The African Finance Corporation and the Federal Government, through the Solid Minerals Development Fund, have signed an investment agreement to jointly finance three strategic projects, including a $1.3bn alumina refinery, a nationwide geoscience mapping exercise, and a special investment vehicle to unlock Nigeria’s minerals potential.
The agreement, signed in Abuja, marks the climax of months of negotiations between both parties and signals growing investor confidence in ongoing reforms in the country’s mining sector.
According to a statement issued on Sunday by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori, the alumina refinery is expected to process about one million tonnes of bauxite annually using a modern Bayer-process flowsheet, supported by an on-site gas-fired cogeneration plant to generate steam and power.
The statement read, “The Africa Finance Corporation and the Federal Government, through the Solid Minerals Development Fund, have signed an investment agreement to jointly fund three projects: a $1.3bn alumina project, a comprehensive geoscience mapping exercise, and an investment vehicle to realise the goals.
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“The MOU is the climax of talks between AFC and SMDF to jointly fund the construction of a $1.3bn alumina refinery, estimated to generate 1 million tonnes of bauxite ore per annum, utilising a modern Bayer-process flowsheet with an on-site gas-fired cogeneration plant for steam and power.”
Speaking at the signing ceremony, the Minister of Solid Minerals Development, Dele Alake, described the deal as a landmark that would accelerate value addition, create jobs, and significantly increase the sector’s contribution to Nigeria’s Gross Domestic Product.
“This is a landmark deal, poised to transform the mining sector and increase its contribution to the nation’s Gross Domestic Product,” Alake said.
