Nigeria’s mining sector is on the cusp of a transformative era, spearheaded by the ambitious vision and strategic execution of El-Tahdam Exploration Limited. This burgeoning Nigerian mining company, established to unlock the nation’s vast reserves of crucial Electric Vehicle (EV) minerals and rare earth minerals such as Lithium, manganese, iron ore, copper, rubidium, gallium and graphite has rapidly emerged as a key player. Bolstered by strategic initiatives and a robust investment in exploration and mining rights, El-Tahdam has now attracted significant global attention and foreign investment, culminating in the recent partnership with TSG Mining Group.
Over the past three years, El-Tahdam has laid a robust foundation, strategically investing approximately $5 million in exploring and experimenting the specific type of lithium ore from Libata, Kebbi. The team of EL-Tahdam has spent more than 1 year in China to learn the processing technologies of Lithium. After getting the recovery rate of 92%, which is among the highest in the world, EL-Tahdam has ordered a full set of processing
equipment, specially designed for their mining site in Libata, Kebbi.
How the Federal Government’s Vision Fuel Mining Sector Renaissance
The recent strides within Nigeria’s mining sector, exemplified by El-Tahdam Exploration Limited’s groundbreaking initiatives and significant foreign investment, are occurring against a backdrop of deliberate and commendable efforts by the Federal Government, spearheaded by the Honourable Minister of Solid Minerals Development Dr. Henry Dele Alake. The leadership of the current minister has been widely lauded game changing for the industry, injecting renewed dynamism and strategic direction into a sector long
recognized for its untapped potential. One of the most impactful initiatives under his leadership has been the establishment of Mining Marshals. This proactive measure has been instrumental in sanitizing the mining landscape by tackling the pervasive issues of illegal mining, ensuring greater regulatory compliance, and fostering a more secure and transparent operating environment for legitimate operators like El-Tahdam.
This decisive action has not only curbed the illicit exploitation of Nigeria’s mineral resources but has also significantly boosted investor confidence, demonstrating the government’s commitment to creating a level playing field and protecting the interests of those who adhere to due process. Furthermore, the Minister has actively engaged in promoting Nigeria’s mining potential on both domestic and international platforms, articulating a clear vision for the sector’s contribution to the national economy. These efforts align seamlessly with the Federal Government’s broader agenda to diversify the economy away from oil dependence and attract crucial Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI). This overarching economic strategy, championed by the administration, has provided the necessary impetus and confidence for companies like El-Tahdam to pursue ambitious projects, knowing that their investments are supported by a government committed to sector reform and economic growth. The synergy between the Minister’s focused reforms and the Federal Government’s economic vision is undeniably creating a fertile ground for the resurgence of Nigeria’s mining sector.
Establishing a Comprehensive Lithium Processing Value Chain
Building on this strong foundation, El-Tahdam has ambitious plans to establish a comprehensive lithium processing value chain within Nigeria. The company’s strategic roadmap includes the construction of three state-of-the-art lithium processing plants in Kebbi, Kwara, and Kaduna states. Each plant is designed with a daily processing capacity of 3,000 metric tonnes of lithium ore (with an average grade of 1.5% to 1.6%) to produce a 6% lithium concentrate. This translates to a combined daily input of 9,000 metric tonnes of lower-grade ore, yielding 2,250 metric tonnes of 6% lithium concentrate. Further solidifying its integrated approach, El-Tahdam plans to establish a Lithium Carbonate plant in Lagos. This pioneering facility will utilize the 2,250 metric tonnes of 6% concentrate as input, targeting a yearly production of 80,000 metric tonnes of high purity 99.9% lithium carbonate, accounts for almost 5% of the global market share.
