithium mineralisation.’
He, therefore solicited support for the company’s investment decision in favour of the Nigerian mining sector.
On his part, the NGSA director-general, Dr. Abdulrazaq Garba, explained that the Agency was established to provide mineral information on Nigeria, adding that it will furnish the Canadian firm with ample geosciences information on lithium mineralisation across the country.
According to him, in addition to availing Orosur the relevant geosciences information on Lithium in Nigeria, the NGSA will also deploy its globally recognised technical expertise to maximise the investment outcomes for the mining firm.
Dr. Abdulrazaq Garba further assured Castro that in line with the NGSA’s mandate on mineral exploration, it had been able to generate reliable data sets on the country’s lithium resources as well as information on other minerals in Nigeria.
On his part, the director-general, Nigeria Mining Cadastre Office (NMCO), Engr. Obadiah Simon Nkom told the Orosur executive that mineral licensing had been made easy for interested firms to apply for it via the electronic mining cadastre (eMC+) platform of the agency.
LEADERSHIP reports that as part of ongoing reforms to reposition the Nigerian mining sector, the federal government encourages investments in mineral exploration as part of policies that will facilitate the realisation the administration’s Renewed Hope Agenda in the mining sector.
Minister Alake had earlier stated that government had prioritised seven priority minerals (lithium inclusive) and their deposits for maximal development and gave assurance of creating a conducive business climate for investors.
The federal government had recently uplifted mineral exploration through the National Integrated Mineral Exploration Project (NIMEP), a project supervised by the NGSA and applauded by industry stakeholders.
As part of policy measures to strengthen ease of doing mining business in the country, as well as encourage Foreign Direct investment, the federal government incentivises mining investors.
The mining sector in Nigeria enjoys Pioneer Status with attendant tax holiday to all companies operating in the sector. A comprehensive package of incentives has been put in place to create a favourable environment for investment in the solid minerals and mining sector, some of which are deferred royalty payments, capital allowances of up to 95% of qualifying capital expenditure and exemption from customs and import duties for plant, machinery and equipment for mining operations.
Mining investors also enjoy three to five years tax holiday as applicable, and tax concessions, among others.
