An agreement was signed between the Nigeria Solid Minerals Development Fund and GeoScan GmbH of Berlin, Germany, on Sunday. They signed a Memorandum of Understanding (MoU) to promote the development of solid minerals.
The MoU was formalized during the visit of the German Chancellor, Olaf Scholz, to Abuja.
Representing Nigeria, the MoU was signed by Oliver Haeggberg, the CEO of GeoScan GmbH, and Fatima Shinkafi, the Executive Secretary and CEO of SMDF.
Haeggberg was a part of the German Chancellor’s business delegation during his official visit to Nigeria, where they met with President Tinubu and the Nigerian delegation at the Business to Government roundtable meeting.
Dele Alake, the Minister of Solid Minerals Development, shared the details with State House correspondents after this week’s Federal Executive Council meeting, which was chaired by President Bola Tinubu at the Aso Rock Villa in Abuja.
Alake stated that the MoU will advance solid minerals exploration, exploitation, and the efficient use of revenue generated by the federal government.
GeoScan GmbH possesses advanced technology that can explore mineral deposits up to 10,000 meters below the surface. Alake described this as a “remarkable advancement in the field of mineral exploration.”
He emphasized the cost-effectiveness of this proprietary technology, asserting that it is 80 percent cheaper than current exploration processes and three times faster at locating underground deposits.
“The collection of geodata is very expensive. Now this specific technology, which is top-notch, is 80 percent cheaper than current global processes and three times faster at determining deposits underground,” he said.
Alake argued that given Nigeria’s extensive and untapped mineral landscape, estimated to be worth around $700 billion, the MoU with GeoScan GmbH presents a significant opportunity for the country.
“We account for only 0.02 percent of the global mining budget. With the $700 billion estimated value of our solid minerals deposits, over 90 percent of Nigeria’s entire landscape remains unexplored.
“And because it is an expensive venture, that emphasizes the significance of the landmark we achieved yesterday with GeoScan GmbH, supported by the German Chancellor and our President.
“I am pleased to inform you that Nigeria has no financial commitment. The company will establish its technology and facilities here, and travel across the country to help us further explore all other mineral deposits,” he said.
The minister also revealed that Nigeria has abundant critical minerals essential for the production of electric vehicles, batteries, and other advanced technological equipment.
He added that these resources play a crucial role in the global shift towards clean and green energy, aligning with the global trend of addressing climate change.
When asked about what GeoScan GmbH stands to gain from the partnership, Alake stated that the company would be granted a mining license to extract the minerals it discovers using its advanced technology.
Describing the arrangement as a win-win, he commented, “So after they have discovered more mineral deposits for us, we can then grant them a license to mine.
“Besides, we are currently granting licenses to miners without the added value that GeoScan brings to the table. So it is a win-win situation when you consider all aspects.”