Nasarawa State Governor, Abdullahi Sule, has signed a $2 million supplementary agreement with Chinese firm Diamond New Energy to strengthen lithium mining and processing operations in the state.
The agreement was signed on Friday at the Nasarawa State Governor’s Lodge in Abuja following Sule’s recent visit to China.
The governor said the deal was designed to secure a steady supply of raw materials for the company’s processing facility while protecting the interests of the state and ensuring the continued employment of workers.
According to Sule, the state government moved quickly to secure the necessary mining licence to prevent the asset from being allocated elsewhere.
“We are going to keep your factory functional, and we also have an interest as license owners in whatever you are doing in your company. More importantly, the people you have employed will remain employed,” the governor said.
He urged the company to maintain peaceful relations with host communities and contribute to their development, stressing that cooperation with local communities was essential to protecting the investment.
The governor also disclosed that payments due to the state under the agreement would be made directly to Nasarawa Mining Company Limited in foreign currency, with provisions for periodic reviews of the terms.
The Managing Director and Chief Executive Officer of the Nasarawa State Development and Investment Agency, Ibrahim Abdullahi, said the supplementary agreement builds on an exclusive mining cooperation deal signed between the state and the company in 2024.
He said the earlier agreement contributed to the completion of what he described as the largest lithium processing refinery in West Africa.
Abdullahi explained that the latest agreement permits the continued supply of lithium materials from the state government’s mining block to serve as feedstock for the refinery.
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He said the arrangement was expected to create additional employment opportunities for young people and women in Nasarawa.
According to him, the state will receive $2 million immediately upon the signing of the supplementary agreement, while additional revenues will accrue subsequently in line with the terms of the deal.
A representative of Diamond New Energy, David Siong, reaffirmed the company’s commitment to expanding its operations in Nasarawa.
Siong said the firm was focused on developing the state’s mineral resources through local processing, job creation and increased economic opportunities for host communities.
The agreement was witnessed by officials from the state Ministries of Justice and Environment and Natural Resources, NASIDA, Diamond New Energy and Ganfeng Lithium Industry Limited.
Meanwhile, the state Attorney-General and Commissioner for Justice, Isaac Danladi, presented copies of a deed of assignment between Nasarawa Mining Company Limited and Ganfeng Lithium Industry Limited.
Danladi said the document transfers the mining rights and interests of Nasarawa Mining Company within 3.5 mining cadastral units located in Endo, Nasarawa Local Government Area, to Ganfeng Lithium Industry Limited following a review by the parties involved.