Geological data, in a groundbreaking development that could potentially transform Nigeria’s mining sector, three prominent institutions have come together to enhance the country’s geological mapping and geo-scientific data for early-stage mining projects. The Africa Finance Corporation (AFC), a leading infrastructure provider in Africa, the Solid Minerals Development Fund of Nigeria (SMDF), a dedicated development fund with a focus on mining in Nigeria, and Xcalibur Multiphysics (Xcalibur), a global leader in airborne geophysics, have formed a strategic partnership. This collaboration is a significant step towards improving the understanding of Nigeria’s mineral wealth hidden beneath the surface.
The agreement, formally established on the sidelines of the Nigerian Mining Week in Abuja, signifies a commitment to create a comprehensive and high-quality database showcasing Nigeria’s resource potential. This database will serve as a valuable resource for not only domestic but also international investors, including banks, mining firms, financial institutions, and individuals interested in contributing to Nigeria’s mining industry, geological data.
This partnership between AFC, SMDF, and Xcalibur is not an isolated endeavor but is part of a larger initiative. Earlier this year, AFC and Xcalibur inked a joint venture agreement aimed at collaborating on mapping, developing, and co-financing natural resource projects across the African continent. The Nigerian project is a direct outcome of this program. Under this tripartite agreement, AFC and SMDF will work in tandem to explore financing solutions that are conducive to the mining sector, engage with regulatory bodies, extend support to relevant government agencies, and facilitate government discussions.
Xcalibur, being a global leader in geophysics, brings its technical expertise to the table. They will oversee data quality and conduct economic evaluation studies, including assessments of potential environmental impacts and biodiversity considerations. This comprehensive approach is not just about mapping Nigeria’s underground mineral wealth but also ensuring that the investments made align with sustainable practices and the broader development goals of the country, geological data.
Commenting on this historic agreement, Samaila Zubairu, the President and CEO of AFC, emphasized the potential for growth and development that Nigeria’s abundant natural resources offer. However, he noted the current limited understanding of the vast underground mineral wealth in the country. He sees this collaboration as a means to address this knowledge gap and attract valuable mining investments, ultimately positioning Nigeria as a pivotal player in the global energy transition, geological data.
Fatima Umaru Shinkafi, Executive Secretary and CEO of Solid Minerals Development Fund, pointed out that over 90% of Nigeria remains underexplored, with significant potential for discovering and increasing existing deposits. Given that Nigeria receives less than 0.5% of the global exploration budget, the partnership with AFC and Xcalibur is expected to stimulate resource exploration activity in the country and enhance its appeal as a resource exploration destination on the global stage, geological data.
Dario Castellanos, VP Financing and Middle East Director of Xcalibur Multiphysics, expressed excitement about this groundbreaking project’s potential. He highlighted that the collaboration will improve the availability of high-quality geophysical data, attracting investments and contributing to the development of critical mineral resources in Nigeria. He shared the belief that this initiative could play a crucial role in establishing Nigeria as a pivotal player in the global energy transition, geological data.
One significant context to note is that Africa holds 30% of the world’s mineral reserves but receives only 5% of global mining financing. AFC has been a key player in bridging this financing gap in the African mining sector, with investments totaling over $900 million in critical projects over the past seven years. Their interventions have involved deploying in-house project development expertise and structuring capabilities to derisk projects for bankability. Notable examples include the Dynamic Mining Bauxite Mine in Guinea and the FG Gold Baomahun Gold Project in Sierra Leone, both of which have the potential to contribute significantly to local job creation and sustainable economic development.
Conclusion: geological data
The collaboration between AFC, SMDF, and Xcalibur represents a significant milestone in unlocking the vast potential of Nigeria’s mining sector. By enhancing geological mapping and geo-scientific data, attracting investments, and ensuring sustainable practices, this initiative not only holds the promise of transforming Nigeria’s mining landscape but also positioning the country as a key player in the global energy transition. It is a step toward realizing the untapped wealth hidden beneath Nigeria’s surface and boosting its role in the global mining industry, geological data.
