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Equator Mines Nigeria hopes for $1billion investment

By on October 24, 2011

United Kingdom firm, Savannah Mining Limited and two South African companies – Equator Minis and VML Resources Limited – are to inject about $1billion into a Nigerian firm, Equator Mines Limited.

The investment is for the production of tin in Bauchi, Plateau and Kaduna State, it was learnt at the weekend.

According to the pact between the institutions, about 100,000 ounces of gold are also expected to be exploited from in Kebbi State.

Managing Director, Equator Mines Limited, Gallio E. Dagu, who  disclosed these to reporters in Abuja, said the company is to produce 50,000 tons of tin in the short-term and scale it up to 100,000 tons in the long-term.

“On gold, we intend to produce 50,000 ounces  every month in the short-term. Then, in the long term, when we increase the reserve, we intend to produce about produce 100,000 ounces of smelted ounces every month,” he said.

On value addition to the minerals, Dagbu said Equator Mines Limited has plans to process the concentrate to  72 per cent before export in accordance international standard.

In the long run, however, he said the company would smelt its concentrate to attain full value of $25 per metric ton right from Nigeria.

His words: “But in the long term, we have plans for smelting our concentrate so that instead of exporting the concentrate that will cost just about $18,000, we will smelt and get the full value of the London metal exchange, right here in Nigeria, which now cost about $24 to $25 per metric ton. We have done the analysis and that is the best bet.”