Showing posts with label resources. Show all posts
Showing posts with label resources. Show all posts

Friday, April 18, 2025

Nigeria signs minerals pact with South Africa in diversification push

Nigeria and South Africa have signed an accord to boost cooperation in mining, Nigeria’s mines minister said on Thursday, highlighting Abuja’s push to diversify its economy away from oil.

Mines Minister Dele Alake said the two countries will partner on mining, including geological mapping using drones, share mineral data, and jointly explore agro and energy minerals in Nigeria.

Besides oil, Nigeria is also rich in gold, limestone, lithium, iron ore and zinc. Nigeria has around 23 mineral deposits in commercial quantities.

Nigeria is seeking to revamp a mining sector that has long been underdeveloped, contributing less than 1% to its gross domestic product.

South Africa’s established mining expertise makes it a key partner in this effort, Alake said.

Friday, March 14, 2025

Shell shifting focus to deepwater and integrated gas in Nigeria as it wraps up onshore unit sale

According to Shell, the divestment is in line with its plan to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and focus on future disciplined investment in its deepwater and integrated gas positions. As stated by Renaissance, SPDC will be renamed Renaissance Africa Energy Company Limited.

“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialisation in a sustainable manner,'” said Tony Attah, Managing Director/CEO of Renaissance.

Now that the deal is finalized, Renaissance controls SPDC’s 30% stake in the SPDC JV, an unincorporated joint venture in which the state-owned Nigerian National Petroleum Corporation (NPC) holds 55%, Total Exploration and Production Nigeria 10%, and Agip Energy and Natural Resources (Nigeria) a 5% interest.

When the deal was announced in January 2024, the book value of the entity subject to the sale process was said to be around $2.8 billion. It was stated that SPDC JV holds 15 oil mining leases for petroleum operations onshore and three for petroleum operations in shallow water in Nigeria.

Zoë Yujnovich, then-Integrated Gas and Upstream Director at Shell, who recently decided to leave the company, said that it was time for SPDC to move to its next chapter under the ownership of an experienced Nigerian-led consortium.

In addition to international operations, Shell has been keeping busy at home. Earlier this month, the UK giant disclosed its plan to make a field development plan (FDP) and a final investment decision (FID) for the Selene gas project in 2027.

By Dragana Nikše, OFFSHORE ENERGY

Thursday, February 13, 2025

Chinese lithium firms take over copycat Nigeria refinery project

Two Chinese manufacturers have taken over a Nigerian company that raised eyebrows in 2023 when it started building a lithium refinery in the country using a name that was very similar to one of the biggest and best-known Chinese producers.

A joint venture between Canmax Technologies Co. Ltd. and Jiangxi Jiuling Lithium Co. Ltd. last year took a controlling interest in Ganfeng Lithium Industry Ltd., a firm developing a lithium plant in the north of the West African nation, according to company documents obtained by Bloomberg.

Nigeria-registered Ganfeng was founded by Chinese businessmen in 2022, and created confusion a year later when it hosted a groundbreaking ceremony to kick off construction of the processing plant, which local authorities said will cost $250 million.

Shortly after the event, the company issued a statement to local media saying it had “no formal affiliation whatsoever” with Ganfeng Lithium Group Co. Ltd., one of the world’s biggest suppliers of lithium chemicals. A company representative offered no explanation as to why it was trading under a similar name.

Canmax and Jiuling’s takeover of the company — which corporate records show occurred in mid-2024 — brings financial clout and operating nous to the development of Nigeria’s nascent lithium industry, which has typically shipped raw ore to China for further treatment.

The investments signal that Chinese lithium companies are doubling down on efforts to lock down feedstock in anticipation of soaring future demand for the metal used in electric-vehicle batteries. They’ve been investing heavily in Africa’s lithium deposits from Mali to Zimbabwe, even after prices tumbled almost 90% from a peak in 2022.

Separately, Canmax also announced this month that it will invest over $200 million to develop two lithium mining deposits elsewhere in northern Nigeria, working with local company Three Crown Mines Ltd.

Shenzhen-listed Canmax is a large producer of lithium chemicals whose founder, Pei Zhenhua, made his fortune as an investor in Contemporary Amperex Technology Co Ltd., the world’s top EV battery maker. Pei and CATL co-own a separate lithium mining and processing joint venture. Jiuling is a chemical producer based in Jiangxi – one of China’s lithium mining hubs – and a supplier to CATL.

