FG defends mining license revocation, denies favoring Chinese investors

The Nigerian Federal Government has defended its decision to revoke mining licenses, asserting that the action was based solely on the company's failure to meet statutory obligations, not on any preferential treatment of Chinese investors. Minister of Solid Minerals Development, Dele Alake, refuted allegations of favoring Chinese interests, labeling them as false and misleading attempts to discredit ongoing reforms in the mining sector.

According to a statement from Alake's spokesperson, Kehinde Bamigbetan, Basin Mining Limited's mineral titles were revoked after the company failed to pay statutory annual service fees. The outstanding debt reportedly rose to approximately N2.494 billion before the licenses were canceled. Bamigbetan emphasized that the revocation complied with Nigerian mining laws and was independent of any investor's nationality.

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The revocation was carried out in accordance with Nigerian mining laws and had nothing to do with the nationality of any investor.

The statement also addressed claims by the British-Australian firm Jupiter, which, despite not holding the revoked licenses, initiated arbitration proceedings against the Federal Government for allegedly violating the Nigeria-United Kingdom Bilateral Investment Treaty. Bamigbetan asserted that Jupiter resorted to media campaigns and cyber attacks against Alake to pressure the government into reversing the revocation.

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The claims are false, misleading and part of a campaign to discredit ongoing reforms in the mining sector.

Addressing the accusation that the minister favors Chinese investors, Bamigbetan highlighted Alake's limited travel to China, which included a state visit with President Bola Tinubu and an invitation for China Mining Week 2025. He contrasted this with Alake's more frequent attendance at investment conferences in Western countries and Australia, aimed at promoting Nigeria's mining sector.

Bamigbetan further explained that Nigeria's policy of opening the mining industry to foreign investment predates the current administration, stemming from the Nigerian Investment Promotion Commission Act and the Foreign Exchange Act of 1995. He stated that Alake's reforms focus on enforcing compliance with mining regulations and promoting local value addition through in-country mineral processing.

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The company had resorted to media campaigns and cyber attacks against Alake in an attempt to pressure the government into reversing the revocation.