FG Unveils Lagos Gold Refinery, Pushes $600m Lithium Plant Launch

The Federal Government has announced the commencement of operations at a new high-purity gold refining plant in Lagos.

Additionally, plans have been finalized for the commissioning of a massive $600 million lithium processing plant in Nasarawa State.

The announcement was made by the Minister of Solid Minerals Development, Dr. Dele Alake, on Tuesday, during a high-level meeting with the Saudi Arabian Minister of Industry and Mineral Resources, Ibrahim Al-Khorayef, in Riyadh. The meeting was held on the sidelines of the Future Minerals Forum (FMF).

Dr. Alake described these projects as tangible evidence of the Tinubu administration’s commitment to a “value-addition” policy.

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This policy aims to shift the nation’s mining sector from the mere export of raw mineral ores to domestic processing and beneficiation, thereby retaining wealth and creating jobs within Nigeria.

“Nigeria’s value-addition policy is already yielding tangible results, with a gold refining plant of very high purity now operational in Lagos, three additional gold refineries at various stages of development, and a $600 million lithium processing plant in Nasarawa State ready for commissioning,” the Minister stated.

The operational refinery in Lagos is expected to produce gold of export-grade quality, positioning Nigeria as a key player in the global precious metals market.

Meanwhile, the upcoming lithium facility in Nasarawa highlights the country’s ambition to become a hub for the green energy transition, given lithium’s critical role in the production of electric vehicle batteries.

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The bilateral discussions focused on deepening cooperation between Nigeria and Saudi Arabia in the solid minerals sector. Dr. Alake emphasized the need to leverage the comparative advantages of both nations.

“We are keen on structuring agreements that will enable us to engage meaningfully and constructively,” Alake said. “Priority areas include capacity building, training of mining professionals, technology transfer, and particularly exploration, where Saudi Arabia has demonstrated some expertise.”

In response, the Saudi Minister, Al-Khorayef, reaffirmed the Kingdom’s alliance with Nigeria. He proposed the development of a draft Memorandum of Understanding (MoU) by a joint working group, which could be signed during the ongoing conference. He also urged Nigeria to use the FMF platform to showcase its investment potential to Saudi investors.

The Federal Government has identified mineral traceability, environmental standards, and mine-pit remediation as key areas for future collaboration.

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Dr. Alake noted that establishing a robust traceability mechanism is crucial for boosting investor confidence.

As Nigeria intensifies its efforts to reform the mining sector and curb illegal activities, these new facilities represent a critical turning point.

The government views lithium, gold, and other rare earth elements as essential components in its strategy to reduce reliance on oil revenue and integrate Nigeria into the global clean energy value chain.