Nigeria has sizable untapped deposits of metals including gold, tin and lithium, but most extraction is done informally by so-called artisanal miners on a small-scale or manual basis.

The Nigerian Ganfeng signed an agreement in September allowing the company to mine lithium for 10 years under permits held by a firm owned by the government of Nasarawa state – the location of the plant under construction.

The first phase of the facility is due for completion by the middle of this year and the second phase four months later, said Ibrahim Abdullahi, the chief executive officer of the state’s development and investment agency. “Nasarawa state is pleased with this investment and welcomes more of it,” he said.

Canmax and Jiuling, which together own 75% of the Nigerian Ganfeng, declined to comment. Nigeria’s federal mines ministry didn’t respond to questions about the acquisition or how much lithium concentrate it will produce.

By William Clowes, Annie Lee and Nduka Orjinmo, Bloomberg

Tuesday, February 11, 2025

Global investors eye Nigeria’s lithium reserves

International investors are showing increasing interest in Nigeria’s lithium reserves, according to Segun Tomori, special assistant on media to Dele Alake, the minister of solid minerals development.

During an XSpace session hosted by TheCable on Monday, Tomori described lithium as the most sought-after mineral globally, citing its critical role in producing electric vehicles, solar panels, and other green energy technologies.

According to him, “Lithium is a major dragnet, it is what attracts a lot of investors across the world.”

“Lithium is topping the list, gold is also in contention, nickel, cobalt too. Lithium is topping the charts in terms of interest, and we have seen the springing up of lithium factories in Nigeria already,”


Africa’s lithium race

Zimbabwe currently holds the largest share of lithium deposits in Africa, with significant Chinese investments. But Nigeria is also eager to claim a piece of the global market. By 2030, Africa is projected to supply 20% of the world’s lithium.

In 2023, China’s Ming Xin Mineral Separation Nig Ltd. was chosen by Kaduna State to build Nigeria’s first lithium-processing plant, with plans to manufacture batteries for electric vehicles (EVs).

In 2022, the Nigerian government claimed it had rejected a proposal from Tesla to purchase raw lithium from the country.

Ayodeji Adeyemi, special assistant to the minister of mines and steel development, told Rest of World that the proposal was turned down because it did not align with Nigeria’s new mining policies.

“Our new mining policy demands that you add some value to raw mineral ores, including lithium before you export to create jobs and build industries,” Adeyemi said. “They don’t have to turn ores into finished goods. We are only asking them to add some value before exporting.”

Recently, President Ramaphosa of South Africa also expressed his interest in collaborating with Nigeria to harness critical minerals, particularly lithium, to drive the green energy transition and support the development of EV batteries.

Tomori revealed that a lithium factory was inaugurated in 2024, bringing the total number of commissioned factories to two, with a third currently under construction.

As Nigeria ramps up its lithium processing capabilities, the country is positioning itself as a key player in the global clean energy transition.

By Adekunle Agbetiloye, Business Insider Africa


Video - The children powering a lithium boom in Nigeria

Thursday, February 6, 2025

Nigeria's lithium mining Eldorado sparks concerns

At an open-cast mine, Abdullahi Ibrahim Danjija carefully chisels away at a hunk of whitish rock before stuffing a sack with the pieces which break off the walls.

In the course of a day's work he manages to fill three 50-kilo bags which will net him 150,000 nairas ($100), or around double the monthly minimum wage in Nigeria, Africa's most populous nation where more than one in two live below the poverty line.

Three years ago the 31-year-old miner came down from Kano in the north lured by promises of being able to make his fortune by contributing to the development of the artisanal lithium mining industry in the central state of Nasarawa.

There, as in other Nigerian states, the prospect of benefiting from a global explosion in demand for lithium, a critical metal in the manufacturing of electric batteries and mobile phones, is just too attractive to miss.


Artisanal mines 

At Gidan Kwano, not far from where Danjija was beavering away, another group of workers refused AFP reporters access to their mine.

Several families, including women and children, were busy laying explosives to carve into the base of their artisanal site.

While proud of their achievement, not having acquired a mining permit, they are reluctant to advertise its existence.

Much mining activity in Nigeria is of a similarly small scale, hence artisanal and often illegal.

Even some of those who do have a permit exploit the land without respecting any safety or environmental guidelines.

Along Nasarawa's main road lie lines of empty houses used as warehouses where miners and their intermediaries sort and clean rock deposits so as to prepare concentrated pieces of lithium for customers.

