Gangfeng Mining Company, a Chinese firm, has made known its plan to construct another state-of-the-art lithium mining plant in Endo, Nasarawa Local Government Area.

This followed the signing of a Memorandum of Understanding (MoU) Monday, between the Nasarawa State Government, represented by the Nasarawa Mining Company Limited and Gangfeng Mining Company on a ten-year agreement involving the 1.5 Cadastre Unit recently alloted to the state government by the Ministry of Solid Minerals Development.

Mr. Zhan Daowu, General Manager, Gangfeng Mining Company, speaking through an interpreter, said his company will begin the construction of the new lithium processing plant on November 1st this year and is expected to complete the project in December next year.

Daowu added that the project when completed will create a significant number of jobs for the local community, improve livelihoods and stimulate related industries, thereby contributing to the overall economic prosperity of people.

“Today, I am delighted to report that Gangfeng will be investing in the construction of a state-of-the-art lithium processing plant in Nasarawa State. It is not only a significant part of our global strategy but also promises to bring new opportunities to development in Nasarawa State.

“We will commence construction by November 1st 2024 and aim to complete the project by December 2025,” he stated.

He restated the commitment of his company to sustainable development and corporate social responsibility, promising that Gangfeng will continue to work closely with the local government and community to ensure the successful implementation of the project.

Daowu used the opportunity of the event to show appreciation to the Nasarawa State Government for the unwavering support and steadfastness that is making the project possible.

He equally expressed the willingness of his company to collaborate with the Nasarawa Mining Company Limited to jointly pursue the development and utilization of the mining resources at the site of the new lithium processing plant.

In his remarks during the ceremony, Governor Abdullahi Sule said even though there were other companies interested in taking the 1.5Cu belonging to Nasarawa State at a higher amount than Gangfeng, his administration decided to go with Gangfeng because the company showed interest in building a factory at that site.

According to Governor Sule, judging from experience, the exploration and exploitation of mineral resources from the site, with only less than 10 percent of pure lithium extracted, will mean that if material is allowed to be taken, the state will be losing over 90 percent of material that can be used to reclaim the area of the mining.

“That is the whole essence about the debate on ensuring that the mining is taking place there, the processing is taking place there, so that we can use the material to reclaim our lands so that we don’t go into ecological challenges for our communities one day,” he said.

Giving a highlight of the MoU, the Governor explained that Nasarawa State is going to enter into a ten-year, renewable agreement with Gangfeng for the license to be issued in the name of Nasarawa Mining Company.

Also, as part of the agreement, Gangfeng will pay Nasarawa State Government $1.5m, with $1m to be paid a day after signing the agreement and the balance of $500,000 to be paid two weeks after the company move to the site.

In line with the policy of transparency of his administration, Governor Sule gave a breakdown of how the money accruing to the state from the agreement will be shared.

“This one $1m you are paying, we are giving $500,000 to the community directly. We want the community to select projects that are going to be worth this $500,000. That is the reason why we invited the Chairman of the local government area, Emir of Nasarawa, Osu Ajiri, community leaders of Endo and the Overseer of the development area. They will work by identifying projects that would be beneficial to the people of that community. And then the money will be released for that purpose. The remaining $1m is going to go for the benefits of the entire state,” he said.

He pointed out that the sharing formula is pending the time the Nasarawa State House of Assembly will pass a law detailing how monies accruing to the state from such agreements would be spent.

“We want the community to understand the significance of the factory Gangfeng is bringing to the site. This is pending a law that we are going to establish in the state because these kinds of money will continue to come to the state so the House of Assembly will have to come up with a law to define how these monies are going to be spent,” he stated.

Governor Sule used the opportunity to give a background leading to the signing of the agreement with Gangfeng.

“A little over a year ago, the State Government received an information that there was huge illegal mining activity taking place at a place called Endo, in Nasarawa LGA. The State Government invited all the parties and during the period we understood that the following companies were having activities there. Hongwang, Lidel, as well as Gangfeng. Most of the materials were taken in raw form outside Nasarawa State.

“When we came in, together with the support from the Federal Ministry of Solid Minerals Development we were able to stop all illegal activities there,” he said.

“I am happy to announce that the Ministry of Solid Minerals Development brought a license for the State Government and they now agreed that the 3.5 CU area of dispute should be divided among three entities. Gangfeng will have 1 CU, Lidel will have 1 CU and Nasarawa State Government for its efforts will now receive 1.5 CU,” he added.

Speaking on behalf of the community, Emir of Nasarawa, HRH Alhaji Usman Jibrin, described the signing of the agreement as a watershed in the history of the state, with Nasarawa State now answering its name as Home of Solid Minerals.

“I believe that it is from today that we will begin to properly answer the name of solid minerals. In the past, it’s just on paper and many people come in and out of this state to cart away millions without a dime returning to the State Government not to talk of the local community,” the royal father said.

On the $500,000 to be given to the community, which translates to about N800m, the Emir assured that they will do all that is within their powers to ensure that the right thing is done in such a way that the people will ever remain grateful to Governor Sule’s vision and foresight.