No Mining License Without Value Addition Plans: Alake’s Warning to Prospective Investors

Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, has issued a stern warning to prospective investors seeking mining licenses.

According to a statement by his Special Assistant on Media, Segun Tomori, the minister emphasized that no mining license would be granted without a comprehensive plan for value addition on minerals.

This announcement has sparked significant interest in Nigeria’s mineral resources and placed the mining sector on the global front burner.

Since assuming office, Dr. Alake has implemented his Seven-Point Agenda, which has garnered support from the executive and legislative branches of the Nigerian government.

As a result, the international community has shown renewed interest in Nigeria’s mineral resources, leading to the minister’s election as the Chairman of the Africa Minerals Strategy Group (AMSG) at the Future Minerals Forum in Riyadh, Saudi Arabia.

With this new position, Dr. Alake has emphasized the importance of unity of purpose on the African continent regarding local value addition.

He stressed that the ministry will no longer permit companies to mine without a plan for local value addition, such as processing and refining.

This approach will create employment opportunities and a more robust economy by preventing the export of raw materials like lithium and gold.

Instead, these minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced.

In a recent meeting with members of the House Committee on Solid Minerals, who were on an oversight visit to his office, Dr. Alake praised the lawmakers for their support in repositioning the mining sector.

He emphasized that boosting the economic profile of Nigeria requires a joint effort between the executive and legislative branches.

Additionally, Dr. Alake acknowledged the significant contribution of sub-nationals to mining development, highlighting that state chairmen of the Mineral Resources and Environmental Management Committee (MIREMCO) and five committee members were nominated by state governments.

This strong stance on value addition plans for mining licenses underscores the Nigerian government’s commitment to strengthening its mining sector and fostering sustainable economic growth.

By prioritizing local value addition, Nigeria aims to create a more robust economy, generate employment opportunities, and ensure the equitable distribution of benefits derived from its mineral resources.