Nigeria Transitions to Local Mineral Processing as SMDF Facilitates 1.5m-tonne Aluminium Refinery

Folalumi Alaran in Abuja

Nigeria’s drive to deepen local mineral processing and reduce dependence on raw mineral exports received a boost on Wednesday as the Minister of Solid Minerals Development, Dr. Dele Alake, disclosed that the Solid Minerals Development Fund (SMDF) had facilitated the development of a 1.5 million metric tonnes-per-annum aluminum refinery project.

The minister said the refinery project reflects the federal government’s commitment to promoting value addition, industrialisation, and job creation within the mining sector, rather than exporting unprocessed mineral resources.

Alake made the disclosure in Abuja at the launch of the Early-Stage Mineral Exploration and Research Grant Endowment (EMERGE) programme, an initiative of the SMDF designed to strengthen mineral exploration, research, and critical minerals development.

According to him, the aluminum refinery is one of several strategic investments attracted through interventions by the fund under ongoing reforms in the solid minerals sector.

“The EMERGE delivered by the Solid Minerals Development Fund fits within a remarkable run of achievements by the fund under this government,” he said.

The minister explained that the administration is prioritising policies that encourage local processing of minerals to create jobs, increase revenue generation, and support economic diversification.

He said the newly launched EMERGE programme would further advance these objectives by funding mineral exploration, critical minerals development, and research across the mining value chain.

Alake noted that the initiative would help generate reliable geological data, support the development of minerals needed for the global energy transition, and strengthen research in geoscience and mineral processing.

“The critical minerals stream begins the real domestication of the supply chain because, for the first time, we are funding not only the digging but also the science and technology that allow us to refine minerals and build higher-value products here in Nigeria,” he said.

He added that grants under the programme would be awarded through a transparent and competitive process, with applications assessed on merit by independent experts and programme administrators.

Earlier, the Executive Secretary of the SMDF, Fatima Shinkafi, described EMERGE as a major intervention aimed at attracting investment, improving geological data generation, promoting local value addition, and supporting indigenous mining companies.

She said the programme complements existing initiatives covering exploration, project development, mineral processing, and responsible sourcing, all geared towards positioning Nigeria as a leading destination for critical minerals investment.

Shinkafi stressed that quality geological data remains critical to unlocking investment opportunities and accelerating the development of the country’s mineral resources.

“With the launch of EMERGE, we are taking another deliberate step towards a sector that explores with confidence, adds value locally, and delivers greater benefits to Nigerians,” she said.