Nigeria and Saudi Arabia have entered advanced discussions on a strategic partnership to extract and process iron ore into steel, signalling a significant step towards industrial growth and value addition in Nigeria’s solid minerals sector.
At the Resourcing Tomorrow session of the Mines and Money Expo in London, Nigeria’s Minister of Solid Minerals Development, Dr Dele Alake, met with Saudi Arabia’s Deputy Minister of Minerals and Energy, Khalid Al-Musdaifer, to outline the potential benefits of domestically processing iron ore into steel within Nigeria.
Enhancing Value-Added Exports
Dr Alake pitched Nigeria’s iron ore reserves as a resource for Saudi Arabia’s steel industry, which currently imports iron ore from several African countries. He emphasised that processing the ore locally would not only yield higher export value but also contribute to Nigeria’s economic transformation through job creation, skill development, and industrialisation.
Al-Musdaifer expressed interest in Nigeria’s proposal, highlighting Saudi Arabia’s commitment to diversifying its mineral supply chains. He confirmed that the Saudi government would consider Nigeria’s offer and further discussions are planned during the Future Metals Forum in Riyadh in January 2025.
Investment Interests in Nigeria’s Tin Sector
In addition to iron ore discussions, Dr Alake engaged other potential investors, including Woodcross, Gerald Group, and AMG fund managers, to explore opportunities in Nigeria’s tin sector.
Woodcross, represented by Mehdi Ali and Hassan Dhanji, revealed findings from a preliminary survey of tin ores in Jos, indicating sufficient deposits to justify large-scale processing investments. The company plans to make its final investment decision by February 2025.
Similarly, the Gerald Group, led by Brendan Lynch and Anya Sarin, expressed interest in a joint venture to develop Nigeria’s tin industry. The group highlighted the potential for collaboration with the soon-to-be-launched Nigerian Solid Minerals Corporation (NSMC), which is designed to serve as a dependable joint venture partner for international investors.
Strategic Follow-Up Committees
Dr Alake established a Ministerial Committee to oversee the implementation of these projects. The committee will provide weekly updates on progress and ensure alignment with Nigeria’s broader goals of diversifying its economy under President Bola Tinubu’s Renewed Hope Agenda.
Broader Implications
These developments mark a turning point in Nigeria’s solid minerals industry, highlighting its readiness to attract global partnerships, create value-added products, and strengthen its position as a competitive player in the international minerals mark
