Nigerian Minister of State for Mines and Steel Development Hon. Abubakar Bawa Bwari initiated the construction of the first gold refinery in Nigeria. The refinery being developed by indigenous minerals company Kian Smith Trade & Co Ltd. (“Kian Smith”) in Ogun State is expected to begin production in 2019, sourcing most of its ore from miners in the country.
Nigeria has largely unexploited deposits of 44 minerals, which include gold, iron ore, coal, tin and zinc, in more than 500 locations spread across Africa’s most populous nation. But most of the mining is artisanal and also the absence of gold refineries suggests that price generally has not been additional within the supply chain.
The plant will begin with a production capability of three tonnes per month of 99% gold and 1 ton per month production of 99.99% silver. “We will be providing the Central Bank, the Jewellery and the Electronic Industry with our products. We will be supplying the Central Bank, the Jewellery and the Electronic Industry,” said Nere Teriba, chairperson of Kian Smith at the groundbreaking.
“We have already secured a major monthly offer of gold from Zamfara, Kebbi, Kwara, Niger, Kaduna, Ibadan, Ile-Ife, Ilesha and about 100kg per month from other parts of Africa. We area unit presently finalizing offer agreements and terms from suppliers in Kano. Next week, we’ll be securing offer from Kogi State,” she said.
Economic impact of the refinery
Most ore are going to be sourced regionally from numerous locations as well as the northwestern states of Zamfara, Kebbi and Kaduna, as well as the central states of Kwara and Niger. According to Teriba, the refinery when completed will create more than 500,000 jobs in two years as it continues to support its suppliers in their bid to become registered business entities in the mining sector.
This sector is expected to contribute to the increase of the nation’s GDP, improve its capacity to create jobs and produce sustainable mining. The Minister mentioned that during the focus labs of the Economic Recovery and Growth Plan (ERGP) of the administration, they discovered that a well organized gold value chain can trigger Associate in Nursing economic revolution find it irresistible did in Asian country, South Africa, Switzerland and others. He noted that the ministry has continued to figure during this lightweight to develop a gold price chain for the country