Exploitation Of Nigeria's Mining Industry By Chinese Companies

 The exploitation of Nigeria's mining industry by Chinese companies is a pressing concern, with far-reaching consequences for the country's economy, environment, and communities. Chinese companies have been accused of exploiting Nigeria's mineral resources, particularly in the North East, North West, and North Central regions of Nigeria, with reckless impunity. 

In the North East of Nigeria, Chinese companies are actively involved in mining tin, columbite, and tantalite in Taraba, Gombe, and Adamawa States. These minerals are highly valued for their use in the manufacturing of electronic devices, and Chinese companies are allegedly accused of extracting these resources without adequate compensation to local communities, or in extension, to the Nigerian Government. For example, Jos in Plateau State and other areas of Taraba State are hotspots for tin mining, with Chinese companies allegedly involved in the exploitation of this resource. 

In the North West of Nigeria, Chinese companies are involved in gold mining in Zamfara, Sokoto, and Kebbi States. The gold deposits in these States are among the richest in Nigeria, and Chinese companies are accused of deploying artisanal miners to extract gold, often in extremely hazardous conditions. The likes of Bukkuyam town in Zamfara State is a major gold mining hub, with Chinese companies accused of exploiting this resource. 

In the North Central of Nigeria, the narrative is homogeneous. The Chinese companies are intensively involved in the mining of gold, iron ore, coal, and limestone, in Niger, Plateau, Nasarawa, and Kogi States. Obviously, Niger State has more gold deposits than any other State in Nigeria. For example, gold is randomly found in the streams and rivers of Minna, Niger State's Capital. Gold deposits have also been discovered in many spots of Minna, including residential buildings. Gold has been discovered also in two higher institutions in Minna, Niger State. Police has arrested students in those higher institutions for offences related to digging  for gold minerals procurement on the campuses. The iron ore deposits in Kogi and Nasarawa States are the highest in Nigeria, with the National Iron Ore Mining Company (NIOMCO) located at Itakpe, Kogi State. In both States mentioned above, Chinese companies have been accused of extracting this resource without adequate environmental safeguards.

However, the exploitation of Nigeria's mining sector by Chinese companies is not unique to Nigeria. Similar records of exploitations have been experienced in other African countries, such as the Democratic Republic of Congo, where Chinese companies were accused of exploiting cobalt and copper deposits. In South Africa, Chinese mining companies are involved in the mining of iron ore, coal, and gold, with allegations of dire exploitations and environmental degradations. 

The methods used by Chinese companies to exploit Nigeria's mining industry include the use of artisanal miners, who are often subjected to hazardous working conditions and low wages. Chinese companies have also been accused of ignoring environmental regulations, leading to deforestation, water pollution, disease outbreaks (epidemics) and landscape degradations. For example, the mining activities in Jos, Plateau State, have led to widespread environmental degradations, with abandoned mines and polluted sources. In the gold mining sector, in particular, two methods are involved. One is the alluvial mining; while the other is primary mining. Alluvial mining is the type of mining that involves extracting gold from alluvial deposits, which are concentrations of gold found in streams, rivers, and ancient riverbeds. This type of mining typically involves placer mining methods, such as panning, sluicing, or draying, to separate gold from soil and gravel. The primary mining entails extracting gold from its original source, typically from veins of ore in rocks. This type of mining often requires underground or open-pit mining methods, and involves crushing and processing the ore to extract the gold. The above are the most common types of gold mining and proceeses, and the specific methods used may vary depending on the location and type of deposit. Nigeria's gold export figures are quite fascinating. The country produces around 16. 26 tons of gold annually, with most of it coming from artisanal and small-scale mining (ASM). Unfortunately, a significant portion of this gold is smuggled out of the country, with estimates suggesting that between 2012 and 2018, Nigeria lost around 97 tons of gold, valued at over $3 billion. International organizations that track solid minerals from Northern Nigeria said that not less than $9 billion is generated from gold annually, but does not get into the Government's coffers. In 2022, Nigeria declared gold exports were approximately 4. 7 tons, with the higher quantity being industrial gold shipped to Switzerland. It is estimated that the actual gold exports could be much higher, but it is believed that not less than 13. 86 tons of gold are snuggled out the country annually. 

Find below some major Chinese solid mineral mining companies in  Nigeria:

1. CanMax Technology:

It invested over $1. 3 billion in lithium processing in Nigeria.

2. Jiuling Lithium:

This company invested the sum of $600 million in lithium processing project. 

3. Avatar New Energy Nigeria Group Ltd:

It operates a lithium processing plant in Nasarawa State.

4. Asba:

 It is a Chinese company with significant investments in Nigeria's lithium sector. 

5. Shandong Minsheng Group:

It has a joint venture with Bauchi State Government, operating BMCC Nigeria Limited.

6. Sinomach-He:

It partnered with Chart & Capstone Integrated Ltd for a $1 billion iron ore mining and steel mill project in Kogi State.

7. Zijin Mining Group:

It explores opportunities in Nigeria's mining sector, with interests in lithium and other solid minerals.

8. China Non-Ferrous Metal Mining Company (CNMC):

It has operations in Africa, including Nigeria, focusing on copper, zinc, and other minerals.

9. Wambao Mining:

It is involved in gold mining in Nigeria, with partnerships in Sudan and other African countries.

10. China Minmetals Corporations:

It is a State-owned enterprise with interests in iron ores, steel, copper, and other minerals in Nigeria, and globally. 

11. Zhaojin Mining:

This company explores opportunities in Nigeria's gold sector, with interests also in lithium. 

It is pertinent to state, however, that Chinese companies' involvement in Nigeria's gold mining sector has raised concerns about environmental degradations, labour rights violations, and funding for terrorists groups like Boko Haram. 

The Nigerian Government has been criticized for its failure to regulate the mining industry and protect the rights of local communities. The Government has been accused of lacking the capacity and will to enforce mining regulations, allowing Chinese companies to operate with impunity. The exploitation of Nigeria's mining sector by Chinese companies has significant consequences for the country's economy and communities. The loss of revenue to the Nigerian Government is estimated to be in billions of dollars with the country receiving little benefit from the exploitation of its natural resources. The environmental degradations caused by mining activities also has long-term consequences for the health and livelihoods of local communities.

To address the exploitation of Nigeria's mining sector, the Nigerian Government must strengthen its regulatory framework and enforce mining regulations. The Government must ensure that local communities are involved in the decision-making process and benefit from the exploitation of their natural resources. Additionally, Government must address the issue of artisanal mining and provide alternative livelihoods for those involved in the mining sector. 

In conclusion, the exploitations of Nigeria's mining industry by Chinese companies is a pressing issue that requires urgent attention. The Nigerian Government must take concrete steps to regulate the mining sector, protect the rights of local communities, and ensure that the country's natural resources are equitably used for the benefit of all Nigerians. 

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