Nigeria’s Solid Minerals Development Fund (SMDF) and GeoScan GmbH of Berlin, Germany, have signed a Memorandum of Understanding (MOU) on solid mineral development.
This significant agreement was formalised on Sunday during the visit of German Chancellor Olaf Scholz to Abuja, Nigeria.
Mr Dele Alake, the Minister of Solid Minerals Development, announced the MOU at a press briefing after a meeting of the Federal Executive Council (FEC).
Highlighting the significance of the MoU, Alake said it was expected to advance solid minerals exploration, exploitation, and judicious use of the revenue accruing to the federal government.
The Minister said GeoScan GmBH possessed cutting-edge technology capable of exploring mineral deposits up to 10,000 meters below the surface, which was a remarkable advancement in the field of mineral exploration.
He emphasised the cost-effectiveness of this proprietary technology, which, he said, was 80% cheaper than current exploration processes and three times faster in locating underground deposits.
”The gathering of geodata 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 MoU with GeoScan GmbH presented a significant opportunity for the country.
”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, that 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 enable us to further explore all the other mineral deposits that we have,” he said.
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 added that these resources play a crucial role in the global shift toward clean and green energy, aligning with the global trend of addressing climate change.
He said 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 Fatima Shinkafi, the Executive Secretary and Chief Executive Officer (CEO) of SMDF, representing Nigeria.
Haeggberg was part of the business delegation that accompanied the German Chancellor during his official visit to Nigeria, that met with President Tinubu and the Nigerian delegation at the Business to Government (BTG) roundtable meeting.
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