Africa Finance Corporation and the Federal Government of Nigeria have signed a deal to invest in three major mining projects. One of them includes USD 1.3 billion for an aluminium refinery project. This agreement was signed under the Solid Mineral Development Fund (SMDF), a sovereign investment fund designed to catalyse private sector-based growth in the mining industry.
Under this agreement, both parties will carry out a geoscience mapping programme to improve mineral data and reduce exploration risks, encouraging more investors to participate in the sector. They will also create a joint investment vehicle to speed up exploration and mining development in Nigeria. The aim is to promote faster exploration, development, and eventual production from approved mining leases, particularly after successful exploration campaigns.
Segun Tomori, media aide to the minister of solid minerals development, said the refinery will use the Bayer process, a widely applied method for refining alumina from bauxite. The plant will also include a gas-fired system to generate steam and electricity for its operations. The proposed refinery is expected to process about one million tonnes of bauxite each year.
He stated, “The facility is designed to operate for approximately 20 years at 95 per cent utilisation, with total alumina output projected at 19 million tonnes over its lifespan.”