The Federal Government has introduced a new policy mandating mining companies to establish processing plants within the country for solid minerals extraction, rather than exporting them for processing abroad.
Minister of Solid Minerals Development, Mr. Dele Alake, announced this significant policy shift during a media briefing marking the one-year anniversary of President Bola Tinubu’s administration.
Alake emphasized that this move underscores the administration’s commitment to developing the solid minerals sector.
As part of this commitment, the ministry has revoked the licenses of over 9,000 dormant mining companies that had obtained approvals but failed to utilize them productively.
Despite the revocation, the Tinubu administration’s new policies have spurred considerable interest, attracting around 10,000 new license applications. Of these, 4,000 licenses have already been issued to new applicants.
Alake expressed confidence in the administration’s strategy, aiming to transform the solid mineral industry into a major economic contributor, rivaling the oil and gas sector, and creating a new wealth source for Nigeria.
In a related development, Minister of Steel Development, Mr. Shuaib Audu Abubakar, disclosed that the federal government has approved $25 million to revive the Ajaokuta Steel Plant in Kogi State.
The initial focus will be on producing iron rods for the construction industry.
Abubakar highlighted that the ministry is nearing the completion of securing private sector funding to partially activate the plant, including the production of essential military hardware, thus reducing reliance on imports.
Abubakar further mentioned ongoing deliberations on whether to re-engage the Russian firm that originally constructed the Ajaokuta Steel Plant or to consider companies from China, India, and Nigeria to optimize the plant’s operations.
Additionally, the government is engaging with the private sector to finalize the completion of a 100-megawatt power plant to ensure uninterrupted electricity supply.
There are also plans to establish an industrial park on the expansive land surrounding the steel plant.
This comprehensive approach reflects the federal government’s strategic vision to bolster industrial growth and self-sufficiency in Nigeria’s solid minerals and steel sectors.