Nigeria has secured a landmark $1.3 billion deal with the African Finance Corporation (AFC) to develop an alumina refinery, marking a significant milestone in the country’s mining sector.
The project, jointly funded by AFC and the Solid Minerals Development Fund (SMDF), is expected to boost Nigeria’s Gross Domestic Product (GDP) by $1.2 billion annually, over $25 billion to the national economy and generate $8 billion in foreign exchange earnings, Segun Tomori, the special assistant on media to the Minister of Solid Minerals Development, Dele Alake, disclosed this in a statement on Sunday.
The refinery, according to the statement, is estimated to generate one million tonnes bauxite ore per annum, utilising a modern Bayer-process flowsheet with an on-site gas-fired cogeneration plant for steam and power.
Mr Alake at the signing ceremony, according to the statement, described it as a landmark deal, poised to transform the mining sector and increase its contribution to the nation’s GDP.
“The facility is designed for approximately 20 years of operation at 95 per cent utilisation, with total alumina output projected at 19 million tonnes over the project’s horizon,” the statement said.
In her remarks, SMDF Executive Secretary, Fatima Shinkafi expressed delight at the historic feat, stating it represents the agency’s largest funding project since its inception.
“We are very proud and honored to facilitate this phenomenal milestone, which is quite unprecedented since the inception of SMDF. It is a $1.3 billion Capital Expenditure (CapEx),” she said.
Mr Tomori explained that the initial feasibility studies conducted by AFC and SMDF have confirmed the project’s competitiveness and commercial viability, validating the ministry’s efforts to position Nigeria as a globally competitive minerals destination.
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“This initiative delivers on the ministry’s priority of generating big data on specific minerals, de-risking exploration for international investors, and unlocking the full potential of Nigeria’s minerals,” the statement said.
It said AFC and SMDF also agreed to set up a joint strategic investment vehicle to accelerate the development of identified exploration assets across Nigeria, to drive rapid exploration, development, and production of selected exploration leases upon the execution of a successful exploration campaign.
Permanent Secretary of the ministry, Farouk Yabo commended the initiative stating that it is a testament to the transformative leadership of the minister.
He emphasised that the project has the potential of putting Nigeria on the global map, expressing commitment of the ministry bureaucracy to support the project and other reforms of the minister which he stressed has repositioned the sector.
According to the statement, Ms Shinkafi signed on behalf of the federal government, Franklin Edochie, Deputy Director & Head, Metals & Mining of the African Finance Corporation (AFC) signed on behalf of the AFC while President/Chief Executive Officer, AFC, Samaila Zubairu and the minister witnessed the ceremony.
