Canadian Firm To Begin Mining Gold In Nigeria By 2020
Nigeria is a nation endowed in abundance with so many natural resources. There is crude oil in abundance, bitumen, iron ore, lead, etc.
As a matter of fact, there is no part of Nigeria’s 36 states that has not one mineral deposit or another.
However, only crude oil and gas have been tapped in commercial quantity. But by 2020, this will change as a Canadian mining company has indicated it will start mining gold in large scale in Osun state by then.
The Canadian miner, Thor Explorations’ projects under way include its Segilola Gold Project, located in Osun State, which CEO Segun Lawson says aims to produce gold in the first quarter of 2020 and has probable gold reserves of around 500,000 ounces.
“Thor is currently developing the country’s most advanced gold mine,” Lawson told Reuters in a telephone interview.
He says he has a mining and exploration licence and is considering his options for raising $72 million to get the mine into production.
Lawson bought the Segilola project in 2016 for $3.1 million in cash plus 6 million Thor shares.
The World Bank has provided around $150 million to the Nigerian government to kickstart non-oil sectors after the economy was hit by a fall in oil prices, which are now recovering.
The Bank’s funding is meant to help the government formalise the artisanal mining sector, improve environmental practices and support infrastructure improvements for larger scale mines.
Nigeria’s mining sector has long been neglected providing only around 0.5% of GDP, according to World Bank figures, as the sector has struggled to attract foreign investment and to meet domestic needs.
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