Africa Mining: Nigeria aims $500m mining fund

According to Reuters, mining minister Kayode Fayemi has announced his idea for a US$500 million fund to encourage development of a nickel mine and further exploration. 

But Fayemi is looking to the country’s sovereign wealth fund for the cash itself.

“We are looking at a $500 million fund from their side which would primarily focus on exploration,” he said.

The minister has a hugely optimistic goal of upping the mining and resources industry’s GDP contribution from 0.3% to 10% in 10 years, in an infrastructure-poor and dangerous country.

The sector could be boosted if Australian explorer Comet Nigeria manages to turn the 40 million tonne nickel deposit into a mine, and even with better reporting, as Reuters said gold reserve estimates had not been updated in 30 years.

Fayemi has been on a charm offensive in recent weeks, telling a conference in Perth last month miners would get a three-year tax break.(source: miningjournal.com; Reuters)