Nigeria, US Sign Mining Deal To Boost Investment

Nigeria and the United States have signed a framework agreement aimed at deepening US investment in Nigeria’s mining sector, Solid Minerals Minister Dele Alake said on Thursday.

The agreement was signed in New York on Wednesday by Alake and US Deputy Secretary of State Christopher Landau on the sidelines of the 81st United Nations General Assembly.

The framework covers geological data and mineral exploration, mineral development and processing, infrastructure and technical capacity building, according to Alake.

Nigeria’s government estimates the country’s mineral resources are worth about $700 billion. The government is seeking to attract investment into the largely underdeveloped sector as part of efforts to diversify the economy beyond oil.

Alake said Nigeria wanted to move beyond exporting raw materials and increase local processing and value addition.

“Nigeria cannot remain a source of raw materials while others capture most of the value. We want more local processing, quality jobs, stronger skills and greater opportunities for Nigerian businesses,” he said.

The agreement comes as the United States seeks to strengthen relationships with mineral-producing countries and diversify supply chains for critical minerals used in technologies including electric vehicle batteries and renewable energy infrastructure.

Nigeria hopes the partnership will help attract investment into areas including its emerging lithium industry, where Chinese companies have been among the most active foreign investors.

The framework is expected to provide a basis for identifying projects and developing commercial partnerships between Nigerian and US businesses. Alake said the next stage would involve translating the agreement into specific projects and investments.

SOURCE: Reuters