The first gold refining company in Nigeria is poised to contribute to the nation’s economic growth when it starts operation, H2 2019, as it is in a position to create jobs for Nigerian miners.
On December 13, 2018, BussinessDay showed that investors, both local and foreign, were showing more interest in solid minerals in Nigeria and as such, acquiring new mining sites.
This interest arose from the attention that government is paying to the mining industry.
One company that is taking the lead in the foray into the mining industry in Nigeria is Kian Smith Trade & Co. Limited. The company is set to break the odd in gold refinery in Nigeria, through its subsidiary, Kian Smith Gold Refinery.
Kian Smith Gold Refinery emerged the first company to be awarded a license to refine gold in Nigeria by the Federal Government. With its plant located in Ogun State, the company is set to open the first gold refinery in Nigeria, in June, 2019.
When operational, it will serve as a gateway to the small and medium scale miners across the country where it plans to locally source raw materials for its refinery. Miners in Ile-Ife, Ibadan, Ilesha, Zamfara, Kwara, Kaduna, Kebbi and other places are expected to benefit from the rush.
“Getting gold locally will not only give value returns to the local miners, but will equally improve the economy of the country because raw materials are sourced locally and refined locally,” said Michael Jones of Davies & Jones Inc., a South Africa-based gold mining company.
Nere Teriba, Vice Chairman, Kian Smith Trade & Co. Limited, indicated that the company was expected to triple its output by 2024, improving from its initial production of three tonnes of gold and one tonne of silver per month this year, to ten tonnes of gold and three tonnes of silver per month by 2024.
In addition, the company will leverage on the West African gold route to serve as hub to the West African gold market to the rest of the world.
According to the company’s website, “There is presently no internationally recognized gold ‘market centre’ in Africa. West Africa has a thriving underground gold economy that if regulated, could unlock the West African region as the gold market Centre of Africa.
“Despite the mostly informal structure of the gold market, Nigeria has one of the largest economies, the largest population in Africa and is a top contender for largest emerging market for luxury goods in Africa.”
Currently, mining and quarrying contributed 8.74% to the nation’s GDP in 2018, according to data from National Bureau of Statistics (NBS), of which mining contributes only 0.3%, according to Ishiaq Akinkunmi, a financial analyst in Lagos.
This low contribution to the economy from solid minerals sector is attributed to the informal nature of mining, as activities in the sector are largely undocumented.
The company equally plans to play big in the refined gold market by supplying its products to the Central Bank of Nigeria, jewelry and electronic companies.
JOSEPH MAURICE OGU
