An agreement that will allow the exploration of solid mineral deposits worth more than $700 billion in Nigeria has been signed by the Federal Government and a German geo-scientific technology company – GeoScan GmbH based in Berlin.
The Minister of Solid Minerals Development, Dele Alake, made this known while conversing with State House correspondents after the Federal Executive Council (FEC) meeting in Abuja on Monday.
Alake said the agreement is on the exploration and exploitation of mineral deposits in the country.
The minister, who explained that his briefing was not the FEC outcome, but just an announcement of a significant achievement, said the agreement was formalized in Abuja on Sunday when German Chancellor, Olaf Scholz, visited.
He said the significance of the Memorandum of Understanding (MoU), and its development will advance solid minerals exploration, exploitation, and judicious use of the revenue accruing to the federal government.
According to the minister, GeoScan GmBH has cutting-edge technology capable of exploring mineral deposits up to 10,000 meters below the earth’s surface.
Alake while describing the accomplishment as a remarkable progress in the field of mineral exploration, said the cost-effectiveness of the proprietary technology, which he said, is 80% cheaper than current exploration processes and three times faster in locating underground deposits.
“The gathering of geo-data is very expensive. Now this particular technology, which is top-notch, is 80% cheaper than current processes in the world, three times faster to locate deposits down underground”, he said.
Given Nigeria’s vast and unexplored mineral landscape, estimated to be worth around $700 billion, the minister noted that the MoU with GeoScan GmbH presents a significant opportunity for the country.
He said: “We constitute about 0.02% of the global mining budget. With the $700 billion estimation of our solid minerals deposit, we still have over 90% of the entire landscape of Nigeria unexplored.
“And because it’s an expensive business, it underscores the significance of a landmark that we recorded yesterday with the GeoScan GmbH supported also by the German chancellor and our president.
“I’m happy to tell you that there’s no kobo commitment on the part of Nigeria. The company will establish its technology and plant here and move around the country enabling us to further explore all the other mineral deposits that we have.”
The minister pointed out that many critical minerals, essential for the production of electric vehicles, batteries, and other advanced technological equipment, are abundant in Nigeria.
He said: “These resources play a crucial role in the global shift toward clean and green energy, aligning with the global trend of addressing climate change.
“The partnership with GeoScan GmbH will help Nigeria fully explore its solid mineral resources, which can make a substantial contribution to the country’s Gross Domestic Product (GDP), aligning with President Tinubu’s Renewed Hope Agenda of positioning solid minerals as a significant economic driver alongside petroleum.”
The MoU was signed by Oliver Haeggberg, CEO of GeoScan GmbH, Germany, and Executive Secretary and Chief Executive Officer (CEO) of Solid Minerals Development Fund (SMDF), Fatima Shinkafi, who represented Nigeria.
Haeggberg was part of the business delegation that accompanied the German Chancellor during his official visit to the country.
The delegation met with President Tinubu and the Nigerian delegation at the Business-to-Government (BTG) roundtable meeting in Abuja at the weekend.
