Wedoany.com Report-May 27, Nigeria is advancing its mining sector with the planned commissioning of two major lithium processing plants in 2025, as announced by Mining Minister Dele Alake on Sunday. The facilities, primarily funded by Chinese investors, aim to shift the country from exporting raw minerals to creating domestic economic value through processing.

A $600 million lithium processing plant near the Kaduna-Niger border is set to begin operations this quarter, while a $200 million lithium refinery on the outskirts of Abuja is nearing completion. Additionally, two more processing plants are planned in Nasarawa state, adjacent to Abuja, with commissioning expected before the third quarter of 2025. Alake stated: “We are now focused on turning our mineral wealth into domestic economic value – jobs, technology, and manufacturing.”

Over 80% of the funding for these four plants comes from Chinese companies, including Jiuling Lithium Mining Company and Canmax Technologies, as confirmed by state governors. Local investor Three Crown Mines holds the remaining stakes. The Chinese firms have not yet provided comments on the projects.

The initiative follows a 2022 study by Nigeria’s Geological Survey Agency, which identified significant high-grade lithium deposits across several states, drawing global interest. These plants are part of broader reforms to revitalize Nigeria’s mining sector, which currently contributes less than 1% to the nation’s GDP. Other reforms include restricting raw mineral exports, regulating artisanal mining, and establishing a state mining company where investors can hold up to 25% stake.

By prioritizing domestic processing, Nigeria aims to create jobs, advance technology, and boost manufacturing, leveraging its mineral resources for economic growth. The collaboration with Chinese investors underscores the strategic importance of these projects in enhancing Nigeria’s position in the global mining industry while fostering sustainable development.