On the sidelines of the UN General Assembly, Nigeria and the US have inked a new mining deal. Nigeria's Minister for Solid Minerals, Dele Alake, announced on Thursday that the two countries agreed to "deepen" American investment in the West African nation's mining sector.

According to Alake, the agreement marks an important step in strengthening Nigeria-US cooperation around mineral resources valued at about $700 billion (€796 billion). "The framework covers geological data and exploration, mineral development and processing, infrastructure, and technical capacity," he added.

Although known for its vast oil reserves, Nigeria is also home to deposits of lithium, gold, tin, gemstones, iron ore, and phosphate. Lithium, in particular, is in high demand globally as an essential component in the batteries powering the green energy transition.

Alake said the agreement, signed on Wednesday, would be used to identify viable projects. He hinted that local jobs could be created by onshoring the refining of minerals, which until now have largely been exported as ore. "Nigeria cannot remain a source of raw materials while others capture most of the value," Alake said. "We want more local processing, quality jobs, stronger skills, and greater opportunities for Nigerian businesses."

However, these goals come as Nigeria's mining sector remains mired in safety and environmental concerns. The sector continues to face significant challenges, including inadequate safety measures at mining sites and environmental degradation. While the deal presents economic opportunities for the country, it also necessitates addressing these persistent issues.

Source: www.dw.com