Scrap Monster
Vulcan
Mining News March 26, 2020 11:30:29 AM

Nigeria Begins Construction of First Commercial Gold Mine

Paul Ploumis
ScrapMonster Author
The gold mine project is promoted by Canadian listed gold developer, Thor Explorations, and its wholly owned local subsidiary, Segilola Resources Operating Limited.

Nigeria Begins Construction of First Commercial Gold Mine

SEATTLE (Scrap Monster): Nigeria announced that it has begun construction of the country’s first large-scale commercial gold mine. The EPC contract has been awarded to China-headquartered Norninco International.

According to Olamilekan Adegbite, Nigeria’s Minister of Mines and Steel Development, who was present at a ceremony to mark the commencement of construction activities, said that the mine located at the Osun State will start production next year. The project is expected to generate 1,000 direct and indirect jobs in the region. The mine complex will attract foreign direct investment (FDI) into the country’s mining sector, Adegbite noted.

The gold mine project is promoted by Canadian listed gold developer, Thor Explorations, and its wholly owned local subsidiary, Segilola Resources Operating Limited. The major financier of the project is the Africa Finance Corporation, with an investment of $78 million in return for 10% equity stake in Thor Explorations.

ALSO READ: Tanzania's First-Ever Gold Refinery Set to Begin Operations in October

The gold mine will have the capacity to process approximately 650,000 tonnes of ore per year with targeted production of nearly 80,000 ounces of gold per year.

Earlier in February this year, the Nigerian government had granted licenses to two gold refineries. At that time, it had announced that one of the refineries will be located in the southwestern state of Osun, whereas the other will be in Central Abuja.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
Facebook Twitter Linkedin Instagram