Nigeria’s green metals deposits lie fallow despite expanding global market
Nigeria stands a chance of taking advantage of the race by both developed and developing economies and investors searching for green metals to establish a greener post Covid-19 recovery.
Green metals include copper, palladium and platinum. Each plays an important role in current and emerging technologies that may help decarbonisation. The rise of green metals has been of increasing interest in the industry in the last few years. They have already proven to be resilient to economic downturns.
At a time when oil prices were crashing, palladium prices increased by 53 percent over the past 12 months and by more than 1,500 percent since 2009. Platinum and copper have bounced by 60 percent and 40 percent respectively from their lows in March.
Last year, Abubakar Bawa Bwari, minister of state for mines and steel development said the Federal Government has discovered high-quality platinum group elements in Kuchiko village, Suleja, in Niger State.
However, Nigeria largely lacks the kind of accurate, verifiable data that speaks about both the quality of mineral in the country. No investors would bring their funds into such a foggy geoscience data environment. It also makes it almost impossible for Nigeria to take advantage of the current opportunities in green metals.
A preliminary report from Abuja-based AG Vision Mining Limited, on a mining site in Suleja local government area shows a high deposit of platinum and a quality higher than that of South Africa.
However, Bwari said the government has voted N15 billion for exploration of minerals in Nigeria to generate detailed geoscience data of the quality and quantity of available minerals in the country. “No investor will take us seriously if we are unable to provide the kind of accurate, verifiable data that speaks about both the quality and quantity of mineral we have in Nigeria.”
Platinum seems set to play a vital role in emerging technologies. Hydrogen has generally been produced with fossil fuels. The carbon footprint of producing hydrogen from natural gas is higher than burning the gas. Platinum is the most effective catalyst in hydrogen-powered fuel cell electric vehicles (FCEVS) using Polymer Electrolyte Membrane electrolysers. The only output from these FCEVS is water; there are zero emissions.
Nigeria has a copper ore deposit of over 10,000,000 metric tonnes, making it one of the most coveted places in the world for international buyers to purchase copper ore. This vast deposit creates a great opportunity for people living in Nigeria who have an interest in copper ore mining or export to take advantage of, particularly at a time of boom for green metals.
China imports 40 percent of all global copper supply. It has put in place a direct fiscal stimulus of $506 billion, $140 billion issuance of special treasury bonds and approval for local governments to borrow up to an additional $527 billion. Much of that stimulus will be spent on infrastructure. The biggest use of copper in China is in building and construction.
As many economies progress along with their energy transitions, the global economy as a whole will depend on having enough of these materials in its transition towards electrification through lower-carbon energies and away from fossil fuels.
Nigeria needs to position its mining sector to attract foreign direct investments. Nigerian mining companies need to look and be investable and welcome the challenge that is yet to come, whilst improving sustainability metrics over time.
With the 4th Industrial Revolution and the global push for the energy transition, the need for battery materials is becoming stronger than ever. Also, amid this boom in green metals mining, pressure has been rising to prioritise Environmental, Social and Governance (ESG) metrics from investors, regulators and activists alike, and increasingly mining companies have no choice but to incorporate ESG targets in their operating plans to continue receiving investment.