Nigeria, Saudi Arabia Move to Develop Iron Ore to Steel

In a strategic move to unlock the potential of Nigeria’s solid minerals sector, Nigeria and Saudi Arabia are partnering to extract and process iron ore into steel. This collaboration was announced in a statement signed by Kehinde Bamigbetan, the Special Adviser to the Minister of Solid Minerals Development. The two nations discussed this initiative during a meeting at the Resourcing Tomorrow event, held alongside the annual Mines and Money Expo in Islington, London.

Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, and Engr. Khalid bin Saleh Al-Musdaifer, Deputy Minister of Minerals and Energy of Saudi Arabia, explored plans to extract iron ore and process it into steel within Nigeria. Dr. Alake emphasized that the extraction and beneficiation of iron ore would create more value-added exports, securing better prices than exporting raw ore. In response, Engr. Al-Musdaifer expressed Saudi Arabia’s interest in sourcing iron ore for its own steel industry and assured that the Saudi government would consider Nigeria’s proposal to develop a domestic downstream value chain.

A follow-up meeting is scheduled for January 2025 during the Future Metals Forum in Riyadh, where the two countries will continue discussions on the partnership.

In addition to the Saudi discussions, Dr. Alake also engaged with other investors at the event, including tin manufacturers Woodcross, the Gerald Group, and fund managers AMG and Business Idea Development from China. These engagements yielded promising results, with Woodcross confirming a preliminary survey of tin mining in Jos, which identified sufficient tin ores for long-term investments. They are expected to make a final investment decision by February 2025.

The Gerald Group showed interest in a joint venture in the tin sector, and Dr. Alake encouraged them to fast-track the project. He also highlighted the Tinubu administration’s plans to establish the Nigerian Solid Minerals Corporation, which could act as a potential joint venture partner.

Furthermore, funding opportunities were discussed with AMG Group and Business Idea Development Centre, China, both of which showed interest in supporting mining projects in Nigeria. Dr. Alake directed the Executive Secretary of the Solid Minerals Development Fund to collaborate with these institutions to explore funding options for mining ventures.

At the close of the forum, Dr. Alake engaged with over 30 global mining entrepreneurs, including discussions on the African Extractive Minerals Bank. Dr. Alake promised to include this proposal in the agenda for the upcoming AMSG meeting in Riyadh.

Saudi Arabia, which currently imports iron ore for its steel industry from various African countries, sees this collaboration as an opportunity to secure a reliable supply of iron ore while helping to boost Nigeria’s mining sector.