The Federal Ministry of Solid Minerals Development has clarified that the newly announced gold refinery in Lagos is not owned or established by the Federal Government, but is a private investment by Kian Smith Limited, a wholly Nigerian mining company.
The clarification followed a statement by the Northern Elders Forum (NEF) which criticised the location of the refinery in Lagos, alleging that it violated the federal character principle.
The forum had claimed that the Federal Government deliberately sited the facility in the South-West to the disadvantage of northern states.
Reacting to the allegation on Monday, the Ministry described the claim as false and misleading, stressing that the refinery is a private-sector initiative aimed at boosting local gold processing and value addition.
According to the Ministry, the Minister of Solid Minerals Development, Dr. Dele Alake, never stated that the Federal Government owned or financed the refinery.
It added that the minister had clearly explained that several other gold refineries were being developed across the country by different private investors.
“The new gold refinery is the initiative of Kian Smith, a 100 percent privately owned mining company which aims to facilitate the development of the local gold industry through innovative practices,” the statement read.
The Ministry noted that the refinery reflects the Federal Government’s policy on value addition, which discourages the export of raw minerals and promotes local processing and manufacturing.
It explained that the policy, introduced two years ago, has attracted significant foreign investments into the solid minerals sector, including a $600 million lithium processing plant in Nasarawa State, a $400 million rare earth plant also in Nasarawa, and a $200 million ASBA lithium facility in Abuja.
Congratulating the founder and Managing Director of Kian Smith, Ms. Nere Emiko, the Ministry commended her resilience and commitment to delivering the project after years of effort.
The Ministry further expressed disappointment over the NEF’s position, describing it as a failure to conduct due diligence before making public comments.
It argued that the Federal Government has no power to compel private companies to locate their businesses in specific parts of the country, as investment decisions are guided by operational and market considerations.
“The Lagos gold refinery and others across the country are clear testimonies to the success of the ongoing reforms in the solid minerals sector,” the statement added.
The Ministry urged the Northern Elders Forum to support efforts by the administration of President Bola Ahmed Tinubu to diversify the economy and create jobs through private-sector–driven investments.