FIC Report (Nasarawa State) – Governor Abdullahi Sule of Nasarawa State has presided over the signing of a supplementary $2 million agreement between the state government and Diamond New Energy, strengthening the supply of lithium feedstock to the company’s processing plant in the state.
The agreement, signed at the Nasarawa State Governors’ Lodge in Abuja, followed Sule’s recent investment visit to China and is aimed at securing the continued operation of the company’s lithium processing facility while guaranteeing economic returns to the state.
Sule said the agreement was designed to protect the interests of both the investor and the state, particularly by ensuring a steady supply of raw materials to the factory and safeguarding jobs created by the investment.
“By keeping your factory operational, we ensure that you continue to get raw material. That is the essence of this agreement,” the governor said.
He said the state had also moved swiftly to secure the relevant mining licence to prevent competing interests from taking over the resource.
“Now we have achieved both aims. We are going to keep your factory functional, and we also have interest as licence owners in whatever you are doing in your company. More importantly, the people you have employed will remain employed,” he said.
The governor urged Diamond New Energy to maintain peaceful relations with host communities and contribute to their development, stressing that community engagement was essential to protecting the investment.
Under the agreement, payments due to Nasarawa State will 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 Investment Development Agency (NASIDA), Ibrahim Abdullahi, said the supplementary agreement builds on an exclusive mining cooperation agreement signed between the state and Diamond New Energy in 2024.
According to him, the earlier agreement culminated in the completion of what he described as the largest lithium processing refinery in West Africa.
He said the new agreement would deepen investor confidence and allow the company to continue sourcing lithium materials from the state government’s mining block to feed the refinery.
“This supplementary agreement gives credence to these issues. It further gives confidence to the investor to do even more within Nasarawa State,” Abdullahi said.
He added that the arrangement would support the creation of more jobs, particularly for young people and women in the state.
Abdullahi disclosed that the agreement would provide an immediate financial return of $2 million to Nasarawa State upon signing, with additional revenues expected under its terms.
Representing Diamond New Energy, David Siong said the company remained committed to expanding its operations in Nasarawa, including deeper local processing of mineral resources and employment generation.
“Diamond New Energy always insists on and firmly believes in the further development of resources in Nasarawa, the deep processing of resources, creating employment for the local community, and boosting local economic development,” Siong said.
He pledged the company’s commitment to working with the state government to translate the agreement into concrete economic benefits.
Meanwhile, the 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 explained that the deed transfers the mining rights and interests held by Nasarawa Mining Company in 3.5 mining cadastral units at Endo in Nasarawa Local Government Area to Ganfeng Lithium Industry Limited.
He said the transaction followed a critical review by the parties involved.
The Commissioner for Environment and Natural Resources, Margret Elayo, commended the investors for their continued commitment to the state and expressed optimism that the partnership would encourage further investment in Nasarawa’s mineral resources.
The signing was witnessed by officials from the ministries of Justice, and Environment and Natural Resources, NASIDA, Diamond New Energy and Ganfeng Lithium Industry Limited.
Mundung Solomon
E O (I PRO).
Edited By
ARI, LIMAN AMINU.
HEAD OF CENTRE,
FIC, LAFIA.
