Nigeria has signed a $1.3-billion investment deal with Africa Finance Corporation (AFC) to build an alumina refinery and fund nationwide mineral exploration, the government said, in one of the country’s biggest private-sector mining deals.
The pact, signed through the Solid Minerals Development Fund, covers the building of the refinery, the launch of a nationwide mineral mapping programme and the creation of an investment vehicle to fast-track exploration.
Mines Minister Dele Alake said on Sunday that the “landmark deal” will help speed up President Bola Tinubu’s plans to boost mining revenue and cut reliance on oil.
The refinery will process one million metric tonnes of bauxite annually, powered by a gas-fired energy plant for steam and power, Reuters reports.
At 95% utilisation over 20 years, the facility is expected to produce about 19 million tonnes of alumina, Alake said.
Alumina is a versatile compound with various uses. It’s primarily used to produce aluminium metal. Alumina is also used in ceramics for spark plugs, tiles, and other high-strength, heat-resistant applications.
As an abrasive, it’s found in sandpaper, grinding wheels, and polishing compounds. In chemical reactions, alumina serves as a catalyst support, especially in petroleum refining.
Other uses include refractories for high-temperature insulation, pharmaceuticals as an antacid, and water treatment to remove impurities.
Alumina’s unique properties make it a valuable material in many industries, from aerospace to healthcare, contributing to various products and technologies worldwide, showcasing its importance.