One such vendor, Matthew Danbala, crouched down as he bashed pieces of rock together. A dozen children sat around him copying his gestures.

"We are very happy. Since lithium comes here everybody, children and women, are benefiting," as they are able to head into the bush, dig, and then sell the rocks which cost them nothing beyond their labour, said Danbala.

Lithium seller Muhammed, 43, explained that in this informal economy "most of the buyers are Chinese. Either they come to our warehouse to buy, or if possible, we take it to where they are.

"But mostly, they come to us to buy the material -- it puts everyone to work."


Chinese presence 

China, the globe's foremost refiner and consumer of lithium is only the world number two when it comes to production and has to import large quantities.


The Nigerian government is seeking to attract foreign investment as it promotes what ranks as "new oil" in what is sub-Saharan Africa's leading oil producer.

The country regularly declares war on illegal miners and has made scores of arrests without managing to choke off the flow of mining hopefuls who see lithium as their ticket to riches.

Nigeria now wants to require foreign investors to set up processing plants on its soil -- a condition which would have dissuaded billionaire Tesla chief Elon Musk from investing, according to Nigerian media.

Paris and Abuja did sign a memorandum of understanding at the end of 2024 to carry out mining projects, notably lithium.

But for the time being foreign investment is limited to Chinese companies, such as Avatar and Ganfeng, who have set up local plants to transform raw rock into lithium oxide before sending it on to Chinese plants.

Uba Saidu Malami, president of the Geological Society of Nigeria, said the Chinese will sometimes seek to move in before sufficient exploration work has been done regarding site viability.

"There is need for detailed exploration work to ascertain the reserves of lithium in those areas," said Malami, stressing the need for better regulation of the sector.

The Chinese "are cowboys when it comes to mining," he added.

"They move the excavator and just expand that physical extraction, which is not smart mining in these days of sustainable practice and environmental sensitivity."


Conflict 

Quite apart from associated environmental risks, artisanal lithium mining can stoke local conflict, said analyst Charles Asiegbu.

"It can happen between communities where there's a disagreement on where the resource is actually located," said Asiegbu.

"It could also happen between communities and exploration companies. We have seen situations where companies or expatriates are attacked and, you know, even kidnapped by community members who feel that they have not gotten the relevant reparations or royalty or whatever."

He added organised armed groups also take advantage of a lack of government presence in some areas "to illegally extract these resources."

Danjija meanwhile continued apace with his work, even during the rainy season which can bring a frequent risk of landslides that can prove fatal.

Nearby, Fulani herders graze livestock and burn some fields to prepare land for the next harvest, oblivious to the regular explosions as miners dynamite surrounding rock.

By Leslie Fauvel, News Herald


Nigeria government cracks down on illegal Lithium mining operations

Thursday, December 12, 2024

Video - The children powering a lithium boom in Nigeria



Lithium mining has transformed Pasali, Nasarawa state over the past decade, creating a hub of illegal operations. Workers, including children, use primitive tools to extract and sort lithium ore. Activists have criticized the exploitation of children, urging adoption of responsible mine practices.

Africa News 

Related stories: Nigeria government cracks down on illegal Lithium mining operations

China beats Tesla to lithium deposits in Nigeria

 

Tuesday, February 21, 2023

China beats Tesla to lithium deposits in Nigeria

Kaduna, a state in northwestern Nigeria, has selected China’s Ming Xin Mineral Separation Nig Ltd. (MXMS) to build the country’s first lithium-processing plant, with a plan to manufacture batteries for electric vehicles (EVs).

On January 13, the Kaduna Investment Promotion Agency tweeted pictures of its leadership team reviewing the plant’s construction. According to Kaduna State’s mining company, the plant is being built on 9.3 hectares of land. Khalil Nur Khalil, the executive secretary of the state’s investment promotion agency, told Rest of World that the plant is a “game changer,” which he believes will lay the foundation for Nigeria’s ambitions to build “battery factories” and produce “EVs in Kaduna.”

This comes more than five months after the Nigerian government claimed it had rejected Tesla’s proposal to purchase raw lithium from the country.

Ayodeji Adeyemi, special assistant to the minister of mines and steel development, told Rest of World that Tesla’s proposal was rejected because it did not align with the country’s new mining policies.

“Our new mining policy demands that you add some value to raw mineral ores, including lithium, before you export to create jobs and build industries,” Adeyemi said. “They don’t have to turn ores into finished goods. We are only asking them to add some value before exporting.”

