S'Africa, British firms to invest $1bn in Nigeria

Thedrive by the Federal Government to attract Foreign Direct Investment received a boost at the weekend with the proposed joint investment of $1bn (N150bn) by the United Kingdom-based Savannah Mining Limited, and two South African firms, Equator Minis and VML Resources Limited.The firms plan to invest the amount, in partnership with Nigerias Equator Mines Limited, for the production of tin in Bauchi, Plateau and Kaduna states, as well as the exploitation of about 100,000 ounces of gold in Kebbi State.Disclosing this on Sunday in Abuja, the Managing Director, Equator Mines Limited, Mr. Gallio Dagu, said the company would produce 50,000 tonnes of tin in the short-term, and scale it up to 100,000 tonnes later.On gold, we intend to produce 50,000 ounces every month in the short-term. Then, in the long-term, when we increase the reserve, we intend to produce about 100,000 ounces of smelted gold every month, he said.Degu explained that in the long run, the company would smelt its concentrate to attain full value of $25 per metric tonne right from Nigeria, saying the firm had plans to process the concentrate to 72 per cent before export, in accordance with international standards.In the long-term, we have plans for smelting our concentrate so that instead of exporting the concentrate that will cost just about $18,000, we will smelt and get the full value of the London Metal Exchange right here in Nigeria, which is now about $24 to $25 per metric tonne. We have done the analysis and that is the best bet, he said.Speaking on the employment generation potential of the projects, he explained that the business plan had already made provision for the engagement of labour in accordance with the Minerals and Mining Act of 2007. Dego said because the projects were spread across different locations in the country, the production plan would result in the employment of 4,000 Nigerians.
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