- Nigeria and Saudi Arabia have partnered to extract and process iron ore into steel, aiming to leverage Nigeria’s mineral resources for industrial growth
- The collaboration will enhance Nigeria’s steel production capacity and reduce Saudi Arabia’s reliance on imported iron ore from other African nations
Nigeria and Saudi Arabia have entered into a strategic partnership to develop Nigeria’s solid minerals sector, focusing on extracting and processing iron ore into steel.
This collaboration aims to harness Nigeria’s vast mineral resources for industrial growth and economic transformation.
The partnership was announced by Kehinde Bamigbetan, Special Adviser to the Minister of Solid Minerals Development, following bilateral discussions during the Resourcing Tomorrow event at the annual Mines and Money Expo in London.
Minister of Solid Minerals Development, Dr. Dele Alake, and Saudi Arabia’s Deputy Minister of Minerals and Energy, Engr. Khalid bin Saleh Al-Musdaifer, explored strategies to extract Nigeria’s iron ore and develop its local steel production.
Highlighting the importance of value addition, Dr. Alake stated, “Beneficiating iron ore within Nigeria will secure better prices than exporting raw materials.”
In response, Engr. Al-Musdaifer expressed Saudi Arabia’s interest in leveraging Nigeria’s iron ore for its steel industry and agreed to consider proposals to develop Nigeria’s downstream steel value chain.
Both nations plan to advance discussions at the Future Metals Forum in Riyadh in January 2025.
Dr. Alake also engaged with several industry stakeholders to attract investments in Nigeria’s mining sector:
- Woodcross and Gerald Group: Both companies presented promising findings from tin surveys in Jos, with long-term investment potential. Final investment decisions are expected by early 2025.
- AMG Group and China’s Business Idea Development: Discussing Nigerian mining projects funding. The Solid Minerals Development Fund has been tasked to work closely with these organizations to enhance financing opportunities.
Dr. Alake also discussed the creation of an African Extractive Minerals Bank, emphasizing its potential to boost financing for mining projects across the continent.
This proposal will be deliberated at the upcoming African Mining and Solid Minerals Group (AMSG) meeting in Riyadh.
Saudi Arabia, a key player in the global steel industry, currently imports iron ore from other African nations. Partnering with Nigeria presents an opportunity to strengthen Nigeria’s steel production capacity while reducing Saudi Arabia’s dependency on other suppliers.
This collaboration is expected to:
- Bolster Nigeria’s industrial capacity.
- Enhance export earnings through value-added steel production.
- Attract more global investments into Nigeria’s mining sector.
The initiative aligns with President Bola Tinubu’s vision to diversify Nigeria’s economy and leverage its mineral wealth for sustainable development.
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