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Nigeria Pushes $400m Rare Earth Project to Cut Dependence on Raw Mineral Exports

Nigeria Pushes $400m Rare Earth Project to Cut Dependence on Raw Mineral Exports

Ayobami OwolabibyAyobami Owolabi
2 months ago
in Government
Reading Time: 2 mins read
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A delegation from the Nigerian government has toured the proposed location of a $400 million rare earth processing facility in Nasarawa State, a project aimed at advancing efforts to reduce reliance on raw mineral exports and increase in-country mineral processing.

The project, which is being developed in Uke by Nigerian mining firm Hasetins Commodities Limited, is projected to contribute an additional 12,000 tonnes of annual processing capacity, raising the company’s total output to about 18,000 tonnes each year.

A team from the Federal Ministry of Solid Minerals Development (MSMD), led by Mining Inspectorate Director Ganiyu Imam and joined by officials from the environmental compliance department, inspected the project site to ensure it meets regulatory and environmental requirements.

Ministry officials said the project has, so far, satisfied major regulatory requirements, especially in areas covering environmental safeguards and safety protocols. They also advised the company to sustain strict compliance as development work continues.

Nigeria Pushes $400m Rare Earth Project to Cut Dependence on Raw Mineral Exports

Oladehinde Oladusi, a deputy director at the ministry representing the Director of Mines Environmental Compliance during the inspection, said: “The commitment that we have seen so far is different from the narrative of some others who simply extract minerals and leave.”

Oladusi noted that the company had carried out environmental and social impact assessments and seemed to be using technologies aimed at minimising environmental risks linked to mineral processing activities.

He further urged the company to sustain active engagement with host communities through community development agreements, in order to reduce the risk of future conflicts.

The development aligns with Nigeria’s broader effort to increase value addition in the mining sector by strengthening domestic processing and refining capacity instead of exporting unprocessed raw minerals.

Rare earth elements and other key critical minerals are playing an increasingly important role in global supply chains, as they are widely used in electric vehicles, renewable energy technologies, electronics, and defence systems.

Prince Jidayi, Managing Director and Chief Executive Officer of Hasetins, said the facility would process rare earth minerals as well as other critical metals, including tantalum, tungsten, and tin.

“For decades the narrative has been of raw extraction and immediate export,” Jidayi said. “This plant will process rare earth metals and other critical minerals in-country.”

He further stated that the company plans to adopt closed-loop processing systems designed to minimise environmental damage and ensure responsible management of mining waste.

Jidayi also noted that, in addition to the Nasarawa facility, the company has developed regional and satellite processing hubs aimed at bringing artisanal and small-scale miners into a more structured supply chain.

He explained that the initiative would also provide safety training, supply equipment support, and establish structured offtake agreements for miners.

Nigeria has stepped up its drive to draw investment into the solid minerals industry as part of broader efforts to reduce the country’s reliance on oil revenue and diversify the economy.

The expansion of local processing capacity is increasingly seen as a central pillar of this approach, especially as worldwide demand for critical minerals continues to grow alongside the global shift toward cleaner energy systems.

Once completed as planned, the Nasarawa facility would rank as one of the largest rare earth processing investments currently underway in Nigeria.

Tags: federal characterForeign NewsNewsNigeriaRare Earth ProjectRaw Mineral Exports
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Ayobami Owolabi

Ayobami Owolabi

Owolabi Ayobami is an emerging entertainment journalist, dedicated to delivering the latest scoop on Nollywood, music, and celebrity culture. With a keen eye for detail and a passion for storytelling, he brings fresh insights and perspectives to the entertainment beat.

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