El-Tahdam has now come to a recent partnership with TSG Mining Group, attracting significant global attention and foreign investment.
The Nigerian mining sector is at the cusp of a transformative era, spearheaded by the ambitious vision and strategic implementation of El-Tahdam Exploration Limited.
This fast-growing Nigerian mining company was established to unlock the enormous reserves of important electric vehicle (EV) minerals and rare earth minerals, such as lithium, manganese, iron, copper, rubidium, gallium and graphite.
Enhanced by strategic initiatives and robust investments in exploration and mining rights, El-Tahdam has led to a recent partnership with TSG Mining Group, attracting significant global attention and foreign investment.
Over the past three years, Elta Dam has built a robust foundation and strategically invested around $5 million in the search and experimentation of certain types of lithium ore from Livata in Kevvi.
The Elta Dam team spent more than a year in China learning lithium processing techniques. El-Tahdam ordered the complete set of processing equipment specifically designed for Kebbi’s Libata mining site after obtaining the highest recovery rate in the world of 92.sent.
Establishing a comprehensive lithium processing value chain
Based on this strong foundation, Eltadam has an ambitious plan to establish a comprehensive lithium processing value chain within Nigeria.
The company’s strategic roadmap includes the construction of three state-of-the-art lithium treatment plants in Kebbi, Kwara and Kaduna states.
Each plant is designed with a daily processing capacity of 3,000 tonnes of lithium ore (average grade 1.5% to 1.6%) to produce 6% lithium concentrate.
This is converted to a total daily input of 9,000 tons of low grade ore, producing 2,250 tons of 6% lithium concentrate.
With further strengthening its integrated approach, Eltadam is planning to establish lithium
Carbonated plants of Lagos. The pioneering facility uses 2,250 tons of 6% concentrate as input and targets annual production of 80,000 tons of high purity 99.9% lithium carbonate, accounting for almost 5% of the global market share.
This integrated processing model, which is first in Nigeria, significantly increases the value of Nigerian lithium ore before export, leading to an increase in federal royalty revenue.
By treating low-quality ore domestically and refining higher grades into lithium metals, Nigeria is not merely exporting raw materials. This is a practice that historically deprived the nation of important economic interests.
Recent data shows that Africa continues to lose billions each year to exporting raw minerals, highlighting the urgent need for added value within the continent.
This initiative by El-Tahdam addresses this issue directly. Ultimately, this strategic move is expected to attract global battery manufacturing giants such as CATL and Sunwoda. Electric vehicle manufacturers such as Tesla and BYD will also attract a broader ecosystem of battery and electronics manufacturers that are drawn to Nigeria, drawn by the availability of processed lithium.
Additionally, it provides a significant boost to local EV manufacturers like Innoson Motors, promoting the growth of Nigeria’s broader domestic electric vehicle industry, and aligns with the country’s industrialization goals.
Towards one of Africa’s largest lithium processing facilities: supported by a $500 million investment
The incredible advances made by Elta Dam have peaked with a recent $500 million investment by TSG Mining Group, attracting considerable international attention.
This major investment highlights global confidence in Eltadam’s vision and Nigeria’s potential as a key player in the lithium market. As part of this groundbreaking transaction, TSG Mining Group will invest $250 million to set up a modern processing plant in Kebbi, which is expected to be in operation by the end of 2025 and where all the necessary equipment is sourced.
Before the investment, Elta Dam has secured a 25-year mining license (up to 50 years of renewable) to support the partnership. Key investors in TSG Mining Group include Zhijiang National Capital and Sunwoda (stock code: 300207, market value of USD 6 billion).
Drawing on the financial strength of Zhejiang State Capital and technical expertise in Sunwoda’s new energy sector, TSG has built a comprehensive industrial chain that spans mining rights, extraction and processing, investments in trade and sales.
The synergy between these two major shareholders provides a solid foundation for group resource integration in the African market.
Coordination with national economic development goals
Eltaham’s strategic initiative is in line with the national strategy to exploit the growing demand for lithium, a key component of rechargeable batteries.
The move is expected to create thousands of jobs and stimulate the local economy. Furthermore, the Nigerian government has actively supported such ventures to reduce its dependence on oil and to exploit the country’s vast mineral resources.
Commissioning of lithium and rare earth processing plants across Nigeria represents a critical step towards this goal, with Eltadam leading the charges.
These developments not only enhance Nigeria’s position in the global mining sector, but also contribute to sustainable economic growth and technological advancements within the country.
Community empowerment and commitment to sustainable development
Beyond economic implications, Eltadam’s operations are deeply rooted in community development. Planned in Kebbi alone, the processing plant is projected to create around 1,000 direct jobs and up to 3,000 indirect jobs, providing important economic empowerment to the community and helping to reduce unemployment.
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Elta Dam’s commitment goes beyond lithium, with continued efforts to attract further investment in Nigeria for the exploration and treatment of other important minerals such as copper, iron ore, manganese and rare earth elements, which could unlock an additional $1 billion in foreign direct investment in the country’s mining sector.
Seek ongoing stakeholder support
The transformational initiative implemented by El-Tahdam Exploration Limited holds great promises for Nigeria and the wider African continent. With a focus on adding value, attracting important foreign investments and prioritizing community development, El-Tahdam paves the way for increased royalties, strengthening foreign exchange revenues and increasing local content participation in the mining sector.
Continuing support and support from all stakeholders, including federal governments, regulatory bodies and relevant state governments, is important to fully realize this possibility and cement Nigeria’s position in the global mining phase.
Their leadership and support will help us achieve our common goal of ensuring that Nigeria fully utilizes its abundant natural resources for sustainable economic growth and development.
As Nigeria continues to attract transformative investment and builds its path to economic diversification, the Elta Dam Exploration Limited is ready to lead the way, ensuring that the country’s vast mineral wealth will be transformed into concrete economic empowerment and a brighter future.
