In a significant development, Nigeria has entered into a collaboration with a prominent German firm, GeoScan GmbH, aimed at uncovering the estimated $700 billion worth of solid minerals deposited across the nation.
This partnership was formalized on a Sunday, coinciding with a business visit to the Nigerian President by the German Chancellor, Olaf Scholz.
The decision to engage GeoScan GmbH was ratified on Monday during the Federal Executive Council (FEC) meeting, presided over by President Bola Tinubu at the State House in Abuja.
Dele Alake, Nigeria’s Minister of Solid Minerals, announced the Memorandum of Understanding (MoU) with the German firm during a press briefing following the FEC meeting.
Minister Alake underscored the significance of this agreement, highlighting its potential to advance the exploration, exploitation, and responsible utilization of solid minerals in Nigeria.
Notably, GeoScan GmbH possesses cutting-edge technology capable of delving up to 10,000 meters beneath the earth’s surface, marking a significant breakthrough in mineral exploration.
Furthermore, Minister Alake emphasized the cost-effectiveness of GeoScan GmbH’s proprietary technology, which is not only 80% more economical than current exploration methods but also three times faster in locating subterranean mineral deposits.
He stressed the importance of this technological advancement, especially given the vast and largely unexplored mineral resources in Nigeria, estimated at a staggering $700 billion.
Alake pointed out that Nigeria currently represents a minuscule fraction, approximately 0.02%, of the global mining budget. With the enormous potential value of its solid mineral deposits, the collaboration with GeoScan GmbH, supported by both the German Chancellor and the Nigerian President, holds great promise.
Importantly, there is no financial commitment on Nigeria’s part, as the company plans to establish its technology and operations in the country, facilitating exploration of various mineral deposits.
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The Minister also highlighted the abundance of critical minerals in Nigeria, which are essential for the production of electric vehicles, batteries, and other advanced technological equipment.
These resources play a pivotal role in the global transition towards clean and green energy, aligning with international efforts to address climate change.
Alake emphasized that the partnership with GeoScan GmbH is a significant step toward fully realizing Nigeria’s solid mineral resources’ potential, which could make a substantial contribution to the country’s Gross Domestic Product (GDP).
This aligns with President Tinubu’s Renewed Hope Agenda, which seeks to position solid minerals as a prominent economic driver alongside the petroleum industry.
The signing of the MOU took place between Oliver Haeggberg, the CEO of GeoScan GmbH, Germany, and Fatima Shinkafi, the Executive Secretary and Chief Executive Officer (CEO) of SMDF, representing Nigeria.
Notably, Haeggberg was part of the business delegation accompanying the German Chancellor during his official visit to Nigeria, where he met with President Tinubu and the Nigerian delegation at the Business to Government (BTG) roundtable meeting.
Minister Alake also underlined the historically arduous and costly nature of searching and locating mineral resources in Nigeria.
He explained that this engagement with a German firm boasting the latest technology in the industry is expected to save Nigeria approximately 80% of the costs associated with mineral exploration.
The newly acquired proprietary technology has the capacity to explore deep below the surface, up to 10,000 meters, which is a remarkable feat in the realm of solid minerals exploration.
This development is poised to revolutionize the sector and pave the way for Nigeria to harness its vast underground mineral wealth, which has been conservatively estimated at around $700 billion.