In January, Elon Musk, the co-founder and CEO of Tesla, said he sees the company’s biggest competition coming from China. That same month, Tesla even slashed the prices of its cars in China for the second time since September last year.

According to the International Energy Agency (IEA), China already controls 60% of the world’s lithium processing and is exploring new frontiers, like Nigeria, to expand its dominance. Kaduna is one of several Nigerian states with lithium deposits. At least seven other states in the country are confirmed to have the mineral — essential in the manufacturing of EV batteries — in commercial quantities.

The Nigerian government has relied significantly on funding from China for several landmark projects, including the Abuja Light Rail project, planned terminal expansions at four major airports, and the National Public Security Communications System project. According to Nigeria’s debt management office, Chinese loans represented 3.94% of the country’s total public debt as of March 2020.

Despite increasing Chinese interest in infrastructure financing and construction, the U.S. is still one of Nigeria’s top five sources of imported capital. In 2021, Nigeria received over $2.2 billion from the U.K., over $677 million from the U.S., and $10 million from China, official records from the National Bureau of Statistics show.

Analysis from the IEA shows that to reach net zero emissions by 2050, about 2 billion EVs and hybrids need to be produced and used. However, global lithium reserves can only make about 2.5 billion EVs. This means that lithium will continue to be a valued, in-demand mineral, given that it has alternative uses apart from making EV batteries. It is used to make batteries for laptops, phones, and digital cameras and is also essential in the manufacturing of planes and trains.

“Nigeria can take advantage of this market by leveraging the domestic value-added process to the mineral,” Oghosa Erhahon, a lawyer and energy transition analyst, told Rest of World. “For example, manufacturing batteries for exports. It’s one thing to limit foreign activities, but not building sustainable infrastructure for lithium mining is not favorable, especially with the national plans to diversify exports.”

By Temitayo Lawal, rest of world  

Related stories: First phase of light rail project by Chinese company completed in Nigeria

Nigeria becomes first country in Africa to have Starlink

Wednesday, June 8, 2022

In Nigeria's disappearing forests, loggers outnumber trees

Deep in a forest in Nigeria's Ebute Ipare village, Egbontoluwa Marigi sized up a tall mahogany tree, methodically cut it down with his axe and machete, and as it fell with a crackling sound, he surveyed the forest for the next tree.

Around him, the stumps dotting the swampy forest were a reminder of trees that once stood tall but are fast disappearing to illegal logging in Ondo state, southwest Nigeria.

"We could cut down over 15 trees in one location, but now if we manage to see two trees, it will look like a blessing to us," the 61-year-old father of two said. (Photo essay: https://reut.rs/3zkLV8y)

From 2001 to 2021, Nigeria lost 1.14 million hectares of tree cover, equivalent to a 11% decrease in tree cover since 2000 and equal to 587 million tonnes of carbon dioxide emissions, according to Global Forest Watch, a platform that provides data and monitors forests.

After felling the trees, Marigi put markers on them, a message to other loggers that he is the owner. The logs would be transported via creeks and rivers all the way to Nigeria's commercial capital Lagos.

"During the time of our forefathers, we had big trees but sadly what we have now are just small trees and we don't even allow them to mature before we cut them," Marigi said.

Cutting down trees for logging, opening up farmland or to feed energy demand for a growing population is putting pressure on Nigeria's natural forests.

President Muhammadu Buhari told a COP15 meeting in Abidjan, Ivory Coast on May 9 that Nigeria had established a national forestry trust fund to help regenerate the country's forests. That may not be enough as the country loses forests at a faster pace.

"Protecting the forest means protecting ourselves. When we destroy the forest, we destroy humanity," said Femi Obadun, director of forest management for Ondo state's agriculture ministry.

It's something Marigi knows all too well, but his priority is to eke out a living.

Months after cutting the trees, Marigi returns to the forest to pull the logs together and fasten them into rafts. He has a collection of more than 40 logs.

With other loggers, they have put together money to hire a tugboat to pull the rafts through creeks and rivers from Ondo state to Lagos.

Makeshift shelters on the rafts are made from wood and help shield Marigi and his friends from the weather. Food is shared while they belt out local folk songs to lift spirits.

"We don't sleep at night during the journey. We monitor the logs and make sure that (they don't) detach from the tugboat," Marigi told Reuters.

The boat stops at several locations to pick up more loggers and their rafts. A single boat can carry up to a thousand rafts, each containing as much as 30 logs.

