By Engr. Janet Febisola Adeyemi, Consultant at Far Consulting Nig. Ltd. and President of Women in Mining Nigeria
The “Critical Minerals Age,” often referred to as the “Lithium-Ion Age,” is defined by the surging demand for essential minerals such as lithium, cobalt, nickel, and graphite. These resources are indispensable for the development of renewable energy technologies, electric vehicles, and advanced electronics. Simultaneously, this era is also called the “Anthropocene Mineral Age” or the “Digital Mineral Age,” underscoring the central role minerals play in powering our technology-driven society.
In the mining industry, the “Fourth Industrial Revolution” or “Mining 4.0” signifies the integration of advanced technologies like automation, artificial intelligence (AI), and the Internet of Things (IoT). These innovations enhance mining efficiency, safety, and sustainability, crucial for addressing the global shift towards a low-carbon economy and the corresponding rise in critical mineral demand.
Nigeria’s Role in the Critical Minerals Era
Nigeria, endowed with vast untapped mineral resources, is poised to harness significant opportunities in the critical minerals age. The country’s deposits of lithium, tantalum, and columbite are vital for emerging technologies. Although scientific reserve values for some of these minerals are yet to be proven, the Nigerian government estimates that the nation’s critical solid mineral deposits are valued at over $700 billion. This positions Nigeria as a potential key player in satisfying the global demand for critical minerals.
Nigeria Map showing the Mineral Resources in Nigeria.
Source: Nigeria Geological Survey Agency.
Despite this wealth, the contribution of Nigeria’s mining sector to the national economy remains suboptimal. According to the Nigerian Extractive Industries Transparency Initiative (NEITI), the extractive and mining sector remitted N1.14 trillion as revenue between 2019 and 2023. Production and export data from 2023 reveal the production of 95.07 million tonnes of minerals, with an export volume of 4.32 million metric tonnes valued at N117.29 billion. The Mining Cadastre Office’s revenue of approximately N80 billion further highlights the sector’s potential.
Challenges in Nigeria’s Mining Sector
To fully realize the benefits of its mineral endowments, Nigeria must intentionally develop its Mining Resources Corridor (MRC). Achieving this requires addressing several key challenges:
1.Geological Resource Mapping: Comprehensive geological surveys and resource mapping are essential to understand the true potential of Nigeria’s mineral wealth.
2.Infrastructure Development: Adequate infrastructure, including roads, railways, and power supply, is critical for accessing mining sites and transporting materials.
3.Technological Advancement: Investment in modern exploration, appraisal, production, and utilization technologies is vital for efficient resource exploitation.
4.Community Impact: Mining operations often lead to community displacement, loss of livelihoods, and property acquisition challenges. Policies must address these social consequences.
5.Environmental Sustainability: Mining activities can lead to pollution, ecological degradation, and encroachment. Regulatory frameworks should enforce sustainable practices to minimize environmental impacts.
6. Security Concerns: Insecurity due to insurgents, banditry, and kidnapping poses a significant risk to mining operations. Strategic measures are needed to ensure the safety of mining sites and
personnel.
Policy Recommendations for Competitive Mining
To create a globally competitive mining sector, Nigeria should consider adopting innovative regulatory approaches:
- Investor-Friendly Policies: Develop clear, transparent, and
predictable regulations to attract both local and international
investors. - Public-Private Partnerships (PPPs): Foster collaboration
between the government and private sector to finance and manage
mining projects. - Capacity Building: Invest in training and capacity development
for local communities and mining professionals to enhance
expertise in the sector. - Technology Adoption: Encourage the use of Mining 4.0
technologies, such as AI, IoT, and automation, to improve
operational efficiency and safety. - Environmental Stewardship: Implement stringent environmental
regulations to ensure sustainable mining practices and reduce
ecological damage. - Security Frameworks: Strengthen security measures to protect
mining investments and personnel from insurgency and criminal
activities.
The Geo-Politicization of Green Minerals
Green minerals, such as lithium, cobalt, nickel, and rare earth elements, are critical for the global energy transition, enabling technologies like electric vehicles (EVs), renewable energy systems, and advanced batteries. However, the growing demand for these resources has made them the subject of geopolitical competition, leading to their “geopoliticization”,“which is as a result of uneven distribution of the mineral resources e.g.
o Lithium in the “Lithium Triangle” (Argentina, Bolivia, Chile).
o Cobalt in the Democratic Republic of Congo (DRC).
o Rare earth elements in China.
Countries rich in these resources wield significant leverage over supply chains and global markets., the importance for energy transition, supply chain bottlenecks, resource nationalism where resource-rich nations are adopting policies to maximize control and benefits from their mineral wealth, such as export restrictions or higher royalties.eg Indonesia banning nickel exports and Zimbabwe restricting raw lithium exports and dominance of major players e.g. China controls over 60% of rare earth processing and a significant share of lithium-ion battery production while western countries are seeking to diversify their supply chains to reduce reliance on China.
The Kabanga Nickel Project in Tanzania, financed by countries and the EU through the Minerals Security Partnership (MSP), highlights the exclusion of African nations from global green mineral initiatives.
Despite Africa’s rich mineral resources, there are concerns about exploitation and “green neo-colonialism,” where external powers benefit at the expense of African communities.
1.EU Regulatory Power: Policies like the Carbon Border Adjustment Mechanism (CBAM) and Critical Minerals Act:
o CBAM imposes tariffs based on carbon emissions, disproportionately affecting African exporters with limited
resources for compliance, such as South Africa.
o The Critical Minerals Act focuses on securing raw materials from Africa without fostering local value addition
or industrialization.
2.Colonial Economic Structures: African nations, such as the DRC, are limited to raw material extraction, while high-value refining and manufacturing occur in Europe, perpetuating dependency and stifling development.
3. Barriers to Green Industrialization: EU policies create significant challenges for African countries aiming to build green economies, reinforcing unequal trade dynamic.
Conclusion
Nigeria stands at a pivotal moment in the critical minerals age. By addressing existing challenges and adopting innovative regulatory approaches, the nation can unlock the full potential of its mineral resources. Competitive mining policies will not only position Nigeria as a key player in the global critical minerals market but also ensure sustainable development and economic growth for future generations.
