Nigeria says can tap mineral wealth despite COVID, unrest

By Paul Carsten
ABUJA, Sept 2 (Reuters) - Nigeria aims to have 50 mines in
operation by 2023 and can make up for time lost because of the
impact of COVID-19 on development of the nascent sector, the
country's mining minister said in an interview.
Africa's largest oil producer is banking on mining to
diversify its income and revive its finances following a
collapse in crude prices, which earlier this year hit two-decade
lows.
"The pandemic has slowed things down, but we can still catch
up," Minister of Mines Olamilekan Adegbite said.
Nigeria hopes mining will grow tenfold in five years to
account for 3% of the economy and that Nigeria can process as
well as mine, which generates increased profits compared with
shipping raw minerals.
In particular, he said Nigeria aimed to process barite, used
in drilling for oil and gas, and sell it to countries such as
Ghana and South Africa, which need the mineral to exploit new
oil discoveries.
In common with other African countries, Nigeria is also
seeking to formalise artisanal mining, which could generate tax
and royalties from gold.
Adegbite said Nigeria was encouraging small-scale miners to
form cooperatives and sell at government-buying centres, where
prices are closer to global values than those illegal buyers
offer.
While oil prices have been weak because of the impact of the
pandemic on movement and industry, which has curbed fuel demand,
gold in August hit record highs. XAU=
A problem for Nigeria is that its gold lies mostly in the
northwest, where, humanitarian organisations say it has helped
to fuel violence attributed to armed groups.
Adegbite said security had improved and buying centres would
stop artisanal miners dealing with criminals: "By weaning them
off the illegal people and (making) sure they sell to
government-approved centres, you take off that linkage."
He also expects more commercial gold miners to be attracted
once Thor Explorations's THX.V gold mine in Nigeria's
southwest starts producing. Its first gold is expected in the
second quarter of 2021.
Malte Liewerscheidt, vice president of London-based risk
consultancy Teneo Intelligence, said the plans were likely to be
undermined by "structural challenges pertaining to insecurity
and infrastructure deficiencies".