Marigi's journey ends at a lagoon in Lagos, where rafts from Ondo state and other parts of the country converge and the logs are processed at sawmills and sold to different users.

By Nyancho Nwa Nri and Fikayo Owoeye

Reuters

Wednesday, January 22, 2020

Gold miners face dangerous life in Nigeria's 'bandit' country

From dawn, before the sun starts to sear the earth, Biltamnu Sani is already hard at work, pounding away at the dusty soil in his perilous quest for gold.

The mineral-rich earth of Zamfara State, northwest Nigeria, has provided generations of families with the means to make ends meet.

Never easy, it is a work that today is fraught with danger, from the armed groups that rove the region and from the toxic lead that lurks in its soil.

"I've been doing this since I was 12 years old," Sani, now 26, told AFP.

"It's very challenging work, but this is our livelihood."

The mines lie within the reach of heavily-armed groups -- "bandits" in the lexicon of the local authorities -- that have been terrorising this remote region.

Gangs of mainly Fulani herders started cattle rustling and small-scale criminality decades back.

Lately, they have exploited a security vacuum to become essentially an insurgent army of thousands.

As the struggle with farmers over land expanded, other communities took up arms in a spiral of bloodshed that has seen an alarming proliferation of weapons.

The violence claimed more than a thousand lives in 2019, the regional government estimates.

In the scramble for resources, the fighters have increasingly exerted control over artisanal mining -- one of the few reliable sources of income in this impoverished region.

Miners have been forced to share profits and carry out the bidding of the armed groups in order to continue their trade.

Many locals suspect the gunmen are paid by outside interests to secure mineral-rich areas for private gain.

"The challenges in past years have been tough," Sani says.

- 'Just shoot you' -

Nigeria's central government in April announced a ban on mining in the region in a bid to curb the armed groups.

But while some companies closed down operations, local miners have carried on working by themselves.

The local authorities brokered a controversial peace deal around five months back between bandits and vigilantes that has seen some of the gangs disarm.

But the situation at the mines remains perilous.

"You enter some places and people will just shoot you," Ayuba Muhammed, the secretary of a large mining union in the state, told AFP.

The remoteness of the mines and the absence of police outside of Zamfara's capital Gusau have left all trade here brutally exposed to insecurity.

"Some of the mines you see, they have an arrangement with the bandits so that they can stay. In some other areas they cannot even try to go there," Muhammed said.

As he spoke an elderly man in his office poured out small sacks of lilac stones onto a weighing scale.

Extracting minerals from tons of solid rock typically yields only small amounts of cash, but it is still vital income for people in a part of Nigeria where 70 percent of the population are estimated to live in extreme poverty.

The mining industry in the country remains largely artisanal, beset by corruption and poorly regulated.

Successive governments have pledged -- and failed -- to bolster this lucrative sector as an alternative to the oil resources that account for the biggest chunk of Nigeria's income.

- Lead poisoning -

Compounding the insecurity are serious health risks from lead.

The highly poisonous element occurs naturally and in high abundance in Zamfara's gold-rich areas, escaping into the air when the dusty rock is pounded to extract the precious specks.

"People are doing these processes in their homes. Then their children play around in the same areas -- it is extremely dangerous," Simba Tirima, a doctor working at a clinic run by aid group Doctors Without Borders (MSF) in the town of Anka, told AFP.

In the past decade more than 500 children have died from lead poisoning, and many others have suffered long-term ill-health.

Aliyu Usman, four, began to have violent seizures two years ago as his parents often refined gold in their compound.

"He's deaf, you can see he can look around but his gaze is blank," Tirima said, examining the boy at his rudimentary clinic.

"His mother brought him in two years ago and said 'he's not the same anymore, it's like he's not there'."

In 2010, an outbreak of lead poisoning in Zamfara prompted scientists from the US Centers for Disease Control and Prevention (CDC) to survey 122 villages.

They looked in detail at 56 of these villages, three-quarters of whom were involved in the gold trade.

Of nearly 400 children who provided blood samples, the average amount of lead in the blood was 8.5 microgrammes per litre -- previous research found that lead can damage health at levels as low as five microgrammes per litre.

The surge of deaths in 2010 led to increased awareness and improvements in the way miners worked.

But cases keep coming despite a reduction in the overall numbers.

"There are still pockets of lead exposure," Tirima said. "More needs to be done to bring mining practices into better organised and regulated spaces."

AFP