The government of Nigeria and a German Firm, GeoScan GmbH of Berlin recently signed a Memorandum of Understanding (MOU) on solid mineral development.
The agreement was formalised during the visit of German Chancellor, Olaf Scholz, to Abuja.
The CEO, Geo-Scan GmbH, Oliver Haeggberg and the Executive Secretary and CEO of SMDF, Fatima Shinkafi, representing Nigeria signed the MOU on Sunday.
Haeggberg was part of the business delegation that accompanied the German Chancellor during his official visit to Nigeria, who met with President Tinubu and the Nigerian delegation at the Business to Government roundtable meeting.
This was disclosed by the Minister of Solid Minerals Development, Dele Alake.
What the MOU means for mineral exploration in Nigeria
Alake said the MoU will advance solid minerals exploration, exploitation and judicious use of the revenue accruing to the federal government.
He noted that the GeoScan GmBH possesses cutting-edge technology capable of exploring mineral deposits up to 10,000 meters below the surface, which he described as a “remarkable advancement in the field of mineral exploration.”
Alake further said, “The gathering of geodata is very expensive. Now this particular technology, which is top-notch, is 80 per cent cheaper than current processes in the world, three times faster to locate deposits down underground.”
He also argued that given Nigeria’s vast and unexplored mineral landscape estimated to be worth around $700bn, Sunday’s MoU with GeoScan GmbH presents a significant opportunity for the country.
Alake revealed that “there’s no kobo commitment on the part of Nigeria. The company will establish its technology and plant here and move around the country to enable us to further explore all the other mineral deposits that we have.”
What the German firm will benefit from the MOU
Alake hinted that the company would be granted a mining licence to extract the volume of minerals it discovered with its cutting-edge technology.
He said, “So after they have discovered more mineral deposits for us, we can then grant them a license to mine.
“In any case, we are granting licenses to minors right now with no added value of such that this GeoScan is bringing to the table. So it’s a win-win situation when you look at it on all sides.”
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