The Federal Government has signed a $1.3 billion investment partnership with the Africa Finance Corporation to develop an alumina refinery and two other strategic mining projects.
The deal aims to boost Nigeria’s solid minerals sector and increase mining’s contribution to Gross Domestic Product.
Under the pact, the government and AFC will jointly fund the construction of a one million-tonne-per-annum alumina refinery.
The agreement also includes a comprehensive national geoscience mapping programme and the creation of a special investment vehicle to drive exploration and production.
Minister of Solid Minerals Development Dele Alake said the facility is designed for about 20 years at 95 per cent utilisation.
Total alumina output is projected at 19 million tonnes over the refinery’s lifecycle.
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Alake noted that reforms undertaken by the ministry have strengthened the investment climate and modernised regulations.
The alumina refinery project is projected to contribute $1.2 billion to GDP annually once operational.
Over its lifecycle, the project is expected to generate more than $25 billion for the economy and about $8 billion in foreign exchange earnings.
The agreement was formally executed by Hajiya Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund, and Franklin Edochie, AFC Deputy Director.
Initial feasibility studies conducted by AFC and the Solid Minerals Development Fund confirmed the project’s commercial viability.
The proposed investment vehicle will drive rapid exploration and development across selected mineral leases following successful exploration campaigns.
In January, the government commenced operations at a high-purity gold refining plant in Lagos.
The administration also announced progress on three additional gold refineries and a $600 million lithium processing plant in Nasarawa State.
The alumina refinery investment represents Nigeria’s largest private mining commitment and a significant boost to industrial processing capacity.
