Nigeria Approves 146 Lithium Mining Licenses

By Adedapo Adesanya

Nigeria approved licenses to 146 companies seeking to mine lithium in the country in 2023, signalling high demand for the mineral, the Ministry of Solid Minerals Development has said.

During his address as the keynote speaker at the BusinessDay Solid Minerals Conference in Abuja on Tuesday, the Minister of Solid Minerals Development, Mr Dele Alake, said, “The Ministry continues to facilitate the processing of applications for permits to refine minerals and to process and purchase. Last year, no fewer than 499 licenses were granted to applicants involved in the business of purchasing and sales of minerals.

“Predictably, applications for the purchase and sale of Lithium topped the list with 146 licences, followed by Gold, 91; Tin, 46 and Coal, 32. Other minerals for which licences were granted include Tantalite, Iron Ore, Kaolin, Feldspar, Beryl, baryte, Columbite, Mica and Aquamarine.”

He also disclosed that the federal government plans to hold about 25 per cent of the N1 billion share capital of the Nigerian Solid Minerals Corporation (NSMC), adding that the process of  creating legislation for the institution has begun.

Mr Alake also said that the Nigerian citizens will by public shares hold 25 per cent and private investors can acquire up to 10 per cent of the remaining shares.

“Central to our efforts to reposition the sector is the establishment of a private-sector driven, Nigerian Solid Minerals Corporation,” he added, revealing that from February 12, the Solid Minerals Committee of the House of Representatives will hold the first policy dialogue on the proposed law to create the corporation.

“In working with the legislature to establish the legal and legitimate foundation for the institution, our resolve to ensure that a share structure in line with a private sector- led strategy in which the Federal Government will hold not more than 25 per cent, the Nigerian citizens will, by public shares hold 25 per cent and private investors, each with a maximum of 10 per cent of the shares of the N1 billion share capital, will be achieved,” he said.

He noted that the government has learnt from the failures of the defunct Nigerian Mining Corporation, and will ensure that the new company operates more sustainably.

Lithium is a high-demand mineral as it can be used in making electric vehicles as well as batteries for laptops, phones, and digital cameras and is also essential in the manufacturing of planes and trains.

Analysis from the IEA shows that to reach net zero emissions by 2050, about 2 billion EVs and hybrids need to be produced and used. However, global lithium reserves can only make about 2.5 billion EVs. This has translated into a high demand for lithium.

Analysts also noted that the mineral, which Nigeria possesses and is undertapped and illegally mined, will continue to be valued and in demand.

Other minerals such as gold (91 licenses), tin (46), and coal (32). The list also included tantalite, iron ore, kaolin, feldspar, beryl, barite, columbite, mica, and aquamarine licenses.