During German Chancellor Olaf Scholz’s visit to Abuja, the Nigeria Solid Minerals Development Fund and GeoScan GmbH of Berlin, Germany, officially signed a Memorandum of Understanding for the advancement of solid mineral development. The agreement, confirmed by the Minister of Solid Minerals Development, Dele Alake, is aimed at enhancing the exploration, exploitation, and responsible management of revenue from solid minerals for the benefit of the federal government.

    The signing ceremony involved GeoScan GmbH’s CEO, Oliver Haeggberg, and Nigeria’s Executive Secretary and CEO of SMDF, Fatima Shinkafi. The event took place during the Chancellor’s meeting with President Tinubu and the Nigerian delegation at the Business to Government roundtable session, with further details disclosed to State House correspondents after this week’s Federal Executive Council meeting at the Aso Rock Villa, Abuja.

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    solid minerals
    dele alake

    Alake highlighted the significant technological capabilities of GeoScan GmbH, which boasts advanced technology enabling the exploration of mineral deposits up to 10,000 meters below the surface. He emphasized the groundbreaking nature of this technology, citing its cost-effectiveness, as it is reportedly 80 percent less expensive than existing exploration methods and three times quicker in identifying subterranean deposits. He underscored the high costs typically associated with geodata collection and emphasized the substantial cost savings offered by this cutting-edge technology.

    Alake emphasized that Nigeria, with its substantial and largely untapped mineral resources estimated to be valued at approximately $700 billion, holds immense potential. He pointed out that despite the country’s considerable mineral wealth, it currently accounts for just 0.02 percent of the global mining budget, highlighting the extensive untapped potential within Nigeria’s mineral-rich landscape.

    Alake further underscored the significance of the recently signed Memorandum of Understanding with GeoScan GmbH, facilitated by the support of the German Chancellor and the Nigerian President. He highlighted the strategic advantage of the partnership, emphasizing that Nigeria is not required to make any financial commitments. Instead, the company will establish its technological infrastructure within the country, enabling comprehensive exploration of various mineral deposits across Nigeria.

    The minister highlighted Nigeria’s abundance of critical minerals crucial for the production of electric vehicles, batteries, and other advanced technological equipment. These resources, he emphasized, are integral to the global movement toward clean and sustainable energy, aligning with the worldwide efforts to combat climate change.

    Regarding the benefits for GeoScan GmbH, Alake mentioned that the company would receive a mining license permitting the extraction of the identified mineral reserves using its cutting-edge technology. Describing the arrangement as mutually beneficial, he emphasized the potential for granting mining licenses to companies, including GeoScan, that contribute added value through advanced exploration methods. He emphasized the advantageous nature of the partnership, particularly in terms of the benefits it presents from various perspectives.

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