The construction of Nigeria’s only large scale commercial gold mine has begun in Osun state. Nigeria’s Minister of Mines and Steel Development, Olamilekan Adegbite on Thursday 19th March 2020, laid the first stone for the construction of the Segilola Gold Mine in the communities of Odo-Ijesha and Iperindo in Osun state.
Nigeria, Africa’s largest oil producer has huge untapped deposits of metals such as iron ore, gold, zinc, and lead but almost all extraction is done on a small-scale and manual basis. Such subsistence players hardly pay any revenue to the government.
“The project, which is low-hanging fruit, would prove to the Nigerian government and the international financing community that mining can be a viable proposition in Nigeria,” said Osam Iyahem, Head of Natural Resources at AFC, which is backed by the CBN and other local banks.
Speaking at the ceremony, the minister said the facility which will commence production of gold in 2021. This demonstrates the federal governments’ desire to make the mining sector the mainstay of the country’s economy. He also said the venture was a pioneering project in the Nigerian mining sector and the federal government was committed to supporting companies in the sector.
The governor of Osun state, Gboyega Oyetola, who was represented by the Secretary to the state government, Oluwole Oyebamiji, said Osun state is an ally in this project while promising to all the support needed to see it to fruition.
Upon completion, the company would process 650,000 tonnes of ore, with a target production of approximately 80,000 ounces per year, says the Managing Director, Thor Explorations, Segun Lawson.
He said the project was the first of its kind in Nigeria which would deliver the country’s only large scale commercial gold mine. The mine would provide over 1,000 direct and indirect jobs for Nigerians, provide an additional stream of non-oil revenue and stimulate the inflow of foreign direct investment into the country’s mining sector.
Moreso, the mines and steel development ministry stated that the EPC Contract for the project was awarded to Norninco International Ltd which was majorly financed by Africa Finance Corporation with an investment sum of $78million and took 10 percent equity in Thor Exploration.
The project is expected to commence gold production in early 2021 which would also become the country’s first large scale commercial gold mine.
By Ahmed Iyanda.
