Alake declares value addition as standard for mining in Nigeria

March 27, 2024

Value addition now a standard for mining operations, says Alake

The Minister of Solid Minerals Development, Dr Dele Alake, has declared value addition the irreducible standard for mining operations in the country.

Speaking during an inspection tour of the gigantic $600 million African Natural Resources and Mines Limited (ANRML) facility in Kaduna State that hosts the mining and processing of magnetite iron ore, the Minister hailed the tenacity and foresight of the investors to build what is touted as one of the biggest foreign investments in the mining sector.

According to Alake, the company aligns with its vision of value addition and beneficiation through its processing of iron ore, urging other mining companies to take a cue from it. He restated the position of the federal government to refrain from granting mining licences to companies without the requisite plans for value addition.

Drawing parallels between the experience of ANRML and the economic situation in the country, the Minister asserted that the same ingredients of resilience, courage, and laying a solid foundation that made the company a success story are critical factors guiding the economic restructuring of the present administration, expressing optimism that it will culminate in economic transformation.

“I want to use you, African Natural Resources and Mines Ltd., as a concrete example of what can happen when you set your mind to it. We have set our minds in this administration and invariably in Nigeria to achieve success; that’s why Mr President is restructuring the economy. When this company started 7 years ago, we saw one of the foundations through the video documentary—the amount of concrete that went to erect a foundation, just to carry a giant edifice. That’s what we’re going through. When we get through the gestation period, the results will manifest, and it will herald prosperity, “Dr. Alake added.

In her submission, the Minister of Industry, Trade, and Investment, Dr Doris Azoka-Aniete, lauded the company for its giant stride in iron ore production and processing, stressing that the company will be part of the nation’s efforts to scale up local steel manufacturing and local manufacturing of automobiles through the Nigeria Automotive Industry Plan.

The ANRML operations involve magnetite iron-ore mining through beneficiation and pelletization processes, which result in direct reduced iron (DRI), which will eventually position Nigeria as one of the prominent crude steel producers upon the commencement of exports.