FG Licenses Two Gold Refineries

The federal government has issued operating licence to two gold refineries in its move to increase export to support the nation’s reserves.

Reuters reports that Minister of Mines and Steel Development, Olamilekan Adegbite, disclosed that the licence had been issued, adding that the Central Bank of Nigeria would be the main off- takers.

Adegbite said that the CBN would hold some of the gold in its reserves.  

“We have licensed two refineries in Nigeria. They will refine gold and of course produce bullion that the CBN (Central Bank of Nigeria) can buy at international prices,” he said.

According to the minister, the location of the refineries would be in Abuja and Ogun state.

Kian Smith Trade & Co. Ltd, an indigenous firm had in 2018 received licence to build the country’s first gold refinery. However, the company could not begin operation in 2019, but pledged to commence in 2020.

National Bureau of Statistics had reported in its 2019 GDP report that the metal ore sub-sector of mining and quarry, contracted by -14% in the full year, against the 26.34% of 2018.