This integrated processing model, the first of its kind in Nigeria, will considerably enhance the value of Nigerian lithium ore before export, leading to increased royalty revenues for the Federal Government. By processing lower-grade ores domestically and refining higher grades to lithium metal, Nigeria will move beyond simply exporting raw materials, a practice that has historically deprived the nation of significant economic benefits. Recent data indicates that Africa continues to lose billions annually due to the export of
unprocessed minerals, highlighting the urgent need for value addition within the continent. This initiative by El-Tahdam directly addresses this issue. Ultimately, this strategic move is expected to attract global battery manufacturing giants like CATL and Sunwoda, as well as electric vehicle manufacturers such as Tesla and BYD attracting the broader ecosystem of battery and electronic device manufacturers to Nigeria, drawn by
the availability of processed lithium. Furthermore, it will provide a substantial boost to local EV manufacturers like Innoson Motors and encourage the growth of Nigeria’s broader domestic electric vehicle industry, aligning with the nation’s industrialization objectives.
Towards one of Africa’s Largest Lithium Processing Facility: Backed by $500 Million
Investment
The remarkable strides made by El-Tahdam have garnered substantial international attention, culminating in the recent $500 million investment by TSG Mining Group. This major investment underscores the global confidence in El-Tahdam’s vision and Nigeria’s potential as a key player in the lithium market. As part of this landmark deal, TSG Mining Group will invest $250 million in establishing the modern processing plant in Kebbi State, slated to be operational by the end of 2025, with all necessary equipment having been procured. Prior to the investment, El-Tahdam has secured a 25-year mining license (renewable up to 50 years) to support the partnership. TSG Mining Group’s key investors include Zhejiang State-Owned Capital and Sunwoda (stock code: 300207, with a market value of 6 billion USD). Leveraging Zhejiang State-Owned Capital’s financial strength and Sunwoda’s technological expertise in the new energy sector, TSG has built a comprehensive industrial chain spanning investment in mining rights, extraction and processing, and trade and sales. The synergy between these two major shareholders provides a solid foundation for the group’s resource integration in the African market.
Aligning with National Economic Development Goals
El-Taham’s strategic initiatives aligns with the national strategy to capitalize on the growing demand for lithium, a key component in rechargeable batteries. This move is expected to create thousands of jobs and stimulate local economies. Furthermore, the Nigerian government has been actively supporting such ventures to reduce dependence on oil and harness the country’s vast mineral resources. The commissioning of lithium and rare earth processing plants across Nigeria signifies a significant step toward this goal, with El-Tahdam leading the charge. These developments not only enhance Nigeria’s position in the global mining sector but also contribute to sustainable economic growth and technological advancement within the country.
Commitment to Community Empowerment and Sustainable Development
Beyond the economic implications, El-Tahdam’s operations are deeply rooted in community development. The planned processing plant in Kebbi State alone is projected to create approximately 1,000 direct jobs and up to 3,000 indirect jobs, offering significant economic empowerment to local communities and contributing to a
reduction in unemployment. El-Tahdam’s commitment extends beyond lithium, with ongoing efforts to attract further investments into Nigeria for the exploration and processing of other vital minerals such as copper, iron ore, manganese, and rare earth elements, potentially unlocking an additional $1 billion in foreign direct investment for the nation’s mining sector.
Call for Continued Stakeholder Support
The transformative initiatives undertaken by El-Tahdam Exploration Limited hold immense promise for Nigeria and the broader African continent. By focusing on value addition, attracting significant foreign investment, and prioritizing community development, El-Tahdam is paving the way for increased royalties, enhanced foreign
exchange earnings, and greater local content participation in the mining sector. To fully realize this potential and solidify Nigeria’s position on the global mining stage, continued support and endorsement from all stakeholders, including the Federal Government, regulatory bodies, and relevant state governments, will be crucial. Their leadership and backing will be instrumental in achieving the shared goal of ensuring that Nigeria fully capitalizes on its abundant natural resources for sustainable economic growth and development.
As Nigeria continues to attract transformative investments and forge a path toward economic diversification, El-Tahdam Exploration Limited stands ready to lead the way, ensuring that the nation’s vast mineral wealth translates into tangible economic empowerment and a brighter future for all.
