Nigeria is emerging as a critical mineral hub and the government is cracking down on illegal mining, according to a report. Dozens of unlicensed miners have been arrested since April for allegedly stealing lithium.
News agency AP reported that illegal mines are rife in the country’s fledging industry. Corruption among regulatory officials is common and the mineral deposits are in remote areas where the government has little presence.
The report also cited officials saying profits from illicit mining have funded the arming of militia groups in the north.
Soldiers and police raided a remote market in mid-May in Kishi, in the south west. The report stated that locals said the market has become a centre for illegal trade in lithium mined in hard-to-reach areas.
The state government and locals said they arrested 32 people, including two Chinese nationals, local workers and mineral traders, according to the report. Loads of lithium were also seized.
China-owned companies employ mostly vulnerable people leaving Nigeria’s far north to work in mines throughout Nigeria, according to the report. They have been ravaged by conflict and rapid desertification.
Audit and tax firm KPMG Nigeria said in a report last year that high grade varieties of lithium were discovered in the country in 2022. It said 50 tonnes of low-grade lithium was produced in 2019 (compared to 1200 tonnes in Zimbabwe in the same year). The Statista website put Nigerian lithium production in 2022 at 20 tonnes, no change from the year before. It said production peaked in 2018 with 50 tonnes. Nothing was recorded in 2020, it said.
EV maker Tesla has expressed interest in buying Nigerian lithium, but no deal came through, according to KPMG. “Given the good grade of the country’s lithium and the seeming scarcity globally (occasioned by its high demand), Tesla or other would-be off takers and processors may reopen/open conversations with Nigeria for the resource,” it said.
KPMG expects other big brands who need lithium as input for their operations – like China’s Ming XinMineral Separation Nig – that has already commenced building lithium processing in Kaduna State – will turn to Nigeria.
It said illegal mining and smuggling has plagued Nigeria and more work needs to be done to curb it. “The government should consider enacting laws and implementing policies to control illegal exploitation, exploration, production and exportation of lithium in the country. Illegal miners are mining parasites, practically taking all and giving nothing in return’ to the society,” it said.
