The Federal Government has sealed a massive $1.3 billion alumina refinery deal with the Africa Finance Corporation (AFC), in what officials described as a game-changer for Nigeria’s mining sector.
The agreement, signed through the Solid Minerals Development Fund (SMDF), will see the construction of a world-class alumina refinery, a nationwide geoscience mapping exercise and the creation of a joint investment vehicle to fast-track mining assets across the country.
Minister of Solid Minerals Development, Dele Alake, who spoke at the signing ceremony, declared the deal a “landmark breakthrough” capable of transforming the sector and boosting its contribution to Gross Domestic Product (GDP).
The $1.3bn refinery is projected to process one million tonnes of bauxite annually using a modern Bayer-process system, backed by an on-site gas-fired cogeneration plant to power operations. Designed to run for about 20 years at 95 per cent capacity, the plant is expected to churn out 19 million tonnes of alumina over its lifespan.
Economic projections are eye-popping. The project is expected to contribute $1.2 billion annually to GDP, inject over $25 billion into the economy within its lifecycle and generate $8 billion in foreign exchange earnings.
Officials say it will stand as Nigeria’s largest private mining-sector investment and a flagship foreign direct investment.
SMDF Executive Secretary, Fatima Shinkafi, described the signing as the agency’s biggest funding milestone since inception.
“We are proud to facilitate this unprecedented $1.3bn CAPEX project. SMDF has come of age to sit and sign this deal with AFC. This will deepen value addition in line with the Minister’s policy direction,” she said.
Feasibility studies conducted by both parties confirmed the project’s commercial viability, strengthening government’s push to position Nigeria as a competitive global minerals destination.
Beyond the refinery, AFC and SMDF also agreed to float a joint strategic investment vehicle to accelerate exploration, development and production of selected mineral assets nationwide.
Permanent Secretary of the Ministry, Engr Farouk Yabo, hailed the initiative as a testament to the Minister’s reform drive and assured that the ministry’s bureaucracy would ensure smooth implementation.
Alake disclosed that all necessary approvals have been granted and directed relevant agencies to fast-track permits, licences and regulatory clearances to ensure speedy execution.
While Shinkafi signed for the Federal Government, Franklin Edochie, Deputy Director and Head of Metals & Mining at AFC, signed on behalf of the Corporation. AFC President/CEO, Samaila Zubairu, joined the Minister in witnessing the ceremony.
THE SUN
