Nigeria, Saudi Arabia Open Talks on Iron Ore

Folalumi Alaran in Abuja

Nigeria and Saudi Arabia have initiated talks on the extraction and processing of iron ore to steel.

Meeting on the sidelines of the just concluded Resourcing Tomorrow at the annual Mines and Money Expo in the London borough of Islighnton, United Kingdom, Minister of Solid Minerals Development, Dr. Dele Alake and the Deputy Minister of Minerals and Energy of Saudi Arabia, Engr Khalid bin Saleh Al-Musdaifer, discussed plans to extract iron ore and process steel in Nigeria.

Saudi Arabia currently boasts a solid steel industry that relies on importing iron ore from various African countries.

However, Alake pitched for the extraction and beneficiation of iron ore to steel in Nigeria, adding that the value-added exports would attract better prices than raw ores.

Responding, Engr. Al-Mudaifer confirmed Saudi Arabia’s interest in sourcing iron ore for its steel industry and assured the Minister that the government would consider Nigeria’s proposal for the domestication of the downstream value chain in the country.

A follow-up meeting is scheduled for Riyadh, capital of Saudi Arabia, during the Future Metals Forum in January, 2025.

Dr. Alake also met other investors such as tin manufacturers Woodcross and Gerald Group, fund managers AMG and Business Idea Development, China.

Set up by the mining investment group, Core International, the meeting yielded positive results.

Woodcross confirmed it had done a preliminary survey of tin mining in Jos and discovered evidence of sufficient tin ores to justify the long-term investment in processing that could meet current global demands. Represented by directors Mehdi Ali and Hassan Dhanji, Woodcross promised to make a final investment decision in February 2025.

The Minister of Solid Minerals Development, Dr. Alake, immediately set up a Ministerial Committee to implement the start-up in line with the timeline and provide weekly updates.

The Gerald Group, led by head of Business Development, Brendan Lynch and Vice President of Communications Anya Sarin also reported their research into the tin sector in Nigeria and their willingness for a joint venture.

Dr. Alake encouraged them to push for the early take-off of the project, highlighting the plans of the Tinubu administration to float the Nigerian Solid Minerals Corporation, which would be a reliable joint venture partner for the project.

He assigned the task of following up on the project to the Ministerial Committee with a similar mandate.

Alake also held discussions with the Director of AMG Group, Ajay Commem and Managing Director of Business Idea ManagementCentere, China, Young Chan, on funding for mining projects in Nigeria.

Commem said he heard of the Tinubu administration’s plan to set up the Nigerian Solid Minerals Corporation, adding that AMG would be willing to source capital and investors globally for the corporation.

Similarly, Chan said he flew from China to meet the minister to offer opportunities of Chinese capital to the Nigerian mining sector.

The Minister directed the Executive Secretary of the Solid Minerals Development Fund to work with both institutions towards supplementing the Fund’s sources of capital for investment.

The Minister concluded the business meetings with discussions with over 30 mining entrepreneurs drawn from all regions of the world.

The forum reviewed the proposal for the African Extractive Minerals Bank and urged the Minister as the Chairman of the Africa Minerals Strategy Group to support the novel idea of providing exploration funding for mining across the continent.

Responding, Alake commended the initiative and promised to put it on the agenda of the AMSG at its next meeting in Riyadh, Saudi Arabia.