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The Nigeria Solid Minerals Development Fund and GeoScan GmbH of Berlin, Germany, on Sunday, signed a Memorandum of Understanding on solid mineral development.
The agreement was formalised during the visit of German Chancellor, Olaf Scholz, to Abuja.
Signing the MoU were the CEO, GeoScan GmbH, Oliver Haeggberg and the Executive Secretary and CEO of SMDF, Fatima Shinkafi, representing Nigeria.
Haeggberg was part of the business delegation that accompanied the German Chancellor during his official visit to Nigeria, who met with President Tinubu and the Nigerian delegation at the Business to Government roundtable meeting.
The Minister of Solid Minerals Development, Dele Alake, disclosed the details to State House correspondents after this week’s Federal Executive Council meeting President Bola Tinubu chaired at the Aso Rock Villa, Abuja.
Alake said the MoU will advance solid minerals exploration, exploitation and judicious use of the revenue accruing to the federal government.
GeoScan GmBH possesses cutting-edge technology capable of exploring mineral deposits up to 10,000 meters below the surface, which Alake described as a “remarkable advancement in the field of mineral exploration.”
He emphasised the cost-effectiveness of this proprietary technology, which, he affirmed, is 80 percent 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 per cent cheaper than current processes in the world, three times faster to locate deposits down underground,” he said.
Alake argued that given Nigeria’s vast and unexplored mineral landscape estimated to be worth around $700bn, Sunday’s MoU with GeoScan GmbH presents a significant opportunity for the country.
“We constitute about 0.02 per cent of the global mining budget. With the $700bn estimation of our solid minerals deposit, we still have over 90 per cent 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 to enable us to further explore all the other mineral deposits that we have,” he said.
The minister also revealed that Nigeria abounds in many critical minerals essential for the production of electric vehicles, batteries and other advanced technological equipment.
These resources, he said, play a crucial role in the global shift toward clean and green energy, aligning with the global trend of addressing climate change.
Asked what GmbH stood to gain from the partnership, Alake noted that the company would be granted a mining licence to extract the volume of minerals it discovered with its cutting-edge technology.
Describing the arrangement as a win-win, he remarked “So after they have discovered more mineral deposits for us, we can then grant them a license to mine.
“In any case, we are granting licenses to minors right now with no added value of such that this GeoScan is bringing to the table. So it’s a win-win situation when you look at it on all sides.”