FG Denies Seizing British Lithium Project, Accuses Mining Firm of Smear Campaign

The Federal Government has rejected allegations that it confiscated a British-developed lithium mining project and transferred it to Chinese operators, describing the claims as false and part of a campaign to discredit Nigeria.

In a statement released on Sunday, the Ministry of Solid Minerals Development accused a mining firm, Jupiter Ltd, of planning a publicity drive aimed at undermining the country during the state visit of President Bola Tinubu to the United Kingdom.

Segun Tomori, special assistant on media to the Minister of Solid Minerals Development, Dele Alake, said the alleged campaign followed a publication titled “Nigeria Seizes British Lithium Project Under Armed Guard,” which the ministry described as misleading.

According to the ministry, earlier reports suggesting that Nigerian authorities seized a lithium project belonging to a foreign company were unfounded. It also maintained that the government has no legal or contractual relationship with any firm known as Jupiter Lithium.

The statement noted that under the Nigerian Minerals and Mining Act of 2007, mining licences cannot be issued directly to foreign companies. It added that neither the Ministry of Solid Minerals Development nor the Nigeria Mining Cadastral Office has any record of contractual engagement with Jupiter Lithium.

The government’s response came after a press statement dated March 12 by Stephen Davis, chairman of Jupiter Lithium Ltd, which accused Nigerian authorities of revoking its licences and allowing Chinese operators to take control of the project.

In the statement, the company claimed it had spent several years exploring and developing what it described as a major lithium deposit in Nigeria after securing mining rights in 2006. It alleged that after the licences were revoked, security operatives escorted Chinese operators to the site to begin extracting lithium ore, including materials the firm said it had previously discovered and stockpiled.

Jupiter Lithium also argued that the incident raised concerns about investor protection and adherence to the rule of law in Nigeria, especially as President Tinubu prepares to hold discussions with British officials in London.

The firm further suggested that the dispute reflects broader geopolitical competition over strategic minerals such as lithium, which is widely used in electric vehicle batteries and other advanced technologies.

However, when contacted for additional clarification, the company acknowledged receiving inquiries but had not provided further details more than 48 hours later.

Requests for information included the identities of the Chinese companies allegedly operating the project, documentation showing when they were licensed, and evidence that the Nigerian government formally revoked Jupiter Lithium’s mining licence. No response had been provided at the time.

Meanwhile, the Ministry of Solid Minerals Development said the dispute stems from the revocation of mineral titles previously held by Basin Mining Ltd, a Nigerian company reportedly linked to an Australian national, Steve Davis.

According to the government, the licences were withdrawn after the company failed to pay statutory annual service fees required under Nigeria’s mining regulations.

The ministry stated that the outstanding fees amounted to ₦2.494 billion for the 2024 and 2025 fiscal years and covered several mineral titles, including 45454ML, 45117ML, 45118ML, 40532ML and 40533ML. It added that the company had been duly notified of the default before the licences were revoked.

Officials also dismissed claims that the licences were subsequently reassigned to Chinese companies, describing the allegation as entirely false.

The ministry further accused Mr Davis of being involved in several companies operating in Nigeria’s mining sector and alleged that some of these firms obtained mineral licences without undertaking actual mining activities.

According to the government, Mr Davis is listed as a director in several firms, including Comet Minerals Ltd, Basin Mining Ltd, Range Mining Ltd, Northern Numero Ltd, Sunrise Minerals Ltd and Iron Ore Mining Ltd.

Authorities said such practices encourage speculative licence hoarding, preventing genuine investors from developing the sector and contributing to illegal mining activities.

The dispute comes amid growing global interest in Nigeria’s lithium reserves, driven by rising demand for minerals used in renewable energy technologies and electric vehicles.

In recent years, the federal government has intensified efforts to reform the mining sector by tightening regulatory oversight, revoking dormant licences and promoting local value addition.

Government officials say these reforms are intended to curb speculative licence acquisition and attract credible investors capable of developing Nigeria’s mineral resources.

Last year, the government disclosed that lithium processing investments from Chinese companies had exceeded $1.3 billion since the current administration assumed office in May 2023.

According to the Ministry of Solid Minerals Development, firms such as Canmax Technology, Jiuling Lithium, Avatar New Energy Nigeria Company and Asba have invested in lithium processing facilities in the country since September 2023.

Lithium is a key component in rechargeable batteries used in electric vehicles and energy storage systems, making it one of the most sought-after minerals globally as countries accelerate the transition to clean energy.

Despite these opportunities, the mining sector continues to face challenges, including illegal mining and regulatory violations.

Last year, the Nigeria Security and Civil Defence Corps shut down a lithium mining operation in Libata, Kebbi State, over alleged breaches of mining regulations and accusations that the operators defrauded the government of about ₦1.43 trillion.

Investigations have also indicated that illegal lithium mining activities, sometimes aided by compromised officials, have led to significant revenue losses and have been linked to criminal networks in some areas.

Amid the ongoing dispute, the Ministry of Solid Minerals Development said the government would not be pressured into reversing its policies.

The ministry added that Nigeria remains open to investors who comply with its legal and regulatory framework and noted that incentives such as tax waivers on imported mining equipment and the repatriation of profits have been introduced to attract responsible investment.

Officials also urged the public and the international community to treat allegations aimed at undermining reforms in the mining sector with caution.