Nigeria, US Embarks On Mining Investment Conversations

On the sidelines of the UN General Assembly, have Nigeria and the US have inked a new mining deal in a landmark framework to deepen American investment in Nigeria’s mining sector, opening a new channel for US companies to access the country’s estimated $700 billion mineral resources.

Nigeria is home to deposits of lithium, gold, tin, gemstones, iron ore and phosphate.

Nigeria and the US have agreed to “deepen” American investment in Nigeria’s mining industry.

The deal was signed on the sidelines of the UN General Assembly (UNGA), in New York City, Minister for Solid Minerals Dele Alake announced on Thursday.

“This is an important step in strengthening Nigeria-US cooperation around our mineral resources, valued at about $700 billion (€796 billion),” Alake said.

“The framework covers geological data and exploration, mineral development and processing, infrastructure, and technical capacity,”he added.

Although known for its vast oil reserves, Nigeria is also home to deposits of lithium, gold, tin, gemstones, iron ore and phosphate.

Lithium, in particular, is in high demand globally as an essential component in the batteries are powering the green energy transition.

Alake said the agreement, which was signed on Wednesday, would be used to identify viable projects. He hinted that local jobs could be created by onshoring the refining of minerals, which until now have largely been exported as ore.

“Nigeria cannot remain a source of raw materials while others capture most of the value,” Alake said. “We want more local processing, quality jobs, stronger skills and greater opportunities for Nigerian businesses.”

However, these goals come as Nigeria’s mining sector remains mired by safety concerns and environmental concerns